Prime Focus Ltd posts consolidated net loss of Rs62.30cr in Q4FY18 vs. net profit of Rs46.06cr in Q4FY17 : Misses Estimates

The company’s consolidated revenue stood at Rs587.09cr, down 10.19% yoy and 3.69% qoq.

May 31, 2018 05:05 IST India Infoline Research Team

Prime Focus Ltd Q4FY18

Consolidated Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 587.09 [10.2]
EBITDA 94.75 [30.3]
EBITDA Margin (%) 16.14 [466]
Net Loss (adjusted) 62.30 -
***EBITDA margin change is bps


Reco. Price


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Prime Focus Ltd’s revenue declined by 10.2% yoy and 3.7% qoq to Rs587.1cr. EBITDA stood at Rs94.8cr, down 30.3% yoy and 21.4% qoq. EBITDA margin contracted by 466bps yoy and 365bps qoq to 16.14%. Adjusted Net loss of the company stood at Rs62.3cr vs. Adjusted Net profit of Rs46.1cr yoy and Adjusted Net loss of Rs7.1cr qoq. Company missed the Revenue and Adjusted Net profit estimates of Rs720.9cr and Rs45.6cr respectively.
  • Employee cost stood at 59.4% of sales vs. 54% yoy impacting the EBITDA margin.
  • Other expenses stood at Rs19.5% of sales vs. 16.4%, which impacted the profitability of the company.
  • Depreciation and amortization expenses grew by 31.7% yoy to Rs66.1cr.
  • Finance cost grew by 121.4% yoy to Rs93.1cr.

Con Call Highlights
  • In FY18, tech-enabled services’ order book stood at US$230mn vs US$200mn yoy.
  • Revenue growth is driven by new initiatives like OTT/TV and feature animation.
  • Finance cost for FY18 includes Rs33.1cr of redemption premium on NCDs as per the new regulations. Earlier, this premium on NCDs were always charged through net worth directly up to FY17.
  • Management expects double-digit top line growth for all the three segments in FY19E.
  • Management is not expecting any kind of restructuring in near term.
  • Capex in FY18 stood at Rs290crs and outlook FY19E is Rs200cr.
  • Capex of FY18 included Rs209cr for setting up Montreal and Chennai facilities for its for the creative services business. Currently, both the facilities are operational.
  • FY18 operating cash flow stood at Rs118cr after considering working capital changes.

Technical View:

Prime Focus Ltd is currently trading at Rs85.25, down by 5.8 points or 6.37% from its previous closing of Rs91.05 on the BSE. The scrip opened at Rs90.45 and has touched a high and low of Rs90.45 and Rs85 respectively. So far 53,223 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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