Lifestyle & leisure segment notches up another good quarter
Moneylife Digital Team 26 August 2011

Out of the 29 major sectors that Moneylife tracks, lifestyle & leisure showed the highest growth, registering a 43% growth in revenues in the June 2011 quarter, on a year-on-year basis

It looks like the slowdown in the economy and rising inflation have not dampened the spirit of consumers willing to have a good time. In the lifestyle & leisure sector, as many as 34 out of the 53 companies in this segment listed a sales growth of 10% (and more) for the June quarter, on a year-on-year (y-o-y) basis. The operating profit growth for the sector was an impressive 28% and net profit was up 21% for the same period.

Despite rising gold prices, the growth was led by four jewellery manufacturers, Shree Ganesh Jewellery House, Thangamayil Jewellery, Shrenuj and Company and Gitanjali Gems. Each of these manufacturers registered robust quarterly sales growth of over 60% y-o-y, with an average operating profit margin (OPM) of 6%. Titian Industries also registered an impressive sales growth of 61% with an operating profit growth of 66% and net profit growth of 76%. Just a tad lower was Jubilant Foods with a revenue growth of 60% for the June quarter on a y-o-y basis. It exhibited strong profit growth as well, with operating profit and net profit registering a growth of 65% and 52% respectively. It also had a strong OPM of 19%.

Sales of United Spirits grew by 32% in the June 2011 quarter (y-o-y) whereas that of United Breweries Ltd grew by 23% in the same period. United Spirits had an OPM of 17% with OP growing by 18% and NP by 14%. For United Breweries, profits did not impress, with OP and NP falling below the level of the June 2010 quarter. United Breweries, however, maintained an OPM of 14%

Among the travel support services, the revenues of Cox & Kings grew by 30%, due to the holiday season. OP and NP grew by 29% and 38% respectively for the June quarter on a y-o-y basis. The company also had the highest OPM in the lifestyle & leisure sector with a margin of 56%. Competitor Thomas Cook, however, didn't capitalise on the holiday season, registering a revenue growth of just 19% and an OPM of 40%.

Cinemax must have been the favourite destination for moviegoers. The company's revenues increased by 29% from Rs38 crore in the June quarter of 2010 to Rs49 crore in the June 2011 quarter. Operating profit grew by 15% with an OPM of 12%. PVR registered a growth of 20% in sales with an OPM of 14%. Operating profit grew by 55% from Rs11 crore (Q1 FY2011) to Rs17 crore in Q1 FY2012. Fame Adlabs registered a sales growth of 17% with an OPM of 16%.

Media production houses were some of the worst performers. UTV Software Communications, Balaji Telefilms and Reliance MediaWorks registered negative revenue growth with a decline of 34%, 7% and 6% respectively. All three registered an operating loss in the June 2011 quarter.

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