Chennai Super Kings posts FY23 PAT of Rs 52.17 cr

During the year under review, Joburg Super Kings Pty Ltd made an operating loss of Rs 33.02 crore, the report said.

Chennai Super Kings, the Indian Premier League franchise team owned by India Cements, has reported a profit after tax of Rs 52.17 crore for the year ended March 31, 2023.

The company had registered a profit after tax of Rs 31.54 crore during the previous year.

Total revenue during the year under review slipped to Rs 292.34 crore from Rs 349.14 crore in the same period of last year.

The IPL team bagged the Championship trophy in May 2023 and has been the most consistent team, with five IPL titles to its name, and having appeared in 10 finals and qualified 12 times for the playoffs, Chennai Super Kings said in its annual report.

The company said it also planned to increase the existing borrowing limit from Rs 250 crore to Rs 350 crore.

''...the company proposes to avail financial assistance in the form of term loans, debentures, bonds, other instruments, working capital facilities and other financial assistance in Indian or foreign currencies (referred to as borrowings) up to a sum of Rs 350 crore over and above its paid up share capital. It is proposed to increase the existing borrowing limit of Rs 250 crore to Rs 350 crore,'' the company said in the report.

The fund raising would be mainly for expansion of business, working capital requirements and other purposes, it said.

In a meeting held on August 14, Chennai Super Kings said that -- based on the recommendation of the Audit Committee -- it considered purchasing land measuring 19,208 sq ft together with building of built-up area of 50,912 sq ft at Thiruvanmiyur Chennai from EWS Finance and Investments Pvt Ltd for Rs 70 crore.

The Board decided that an amount not exceeding Rs 70 crore was fair and reasonable and, based on the prevailing market value, recommended it for the approval of the company's shareholders.

The proposed property suits the company's plan for setting up a cricket academy and high performance centres and would be useful for various business purposes of the company, it said.

On the performance of its subsidiary Superking Ventures Pvt Ltd, the company said the subsidiary commenced operations and started two academies with one being run in Salem and the other in Chennai during the year under review.

The company has also plans to start academies in other places.

Superking Ventures has also commenced a new line of business -- talent management which would manage the commercial interest of some of the talented professionals in cricket.

During the year ended March 31, 2023, the company made an operating loss of Rs 6.45 crore mainly due to one-time costs on account of setting up the academies, it said.

On the performance of another subsidiary Joburg Super Kings (Pty) Ltd, the company said Joburg Super Kings (Pty) Ltd was awarded the right to operate a team in Johannesburg and the team was named 'Joburg Super Kings'.

During the inaugural season held in January 2023, Joburg Super Kings team finished as semi-finalists. Given T20 cricket evolution, brand loyalty, league strategy and success of the first season, the company believes that this venture would add significant value for the shareholders.

The financial performance of Joburg Super Kings was in line with the company's projections. During the year under review, Joburg Super Kings Pty Ltd made an operating loss of Rs 33.02 crore, the report said.