Basilic Fly Studio Ltd

strong text# Q2 (FY2024) H1 FY2024 CONCALL HIGHLIGHTS

1. Q2 was very tough due to the Hollywood strike. The Canadian subsidiary was breakeven in last qtr.
2. Addition of senior people in supervisor divisions.
3. Good growth compared to last year
4. Company focused on increasing revenue from Australia and Europe. Also focusing on kids’ entertainment shows(Animation and vfx – 45 episodes kind of shows).
5. Revenue breakup – 35% of films, 30% of television films, 30% from commercials.
6. Company mostly work on international projects. Recently worked on a domestic project (Leo). Intend to take some projects in domestic going forward.
7. Intention to increase the workforce to 800 to 1000 in next 1 year (2024 end) and also planning to upskill our artists.
8. Receivables days are mostly 45 to 90. In H1 booked more revenue from new customers and that’s why receivable days are piled up.
9. Nowadays the majority of rotoscopy work is automated. So pushing their roto artists into work on other areas like Composite and Effects(fx).
10. Since the strike is expecting some jumps in projects from Dec to Jan. Big Projects are starting from next year March or April where basilic studio will work from pre production.
11. If there is no strike means Revenue would have been doubled in this half.(This shows how much impact due to strike in International vfx market)
12. As of now 70% of work is coming from sub vendors. Planning to get 50% projects directly from the production house.
13. Hiring lot of senior level artists and mostly they will join in January

Some Insights from Reddit Platform

Generally Foreign vfx artists are more engaged on the Reddit platform. Many people shared their thoughts about vfx projects recovery post strike, Layoffs in vfx industry. So based on their interaction it seems there were no film or tv shoots & no script written for the last 6 months. In Early May or April there may be few projects where at the end of post production work or movie shoots at the end stage would be affected by sudden strike news. So these projects will be completed in December or january. But the quantum of work would be very low. Also big festival days like Thanksgiving day and Christmas are nearing. So usual work will start from next February and it will pick up from April. So it seems the next half year also would be very difficult for vfx firms.