To become profitable by next fiscal: Reliance MediaWorks

To become profitable by next fiscal: Reliance MediaWorks

New Delhi: Film and entertainment firm Reliance MediaWorks on Monday said it expects to become profitable from the first quarter of next financial year and is targeting a topline growth of up to 30% this fiscal.

The company is also set to announce a rights issue to raise Rs500 crore, primarily to offload debt.

“The company’s EBITDA is healthy at the moment but the bottom line has been impacted due to large capital expenditure on recently commissioned projects of BPO and studio that impacts through depreciation and interest," Reliance MediaWorks CEO Anil Arjun told the news agency.

He said in the current fiscal, the company is expecting a growth of 25-30% in sales.

“In the next four quarters we expect to become profitable as there will be a significant decline in interest and debt in the next one year," Arjun said.

For the financial year ended 31 March 2011, the firm’s consolidated net sales stood at Rs781.46 crore and net loss of Rs328.86 crore.

Arjun also said the company’s proposed Rs500 crore rights issued, which was announced in May, will materialize soon without specifying a timeline.

“The proceeds from the Rs500 crore rights issue will be primarily used to offload debt. The process for the issue is on and it will be soon announced," he added.

The company provides production, post-production and imaging services for films and operates cinema exhibition screens.

“The main thrust this year will be on conversion of content from standard definition to high definition for which we have proprietary tools and technology," he said.

The company has already done restoration of popular international titles such as Citizen Kane, Singin’ In The Rain, Casablanca, Sunset Boulevard, the Indiana Jones trilogy, the original Star Wars trilogy, 20 James Bond films, and numerous classic Disney animated films.

It has also done 3D work for films such as Avatar, Yogi Bear and Titanic.

In India the company is working on restoration projects with National Film Archive of India, Children’s Film Society of India and Nehru Memorial Museum and Library.

The company’s scrips were trading at Rs134 per share, up 2.88% compared to the previous close on the Bombay Stock Exchange.