Phantom Digital Effects Limited — PPTs, 16-11-2024: Investor Presentation

**Financial Highlights:**

In H1 FY25, Phantom Digital Effects Limited reported net sales of ₹35.54 Cr, down from ₹41.07 Cr in H1 FY24. Total income also declined to ₹36.65 Cr from ₹41.24 Cr. However, EBITDA increased to ₹16.32 Cr, resulting in an improved EBITDA margin of 44.53% compared to 38.47% in the previous year. Profit After Tax (PAT) stood at ₹8.27 Cr with a PAT margin of 22.58%, which indicates a decrease from ₹10.40 Cr and a 25.22% margin in H1 FY24. The company aims for recovery and stabilization in subsequent quarters.

**Strategic Initiatives and Growth Drivers:**

PhantomFX has focused on expanding its footprint with the launch of Spectre Post in Bengaluru, offering advanced post-production and VFX capabilities. Additionally, its strategic acquisition of Tippett Studio will enhance its international operational reach and resources in high-end visual effects production.

**Business Developments:**

The establishment of Spectre Post is designed to attract local talent and innovations, while the acquisition of an 80% stake in Tippett Studio for $3 million lays a strong foundation for future collaborations and projects in Hollywood.

**Market Position and Competitive Advantage:**

PhantomFX continues to solidify its position as a leading VFX provider in India, emphasizing creativity and excellence in its service offerings. With a diverse global presence and a robust client base, the company is well-poised to capitalize on the growing demand for high-quality VFX in both Indian and international markets.

**Investor Implications:**

The financial figures reflect a temporary dip in sales, yet the company’s strategic movements, particularly in expanding its capabilities and market reach, suggest a positive outlook for future growth. Investors may consider this as a potential growth opportunity alongside the company’s reputation for innovation in VFX.