You are here » Home » Companies » Company Overview » Cineline India Ltd

Cineline India Ltd.

BSE: 532807 Sector: Media
NSE: CINELINE ISIN Code: INE704H01022
BSE 00:00 | 05 Jun 27.65 2.55
(10.16%)
OPEN

26.30

HIGH

28.70

LOW

25.00

NSE 00:00 | 05 Jun 27.80 3.00
(12.10%)
OPEN

25.00

HIGH

28.80

LOW

25.00

OPEN 26.30
PREVIOUS CLOSE 25.10
VOLUME 44610
52-Week high 45.95
52-Week low 16.30
P/E 12.23
Mkt Cap.(Rs cr) 77
Buy Price 26.15
Buy Qty 100.00
Sell Price 28.95
Sell Qty 50.00
OPEN 26.30
CLOSE 25.10
VOLUME 44610
52-Week high 45.95
52-Week low 16.30
P/E 12.23
Mkt Cap.(Rs cr) 77
Buy Price 26.15
Buy Qty 100.00
Sell Price 28.95
Sell Qty 50.00

Cineline India Ltd. (CINELINE) - Chairman Speech

Company chairman speech

Cineline has built a solid portfolio of revenue-generating assets in key markets whichprovides stability and sustainability to our business. We will continue to explore moresuch opportunities to maximise value for all our stakeholders.

Dear Shareholders

I am pleased to present to you the annual report of your Company. FY 2018-19 has beenan eventful year globally especially in terms of geopolitical scenario. There wasescalating trade tensions between the US and China as well as increasing tendencies ofinward-looking policies among major economies.

Indian economy though remained steady supported by the strong fundamentals policyand economic reforms and upswing in consumption. There was gradual stabilisation inmarkets with harmonisation of GST-related issues and other reformative initiatives. Allmajor economic parameters remained stable through the year with inflation being undercontrol. Liquidity though was a challenge to counter which the RBI changed its monetarystance to accommodative with three successive rate cuts of 25 basis points. Additionallythe Government also pumped in funds into the public sector banks along with bringing downtax rates to boost consumption. There is a strong push from the Government to make India aUSD 5 trillion economy by FY 2024-25. This is evident in the growing investments intechnology and digitisation infrastructure and lately towards addressing the imminentthreats of pollution and water which pose a major hindrance to economic development.

In our operational space - the real estate industry - though players have been facingtroubles post RERA and GST implementation they have brought with the fair share ofpositiveness. They have brought in more transparency in the sector with fly-by-nightdevelopers' existing operations and speculative demand giving way to real demand. This isa good sign for the industry. As the industry was adjusting to these changes another setemerged in FY 2018-19. This time in the form of drying of funding triggered by liquidityissues in several top-rated non-banking finance companies (NBFCs).

However a positive factor for us has been that the attractiveness of the commercialsector continues to be relatively higher. There is significant maturity in terms ofinvestors looking at this segment as compared to residential segment and how the capitalis flowing into it.

Coming to performance your Company I think we have done considerably well despitethe challenges and this exemplifies the strength of business model. Our total revenueincreased 8% from ' 3234.53 Lacs in FY 2017-18 to ' 3493.94 Lacs in FY2018-19. Of this ' 2075.78 Lacs revenues was from retail business '181.38 Lacs from energy business and ' 165.82 Lacs from advertising and carparking. Coming to profitability our Profit Before Tax (PBT) increased marginally by1.73% from ' 1328.53 Lacs in FY 2017-18 to ' 1352.57 Lacs in FY 2018-19.Net Profit however was under pressure and declined by 6.64% from ' 1054.81 Lacsin FY 2017-18 to ' 985.59 Lacs due to increased tax incidence.

We believe we have a well-balanced portfolio which provides good revenue visibilityand stability to our business and enabled us to deliver sustained performance over theyears. In the retail space we generate majority of revenue from rental income. We ownnine theatres which have been leased out to PVR Cinemas on a long-term basis.Additionally we own two commercial properties in Boomerang and Kanakia Wall Streetsituated in Chandivali Powai and Andheri East respectively in Mumbai and a mall(Eternity Mall) in Nagpur's prime area which is a retail hotspot. The mall has 100%occupancy and houses leading domestic and international brands. In addition to rentalsour commercial properties generate ancillary revenues in the form of parking andadvertisement. Our model of owning and leasing out of properties provide us the dualadvantage of steady cash flows and capital appreciation.

In our energy business we own and operate two windmills one each in Vishwada Gujaratand Revangaon Maharashtra with a total power generation capacity of 2.25 MW. With risingenergy demand along with commensurate rise in pollution the demand for clean energy isgrowing exponentially in India. This not only ensures strong demand for the energy that wegenerate but also provides an important diversification to our operations.

As we move forward our focus will be to expand business in a manner to make it morederisked and sustainable in the longer run while creating more value for all ourstakeholders. We have inherent knowledge and expertise of the real estate sector in thewestern parts of the country which will be critical in exploring prospectiveopportunities. We are confident of long-term prospects of the real estate industry on theback of India's improving macro outlook strong infrastructure impetus and a recovery inprivate consumption and investment.

I thank all our stakeholders for their continued support and trust in us. The peoplefor the passion they bring into this organisation the shareholders for investing in usthe bankers for funding us and the business partners for their sustained relations withus.

Warm regards

Rasesh Kanakia

(DIN: 00015857)