CSK FY23 profit after tax surges to Rs 52.17 crore

CSK FY23 profit after tax surges to Rs 5,217 lakh

Chennai Super Kings Ltd. (CSK), the franchise owner of the Chennai Indian Premier League (IPL) team, has reported total revenue Rs 29,234.36 lakh for the year ended March 31, 2023. The company’s revenue stood at Rs 34,914.66 lakh in 2021-22.

According to the latest balance sheet released by the unlisted CSK, its profit after tax for 2022-23 stood at Rs 5,217.44 lakh, up from Rs 3,154.11 lakh in the preceding year.
The company’s total comprehensive income stood at Rs 5,226.68 lakh, up from Rs 3,154.38 lakh in the previous year.

The paid-up equity share capital of the company as on 31st March 2023 is Rs 3.08 crore comprising 30,81,53,074 equity shares of Rs 0.10 each.

The annual general body meeting of the company will be held virtually, on September 27.

According to the annual report, Super King Ventures Private Ltd., a subsidiary of the company, commenced its operations and started two academies, one based in Salem and another based in Chennai. It also plans to start academies in other places. “The company had more than 400 students enrolled in the academies with the numbers constantly going up,” it said.

Further, the company has also started ‘Talent Management’ as a new line of business. It will manage the commercial interests of talented professionals in various sports, primarily in cricket, said the annual report. During the year under review, Super King Ventures Private Ltd. reported an operating loss of Rs 645.17 lakh, mainly due to the one-time costs involved in setting up the academies.

CSK has floated a wholly-owned subsidiary in South Africa called Joburg Super Kings (Pty) Ltd. and invested in South Africa’s new T20 league. Joburg Super Kings (Pty) Ltd. was awarded the right to operate a team in Johannesburg. The team finished as semi-finalist. Joburg Super Kings (Pty) Ltd. made an operating loss of Rs 3,302.29 lakh during the year.

The board of CSK, in the meanwhile, has decided to seek shareholder approval in the ensuing annual general body meeting to increase its borrowing limits from Rs 250 crore to Rs 350 crore. It’s not hard to see why. CSK has been venturing into various cricketing activities, including building a state-of-the-art stadium, developing high-performance centres, setting up cricket and other sports academies pan-India, among other activities. In addition, apart from its South African team, it also owns ‘Texas Super Kings’ a Major League Cricket team in the US. All these initiatives require financing, which is being met by availing of short-term borrowings.

“Keeping in view the future plans …. the company is planning to avail requisite financial assistance both in short-term and long-term duration,” the annual report said.