EROS INTERNATIONAL

The company had a reasonably good Q3FY15 with consolidated total income rising 13% at Rs.492 crore. Though direct cost rose 10% (YoY) and other expenses rose 111%, EBIT was up 8% at Rs.146 crore. Margins fell from 31.2% to 29.8%. There was a 32% jump in interest cost but a 27% decline in tax, helped the company end the quarter with a 19% jump in net profit at Rs.109 crore.

12 films were released during Q3 of which 3 were big budget and theatrical revenues were driven by release of Lingaa(multi-lingual), Kaaththi (Tamil), Action Jackson and Happy Ending. During the quarter, the company has tied up with RailTel Corp of India to provide ErosNow Broadband streaming services to railway passengers.  In Q4, earnings are expected to be driven by movies like Badlapur, NH10, Uttama Villain and mediocre collections from Shamitabh and Tevar. Its 9MFY15 net profit stood at Rs.195 crore and that for FY14 was at Rs.200 crore; clearly it will end FY15 on a super hit note with one more quarter to go.