IPL franchise Kings XI Punjab turns profitable
IPL franchise Kings XI Punjab, which is on a roll with brilliant performances in the seventh season, has turned profitable as its owner KPH Dream Cricket has shown profit to the tune of Rs 78.01 lakh for the first time since the start of the extravaganza in 2008.chandigarh Updated: May 24, 2014 18:37 IST
IPL franchise Kings XI Punjab, which is on a roll with brilliant performances in the seventh season, has turned profitable as its owner KPH Dream Cricket has shown profit to the tune of Rs 78.01 lakh for the first time since the start of the extravaganza in 2008.
Co-owned by Bollywood actress Preity Zinta, KPH Dream has declared profit before tax amounting to Rs 78.01 lakh for the financial year 2012-13, as per financial documents including profit and loss account of the company filed with Registrars of Companies (RoC).
According to the shareholding pattern in the company, actress Preity Zinta and industrialist Ness Wadia have 23% stake each while industrialist Mohit Burman has 46%, Karan Paul, chairman of Apeejay-Surrendra Group and Delhi based company Root Investment have 4% each.
In the financial year 2011-12, the cricket franchise had narrowed down its loss by 95% to Rs 1.52 crore from loss of Rs 35.26 crore in 2010-11.
The company had reported net loss of Rs 11.03 crore and Rs 21.55 crore in financial year 2009-10 and 2008-09 respectively.
Notably, Kings XI Punjab, which is currently the table-toppers, had hoped to reach break-even point by March 2011.
KPH Dream Cricket has reported marginal jump of 2% in its total revenue at Rs 92.03 crore during 2012-13 as against revenue of Rs 90.16 crore registered in the corresponding period of 2011-12.
KPH Dream cricket has posted total expenditure of Rs 91.04 crore for 2012-13, registering marginal dip as against expenditure of Rs 91.68 crore in 2011-12, as per financial documents.
IPL cricket franchises' major source of income is from franchise rights, sponsorship fee, merchandise sales and ticket sales while their bulk of expenses include franchise fee to the board, players' cost etc.
Having a registered office in Chandigarh, KPH Dream had committed USD 76 million as franchise cost for over 10 years.