MUMBAI: Indian Premier League franchise Chennai Super Kings has reported a 57% decline in operating profit to Rs 680 million and a 54.95% drop in net profit from Rs 1.11 billion to Rs 500 million for the 2019-2020 fiscal.
The company reported a 15% drop in revenues at Rs 3.5 billion as against Rs 4.1 billion in FY19, CNBCTV18 reports. This decline was largely on account of the reduction of income from the grant of central rights from the BCCI (Board of Control for Cricket in India), according to the business news channel, quoting from the franchise’s annual report.
The income from grant of Central Rights was down from Rs 2.94 billion to Rs 2.4 billion. This Rs 540 million drop reflected in the company’s other parameters as well. The franchise’s operating profit declined 57% to Rs 680 billion and the net profit dropped from Rs 1.11 billion to Rs 500 million.
On the positive side, the franchise’s sponsorship income increased 24% to Rs 680 million. Payouts to the BCCI and players increased as remuneration to team players at Rs 1.303 billion, up from Rs 1.286 billion in 2018.
CSK also bought land worth Rs 1.29 billion and additionally buildings worth Rs 119 million, CNBCTV18 further reports.
As of March 2020, the long term debt on CSK’s books stands at Rs 650 million.
Shareholding pattern
India Cements is the largest shareholder with a 30.08% stake in the company. The other entities holding more than 5% stake are Sri Saradha Logistics Private Limited at 6.88% and LIC at 6.04%.
Founder of DMart and market veteran Radhakishan Damani, who holds 20.4% stake in India Cements, increased his shareholding in the franchise by 1.9 million shares during the year, up from 7.37 million shares to 9.06 million shares. With this, Damani’s shareholding in Chennai Super Kings has increased marginally from 2.39% to 2.94% as of March 2020.
Another interesting takeaway from Chennai Super Kings’ annual report was its contribution towards Electoral Bonds. CSK Contributed Rs 200 million towards Electoral Bonds in 2019, from NIL in the previous fiscal, CNBCTV18 further reports. The link is clearly to the 2019 Lok Sabha Elections.
