STAKEHOLDERS EMPOWERMENT SERVICES ADLABS … · Preferential issue to promoters No preferential...

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STAKEHOLDERS EMPOWERMENT SERVICES

1 | P A G E

SECTOR: ENTERTAINMENT REPORTING DATE: 30TH NOVEMBER, 2017

ADLABS ENTERTAINMENT LTD www.adlabsimagica.com

Adlabs Entertainment Ltd NSE Code - ADLABS TABLE 1 - MARKET DATA (STANDALONE) (AS ON 21ST NOVEMBER, 2017)

Sector - Entertainment NSE Market Price (`) 67.95 NSE Market Cap. (₹ Cr.) 555.45

Face Value (`) 10.00 Equity (` Cr.) 81.15

Business Group – N.A. 52 week High/Low (₹) 93.05/52.50 Net worth (₹ Cr.)* 435.30

Year of Incorporation - 2010 TTM P/E (TTM) N.A. Traded Volume (Shares) 82,074

TTM P/BV 1.28 Traded Volume (lacs) 55.77

Registered Office - Source - Capitaline, TTM - Trailing Twelve Months, N.A. - Not Applicable *As on 30th Sept, 2017

30/31, COMPANY BACKGROUND

Road Taluka Khalapur, Adlabs Entertainment Limited is engaged in the business of development and operations

of theme-based entertainment destinations in India, including theme parks, water parks

and associated activities, including retail merchandising and food and beverages (F&B). The

Company's segments include Tickets, Restaurants, Merchandise, Hotel and Other

Operations. The Company owns and operates an integrated entertainment holiday

destination, IMAGICA, which includes a theme park, a water park, a snow park, a hotel and

other associated activities, such as retail and merchandise, and food and beverages. The

Company's project is branded as Adlabs Imagica for the theme park component and Adlabs

Aquamagica for the water park component. It also owns and operates Novotel Imagica

Khopoli, a theme park-based hotel. It also owns and operates a range of F&B outlets at

Imagica, which include Roberto's Food Court, Red Bonnet, Imagica Capital, as well as Zeze

bar and grill themed on an African Zulu village.

Raigad – 410 203

Maharashtra

Company Website:

www.adlabsimagica.com

Revenue and Profit Performance

The revenue of the Company decreased from ₹ 36.92 crores to ₹

35.86 crores from quarter ending Sep’16 to quarter ending

Sep’17. The Company made a loss of ₹ 56.86 crores in quarter

ending Sep’17 vis-a-vis making a loss of ₹ 43.95 crores in quarter

ending Sep’16.

Source – Money Control

Performance vis-à-vis Market

TABLE 2- Returns

1-m 3-m 6-m 12-m

Adlabs

Entertainment -2.62% 17.35% -11.92% -24.03%

Nifty -0.01% 4.15% 7.68% 25.75%

Source - Capitaline/NSE

-

0.50

1.00

1.50

Nov 16 Jan 17 Mar 17 May 17 Jul 17 Sep 17

Adlabs Entertainment Ltd NIFTY

35.8655.67

36.92

-56.86

-31.18-43.95

-100

-50

0

50

100

Sep'17 Mar'17 Sep'16

Quarterly revenue and Profit (₹ CRORE)

Revenue Profit

http://www.adlabsimagica.com/




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TABLE 3 - FINANCIALS

(₹ Cr.) Sep’17 Mar’17 Sep’16 % Change

Sep ’17 vs Mar’17 Mar’17 vs Sep’16

Net Worth 435.30 499.76 553.71 -12.90% -9.74%

Current Assets 42.35 33.02 39.49 28.26% -16.38%

Non-Current Assets 1,571.52 1,609.16 1,620.58 -2.34% -0.70%

Total Assets 1,613.88 1,642.18 1,660.07 -1.72% -1.08%

Investments 106.17 106.17 106.17 0.00% 0.00%

Finance Cost 31.55 29.91 29.84 5.48% 0.23%

Long Term Liabilities 972.47 990.06 998.04 -1.78% -0.80%

Current Liabilities 206.11 152.36 108.33 35.28% 40.64%

Turnover 35.86 55.67 34.49 -35.58% 61.41%

Profit After Tax -56.86 -31.18 -43.95 N.A. N.A.

EPS (₹) -7.05 -3.90 -5.50 N.A. N.A.

Source - Money Control/Company’s Quarterly Result

AUDIT QUALIFICATIONS

Audit Qualifications in last 3 years: The auditor has not raised any qualification in FY 2014-15, FY 2015-16 & FY 2016-17.

Response Comment

Frequency of Qualifications NA

Have the auditors made any adverse remark in last 3 years? No

Are the material accounts audited by the Principal Auditors? Yes -

Do the financial statements include material unaudited financial statements? No -

TABLE 4: BOARD PROFILE (AS PER ANNUAL REPORT - FY 2016-17)

Regulatory Norms Company

% of Independent Directors on the Board 50% 50%

% of Promoter Directors on the Board - 25%

Number of Women Directors on the Board At least 1 3

Classification of Chairman of the Board - Executive Promoter Director

Is the post of Chairman and MD/CEO held by the same person? - No

Average attendance of Directors in the Board meetings (%) - 91.67%

Composition of Board: As per Regulation 17(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,

2015 "Listing Regulations, 2015", the Company should have at least 50% Independent Directors as the Chairman of the Board

is a Promoter Executive Director. The Company has 50% of Independent Directors and hence, it meets the regulatory

requirements.

Board Diversity: The Company has 8 directors out of which 5 are male and 3 are female.




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TABLE 5 - FINANCIAL RATIOS

Ratios Sep’17 Mar’17 Sep’16

% Change

Sep ’17 vs

Mar’17

Mar’17 vs

Sep’16

Turn

ove

r

Rat

ios

Inventory Turnover 2.61 4.16 2.55 -37.32% 63.10%

Debtors Turnover 14.58 15.55 6.51 -6.26% 138.96%

Fixed asset Turnover 0.02 0.03 0.02 -34.04% 62.55%

Current Asset Turnover 0.85 1.69 0.87 -49.78% 93.04%

Ret

urn

Rat

ios

Operating Profit Margin -0.05 0.21 0.03 -124.41% 584.97%

Net Profit Margin -158.56% -56.01% -127.43% N.A. N.A.

Return on Assets (ROA) N.A. N.A. N.A. N.A. N.A.

Return on Equity (ROE) N.A. N.A. N.A. N.A. N.A.

Return on Capital Employed

(ROCE) N.A. N.A. N.A. N.A. N.A.

Liq

uid

ity

Rat

ios

Current Ratio 0.21 0.22 0.36 -5.19% -40.55%

Quick Ratio 0.14 0.13 0.24 7.65% -46.23%

Cash Ratio 0.13 0.11 0.19 20.32% -44.76%

Working Capital Turnover ratio N.A. N.A. N.A. N.A. N.A.

Solv

ency

Rat

ios Debt to equity ratio 2.45 2.09 1.86 17.29% 12.27%

Interest Coverage Ratio N.A. 0.40 0.04 N.A. 1,003.02%

Trad

ing

Rat

ios Market Cap / Sales 14.88 11.27 22.99 32.06% -51.00%

Market Cap/ Net Worth 1.23 1.26 1.43 -2.34% -12.37%

Market Cap/PAT N.A. N.A. N.A. N.A. N.A.

Market Cap/EBITDA N.A. 53.02 741.11 N.A. -92.85%

Source - Money Control/ Company’s Quarterly Result

TABLE 6 - TRADING VOLUME

Particulars Sep’17 Mar’17 Sep’16

% Change

Sep ’17 vs

Mar’17

Mar’17 vs

Sep’16

Trading Volume (shares) (avg. of 1 qtr) 6,38,293 4,70,871 8,13,878 35.56% -42.14%

Trading Volume (shares) (high in 1 qtr) 50,66,018 61,53,726 1,47,39,970 -17.68% -58.25%

Trading Volume (shares) (low in 1 qtr) 1,01,798 1,13,544 26,999 -10.34% 320.55%

Ratio - High/low trading volume 49.77 54.20 545.95 -8.18% -90.07%

Ratio - High/average trading volume 7.94 13.07 18.11 -39.27% -27.84%

Source - Capitaline




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TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS

Sep-17 Mar-17 Sep-16 Comments

Shar

eho

ldin

g (%

)

Promoter shareholding 54.37 55.22 57.01 • The promoter shareholding decreased from

57.01% as on 1st Oct, 2016 to 54.37% as on

30th Sept, 2017 due to preferential Allotment

of 12,48,684 number of shares to Non-

Promoter Shareholders.

• The shareholding of public institution

decreased from 13.40% to 7.90% and that of

public others increased from 29.59% to

37.73% during 1st Oct, 2016 to 30th Sept, 2017.

• The promoters have pledged 63.27% of their

shareholding.

Public - Institutional

shareholding 7.90 11.27 13.40

Public - Others

shareholding 37.73 33.51 29.59

Non-Promoter Non-

Public Shareholding 0.00 0.00 0.00

Source - NSE

MAJOR SHAREHOLDERS (AS ON 30TH SEPTEMBER 2017)

S. No. Promoters Shareholding S. No. Public Shareholders Shareholding

1 Thrill Park Limited 50.71% 1 NYLIM Jacob Ballas India (FPI) IV LLC 3.34%

2 Manmohan Shetty 3.66% 2 NYLIM Jacob Ballas India Holdings IV 3.13%

3 SBI Contra Fund 2.09%

Source - NSE

TABLE 7 (B): OWNERSHIP & MANAGEMENT RISKS

Market Activity of Promoters The promoters of the company sold 14,25,000 shares during FY 2016-17.

Preferential issue to promoters No preferential issue of shares was made to the promoters during FY 2016-17.

Preferential issue to others The company issued 12,48,684 shares each to Non-promoters on a preferential

basis during FY 2016-17.

GDRs issued by the Company The Company did not issue any GDRs during FY 2016-17.

Issue of ESOPs/Issue of shares other

than Preferential allotment

The Company did not issue any shares to the employees under its ESOP Scheme FY

2016-17.

Source - Annual Report FY 16-17

TABLE 8: PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

Sr. No. Name and Description of main products / services % to Total turnover of the Company

1 Amusement Park 85.75

2 Hotel 14.25

Source - Annual Report FY 16-17




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Glossary

Equity: The equity shares capital of the Company

Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholders’ funds of the Company

Turnover: The revenue earned from the operations of the Company

EPS: Earning Per Share is net profit earned by the Company per share

𝐸𝑃𝑆 =Profit After Tax

Number of outstanding shares

P/E ratio: It is the ratio of the Company’s share price to earnings per share of the Company

𝑃/𝐸 𝑟𝑎𝑡𝑖𝑜 =Price of each share

Earnings per share

Current Assets: Cash and other assets that are expected to be converted to cash in one year

Fixed Assets: assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land,

buildings, and equipment

Total Assets: Current Assets + Fixed Assets

Investments: An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in

the future.

Finance Cost: The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges

incurred during the year in relation to borrowed money.

Long Term Liabilities: Long-term liabilities are liabilities with a maturity period of over one year.

Current Liabilities: A company's debts or obligations that are due within one year.

Inventory Turnover ratio: Inventory Turnover is a ratio showing how many times a company's inventory is sold and replaced

over a period.

𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Inventory

Debtors Turnover: Accounts receivable turnover is an efficiency ratio or activity ratio that measures how many times a business

can turn its accounts receivable into cash during a period

𝐷𝑒𝑏𝑡𝑜𝑟𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Accounts recievables

Fixed Asset Turnover: The fixed-asset turnover ratio is a financial ratio of net sales to fixed assets

𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Fixed Assets

Current Asset Turnover: The current-asset turnover ratio is a financial ratio of net sales to fixed assets

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Current Assets

Operating Profit Margin: Operating margin is a measurement of what proportion of a Company’s revenue is left over after

paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Company’s operating

income (also known as “operating profit”) during a given period by its sales during the same period.

𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =Operating profit

Sales Turnover

Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =Net profit

Sales Turnover




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Return on Assets: ROA tells you what earnings were generated from invested capital (assets)

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐴𝑠𝑠𝑒𝑡𝑠 =Net profit

Total Assets

Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholders’

equity.

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐸𝑞𝑢𝑖𝑡𝑦 =Net profit

Net worth

Return on Capital Employed: Return on capital employed (ROCE) is a financial ratio that measures a company's profitability

and the efficiency with which its capital is employed.

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑑 =Net profit

Total Debt + Equity share capital

Current ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts

over the next 12 months. It compares a firm's current assets to its current liabilities.

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑟𝑎𝑡𝑖𝑜 =Current Assets

Current Liabilities

Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities.

𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =Current Assets − Inventories

Current Liabilities

Cash ratio: The ratio of the liquid assets of a Company to its current liabilities.

𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =Current Assets − Inventories − Account Recievables

Current Liabilities

Working Capital Turnover ratio: The working capital turnover ratio is also referred to as net sales to working capital. It indicates

a Company's effectiveness in using its working capital.

𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟

Current Assets − Current Liabilities

Debt to Equity ratio: The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of

shareholders' equity and debt used to finance a company's assets.

𝐷𝑒𝑏𝑡 𝑡𝑜 𝐸𝑞𝑢𝑖𝑡𝑦 𝑟𝑎𝑡𝑖𝑜 =𝑆ℎ𝑜𝑟𝑡 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡 + 𝐿𝑜𝑛𝑔 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡

𝑁𝑒𝑡 𝑊𝑜𝑟𝑡ℎ

Interest Coverage ratio: The Interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a

Company can pay interest on outstanding debt.

𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐶𝑜𝑣𝑒𝑟𝑎𝑔𝑒 𝑅𝑎𝑡𝑖𝑜 =𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝐵𝑒𝑓𝑜𝑟𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑛𝑑 𝑇𝑎𝑥

𝐹𝑖𝑛𝑎𝑛𝑐𝑒 𝐶𝑜𝑠𝑡

Market Cap/Sales ratio: Market Cap/sales ratio, Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is

calculated by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per-

share stock price by the per-share revenue.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑆𝑎𝑙𝑒𝑠 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟

Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Company’s market cap to net worth.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑁𝑒𝑡𝑤𝑜𝑟𝑡ℎ 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑁𝑒𝑡𝑤𝑜𝑟𝑡ℎ

Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Company’s market cap to net profit.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑃𝐴𝑇 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑛𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡

Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Company’s market cap to EBITDA.


http://www.investopedia.com/terms/i/invested-capital.asp

http://www.investopedia.com/articles/stocks/05/04405.asp

https://en.wikipedia.org/wiki/Stock

https://en.wikipedia.org/wiki/Market_cap

https://en.wikipedia.org/wiki/Stock



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𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝐸𝐵𝐼𝑇𝐷𝐴 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝐸𝐵𝐼𝑇𝐷𝐴

Trading Volume (shares) (avg. of 1 year): Average number of shares/day traded in 1 year

Trading volume (shares) (high in 1 year): Highest number of shares/day traded in 1 year

Trading volume (shares) (minimum in 1 year): Lowest number of shares traded on any one day in 1 year




8 | P A G E



DISCLAIMER

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mailto:[email protected]

mailto:[email protected]

http://www.sesgovernance.com/

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