Cineline was the original name that we had conceptualised way back in 2002, before we switched over to Cinemax for our exhibition business.
As you are aware, we demerged our exhibition business due to highly uncertain nature of the business. As exhibitors, we can provide the top-class facilities for our audiences in form of latest technology, relaxing and comfortable ambience, the best of food and beverages at our multiplexes. All this is important for a wholesome entertainment experience at any multiplex. However, what is not in our control is the quality of content of the films. The primary driver of footfalls for a multiplex is always the content in the films being exhibited, and it is this fluctuating quality of films that creates an enormous uncertainty for the exhibition business. For example, in the year 2010, there were only 2 films that crossed the Rs. 100 crore mark, and in the year 2011, only 5 films could achieve this bench-mark. Moreover, with the collection window shrinking to first and second weekends, the business was becoming increasingly exposed to high risks
This uncertain nature of the exhibition business was also affecting the overall business of the Company, which is renting of commercial properties. The annuity based, stable income generated from rentals were being adversely affected by the fluctuations of the exhibition business. In light of this, the exhibition business of the Company was demerged.
The Company currently has a largely steady and secure business of renting immovable properties on a fixed rental basis. The Company owns Nine (9) multiplexes that are all located in and around Mumbai. These are all leased out the largest film exhibitors on a long-term arrangement that assures the Company a fixed rent.
In addition to the Nine (9) multiplexes, the Company also owns Eternity mall in Nagpur, which is entirely occupied and yields a steady rental income for the Company to the tune of Rs. 1206.39 Lacs / comprising 63.50 percentage of total revenues. In addition, this property also generates revenues in the form of Common Area Maintenance (CAM) as well as attractive Advertising Income, which contributes approximately 18.88 per cent of the total revenues.
The Company also owns and operates two windmills in Revangaon (Maharashtra) and Visawada (Gujarat), with a capacity of 1.65 MW and 0.60 MW respectively. During the year, revenues from sale of power contributed about 9.16 per cent of the total revenues.
The Company had a satisfactory year in terms of its performance during the year. The key financial highlights for the year are :
Total Revenue from Operations for the year was Rs. 1,899.56 lacs
EBITDA for the year was Rs. 1,344.92 lacs
PBT and PAT for the year were Rs. 533.49 lacs and Rs. 384.37 lacs respectively
Going forward, we have ambitious plans to expand our business through more acquisitions of properties. We believe that our model of owning and renting a property is one which has the dual advantage of secured yield on the property as well as capital value appreciation. Moreover, we are an established player in the real-estate space, with a proven track-record of identifying potentially successful commercial properties, especially in and around Mumbai and the western part of the country. We also deep understanding of the media and entertainment space in India, which itself is undergoing a massive transformation driven by digitisation. This specialised skill-sets and domain knowledge are what is driving us today as we explore, analyse and evaluate many promising ventures and projects.
We are positive, we are confident, and we are committed to take Cineline further and higher as we eagerly look ahead at NEW HORIZONS with NEW HOPES.