‘Know your customer’. It is one mantra that we hear repeatedly for successful sales closings. No secret about it. But what and how? We have enumerated 3 essential things that should be checked to prepare for a sales meeting. The sources to find such information are also discussed below. The level of preparation required ofcourse depends on the size of the transaction and the nature of the product.

1. What does the company do? – This sounds obvious but many times salespeople have no idea! Just take a minute to google about the company and its website to check what it does and identify its industry. Is anyone in that industry using your product/service already? It could help you carry the conversation in the meeting and speak suitably about your product.
2. Who is the decision-maker? – Are you meeting a decision-maker? This is easier to find out in smaller companies than for bigger companies. For SMEs, you can study the free ownership structure on Tofler.in (at the company network tab). It’s important because you are likely to run into owners/directors in meetings with SMEs. They are the decision-makers. Knowing a bit about them could go a long way. For large companies, LinkedIn could help in figuring the organization hierarchy. If not, then at least it would tell you a bit about the person you are meeting, his background, work history, and interests.
3. Financial performance of the company – There are two questions here: why and how? Why? – because it would set the tone in your mind for the conversation. How much you can ask for your goods and services? How aggressively you should pitch? How much you should negotiate? You can only understand this when you know if the client could pay well or not. Some answers you should look for:
   1. How big is the company? Is revenue growing or declining?
   2. Is the company in profits and losses? What are the margins like?
   3. Which are the major expense heads of the company? Would your product impact any head significantly?
      Now the next question – How? Due diligence companies and MCA provide this information. You can also check Tofler.in which provides a lot of this information for free on its website.

Lending has been a way of life in India. It is routine for us to lend money to businesses run by our relatives, friends or their friends. However, many of us have also been burnt in the process. Whether you would like to lend again or not is your call. But if you do, a little research about the borrower can ensure better safety of your funds. Here are three essential things you should look at before lending. None of these require you to ask any details from the business itself:

1. Financial strength: The financial health of the company over the last 3-5 years
2. Leverage: Existing debt burden on the company
3. Existing industry conditions: The health of the overall industry and its main players

In this part (1) of the article, we will discuss assessing the financial strength.  Assessing the financials of a company is a nuanced field. These are a few things you can begin with:

• Operating revenues: Check if the operating revenues have grown or declined over the last 3 years? Growing revenues is definitely a comfort but do compare them with days receivables outstanding (DRO). DRO indicates the number of days for which the payment against sales is yet to be received. For example, if an SME has days receivables outstanding of 45 days, it means it is yet to receive payment against its 45 days worth of sales. So, if sales are increasing and so is DRO, then it raises suspicion on the quality of sales. Perhaps, they are low-quality sales made in desperation and payment is yet to be received (or might not be received). Or they could be a case of fake billing to inflate revenues to show a better picture to lenders and customers. The point being, DRO shouldn’t be increasing over time. On the other hand, declining revenues is obviously a sign of caution.
• Profit margins: Look at gross (sales – the cost of goods) and net (sales – all expenses and taxes) profit margins. Are they narrowing, stable or growing? Growing and stable margins is a comfort, however, do check days receivables outstanding. Narrowing margins need a little more research. Try to ascertain the reason for reducing margins by studying the expenses that have increased. You should also look at similar companies in the industry to check if it’s a company-specific concern or industry-wide concern. Any way, narrowing profit margins is a sign of caution.
• Major assets: Check the major assets owned by the company in its ‘fixed assets’ schedule provided in its balance sheet. Are these lands, buildings or plant and machinery for the operations? They should relate to the nature and size of the business. Compare them with other similar companies in the same industry to get an idea. This will give an idea of how efficiently is a company using its funds.

From where do you get the above details?
The financial filings of a ‘company’ can be sourced from the Ministry of Corporate Affairs. You can also source such filings and reports with important financial numbers like revenues, profits, ratios over the last 5 years from tofler.in. However, if it’s a partnership or individual business, then getting such details is almost not possible.

I recently came across this term ‘Shinese’ – a word used to refer to long-lasting companies. Interestingly, about 90% of all businesses worldwide that are more than 100 years old are Japanese. They all have fewer than 300 employees. They are also all family-owned businesses. We then studied the research done on these companies to find out what makes them stick longer. Here are some reasons we found that you could also apply to your business:

• Chasing growth cautiously: These businesses keep tight control of their costs and would make the decision to spend only when it is necessary and possible benefits have been thought through. Besides, they rarely borrow to expand and focus on operating cash flows. They believe that growth should be chased only when it can be done comfortably with internal accruals and cash flows. This is, of course, something that young entrepreneurs and startups might not appreciate but the family-owned businesses that are already established would.
• Continuous improvement in the product: These businesses have continuously improved their products or services, while also evolving them with the change in technology and consumer needs. Some of them like bakeries, restaurants focus on conserving the traditions to create their own niche.
• Building a lasting relationship with customers: They put effort into building a long-lasting relationship with the customers. This is their constant focus.
• They are seudo-professionally managed: This is quite interesting! Typically, Japanese business owners bequeath entire companies to their eldest sons. But if business owners don’t trust their sons to lead the company, then they can legally adopt a ‘son’ (often marries into the family) and he goes on to run the business. This is very different from how businesses are succeeded in India, but perhaps Indian business owners can think of other creative and workable ways to ensure that businesses are run by able people.

Carzonrent, which owns and operates radio taxi service Easy Cabs, has reported revenue of INR 263 crores in FY 14-15. Easy Cabs which operates in Delhi, Bangalore, Hyderabad and Mumbai, contributed 19% to the company’s revenue. Interestingly, the company made INR 175 crores from renting cars alone.

Financial Performance of Carzonrent

The company reported revenue of INR 263 crores in FY 14-15, a decline of 11% over the previous year’s INR 295 crores. This decline is however, due to the company selling off its Operating Lease segment for INR 80 crores. This also resulted in the company’s profits jumping from INR 6 crores in FY14 to INR 58 crores in FY15.

67% of the revenue came from the car rental services and 19% from taxi services. Following is a break-up of the revenue from operations:

The expenses for the company stood at INR 271 crores, which mainly consisted of the ‘Vehicle running expenses’ at INR 117 crores and employee expenses at INR 27 crores.

About Carzonrent

Carzonrent operates car rental, self-drive (“Myles”) and radio taxi (“Easy Cabs”) services across India. Starting out in 2000, it is among the oldest players and the market leaders in the segment. The company started with car leasing and entered into taxi segment with Easy Cabs in 2006 and self-driven segment in 2014 with Myles. It has its own dedicated fleet of 6500 cars to provide the services. It has raised INR 55 crores from Sequoia (in 2006) and BTS India (in 2011).

Other players in the car rental segment include Zoomcar, JustRide, Savaari among other smaller players and the unorganized operators as well. In the taxi segment it faces stiff competition from the heavily funded players like Ola, Uber and Meru Cabs for a share of the INR 50,000 crore industry.

What distinguishes Carzonrent from its peers is its strengths in terms of corporate and retail customer base, airport presence, partnerships with airlines and hotels, chauffeur drive and self-drive services, own dedicated fleet of cars, visible and recognized brands and  innovative technology platforms.

The ground transportation industry has been attracting big players with heavily-funded pockets. Carzonrent has bet big on its self-drive/ car sharing service “Myles”, and plans to expand the operations to 100 cities across India with a fleet of 5000 cars. It also acquired Bangalore based ride sharing startup Ridingo in April 2015.

For Annual Reports, Balance Sheets, Profit & Loss, Company Research Reports, directors and other financial information on ALL Indian Companies, head over to www.tofler.in – Business Research Platform.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with a natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, co-founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

Tofler makes no claim of ownership or affiliation with any trademark / logo (REGISTERED OR UNREGISTERED) used in this article. Trademarks or logos, if any, published on this page belong to their respective owners.

Naaptol saw a 2.3 times rise in its revenue for the FY 14-15 as its revenue grew to INR 289 crores. The company is currently the third largest player in the digital commerce platform market with presence across TV, web and mobile.

Financial Performance of Naaptol

Naaptol reported a revenue of INR 289 crores against a loss of INR 43 crores. Last year’s revenue and PAT figures stood at INR 128 crores and INR 57 crores, respectively. This was revenue growth of 125% in the period.

Two largest expenses for the company were media and logistics expenses. The media expenses for the company stood at INR 148 crores while logistics expenses at INR 103 crores. Here is a breakup of the major expenses:

About Naaptol

Naaptol is owned and operated by Naaptol Online Shopping Pvt. Ltd. Founded by Manu Agarwal in 2008, it is a comparison based social shopping portal and is available through website, mobile app and TV channel Naaptol Blue. It competes in its segment with players like Shop CJ Live, Homeshop 18, DEN-Snapdeal TVShop among others. While Naaptol Blue is a Hindi language channel, it also has vernacular presence with separate channels in Tamil, Malyalam, Telugu and Kannada. Over the years the company has transformed from a price comparison site to be present across multiple channels.

The company has secured a total funding of INR 665 crores from various investors including Mitsui & Co., NEA FVCI Ltd.  and Canaan Partners. The latest round of funding was secured in October 2015 for INR 343 crores from Mitsui & Co.

The company competes closely with veteran players like Homeshop 18 and Shop CJ Alive, which have been operational for 10 and 8 years, respectively and new players like DEN-Snapdeal TV Shop (incorporated in February 2014) and Best Deal TV (incorporated in December 2014). Compared to Naaptol, FY 14-15 revenue figures for Homeshop 18 and Shop CJ Alive stood at INR 444 crores and INR 561 crores, respectively. The three companies hold a market share of about 85% in TV home shopping market.

In the Indian context, though internet penetration is increasing rapidly, TV as a medium still has a wider reach across India. According to Broadcast Audience Research Council, the estimated television audience stands at 153 million homes. The TV shopping market is mainly driven by the housewives. The industry is expected to reach INR 50,000 crores by 2020 and has attracted players like Snapdeal to have their presence in the medium.

For Annual Reports, Balance Sheets, Profit & Loss, Company Research Reports, directors and other financial information on ALL Indian Companies, head over to www.tofler.in – Business Research Platform.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with a natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, co-founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

Tofler makes no claim of ownership or affiliation with any trademark / logo (REGISTERED OR UNREGISTERED) used in this article. Trademarks or logos, if any, published on this page belong to their respective owners.

Yatra.com, one of India’s leading Online Travel Agencies, reported a 40% rise in its revenue figures in FY 14-15. Its revenue stood at INR 263 crores.

*since October, 2010.

About Yatra.com

Yatra.com is owned and operated by Yatra Online Private Limited. Founded in 2006, it is an online consolidator of travel products including flights, hotel, trains, buses and cruises as well as holiday and trade fair packages. The company claims to have more than 50,176 hotels in India and over 500,000 hotels around the world. It also boasts of doing 20,000 domestic tickets and 7500 hotels and holiday packages a day. Yatra.com provides its services through website, mobile WAP site and mobile applications, 24×7 multi-lingual call centre, a countrywide network of Holiday Lounges and Yatra Travel Express stores. Yatra.com competes aggressively with MakeMyTrip, GoIbibo, Cleartrip, Expedia, Musafir.com in the OTA industry.

Financial Performance of Yatra.com

Yatra.com reported revenue of INR 263 crores against a loss of INR 67 crores in FY 14-15. The revenue and loss figures for the previous fiscal were INR 190 crores and INR 40 crores, respectively. This is a 67% increase in the loss figure over the previous fiscal and the company is yet to break even.

In comparison, its competitors Cleartrip and Ibibo had reported a revenue of INR 192 crores and INR 234 crores in the same period.

The Company provides travel products and services to leisure and corporate travelers in India and abroad. Other revenue primarily consists of advertising revenue, income from sale of rail and bus tickets and fees for facilitating website access to a travel insurance company. Two-thirds of the revenue comes from the flight booking services. The hotel and packages saw a 64% increase over the previous fiscal. Following is a break-up of the revenue in FY 14-15:

The biggest expense for the company was the advertising and promotional expense which stood at INR 140 crores (40% of the total expenses). The following is a break-up of the major expenses:

Funding

The company has raised funding of INR 520 crores since October 2010. The list of investors includes Reliance, Asia Consolidated DMC, IL&FS among others. Out of this, INR 122 crores were raised in FY 15-16.

Benchmarking

Here is how Yatra fares in comparison to the major players in OTA industry. The FY 14-15 figures for MakeMyTrip are currently unavailable but it was the market leader in FY 13-14 with a revenue of INR 1340 crores.

Among its key acquisitions are ticket consolidator Travel Services International (TSI) in October 2010, global distribution system (GDS) provider MagicRooms.in, and Indian events and entertainment portal BuzzInTown.com in July 2012. Recently, it acqui-hired Travel-logs, in January this year, to boost tours within city. It also acquired 100% stake in Travelguru.com in 2012.

Recently the company launched TG Rooms to take on the likes of OYO and Zo rooms in the budget rooms segment, and claims to have the largest inventory of hotels and accommodations in India with over 40,000 stay options across over 1100 cities.

For Annual Reports, Balance Sheets, Profit & Loss, Company Research Reports, directors and other financial information on ALL Indian Companies, head over to www.tofler.in – Business Research Platform.

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with a natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, co-founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

Tofler makes no claim of ownership or affiliation with any trademark / logo (REGISTERED OR UNREGISTERED) used in this article. Trademarks or logos, if any, published on this page belong to their respective owners.

Myntra, which got acquired by Flipkart in May, 2014 has reported revenue figures of INR 773 crores against a loss of INR 740 crores for FY 14-15. Myntra is one of the leading fashion e-commerce portal in India and competes with the likes of Jabong, Fashion and You among others.

Financial Performance

Myntra is owned and operated by Myntra Designs Private Limited. The company reported a revenue growth of 78%, its revenue stood at INR 773 crores in FY 14-15 vis-à-vis INR 433 crores in FY 13-14.

The losses surged more than four folds from INR 173 crores in FY 13-14 to INR 740 crores in FY 14-15. In comparison, Jabong had reported a revenue of INR 1083 crores with a loss of INR 44 crores in the same period.

Myntra operates on an inventory-led model, and recognizes its revenue from the sale of goods through the website and the mobile app. It also realizes revenue from the technology solution services from operating the internet portal in the form of brand name license fees, technology license fees, domain name fees and service fees. Its revenue from operations was 96% of the total revenue.

The major expenses for the company as a percentage of the total expenses were purchase of stock-in-trade at 72%, Employee expense at 14% and advertising promotional expenses at 11%.

Interestingly, the employee expenses went up by 401% in the period. Following chart gives a break-up of the major expenses:

Funding

The company has raised a total funding of INR 1831 crores. However, the major funding came post acquisition when the company saw major investments from Flipkart of INR 1160 crores during June 2014 to June 2015.

About Myntra

Myntra was founded by Mukesh Bansal, Ashutosh Lawania and Vineet Saxena in 2007. It is an online e-commerce platform for fashion and lifestyle products including clothes, apparels and footwear and operates through an app-only model. Myntra, which specializes in fashion e-commerce, competes directly with Jabong, Yepme, Fashion and You and Limeroad in its category and indirectly with other E-commerce giants like Snapdeal and Amazon.

Myntra initially operated on a B2B model for on-demand personalization of gift items. In 2011 they shifted their focus on fashion and lifestyle products. In 2014, Myntra got acquired by Flipkart to keep players like Amazon and Snapdeal at bay. Founder and CEO, Mukesh Bansal, now heads Flipkart’s commerce platform and the ads business.

Myntra went app-only in May 2015but it seems that they have seen a decline in sales due to that. They recently announced that they clocked an annualized Gross Merchandise Value (GMV) of USD 800 million in January 2016 and are focusing on attaining positive gross profit and touching USD 1 Billion gross profit this year.

For Annual Reports, Balance Sheets, Profit & Loss, Company Research Reports, directors and other financial information on ALL Indian Companies, head over to www.tofler.in – Business Research Platform.

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with a natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, co-founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

Tofler makes no claim of ownership or affiliation with any trademark / logo (REGISTERED OR UNREGISTERED) used in this article. Trademarks or logos, if any, published on this page belong to their respective owners.

Snapdeal, the second largest player in the Indian e-commerce industry, has reported a revenue of INR 938 crores with a loss of INR 1,319 crores in FY 14-15. Snapdeal is fighting it out in the Indian e-commerce sector with home grown Flipkart, which is currently the leader, and US e-com giant Amazon who entered the India market in 2013.

FINANCIAL PERFORMANCE
Jasper Infotech Private Limited, which owns and operates Snapdeal, reported its revenue at INR 938 crores out of which INR 766 crores is the revenue from operations. This is a 450% growth in the revenue from INR 168 crores (INR 154 crores from operations) last fiscal. Loss reported against this revenue is a staggering INR 1319 crores which is roughly five times than that in the previous fiscal.

Compared to this, one of their competitors Shopclues, which recently entered the coveted Unicorn club, had reported a revenue of INR 79 crores with a loss of INR 101 crores in the same period.

As one would guess, their biggest expense in the fiscal was on Advertising and Promotional expenses at INR 1060 crores. Out of this, INR 426 crores was ‘Advertising and Publicity Expense’, while the remaining INR 633 crores was ‘Business Promotion Expenses’. ‘Business Promotion Expenses’ could possibly pertain to various discount schemes offered on Snapdeal. Their Employee Benefit expense grew four fold from INR 87 crores to INR 367 crores. Here is a breakup of their expenses in the previous two fiscals:

Growth Story
Snapdeal was founded by Kunal Bahl and Rohit Bansal in 2010 as a daily deals site but expanded to become an online marketplace in 2011. According to their website, they currently have more than 12 million products listed from 150,000 sellers and they deliver to more than 5000 cities in India.

Snapdeal holds a market share of 32% of the Indian e-commerce industry compared to two of its biggest rivals Flipkart, which holds 44% and Amazon, which accounts for 15% of the total market.

In April of 2015, Snapdeal acquired Freecharge, a digital payments company to bolster their presence in Mobile payments space. The deal was rumoured to be in the region of $450 million through a mix of cash and equity.

FUNDING
Jasper has raised a total funding of INR 10,492 crores so far, according the documents filed with the Registrar of Companies. Out of this, INR 3,187 crores has come in after 31^st March, 2015 and INR 6,181 crores came in FY 14-15. This two figures account for roughly 90% of their total funding received so far. Snapdeal counts Chinese eCommerce major Alibaba, OEM phone manufacturer Foxconn and Japanese investment bank SoftBank among its largest investors.

Recent developments

In order to increase their topline, Snapdeal has been dabbling in various offbeat categories with mixed success. Last year, Snapdeal became the first eCommerce site to start selling Luxury Yachts online. With the success in Automobiles category, they launched Snapdeal Motors, where visitors could book vehicles online from auto majors like Hero Motocorp, Mahindra and Mahindra, Suzuki Motorcycles and Datsun.

Snapdeal also had some good success in Home buying space. Snapdeal had held the Diwali Home Buying fest from November 3 to November 9 last year and approximately 10,000 customers showed interest and registered on the website to buy homes online.

And, it’s not just Homes and Autos – Snapdeal has been successful in selling Maggi packets as well (after the ban had lifted) – They reportedly sold over 7,20,000 packs of Maggi Noodles in just 5 minutes!

Snapdeal has been experimenting a lot over the last 12 to 18 months in their quest to become India’s biggest eCommerce portal.

For Annual Reports, Balance Sheets, Profit & Loss, Company Research Reports, directors and other financial information on ALL Indian Companies, head over to www.tofler.in – Business Research Platform.

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with a natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, co-founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

Tofler makes no claim of ownership or affiliation with any trademark / logo (REGISTERED OR UNREGISTERED) used in this article. Trademarks or logos, if any, published on this page belong to their respective owners.

Ibibo Group which owns and operates Goibibo has reported its latest financials for FY 14-15 with the Registrar of Companies. Its revenue has doubled over the previous fiscal.

ibibo Group Private Limited mainly operates three businesses – Goibibo, Redbus and Ryde. Goibibo offers online booking for flights, hotels, holidays, and buses. It competes in the online travel aggregator segment with MakeMyTrip, Yatra, Cleartrip, and other players. Redbus is Inda’s largest online bus ticketing platform and the company claims to operate on over 67,000 routes and has 1800 bus operators on its platform. Ryde is a ride sharing mobile application. The company is a fully owned subsidiary of Naspers South Africa.

Financial Performance of Ibibo Group

The company reported revenue of INR 234 crores against a loss of INR 377 crores in FY 14-15. The revenue grew by 105% over the previous fiscal while the losses surged by 222%. In comparison, its competitor Cleartrip had reported a revenue from operations of INR 192 crores with a loss of INR 29 crores in the same period.

The company recognizes its revenue from the commission income on travel products and services, commission on e-commerce transactions, advertisement income and support fees from related parties. Here is a break-up of the revenue from operations:

As per the documents filed with the Registrar of Companies, the Gross revenue from services was INR 295 crores while the brokerage discounts rebate accounted for INR 71 crores (~24% of the gross revenue).

The major expense for the company was the Advertising promotional expense which stood at INR 247 crores (40% of the expenses). The company also reported Amortization expense of INR 118 crores, which grew from 23 lacs in FY 13-14, on account of the acquisition of Redbus in 2013.

Growth Story of Ibibo Group

Naspers entered India in 2006 and appointed Ashish Kashyap of Google as its CEO. The company has since gone on to fully or partly own companies and brands in India like Ibibo Group, Flipkart, Goibibo, OLX, PayU Money, Redbus, Myntra, Travel Boutique among others. Ibibo Group was formed in March 2012 but commenced its commercial operations from FY 13-14. The company operated goibibo.com for travel booking and in 2013 acquired Redbus. They also acquired a minority stake in cloud based hotels solution provider Djubo in August 2015. Currently Goibibo is among the top 3 Online Travel Agency while Redbus is the biggest bus ticket booking platform in India.

The company has received a total funding of INR 1216 crore. These funds were infused by the holding company MIH India Ecommerce Pte, Mauritius. The latest round of funding was in November 2015 for INR 130 crores.

The group has been on a rampant expansion path. Recently it entered into the standardized budget rooms category by launching GoStays in Delhi, Gurgaon, Bangalore and Hyderabad in September 2015. It also launched Ryde a ride sharing app. Redbus has extended its operations to Singapore and Malaysia.

For Annual Reports, Balance Sheets, Profit & Loss, Company Research Reports, directors and other financial information on ALL Indian Companies, head over to www.tofler.in – Business Research Platform.

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with a natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, co-founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

Tofler makes no claim of ownership or affiliation with any trademark / logo (REGISTERED OR UNREGISTERED) used in this article. Trademarks or logos, if any, published on this page belong to their respective owners.

Big Tree Entertainment Private Limited, which owns and operates bookmyshow.com, has reported its latest financials. The company’s revenue crossed INR 100 crore mark in FY 14-15 with a growth of 57% over the past fiscal’s revenue.

*since March 2007.

The company operates online movie and event ticketing brand BookMyShow, media measurement and research company Rentrak, cinema software Vista along with call centre services for booking. It has tie-ups with some of the biggest players in cinema industry including Big Cinemas, Wave Cinemas, Fun Cinemas, PVR among others.

Financial Performance

The company has reported revenue of INR 132 crores against a loss of INR 13.5 crores. This is 57% growth in revenue over the previous fiscal. The following chart captures their financial performance over the last 10 years. The company has seen a steep 10X revenue growth in the past 5 years.

Revenue Recognition

The company has multiple streams of revenue generation. These include convenience fee on online sale of tickets, revenue from concerts and events, revenue from sale and maintenance of software, from sale of advertisement space, revenue from the call centre business. The online ticket sales saw a growth of 94% over the previous fiscal from INR 46 crores to INR 88 crores. However the commission income from concerts and events saw a 20% dip, down from INR 23 crores to INR 18 crores. The following chart elaborates the revenue source for Big Tree:

The major expenses for the company were the Advertising promotional expense at INR 26 crores and Employee expense at INR 17 crores.

Growth Story

Big Tree Entertainment was founded in 1999. From 2002 to 2007 the company prepared the infrastructure to launch an online ticket booking system across the multiplexes. Once that was achieved, the company launched BookMyShow in 2007. Currently it contributes around 80% to the company’s revenue. BookMyShow currently operates in 4 countries outside India – Bangladesh, New Zealand, UAE and Indonesia. According to Forbes India, it has a market share of about 85 to 90% of the online entertainment-ticketing market in India. Apart from movie tickets the company offers tickets to concerts, plays and sporting and others events including conferences, workshops, music and travel. BookMyShow’s competitors include Kyazoonga, Ticketgenie among others.

Funding

The company has raised funds of INR145 crores since March 2007. The latest round was of INR 130 crores. The key investors in the company are SAIF Partners, Accel and Network 18.

Forbes India features BookMyShow among the most successful mobile ecommerce app in the country and contributes about 60% to the transactions. The company has been diversifying from the ticketing model to include other avenues including movie and event reviews, spectator management, food management system at events, etc.

For Annual Reports, Balance Sheets, Profit & Loss, Company Research Reports, directors and other financial information on ALL Indian Companies, head over to www.tofler.in – Business Research Platform.

This article was originally published here by Team Tofler.

Author– Vishal, a Sci-fi enthusiast, engineer by mistake and writer by choice, combines his eye for numbers with a natural flair for storytelling to churn out Tofler’s blogs.

Editor –  Anchal, co-founder at Tofler, is a CA, CS and has more than 5 years experience in company analysis. She likes to explore and track companies, their performance and senior management.

Tofler makes no claim of ownership or affiliation with any trademark / logo (REGISTERED OR UNREGISTERED) used in this article. Trademarks or logos, if any, published on this page belong to their respective owners.