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CHENNAI, April 25

PENTAMEDIA Graphics Ltd reported a 68 per cent drop in net profit to Rs 10.51 crore for the fourth quarter ended March 31, 2002, as against Rs 33.76 crore the corresponding quarter of last year.

The board of directors, which met on Wednesday, recommended a dividend of 50 paise per share and a bonus of one equity share for every 10 equity shares held.

The board also approved a resolution to increase the authorised share capital from Rs 75 crore to Rs 150 crore and also for further issue of shares, to be approved by the shareholders at the annual general meeting.

The company deferred a decision on sub-division of equity shares.

Total sales and service for the fourth quarter of 2001-02 dropped by over 55 per cent to Rs 63.49 crore (Rs 145 crore), total expenditure was Rs 27.47 crore (Rs 83.07 crore).

For the year ended March 31, 2002, Pentamedia reported a 35 per cent drop in net profit to Rs 98.74 crore (Rs 153.55 crore), total sales and services was Rs 441.72 crore (Rs 552.38 crore) and total expenditure was Rs 284.02 crore (Rs 359.20 crore).

Pentamedia's Chairman and CEO, Mr V. Chandrasekaran, in a press release said that 2001-02 was rough with reference to cash inflow. The global economic crisis and other geo-political and macro factors made the company re-think its strategies and completely align them based on the ``need for the second''.

For instance, he added, the immediate line of thought was to accumulate cash and preserve it for organic and inorganic expansions and "to claim back our debt-free" position.

The company's majority concentration was in repositioning strategies towards home productions and co-productions not only to own the product but also aim at the long-term pay off.

The company would encash digital assets created, and enhance the bottomline, he said in the release.

Work-for-hire would be restricted to a minimum margin of 20 per cent with a reasonable credit period.

The company's priority would be "cash is king", and "I am confident of achieving the industry average of 20 per cent and more,'' he said.

During the fourth quarter of 2001-02, Pentamedia joined hands with the US-based Eros Multimedia, ``Penta-Eros Studio'', a hi-end post-production and graphics facility.

The nature of business of the studio includes film visual effects, film scanning and other post-production projects, the release says.

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