Eros International ends 7% up on parent co’s India listing plans, upbeat outlook

NEW DELHI: Stocks of Eros International climbed 11 per cent in trade on Tuesday after the company said its parent firm Eros International PLC is looking to list in India.

The stock closed day at Rs 570.60, up 7.18 per cent.

In an interview to ET Now, the management of the company said its parent company is planning for India listing via Indian depository (IDR) structure.

IDRs are the Indian equivalent of global depository receipts (GDRs) / American depository receipts (ADRs) issued by Indian companies overseas.

The scrip surged 11.01 per cent to hit its intraday high of Rs 591 on the BSE.

The Eros management, though, added that it would not delist Eros India.

The listed arm of the UK-based company remained upbeat on the earnings outlook. The management said that it was expecting better earnings in Q2 and Q3 of the ongoing financial year than the June quarter.

The company expects to end FY16 with an operating margin of 25-27 per cent.

The company pointed out that Q2 has started on a positive note as the movie Bajrangi Bhaijan has seen good response from audiences.

The company has reported 46.7 per cent YoY rise in its June quarter profit to Rs 53.40 crore. Revenues for the quarter rose 96.5 per cent to Rs 480.60 crore.

The start to the second quarter has been exceptional with multiple-record breaker ‘Bajrangi Bhaijaan’ delivering a worldwide gross collection of over Rs 5 billion, the company had said in its results press release.

"In addition, we have a compelling lineup for the remainder of the year featuring high-profile and promising movies such as ‘Bajirao Mastani’, Welcome Back’, ‘Hero’, ‘Gabbar Singh 2’, ’24’ amongst a host of other Hindi and regional movies," it said.