“Visual Effects services undertaken in India for Foreign Productions can claim upto 30% of the Qualifying Expenses (75% of Contract Value) plus an additional bonus of 5% for Significant Indian Content subject to a maximum of INR 300 Million.”
Has anyone analyzed the benefit from these govt rebates and whether Phantom would be eligible for it. Doing just a back of the envelope calculations for FY24, Phantom Mgm’t has guided for a 140 Cr. Sales and assuming they are guiding for a mix of 55-60% from international, that would lead to around 70-80 Cr International revenue they might have 35-40 Cr costs relating to international projects, which may be eligible for rebate under this scheme. Even if we assume instead of max 30 Cr. available they are able to get a 20 Cr. kind of cash rebate of this amount, their Pat from international mix may go up to 40-45 Cr. Add to it domestic mix PAT of say 20-25% margin of 15-17.5 Cr, they might easily end up with a PAT of 55 - 62.5 and PAT Margin of around 40%. What am I missing here.
https://ffo.gov.in/en/filming-in-india/goverment-of-india
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