2EY FCCI, M&E Report
Segment wise growth 2022 vs. 2021 (values in INR in billion)
(Source- EY FCCI, M&E Report)
Outlook
The Media and Entertainment (M&E) sector in India is expected to maintain its
growth trajectory, with an estimated expansion of 11.5% in 2023. This growth is projected
to bring the total value of the sector to INR 2.34 trillion (US$29.2 billion).
Over the course of three years, the M&E sector is forecasted to grow at a CAGR of
10.5%, resulting in an addition of INR 734 billion to reach value of INR 2.83 trillion by
2025. The primary drivers of this growth will be the digital, online gaming, and
television segments, collectively contributing to 65% of the overall growth. Additionally,
animation and visual effects (VFX) will contribute to 11% of the growth, followed by live
events and films, each contributing 8% to the sectors expansion.3
Indian film entertainment industry
The filmed entertainment industry in India witnessed a significant recovery, reaching
90% of its pre-pandemic levels. The domestic film releases doubled compared to the
previous year, leading to gross box office revenues crossing INR 100 billion, marking the
second-highest milestone in the countrys history. Additionally, 335 Indian films were
released abroad during this period.
However, broadcast rights faced subdued demand due to lower ratings of film channels.
On the other hand, digital rights rationalised and abandoned their direct-to-OTT premiums,
as larger films reverted to theatrical releases.
It is anticipated that this segment will continue to grow, reaching INR 228 billion by
2025. This growth will be driven by higher per capita income, expanding the cinema
audience base to 120 to 150 million, and offering segmented offerings, catering to
distinct audience sets across various markets and price points.
In 2022, a total of 1,623 movies were released across languages, representing a 9%
increase compared to 2019 levels. Among these, the highest number of films were released
in Telugu (278) and Kannada (233), followed by Tamil (288) and Malayalam (199). However,
Hindi saw only 194 film releases.
The total screen count was estimated at 9,382, which is around 2% lower than before the
pandemic, according to UFO Moviez estimates. Notably, after three decades, Srinagar
witnessed the opening of its first multiplex cinema, designed by INOX as an effort to
bring entertainment opportunities to the youth of Jammu and Kashmir.4
Film releases were at 200% in 2022 as compared to 2021.
3EY FCCI, M&E Report 4EY FCCI, M&E Report
Film releases
Mutual fund industry
According to the Morning Star report, the Indian market has shown resilience despite
the lackluster performance of domestic mutual funds, except for sectoral and thematic
plans, which experienced the highest inflows during the fourth quarter of FY2022-23.
During the last three months of the FY23, open-end mutual funds witnessed net outflows of
INR 1,839 crores. The report highlights that the industry faced challenging times in the
first nine months of 2022. In the fourth quarter, sectoral and thematic funds attracted
the highest inflows, followed by small-cap and mid-cap funds. In terms of weight,
large-cap and flexi-cap categories continued to lead the inflows into mutual funds, with
mid-cap funds following closely.5
As of June 30, 2023, the Assets Under Management (AUM) of the Indian Mutual Fund
Industry reached INR 44,39,187 crore. This represents a significant growth compared to INR
8.11 trillion recorded on June 30, 2013, marking an increase of more than 5 times in a
period of 10 years. Furthermore, the total number of accounts (folios) in the industry as
of June 30, 2023, amounted to 14.91 crore (149.1 million). Among these, the number of
folios under Equity, Hybrid, and Solution Oriented Schemes, where the primary investment
is from the retail segment, was approximately 11.91 crore (119.1 million).6
Outlook
The future of mutual funds in India appears promising. In the past, there were around
200 schemes offered by various institutions, but this number has now grown exponentially
to reach 1000 schemes. This evolution is expected to attract a larger pool of investors.
The rapid development of the fintech industry enables even individuals in remote areas to
access financial markets effortlessly.
The availability of diverse schemes is advantageous as it caters to a wide range of
investors with varying risk appetites. Despite facing challenges such as inflation,
liquidity tightening by global central banks, interest rate hikes, and geopolitical
tensions in 2022, the mutual fund industry in India displayed a steady growth rate.
Further, it is projected that the mutual fund industry in India will experience a CAGR
growth of 21.5% till the year 2027. 7
Company overview
GFL Limited operates as a holding company of its wholly owned subsidiary INOX
Infrastructure Limited. It holds investments in PVR Inox Limited, one of the countrys
prominent multiplex chains. Additionally, the Company is actively involved in the business
of Mutual Fund distribution. This integrated structure allows GFL Limited to leverage the
strengths and resources of its subsidiary company, INOX Infrastructure Limited while
maintaining a significant presence in the entertainment industry through its investments
in PVR Inox Limited. Furthermore, the Companys engagement in the Mutual Fund distribution
business adds another dimension to its diversified portfolio, enabling it to cater to a
wider range of financial services.
Human resources
The human resources department of GFL plays a pivotal role in driving the Companys
success. The Company is fully committed to attracting and retaining highly skilled
professionals through rigorous and meticulous recruitment processes. Employees receive
comprehensive training and development programs that aim to empower them to excel in their
respective roles. Employee welfare and well-being are of utmost importance, and the
Company places significant emphasis on creating a safe and supportive work environment,
fostering open communication and conducting regular feedback sessions. Moreover, GFL
actively engages in initiatives that enhance employee engagement, fostering a culture of
continuous learning and improvement. Additionally, the Company adheres strictly to all
labour laws and regulations, maintaining a strong commitment to promoting fair treatment,
diversity, and equal opportunities for its workforce.
5https://www.outlookindia.com/business/indian-mutual-fund-industry-resilient-despite-underperformance-in-q4-report-news-285247
6https://www.amfiindia.com/indian-mutual
7https://www.icicidirect.com/ilearn/mutual-fund/articles/mutual-funds-in-india
As of March 31, 2023, the Company has 5 employees.
Financial performance
Key standalone financial highlights
(H in Lakhs)
| Particulars |
FY 2023 |
FY 2022 |
| Revenue from operations |
322.43 |
175.89 |
| EBITDA |
97.58 |
77.47 |
| PBT |
2,46,771.06* |
146.98* |
| PAT |
2,32,408.07 |
96.81 |
| Net worth |
2,63,644.96 |
31,215.55 |
*Includes exceptional items of INR 2,46,673.67 lakhs (Previous year 69.51 lakhs)
Key standalone financial ratios
H ( in Lakhs)
| Particulars |
Formulas |
FY 2023 |
FY 2022 |
| Current ratio (in times) |
Current assets/ Current liability |
1.07 |
0.76 |
| Operating profit margin (in %) |
EBIT/Total income |
30.21% |
35.52% |
| Net profit margin (in %) |
PAT/Total income |
19.45% |
12.52% |
| Return on net Worth (in %) |
PAT/Average net worth |
88.15% |
0.31% |
After merger of the Groups subsidiary erstwhile INOX Leisure Limited and PVR Limited
(now known as PVR INOX Limited), the Groups theatrical exhibition is discontinued from
01.01.2023 hence the financial ratios at consolidated are not comparable with the previous
year.
At standalone basis there are no significant changes in key financial ratios (i.e.
change of more than 25%) from previous year except for current ratio which has increased
from 0.76 to 1.07.
Due to better operating income and increase in return on net worth from 0.31% to 88.15%
mainly on account of exceptional item in the current year.
Risk management
Risk management holds paramount importance within the operational framework of GFL
Limited. The Company embraces a comprehensive and proactive approach to identifying,
assessing, and mitigating potential risks across all facets of its business operations.
Regularly conducted rigorous risk assessments empower GFL to pinpoint vulnerabilities and
devise robust risk mitigation strategies. The Company vigilantly monitors market
fluctuations, industry trends, regulatory changes, and financial exposures to proactively
address potential challenges. Additionally, GFL strategically maintains a diversified
investment portfolio to effectively reduce the impact of market volatility. By
prioritising risk management, the Company effectively safeguards its assets, ensures
financial stability, and fosters a resilient organisational culture, further reinforcing
its commitment to delivering reliable services amidst the ever-evolving landscape of the
entertainment and financial services sectors.
Internal control system
The Company has formulated and executed internal financial control systems as
necessitated by its business operations. These controls undergo regular scrutiny by
internal auditors, encompassing all vital business functions. Notable audit findings,
along with corresponding action plans, are reported to the Audit Committee, which oversees
the Companys overall control environment. Due to its investment in subsidiaries, the
Company faces minimal risks. However, given the Companys scale and nature, it takes a
proactive approach to systematically recognise and address all potential business risks.
Cautionary statement
This document includes forward-looking statements regarding GFL Limiteds anticipated
future events and financial as well as operating outcomes. As inherent in such statements,
the Company has made assumptions and is exposed to inherent risks and uncertainties. There
exists a significant risk that these beliefs, predictions, and other forward-looking
statements may not materialise accurately. Readers are advised to exercise caution and
refrain from placing undue reliance on these statements, as numerous factors could result
in actual future results and events differing materially from those expressed in the
forward-looking statements. Consequently, this document is subject to a disclaimer and is
qualified in its entirety by the assumptions, qualifications, and risk factors stated in
GFL Limiteds Managements Discussion and Analysis in the Annual Report for FY 2022-23.
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