Kings XI Punjab's FY20 operating income declined 43% to Rs 214.84 cr
The reduction is due to lower payment K.P.H Dream Cricket Private Limited received from the IPL central revenue pool
The PBILDT margin declined to 39.37% in FY20 from 43.93% in FY19. However, the PAT margins increased to 28.29% in FY19 from 11.89% in FY19 as no extraordinary expenses were booked by the company in FY20.
The company incurred an extraordinary expense of Rs 108.43 crore in FY19, in the form of interest paid to directors for the unsecured loans infused by them in the past. No such expenses were borne by the company in FY20, which led to an improvement in the PAT margins.
Without disclosing the total investments made by promoters, Kings XI Punjab co-owner Mohit Burman said that the team owners have finally recovered their investments. "Yes, finally after a decade," Burman said in response to a question whether the KPH promoters have fully recovered their investments.
"The objective of buyback of shares was to return surplus funds to its shareholders. Considering the accumulated free reserves as well as the cash liquidity, the Board decided to distribute to the members through the buyback of shares," Burman noted.
KPH was incorporated in March 2008 with Dabur Group's Mohit Burman having a 48% stake followed by Wadia Group's Ness Wadia (23%), Bollywood actress Preity Zinta (23%), and Karan Paul of the Apeejay Surendra Group (6%).
In April-2008, KPH had acquired the rights to operate KXIP franchisee and became a member of the IPL against payment of Rs 304 crore for a period of 10 years. After completion of 10 years, the franchisee is paying a consideration equivalent to 20% of the yearly revenue IPL-2018 onwards. This arrangement can go up to perpetuity as per the terms of the purchase agreement.
The company also owns another franchisee St. Lucia Zouks in the Caribbean Premier League, which is organised by the West Indies Cricket Board (WICB). The company has acquired the franchisee for an initial period of 13 years against a payment of $4 million to be paid in five equal installments starting from FY21.
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