Animation & VFX Industry in India during Covid has seen surging demand. The Animation & Visual Effects (VFX) industry continues to spread its roots in India. The day is not so far that Indian companies will start competing with global counterparts. However, Covid has acted as a catalyst to surge the demand for Animation & VFX to the next level.
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Impact of Covid & Lockdown on Animation & VFX Industry
According to one estimate by Broadcast Audience Research Council, there was a 39% growth in consumption of children’s content during the lockdown. Some channels such as the Zee 5 Kids witnessed the growth of 200% in viewership during the lockdown. Others such as the VOOT saw an increase of about 700% in viewership.
This boom is likely to continue. With such surging demand in the Animation & VFX industry, a career in Animation & VFX will witness an upward graph. Our Smart finance tip is that if anyone is interested in this field, do not hesitate to take up the animation & VFX course, as you would land up making huge success with financial freedom in this career.
Let us do financial analysis & increase our Financial Quotient for one of the below companies which itself is from this field. Let’s study how this Indian subsidiary is trying to fit in, how financially stable it is, its strengths, growth perspectives, Parent background, creditworthiness, and lots more.
Financial analysis on Framestore India Pvt Ltd
- The company is incorporated in March 2019 with paid-up capital of $194K
- Nature of business- Framestore is a dynamic and fun post-production company producing world-class visual effects for film and commercial projects
- Framestore said it will look to open the new Mumbai facility with a staff of 500, combining existing Framestore personnel with local talent.
- Is a subsidiary of Framestore UK based company
Growth perspective of Animation & VFX Industry in India
- In August, KPMG estimated that the Indian VFX and post-production has grown at a compound annual rate of 19.4% since 2014, reaching ₹68.4 billion ($950 million) in 2019.
- The firm estimates even stronger growth through 2024 when it expects the industry to be valued at ₹147.2 billion ($2.05 billion) — a compound annual growth rate of 16.6%.
- Tom & Jerry: The Movie is an animated comedy film released in 2021. Framestore provided the Animation & VFX services.
Parent company details (Immediate Parent) : FRAMESTORE LTD
- It is 36 years old.
- As per 2019 financials, TNW is $1.1B, and 30 % TNW is $332M.
- Working capital is $163M, annual revenue $100M, PAT for the year is $620K.
- The current ratio is 1.05, the Debt ratio is 4.16.
- Speed to Pay (STP) was 79- which means that they almost pay 80% of their dues on time.
Ultimate Parent: GUIDERAW LTD
- There was news that Guideraw would acquire Framestore, thus considering it as the Ultimate Parent company.
- As per 2019 fin – Revenue is $238M, PAT is $2.4M.
- TNW is $8.2M, cash flow from operations is $22M.
Group‘s Financial Credentials
- Group’s Tangible Net worth is $22.27M as of 2019.
- Revenue is $238M, PAT is $138M.
Though the Indian company does not look financially strong and viable, we know it has strong parent background. The parent is creditworthy, with good vintage and financials. In fact, the entire group’s financials look healthy. Also, we know how Animation & VFX industry is booming especially now when Covid-19 is still creating havoc & lockdown persists. Thus considering all these factors this company is expected to be profitable with good revenue perspectives in near future.
Tom & Jerry: The Movie is an animated comedy film released in 2021 for which Framestore provided the Animation & VFX services has earned $105M.
Let us know your thoughts on Animation & VFX future?