Chennai Super Kings: The Business Behind The Sports And Entertainment

CSK's revenue & profit are lower this year due to a Rs 54 crore lower payout from BCCI in FY20.
RK Damani, founder of DMart, increased his stake by 0.55% in this financial year.
The company also contributed Rs 20 crore to Electoral Bonds.

In the IPL season 2019, Chennai Super Kings finished runner-up against Mumbai Indians. However, this is not the story of their sporting season but that of their business world. A reading of CSK's FY20 annual report throws light on some interesting facts.

Hit by lower payout from BCCI

The company reported a 15 percent drop in revenues at Rs 350 crore versus Rs 410 crore in FY19. This decline was largely on account of the reduction of income from the grant of central rights from the BCCI (Board of Control for Cricket in India).

The Income from Grant of Central Rights was down from Rs 294 crore to Rs 240 crore. This Rs 54 crore drop reflected in the company’s other parameters as well. The franchise’s operating profit declined 57 percent to Rs 68 crore and the net profit dropped from Rs 111 crore to Rs 50 crore.

Brand CSK continued to garner higher sponsorship revenue though. The cricket franchise’s sponsorship income increased 24 percent to Rs 68 crore. Payouts to the BCCI and players increased as remuneration to team players at Rs 130.3 crore, increased from Rs 128.6 crore. CSK paid Rs 7 crore more to the BCCI in franchise fees at Rs 75 core vs Rs 68 crore.

Land bought worth Rs 129 crore

CSK bought land worth Rs 129 crore and additionally buildings worth Rs 11.9 crore. As of March 2020, the long term debt on CSK’s books stands at Rs 65 crore while the cash has reduced from Rs 146 crore to Rs 89 crore, probably due to lower net profit and land acquisition.

Shareholding pattern

Probably, the most interesting takeaway from the Annual Report was the changes in CSK’s shareholding pattern. India Cements owned Chennai Super Kings doesn’t classify any shareholder as a promoter. India Cements is the largest shareholder with a 30.08 percent stake in the company. The other entities holding more than 5 percent stake are Sri Saradha Logistics Private Limited at 6.88 percent and LIC at 6.04 percent.

Ace investor ups his stake

Founder of DMart and market veteran, Radhakishan Damani holds 20.4 percent stake in India Cements. He also increased his shareholding in Chennai Super Kings by 19 lakh shares during the year from 73.7 lakh shares to 90.6 lakh shares. Radhakishan Damani’s shareholding in Chennai Super Kings has increased marginally from 2.39 percent to 2.94 percent as of March 2020.

Contribution to Electoral Bonds

Another interesting takeaway from Chennai Super Kings’ annual report was its contribution towards Electoral Bonds. CSK Contributed Rs 20 crore towards Electoral Bonds in 2019, from NIL in the year-ago. This could perhaps be on account of the 2019 Lok Sabha Elections, and non-recurring, but interesting nevertheless.

After a skim through of the annual report, all eyes are back on the television screen, awaiting Thala Dhoni and his men in yellow to rock UAE while fans go “Whistle Podu” through their masks.

Sandip Ginodia , CEO

ALTIUS INVESTECH PVT LTD

We deal in over 60 unlisted companies with 15 years of experience

For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Email : ginodiasandip1@gmail.com

Reliance's JioMart is averaging half a million orders per day; WhatsApp driving growth

JioMart , Reliance's online-to-offline commerce platform that launched in May , has scaled up rapidly, riding on the pandemic-fuelled digital acceleration. The service, which went live in 200 cities across India, is currently processing an average of 500,000 orders per day. " We can go even higher on peak days", Jio Platforms CEO Kiran Thomas revealed at the Facebook for Fuel India 2020 event. He said, "JioMart is empowering millions of kiranas and small merchants through the simple and secure platform of WhatsApp, and linking them to Reliance Retail's pan-India supply chain. We expect to grow manifold in future, and are optimistic about enabling new cohorts of users and making it easier for them to shop for daily essentials." "Customers are transacting seamlessly on JioMart and the conversational nature of the service enabled by WhatsApp has made people adapt to it intuitively," he added. Reliance also stated that it will continue t

TCS merger with TCS e serve

The board of Tata Consultancy Services (TCS) in its meeting on 18 October 2012 has approved the composite scheme of arrangement between TCS, TCS e-Serve (e-Serve) and TCS e-Serve International (TEIL). The composite scheme of arrangement provides for merger of e-Serve into TCS and demerger of TEIL's special economic zone (SEZ) undertaking(s) to TCS. The appointed date proposed for this scheme is 01 April 2013. TCS holds 96.26% of the paid up equity share capital of e-Serve. TEIL is a wholly owned subsidiary of e-Serve. As per the terms of the scheme of arrangement, shareholders of e-Serve (other than TCS) will receive 13 equity shares of Re 1 each of TCS for every 4 equity shares of Rs 10 each of e-Serve held by them. The board has approved the scheme of merger of Computational Research Laboratories (CRL) and Retail FullServe (RFL) with TCS. The proposed appointed date for the merger of CRL is 01 October 2012 and for the merger of RFL is 01 April 2012. Computational Res

Stock broker SMC Global files for IPO

F inancial services company SMC Global Securities has filed draft red herring prospectus with SEBI for public issue of 1,58,67,380 equity shares of face value of Rs 2 each. The issue comprises a fresh issue of 79,33,690 equity shares by the company and an offer for sale of 79,33,690 shares by Millennium India Acquisition Company Inc. As of September 30, 2012, "We service our broking clients through a network of 43 branches and 2,521 registered sub-brokers and authorized persons spread in more than 500 cities and towns. We have also established an office in Dubai for brokerage and trading activities in that region," the company said. SMC has reported a loss of Rs 0.42 crore and total revenues of Rs 292.24 crore in the year ended March 31, 2012. "The proceeds of the fresh issue shall be utilised for margin maintenance with stock exchanges; part repayment of term loan; investments into subsidiary, SMC Comtrade; and general corporate purposes," according to p

Abhishek Securities

Search This Blog