Chandigarh: KPH Dream Cricket, the owner of IPL franchisee KingsXI Punjab, has narrowed down its losses sharply by 95 per cent to Rs 1.52 crore in 2011-12 financial year from a loss of Rs 35.26 crore in 2010-11.
The loss of Rs 35.26 crore for 2010-11 was the highest ever loss suffered by the company since the commencement of IPL in 2008, according to financial documents, including profit and loss account, of the company filed with Registrars of Companies here.
It reported net loss of Rs 11.03 crore and Rs 21.55 crore in financial year 2009-10 and 2008-09 respectively.
Notably, IPL franchisee Kings XI Punjab was hoping to reach break even point by March 2011.
The company has not only managed to reduce its losses considerably, its revenue from IPL operations has also surged.
KPH Dream reported total revenue of Rs 90.16 crore in 2011-12, up by over 80 per cent from the revenue clocked in corresponding period, as per company ’s financial statements.
King XI Punjab’s major source of income is from franchise rights, sponsorship fee and ticket sales.
As far as expenditure is concerned, KPH Dream has also been able to contain total expenses by cutting down cost of employee benefit expenses, finance, insurance, auditors’ payment.
Total expenses including players’ cost, depreciation and amortisation went up by just 8 per cent to Rs 91.68 crore for 2011-12 as against expenses of Rs 84.99 crore in 2010-11.
Having registered office in Chandigarh, KPH Dream had committed USD 76 million as franchise cost for over ten years.
According to the shareholding pattern in the company, actress Preity Zinta and industrialist Ness Wadia have 23 per cent stake each while rest is owned by another industrialist Mohit Burman, Karan Paul Chairman of Apeejay-Surrendra Group among others.