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Phantom FX Digital Studios is a visual effects company specializing in creating high-quality digital effects for films, television, and commercials. They provide services such as CGI, 3D modeling, and animation to enhance storytelling and create immersive visual experiences. The studio is known for delivering innovative and creative solutions tailored to the specific needs of each project.
Business Metrics
| Metrics | Value | Comment |
|---|---|---|
| Martket Cap | 538Cr | 5.5x of sales |
| PE | 22 | High for micro cap |
| Promotor Holding | 54.8% | Holding for last 3yr |
| OPM | 42% | Good |
| Interest Coverage | 19 | Comfortable |
| Sales | 89Cr | |
| ROCE | 20% | |
| PAT | 24Cr |
Notes - Debtor days have been slipping towards 64 -> 99. This should reduce as per management commentary. Employee cost has been 55%. Looking at the acquisition and the permanent employees of Tippett Studio (close to 40) would burden definitely.70K Avg salary would amount to 2.8mn in salaries for permanent and additional 40 on contract.
Company Overview
- Founded in 2016
- Three main segments: Commercials, Films, Webseries
- Global marketing team: 650 people, expected to grow to 1000
- Completed over 500 projects (clients include Amazon, Disney, Netflix, etc.)
| Segment | Revenue% | Amount(Cr) |
|---|---|---|
| Movies | 64 | 56 |
| Series | 21 | 18 |
| Commercials | 16 | 13 |
Financial Highlights
H2 Performance
- Revenue: ₹49.20 crores (52.46% YoY growth from ₹32.27 crores in H2 FY ‘23)
- EBITDA Margin: 47% (87% increase)
- Net Profit: ₹13 crores
- Net Profit Margin: 27%
FY24 Projections
- Revenue growth: 53%
- FY25 revenue growth projection: 20-25%
Order Book
- H1 FY24: 5-6 million orders
- H2 FY24: Higher expectations
Receivables
- Total: ₹50 crores (more than 200 days)
- 20-25% of Mar’24 receivables covered
- Monthly breakdown:
- Jan: ₹11 crores
- Feb: ₹15 crores
- Mar: Remaining amount
- ₹8-9 crores pending post 180 days
Business Mix
- Current: 40% international, 60% domestic
- Goal: Reverse the mix (increase international share)
Operational Highlights
- Workforce increase: 250 to 300 employees due to acquisition
- Project Ayalaan: 4000+ shots completed in 8-9 months
- Significant improvement in productivity attributed to AI
- Top 5 clients contributing 44% improving from 62%
Acquisition: Tippett Studio
- 80% stake acquired for $3 million
- Tippett Studio background: Worked on Jurassic Park and Star Wars
- 80-100 Tippett employees kept on contract basis
- Acquisition believed to be below intrinsic value
- Phil Tippett’s involvement to be explored further
Future Outlook
- Leveraging AI for increased productivity
- Focus on international market expansion
Industry Highlights
- Indian Major films are allocating around 25% for VFX
- VFX segment grew by 10%
- Growth possibility of INR 114bn -> 185bn by 2026 with CAGR of 17.5%