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Cineline India Ltd.

BSE: 532807 Sector: Media
NSE: CINELINE ISIN Code: INE704H01022
BSE 00:00 | 18 Jun 49.55 -0.55
(-1.10%)
OPEN

50.95

HIGH

53.45

LOW

47.65

NSE 00:00 | 18 Jun 49.55 -0.65
(-1.29%)
OPEN

50.50

HIGH

53.35

LOW

47.10

OPEN 50.95
PREVIOUS CLOSE 50.10
VOLUME 40964
52-Week high 53.45
52-Week low 21.15
P/E 17.51
Mkt Cap.(Rs cr) 139
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 50.95
CLOSE 50.10
VOLUME 40964
52-Week high 53.45
52-Week low 21.15
P/E 17.51
Mkt Cap.(Rs cr) 139
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Cineline India Ltd. (CINELINE) - Chairman Speech

Company chairman speech

DEAR SHAREHOLDERS

I am pleased to present our FY 2019-20 annual report. This has been another year wherewe continued to deliver steady performance and progressed to meet most of our goalsdespite the challenges. While I am delighted of how we responded I am also grieved of thesudden disruption caused by the COVID-19 pandemic. I have my sympathies with thoseimpacted. But the ray of hope is still ignited on seeing the rapid pace with which medicalcommunity is working and the way all countries has come together to fight it.

The pandemic and recessionary trend triggered by it is unprecedented. Globally allmajor economies are witnessing contraction due to lockdowns and reduced economic activity.India too is facing challenges with consumption falling significantly and manufacturingactivities stalling.

However on the positive side the fiscal support provided by the Government theaccommodative monetary policy stance by the RBI and recovery in external demand arecontributing to faster than expected recovery. This is evident in the uptick witnessed inall major high frequency data indicators in the second half of FY 2020-21. In October2020 the India Manufacturing Purchasing Managers' Index rose to 58.9 in October 2020highest since 2008 auto sales recovered power generation grew 14.5% on annual basis ande-way bills and GST collections surged. The Government's sustained focus on infrastructuredevelopment digitisation and uplifting farmers and rural economy is likely to continuefuelling the Indian economic growth engine.

THE YEAR AT CINELINE

Before taking through our performance it would be important to understand theoperating context under which we delivered it.

The past couple of years have been challenging for the real estate industry due to aseries of structural reforms. Implementation of Goods and Services Tax (GST)establishment of Real Estate Regulatory Authority (RERA) while reinforcing the trusttransparency and fiscal discipline in the sector has also curbed growth and liquidity ofdevelopers. There has been a marked slowdown in new project launches. As the industry wasstarting to see green shoots in FY 2019-20 the pandemic struck causing further woes.

However we responded to the situation with agility. Our sound business ethicsexpertise and knowledge and risk management approach helped us to tide through thechallenge. Our well-balanced diversified portfolio comprising rental generating realestate assets and renewable energy assets ensure sustained revenue generation.

Our total revenue increased 20.52% from Rs.3493.94 Lacs in FY 2018-19 to Rs.4221.01Lacs in FY 2019-20. Revenue from retail business i.e. rental income from real estateassets increased 6.27% to Rs.2391.62 Lacs. We own nine theatres two commercialproperties in Boomerang (Chandivali) and Kanakia Wall Street (Andheri East) respectivelyand a mall (Eternity Mall) in Nagpur's prime area. While the theatres are leased to PVRLimited on a long-term the commercial properties and mall remained almost 100% occupiedacross the year. Revenue from car parking and advertisement (ancillary revenue fromcommercial property) stood at Rs.167.51 Lacs in FY 2019-20 an increase of 1.01%. Ourapproach to leasing out of properties not only ensures steady cash flows but also capitalappreciation in the long run.

Revenue from the energy business declined 3.92% to Rs.174.53 Lacs as we sold 3746047units of power generated from our windmills at Vishwada Gujarat and RevangaonMaharashtra. We continue to witness sustained demand for power driven by rising demand ofclean and green energy.

EBITDA for the year was Rs.2678.32 Lacs in comparison to Rs.2677.61 Lacs for previousfinancial year. PAT however declined 28.97% to Rs.764.13 Lacs led by an increase inexpenses mainly due to increase in depreciation and CAM/ Property tax of Wallstreet unitsfor which possession was taken at the end of last financial year.

LOOKING FORWARD

The pandemic has undeniably impacted the real estate sector. Though this is more oftemporary blip and the demand is expected to revive once the pandemic gets under controland economic activity normalises. Firms like Goldman Sachs and Morgan Stanley areextremely bullish on the prospects of India projecting the economy to grow near 10% in FY2020-21. This will definitely provide impetus to the real estate sector especially theretail segment that we are into.

At Cineline we are relatively well-placed in the present scenario. Our well-diversified portfolio and strong financial position provides cushion against unprecedenteddownturn. Presence of long-term lease agreements in portfolio also ensures us revenuevisibility.

Moving forward we are strongly focussed on growing our annuity income and ensuringprofitable growth. Our teams are continuously evaluating assets that can be acquired atattractive valuation and deliver high return. In line with this strategy we are exploringhigh- growth potential markets in existing as well as in new geographies. This will alsoprovide us geographical diversification. We have our eyes sharply focussed on thebottomline towards which multiple cost optimisation initiatives have been initiated acrossthe organisation.

I am grateful to all our stakeholders who have been with us in this journey. I thankthem for continuing to believe us and helping us in all that we have achieved even inthese difficult times. I am sure together we can overcome and achieve more in the comingyears.

Warm regards

Rasesh Kanakia

(DIN:00015857)

Chairman.