India Cements’ arm Chennai Super Kings Cricket Ltd (CSKCL), which runs the IPL franchise team CSK, continues to stay profitable aided by lower costs amid a drop in total revenue in FY23.
CSKCL reported a profit after tax of ₹52 crore for 2022-23 compared to ₹32 crore in FY22, an increase of about 63 per cent, according to the annual report of the company.
In FY23, CSKCL garnered a total revenue of ₹292 crore, down from ₹349 crore in FY22. Its revenue from operations was at ₹273 crore in FY23, while other income stood at ₹19 crore. The franchise secured about ₹192 crore as an income from the grant of central rights in FY23 (₹242 crore in FY22). Sponsorship income was higher at ₹78 crore when compared with ₹65 crore in FY22, while tournaments related income dropped to ₹4 crore (₹34 crore in FY22).
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Its total expenses stood at ₹222 crore, which included ₹92 crore for team players and staff remuneration, ₹50 crore for franchise fee, ₹38 crore for tournament expenses and ₹16 crore for administration expenses. Total expenses were down significantly when compared with ₹308 crore in FY22.
CSK won the IPL Championship in May 2023. CSK team has been the most consistent IPL team and has won five IPL titles, appeared in 10 IPL finals, and qualified for the playoff stages 12 times.
CSKCL’s South African subsidiary Joburg Super Kings Ltd was awarded the right to operate a team in the city of Johannesburg and the team was named Joburg Super Kings. Given T20’s cricket evolution, brand loyalty, league strategy, and success of the first season, the Company believes that this venture will add significant value to the shareholders despite investments in the initial few yea₹ However, it made an operating loss of ₹33 crore in FY23.
Meanwhile, CSKCL under its subsidiary Superking Ventures Pvt Ltd will be focusing on various cricketing activities including setting up and developing high-performance centres and cricket and sports academies for providing state-of-the-art training facilities to the sports personnel including budding cricketers to develop their level of competency to the national/international standards.
As part of the same, the company proposes to purchase land measuring 19,208 sq ft together with a building with a built-up area of 50,912 sq ft at Thiruvanmiyur, Chennai, for an amount not exceeding ₹70 crore from EWS Finance and Investments Private Ltd.
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In FY23, Superking Ventures started 2 academies — one each in Chennai and Salem in Tamil Nadu. The Company has also plans to start academies in other places. The company had more than 400 students enrolled in the academies with the numbers constantly going up.
It has also proposed to increase the existing borrowing limit from ₹250 crore to ₹350 crore.
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