Sunil Punjabi, chief executive officer of Cinemax India, in an interview to CNBC-TV18, spoke about the latest happening in the company and the road ahead......
Sunil Punjabi, chief executive officer of Cinemax India, in an interview to CNBC-TV18, spoke about the latest happening in the company and the road ahead.
Below is the edited transcript of the interview. Also watch the accompanying video.
Q: Are you planning to demerge the theatre exhibition business?
A: The company owns land assets as part of the overall Cinemax India Ltd, so this land will have its own values and the operating company has its own value. So at some level, there is more value for the shareholder to get extracted, and hence, we are splitting the company into and operating company and a land company.
Q: Have you done any kind of valuation for the land that you currently possess and what cinema exhibition could be valued at?
A: The idea was not for getting into valuation and how the valuation will look. As we said, the assets are going to separate and we will have better visibility on the land even from shareholder perspective. So, we have not done independent valuation, but the book values are fairly significant at company level.
Q: Any plans of listing the cinema exhibition?
A: Yes, both the companies will get listed as independent entities. So we are kind of splitting the book value into two and you would have Cinemax India Ltd and the Exhibition Business Ltd; moreover the land business will be listed.
Q: You did around Rs 200 crore in FY11 and your profit was down to around 6 crore. What your revenue profile would look for both the companies separately?
A: From a company perspective, we are growing at around 45-50%. After the split, we will be getting into saying that the land company will have more rent payable from the exhibition companies. Hence, the revenues will not be as significant as the exhibition business. So, the exhibition business will have the large chunk sitting there.
Q: Would the land business be a subset of the exhibition business? Would you be receiving rental income from the exhibition business?
A: Yes, that’s the way it’s structured.
....back
Sunil Punjabi, chief executive officer of Cinemax India, in an interview to CNBC-TV18, spoke about the latest happening in the company and the road ahead.
Below is the edited transcript of the interview. Also watch the accompanying video.
Q: Are you planning to demerge the theatre exhibition business?
A: The company owns land assets as part of the overall Cinemax India Ltd, so this land will have its own values and the operating company has its own value. So at some level, there is more value for the shareholder to get extracted, and hence, we are splitting the company into and operating company and a land company.
Q: Have you done any kind of valuation for the land that you currently possess and what cinema exhibition could be valued at?
A: The idea was not for getting into valuation and how the valuation will look. As we said, the assets are going to separate and we will have better visibility on the land even from shareholder perspective. So, we have not done independent valuation, but the book values are fairly significant at company level.
Q: Any plans of listing the cinema exhibition?
A: Yes, both the companies will get listed as independent entities. So we are kind of splitting the book value into two and you would have Cinemax India Ltd and the Exhibition Business Ltd; moreover the land business will be listed.
Q: You did around Rs 200 crore in FY11 and your profit was down to around 6 crore. What your revenue profile would look for both the companies separately?
A: From a company perspective, we are growing at around 45-50%. After the split, we will be getting into saying that the land company will have more rent payable from the exhibition companies. Hence, the revenues will not be as significant as the exhibition business. So, the exhibition business will have the large chunk sitting there.
Q: Would the land business be a subset of the exhibition business? Would you be receiving rental income from the exhibition business?
A: Yes, that’s the way it’s structured.
....back