Shringar Cinemas loss down 44% at Rs 2.9 crores

Revenues Up 57% at Rs. 61 crores
Loss down 44% at Rs 2.9 crores

Mumbai: Shringar Cinemas Ltd. today announced it audited results for the quarter and financial year ended March 31, 2006.

Consolidated revenues for the quarter increased by 13% at Rs. 15 crores against Rs. 13 crores during the corresponding period last year. Net Loss dropped significantly to Rs. 0.35 crores against a loss of Rs. 1.4 crores during the period under review.

The performance for the year ended March 31, 2006 is even more encouraging with revenues at Rs 61 crores registering a growth of 57% over Rs 39 crores last year while loss reduced by 44% to Rs 2.9 crores against Rs 5.2 crores a year ago.

In addition to the satisfactory performance by all its 4 properties during the fourth quarter revenues were enhanced with Kolkatta property launch in December 2005 and overwhelming response for its flagship multiplex Fame Adlabs, Andheri, post its relaunch after refurbishment.

In April 2006, the Company raised US$ 12,000,000 via Zero Coupon Unsecured Foreign Currency Convertible Bonds, Series-A and US$ 8,000,000 0.5% per annum Series-B Unsecured Foreign Currency Convertible Bonds due 2011 which are listed in Singapore Stock Exchange. The conversion price of Series-A is Rs. 90 per share and in Series-B is Rs. 107 per share with a fixed rate of exchange on conversion of Rs.45.15 = US$1.

Shringar Cinemas is currently on an expansion phase to increase the total number of multiplexes to 47 multiplexes comprising of 51,000 seats over the next 3 years from the existing level of 5 multiplexes. The first amongst these will open in Pimpri, Pune on May 28, 2006. The proceeds from the FCCB issue will be utilized for expansion and modernization of multiplexes and food court businesses.

Shravan Shroff, Managing Director, Shringar Cinemas Ltd., “We are very pleased with the results and are confident of our strategy of focusing on the exhibition business will reap rich dividend in the form of significant growth in revenues and profits. Our objective now is to focus on cost optimisation and pursue aggressive growth in some of the key towns & cities which would improve our margins and market share. Additionally with the successful completion of FCCB borrowing and through our foray into food court business we are confident of enhancing shareholder value.”

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