Reliance MediaWorks Ltd, a member of the Reliance Group, has reported a 21 per cent increase in its total income from operations for Q2 FY12 at Rs 236 crore.
The quarter has shown significant improvement in film releases as compared to the trailing quarter, resulting in exhibition revenues increasing by 22 per cent over the trailing quarter. In Q3, there are 12 wide releases, which will have significant positive impact on the company’s Exhibition and Film and Media services business.
The company has invested substantially in building infrastructure, skillsets, manpower for leveraging the outsourcing opportunities through its Media BPO and the returns are expected to flow from Q3 onwards. The current order book value is over Rs 200 crore annually.
Meanwhile, Reliance MediaWorks has announced some strategic structuring, wherein its Exhibition and Film and Media services divisions would be housed in separate 100 per cent subsidiaries.
Commenting on the development, Anil Arjun, CEO, Reliance MediaWorks, said, “The company has witnessed a phenomenal growth in the scale of its operations in last five years. This strategic structuring initiative will enable us to effectively pursue the best business opportunities available to each operating unit independently, and also enable our company to remain well-positioned and appropriately structured for sustainable, long-term growth.”
Reliance MediaWorks has received board approval for raising an amount up to Rs 500 crore by way of rights offer of equity shares to the company’s shareholders and the process is underway. The funds raised through Rights Issue would be utilised, inter alia, for substantially reducing the debt of the company, incurred for creating the asset base.