Motion picture production and distribution company Eros International Media (Eros) continued to put up a poor show on the stock exchanges, notwithstanding the box office success of Indian movies produced and/or distributed by the company over the past few months. The stock has dropped from April 1's Rs. 173.55 (the day Hindi film "Ki & Ka" was released) to Rs. 162.20 Friday.
The share price has plunged 32.5 percent since Jan. 1 and 62.74 percent since April 8, 2015.
The recent box office performance of Arjun Kapoor-Kareena Kapoor Khan-starrer "Ki & Ka" and the buzz surrounding Pawan Kalyan and Kajal Agarwal's Telugu film "Sardaar Gabbar Singh" or even the box office collection of films such as "Bajirao Mastani," "Bajrangi Bhaijaan" and "Tanu Weds Manu Returns" has lifted neither its stock price nor its revenues and net profit over the past few quarters.
The R Balki directorial managed Rs. 46.79 crore in gross box office collections in its opening weekend, including Rs. 12.25 crore overseas, according to a regulatory filing by the company with the BSE. The film was released April 1 with a screen count of 2,150, including 500 screens overseas, according to the filing.
However, none of these is rubbing off on the share price or financial performance of the company.
For the quarter ended Dec. 31, 2015, the company reported revenues of Rs. 335.38 crore and net profit of Rs. 37.77, down from Rs. 490.73 crore and Rs. 109.34 crore in the corresponding quarter in financial year 2014-15.
During the nine-month period ended Dec. 31, 2015, its revenues did grow 35 percent to Rs. 1,312.77 from Rs. 972.12 crore in the corresponding period, but net profit dwindled to Rs. 181.4 crore from Rs. 195.3 crore.
The company plans to release 65 films this calendar year, spanning multiple languages.
Sunil Lulla, CEO of Eros, had said the releases would "strengthen" the company's presence in the burgeoning entertainment business in India.
"We are at an exciting phase...and have an equally promising slate coming up that will reinforce and further strengthen our leadership position in the Indian media and entertainment industry," he was quoted as saying in a regulatory filing to the BSE in January this year.