Folks, inÂ November last year we did a post with the question – Flops, Big Flops & Mega Flops; Is Eros in Trouble?
That question has been decisively answered now.
Eros International, the Bollywood distributor and producer (including of plagiarized Hollywood films), is in distress.
Very troubled times indeed for the Kishore Lulla-headed Eros, whose main claim to shame last year was its release of the crappiest movie of 2008 -Abhishek Bachchan’s mega-disaster Drona.
Look at the host of problems Eros faces:
* Eros has announced that its revenues and profits for the current financial year (ending March 31, 2009) will be below market expectation. The company is also hurt by the continued depreciation of the rupee against the Dollar.
* Citi has downgraded shares of Eros to to “hold” from “buy” citingÂ “the profit warning and lack of visibility over 2010 forecasts”.Â
* Eros’ stock price is crashing like the box office collection of an Abhishek Bachchan movie. At 67.33 pence, Eros shares are trading close to their 52-week low.
* The economic slump has forced Eros to postpone the release of four of its films from the original schedule of before the end of March 2009 to after May 2009.Â
Eros claims that cash generation from operations is strong in the second half of the current financial year and the balance sheet remains robust.
As we wrote in November:
Is there no end to Erosâ€™ pain. There would be an end to the pain if only the bozos at Eros entrusted less to dame luck and more to good scripts, solid actors, original movies and of course to hard work.