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Simplifying... Inshort

The owner of Lucknow's IPL team is eyeing a potential acquisition of Karan Johar's Dharma Productions, which is currently grappling with inconsistent box office earnings and escalating star costs.
Despite a nearly 26% increase in net sales this quarter, Dharma's net profit has dipped by over 15% compared to last year, leading the company to seek investment opportunities.
However, the deal is not yet finalized and may not go through.

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The deal is still not in its final stages

Lucknow IPL team owner wants to acquire KJo's Dharma Productions

By Dwaipayan Roy

Oct 07, 2024

12:54 pm

What's the story

Saregama India Ltd, a part of the RP-Sanjiv Goenka Group, is in talks to buy a majority stake in Karan Johar's Dharma Productions, according to HT Mint. The music giant has been trying to mark its territory in the film and OTT space, and had earlier bought Pocket Aces Pictures as part of the plan. RPSG Group also owns the Lucknow Super Giants cricket team in the Indian Premier League (IPL).

Deal status

Acquisition deal yet to be finalized

Notably, the acquisition deal between Saregama India and Dharma Productions is still not in its final stages and may not materialize, sources familiar with the matter told Mint. Meanwhile, Dharma Productions has been struggling with unpredictable box office returns and rising star fees, prompting it to look for investments from conglomerates and industrialists.

Financials

Dharma Productions' financial performance

In the June quarter, Dharma Productions posted net sales of ₹205.28 crore, a 25.68% jump from ₹163.34 crore in the same quarter last year. However, the company's quarterly net profit declined by 15.09%, slipping to ₹36.92 crore in Q1 of this fiscal year from ₹43.48 crore last year. The EBITDA for the quarter stood at ₹63.64 crore, down by 5.8% from June 2023's ₹67.56 crore.