The share price of Eros International Media, one of India's largest listed moviemakers and entertainment company, has plummeted massively on the bourses this month. Eros International Media share price has been losing for the 18 days and fallen 72.74% during the period. Eros International Media share price has been falling continously since June 4.
Eros International Media stock was stuck at the lower circuit and fresh 52-week low of 5% at 18.10 level on BSE today. There were no buyers but only sellers in the stock.
Eros International Media share price has fallen 79.38% since the beginning of this year and lost 84.60% during the last one year. During the last one month, Eros International Media share price has lost 74.60% on BSE.
Downgrades by CARE Ratings and Moody's Investors Service have hit the stock this month.
On June 5, rating agency CARE cut its ratings from BBB- to default, citing delays or likely default in serving debt availed from banks. "The revision in the ratings assigned to the bank facilities of Eros International Media Ltd. (EIML) is on account of ongoing delays/default in debt servicing due to slowdown in collection from debtors, leading to cash flow issues in the company," the rating agency said.
In a statement issued three days later, Eros said it has a strong liquidity profile and healthy balance sheet with over $135 million of cash and cash equivalents, and net debt of $145 million.
"We would like to clarify that this is on account of a delay in servicing of Bank loans for the month of April 2019 and May 2019 and will be cleared within the next seven working days. Furthermore, the company would like to clarify that our utilisation is less then Rs 550 crore as compared to Rs 750 crore facilities assessed by the rating agency as per the bank's sanctioned letters," Eros added.
Five days later, Moody's Investors Service downgraded the corporate family ratings of the NYSE-listed holding company Eros International Plc to B2 from B1 and changed the outlook to negative from stable.
Subsequently, Eros International issued a clarification on the downgrade.
"Eros has a strong liquidity profile and healthy balance sheet with no meaningful near-term debt maturities. As of 31 March, 2019, we had over $135 million of cash and cash equivalents on our balance sheet and our net debt position was $145 million," Prem Parameswaran, group financial officer and president of North America, Eros International said.
Net profit of Eros International Media rose 14.72% to Rs 69.74 crore for the quarter ended March 2019 compared with Rs 60.79 crore during the corresponding period in 2018.
However, sales fell 5.95% to Rs 224.56 crore in the quarter ended March 2019 compared with Rs 238.77 crore during the corresponding period in 2018. For 2018-19, net profit rose 17.33% to Rs 269.08 crore against Rs 229.34 crore during the previous year ended March 2018. Sales rose 7.41% to Rs 1,031.30 crore in the year ended March 2019 compared with Rs 960.16 crore during the previous year ended March 2018.
Promoters held 62.39% stake in the company for the quarter ended March 2019. They raised their stake by 1.04% from the 61.35% stake held for the quarter ended December 2018. FIIs held 6.14% stake in the firm for March quarter. They raised their stake in the firm by 0.05% from 6.09% for the quarter ended December 2018. Non institutional investors held 31.48% stake in the firm for quarter ended March 2019 compared to 32.56 % stake held in the firm for the quarter ended December 2018.
Eros International Media Limited is engaged in the business of film production, exploitation and distribution. The company's principal products/services include media and entertainment industry. The company's geographical segments include within India and outside India.
Edited by Aseem Thapliyal