PROJECT REPORT

BREAK EVEN ANALYSIS OF KKR, IPL FRANCHISE

Submitted to :

Dr. Ravikesh Srivastava

Submitted by

Ankit Mishra – 91121

Ayushman Roy Choudhary – 91128

Dinesh Joshi – 91131

Priyansh Sharma – 91148

ACKNOWLEDGEMENT

We would like to take the opportunity of expressing our sincere thanks and gratitude to

Dr. Ravikesh Srivastava, Fore School of Management, New Delhi for his support and

guidance for giving a detailed insight on Economics and its various aspects and also

imparting us with knowledge and skills required to study this subject. We would also like

to thank our friends who too gave us valuable inputs and insights.

Ankit Mishra

Ayushman Roy Choudhary

Dinesh Joshi

Priyansh Sharma

INTRODUCTION

The Indian Premier League (IPL), a tournament modeled on the lines of National Basketball

Association (NBA) of USA and the English Premier League of England, made its debut in India

in April 2008. IPL is a professional Twenty-Twenty cricket league, launched by Board for

Control of Cricket in India (BCCI) and has the backing of International Cricket Council (ICC).

IPL is chaired by Lalit Modi, the Chairman & Commissioner IPL, BCCI Vice President. The

tournament is played among eight teams. The eight teams represent eight different cities of India,

the franchisee rights of which are auctioned-off for ten years to successful bidders. The

following are the eight teams and their owners with their auction price.

Franchise Owner(s)Price (USD)

Mumbai Indians Mukesh Ambani (Reliance Industries) $ 111.9 m

Royal Challengers Bangalore Vijay Mallya (UB Group) $ 111.6 m

Deccan Chargers Deccan Chronicle(Venkat Ram Reddy) $107.0  m

Chennai Super Kings India Cements (N.Srinivasan) $ 91.90 m

Delhi Daredevils GMR Holdings (Grandhi Mallikarjuna Rao) $ 84.0 m

Kings XI Punjab Ness Wadia (Bombay Dyeing), Priety Zinta, Mohit Burman (Dabur) and Karan Paul (Apeejay Surendera Group)

$ 76.0 m

Kolkata Knight Riders Red Chillies Entertainment (Shahrukh Khan, Gauri Khan, Juhi Chawla and Jay Mehta)

$ 75.1 m

Rajasthan Royals Emerging Media (Lachlan Murdoch, A.R Jha and Suresh Chellaram), Shilpa Shetty, Raj Kundra

$ 67.0 m

Successful bidder for Kolkata Knight Riders was Red Chillies Entertainment (Shahrukh Khan,

Gauri Khan, Juhi Chawla and Jay Mehta) for $75.1 million.

After the auction of eight teams comes auction for players. The first players' auctions were held

on 20 February 2008. The IPL placed icon status on a select few marquee Indian players. These

players were Rahul Dravid, Saurav Ganguly, Sachin Tendulkar, Yuvraj Singh, and Virender

Sehwag. VVS Laxman initially named an icon player, later voluntarily opted out of his icon

status to give his team (Deccan Chargers) more money to bid for players. Each team has to buy

players for their respective teams. Only 4 foreign players were allowed to play in the playing XI.

IPL franchise is not quite the golden goose that the BCCI had led franchisees to believe. Even

before the Indian Premier League’s first season draws to a close, all indicators seem to suggest

that most of the franchisees could be, a write-off as far as the first year goes. The first season

took place in April, 2008. Everyone wondered from where are these teams going to earn

revenues from and why are they investing so much if they are not going to attain revenues. This

is a big question which made people to think. Even some of the national cricket administrators

like, Cricket Australia chief executive James Sutherland told Sydney radio station 2KY. "It's nice

to pay the players well and get big money from television rights and sponsorships, but ultimately

you've got to provide a return for the owners.

NOW let’s look from where are the franchisees suppose to earn their revenues and what are their

expenses.

REVENUES:

IPL team owners have two channels of revenue, central and local.

Central - Includes Media, sponsorship and suppliers, which BCCI will sells and shares

with the teams.

Local - Includes things like stadium ticket sales, local sponsorship. Concessions,

merchandise et al, which franchisees will be responsible for selling.

CENTRAL REVENUES

As mentioned above Central Revenue includes Media, Sponsorship and suppliers. BCCI has

earned in the following way in television rights and title sponsorship rights.

Television Rights: On January 14 2008, consortium consisting of India’s Sony

Television network and Singapore-based World Sports Group secured the rights of the

IPL. The record deal has duration of ten years at a cost of $1.026 billion.

Title Sponsorship Rights: On February 13 2008, Indian real estate developer DLF

Universal secured exclusive rights to the IPL title sponsorship worth Rs 200 crore (over

$50 million) for five years.

The major chunk of the revenue will go to BCCI even if we factor in the condition that some

percentage of money generated from the auction of television rights and Title sponsorship will

go to the team owner. BCCI has played the game very smartly - head I win tail you lose. It stands

to win (make money) irrespective of whether franchisee's make money or not.

The percentage of central revenue which BCCI gives to the franchise remains 80% for the first

two years, will subsequently reduce to 50% in year 11. If the franchise is to make money, they

will have to do that from tickets, food and other sales as well as premium and box seats. (Mainly

because the two major sources of revenue, TV rights and Title sponsorships are not going to

change)

LOCAL REVENUES

The local revenues which the team is going to earn is from tickets, merchandise, and lastly

through team sponsorships. The team sponsorships will play a big role in earning profits from

sponsors of their team. Team sponsors are the only option left through which franchise’s can

earn revenues to a large extent. Franchise’s firstly will have to develop a loyal fan base with

which the fans can associate strongly this in turn would rope in potential sponsors.

These are the two ways from which the franchise’s can earn revenues. Now let’s look at the

expenses side.

EXPENSES

The Franchise expense can be broadly divided into three.

Firstly the franchise fees which the franchise has to pay every year i.e 1/10th of the

auction fee.

Second comes the expense on Team, which includes team management expenses, player

salaries etc.,

Lastly all the promotion and administrative expenses which the franchise has to do to

promote their franchise and make it a brand and win a large fan base.

These were the expense and revenues which the eight franchises have to face to earn breakeven

point and earn profits.

Explanation of Break-even Point Analysis:The Break-even Point is, in general, the point at which the gains equal the losses. A break-even

point defines when an investment will generate a positive return. The point where sales or

revenues equal expenses. Or also the point where total costs equal total revenues. There is no

profit made or loss incurred at the break-even point. This is important for anyone that manages

a business, since the break-even point is the lower limit of profit when prices are set and

margins are determined.

Break-even point:

Total Revenue = Total Cost (no profit, no loss point)

Achieving Break-even today does not return the losses occurred in the past. Also it does not

build up a reserve for future losses. And finally it does not provide a return on your investment

(the reward for exposure to risk).

The Break-even method can be applied to a product, an investment, or the entire company's

operations and is also used in the options world. In options, the Break-even Point is the market

price that a stock must reach for option buyers to avoid a loss if they exercise.

The Break-even Point analysis must not be mistaken for the Payback Period, the time it takes to

recover an investment.

In Value Based Management terms, a break-even point should be defined as the Operating

Profit margin level at which the business / investment is earning exactly the minimum

acceptable Rate of Return, that is, its total cost of capital.

 Benefits of Break-even Analysis

The main advantage of break-even analysis is that it explains the relationship between cost,

production volume and returns. It can be extended to show how changes in fixed cost-variable

cost relationships, in commodity prices, or in revenues, will affect profit levels and break-even

points. Break-even analysis is most useful when used with partial budgeting or capital

budgeting techniques. The major benefit to using break-even analysis is that it indicates the

lowest amount of business activity necessary to prevent losses.

KOLKATA KNIGHT RIDERS

Kolkata Knight Riders is a team owned by Red Chillies Entertainment. Shahrukh Khan, the

owner of KKR has used his contacts and his King Khan image to earn sponsors and made KKR

a brand in the first year.

SPONSORS ARE:

Nokia

Sprite

Reebok

Anandabazar Patrika

Belmonte

Tag Heuer

BILT

Star Plus

Gitanjali

Kolkata Knight Riders

Player Sign-in/bid price ($)

S Ganguly 1,092,5000

Dinda 62,500

Pujara 62,500

Debabrata Das 62,500

Laxmi Shukla 62,500

Rohan Banerjee 62,500

Lahiri 62500

Taibu 125,000

Saha 62,500

Chopra 62,500

Hodge 62,500

Gayle 800,000

Iqbal Abdulla 30,000

Hafeez 100,000

Ponting 400,000

Siddharth 30,000

Umar Gul 150,000

Ajit Agarkar 350,000

McCullum 700,000

David Hussey 625,000

Ishant Sharma 950,000

Murali Karthik 425,000

Salman Butt 100,000

S Akhtar 450,000

Yashpal Singh 62,500

Ranadeb Bose 62,500

Buchanan (Coach)

Total $ 6.2m

The salary offer is valid for three years, although there is the possibility of

player transfers in future years

There is an overall salary cap of $5m, while franchises have to spend atleast $3.3m

Franchises were allowed to nominate one “icon” player who would have

to play for their team – with the promise that they would earn 15% more than the

next highest paid player in that team.

A franchisee has to pay 10% of total franchisee costs every year to IPL. Assuming that a

team is bought by a franchise at US$100mn – it would have to pay US$10mn per year

to IPL

As mentioned earlier the only way to earn huge revenue in this field is to earn as many

sponsors as possible, that’s what KKR has done. If these sponsors were enough for KKR to

break-even in the first IPL season, let’s find out

KOLKATA KNIGHT RIDERS INCOME STATEMENT for YEAR 1

REVENUES AMOUNT

(CRORES)

EXPENSES AMOUNT

(CRORES)

BROADCASTING

RIGHTS

35 FRANCHISE FEE 31

TEAM SPONSORS 34 TEAM EXPENSES 25

GATE RECEIPTS 20 PROMOTION 20

TOTAL REVENUE 89 TOTAL EXPENSES 76

BREAK –EVEN POINT OF KKR:

NET PROFIT = TOTAL REVENUE – TOTAL EXPENSES

NET PROFIT = 89 – 76 =13 CRORES

Here, franchisee fee = 31crores = Fixed Cost

As seen KKR’s revenues are greater than expenses. KKR has earned profits. Therefore there is

a break-even point at which revenue is equal to expenses. The total expense is 76crores. When

revenue is 76crores there is a break-even point.

Break-even point is at 76crores

KKR has earned profit in the first year of IPL. The main reason for profits was Shahrukh Khan,

who used his contacts to bring sponsors for his team KKR.

KOLKATA KNIGHT RIDERS INCOME STATEMENT for YEAR 2

REVENUES AMOUNT

(CRORES)

EXPENSES AMOUNT

(CRORES)

BROADCASTING

RIGHTS

41 FRANCHISE FEE 31

TEAM SPONSORS 23 TEAM EXPENSES 25

GATE RECEIPTS 4.8 PROMOTION 12

TOTAL REVENUE 68.8 TOTAL EXPENSES 68

BREAK –EVEN POINT OF KKR:

NET PROFIT = TOTAL REVENUE – TOTAL EXPENSES

NET PROFIT = 68.8 – 68 = RS.80 LAKH

Here, Franchise Fee = 31crores = Fixed Cost.

As seen KKR’s revenues are greater than expenses. KKR has earned profits. Therefore there is

a break-even point at which revenue is equal to expenses. The total expense is 68crores. When

revenue is 68crores there is a break-even point.

Therefore Break-even point is at 68crores.

FORECASTING BREAK-EVEN OF IPL3

FACTORS :

• IMG DEAL.

• BRAND EQUITY OF KKR

• REVENUE FROM GATE RECEIPTS

IMG CONTROVERSY SURROUNDING IPL

IMG (International Management Group) is the event organizer of IPL. Recently there emerged

a controversy surrounding the deal IMG had with BCCI.

During Sharad Power’s time as the BCCI president, BCCI struck a 10yr deal with IMG to

conceptualize and implement a new league system. IMG were paid 43crores for the IPL

season 1 and 33 crores for the season 2. All of a sudden some of the BCCI officials now feel

that the deal is overpriced. They say that IMG should not be charging more than 25crores.

According to various sources the controversy is mainly because of the growing differences

between BCCI senior official N. Srinivasan and IPL chief Lalit Modi.

IMPLICATIONS ON THE BREAKEVEN OF KKR

There are two possibilities:

i) The deal being called off.

ii) The deal continues.

i) In case of deal being called off, BCCI will have to recruit a new event management

company in place of IMG. For such a big event like IPL, finalizing the organization

will not be an easy task. Lead time required will be large as a result the entire event

may be jeopardized . on top of that the rights of the current format used by IPL is with

IMG. As a result if they decide to switch to a different organization, IPL cannot use the

current format. In order to switch to a different format there is every possibility that the

number of days of the tournament will increase. As a result the team expenses of KKR

will go up a lot. The hotel charges , transportation charges , food charges etc are borne

by the franchise itself. But the earnings that they get from the sponsors would remain

same. As a result the team expenses will go up a lot. This will hit the revenue earned by

the franchise. As a result it will become all the more difficult for the franchise to attain

its breakeven.

ii) If the deal continues then the team expenses will depend only on the venue country and

not the format of the tournament.

BRAND EQUITY OF KKR:

IPL as a business proposition is valued at $2bn and Kolkata Knight Riders (KKR) team is

the richest in terms of brand value. let’s have a look at the data.

The valuation is done by Brand Finance which has done other valuations for Indian

companies. It is the company which placed Bharti Airtel among the top 25 global telecom

brands.

The report is coming from Brand Finance and I respect that. Most of the things were relevant

if the tournament would have been conducted in India.

1. Revenue lines such as broadcasting,

2. IPL sponsorship,

3. Team sponsorship,

4. Merchandising and gate receipts

5. The effect of performance,

6. The catchment population of the city,

Break even point may or may not be reached

Team expenses increases

Tournament duration increases

7. The capacity of the stadium

8. The presence of iconic players

Look at the things which Brand Finance has considered it all fits. These three reasons 6, 7 and

8 above are all in favor of Kolkata Knight Riders team because of the stadium capacity (Eden

Gardens) and the population of Kolkata city.

In fact except the effect of performance everything else is in favor of Kolkata Knight Riders.

This explains why KKR is the richest team on the circuit. But, that still does not explain their

pathetic performance on the ground.

“Despite propping up the bottom of second year’s edition of the IPL in South Africa, the

Kolkata Knight Riders are the most valuable franchise brand at USD 42.1 million. Celebrity

co-owner Shahrukh Khan’s hard-selling of the KKR brand has counteracted the team’s poor

on-field performance,” Brand Finance said. (DNA India)

Kolkata Knight Riders is more a fancy dress competition than a cricket team. Still they have

managed to bring up a better valuation for the team. All of it goes to the superstar Shahrukh

Khan and Brand Finance did not mention that. Without Shahrukh, the team got nothing to

show. So, if Shahrukh sells, whoever buys it might have to take a few million off the price for

brand Shahrukh.

Brand valuations of the IPL teams :

1. Kolkata Knight Riders  – $42.1 million

2. Mumbai Indians  – $41.6 million

3. Rajasthan Royals – $39.5 million

4. Chennai Super Kings – $39.4 million

5. Delhi Daredevils – $39.2 million

6. Royal Challengers Bangalore – $37.4 million

7. Kings XI Punjab – $36.3 million

8. Deccan Chargers – $34.8 million

The reason for Mumbai Indians being a better brand just behind KKR is because of the list of

sponsors Mumbai has. It has 11 sponsors

Highest TRP for Kolkata knight riders in IPL 2.

Financially, the Knight Riders were easily the most successful franchise in the IPL 1,

achieving a profit of Rs. 13crores and Rs. 80lakh in IPL 2.

At this moment KKR is the richest team in all the eight franchisees.

REVENUE FROM GATE RECEIPTS:

• Since IPL2 was held outside India, the revenue earned from gate receipts was very less.

This year it is expected to increase. IPL3 will be staged in India, so the revenue from

gate receipts will increase compared to IPL2.

• Using the conservative approach we are using the data of gate receipts from IPL1, even

though there is chances of ticket prices increasing in IPL3

BREAK-EVEN OF IPL3 (IMG deal called off)

REVENUES AMOUNT

(CRORES)

EXPENSES AMOUNT

(CRORES)

BROADCASTING

RIGHTS

41 FRANCHISE FEE 31

TEAM SPONSORS 23 TEAM EXPENSES 30

GATE RECEIPTS 20 PROMOTION 20

TOTAL REVENUE 84 TOTAL EXPENSES 81

IMG DEAL EXISTS

REVENUES AMOUNT

(CRORES)

EXPENSES AMOUNT

(CRORES)

BROADCASTING

RIGHTS

41 FRANCHISE FEE 31

TEAM SPONSORS 23 TEAM EXPENSES 30

GATE RECEIPTS 20 PROMOTION 20

TOTAL REVENUE 84 TOTAL EXPENSES 81

• NET PROFIT = TOTAL REVENUE – TOTAL EXPENSES

• NET PROFIT = 84 – 81 = RS 3crores (IMG deal called off)

• NET PROFIT = 84 – 76 = RS 8crores (IMG deal continues)

• Here, Franchise Fee = 31crores = Fixed Cost.

KEY ASSUMPTION:

Here we have increased the Team expenses by 20% because the tournament duration is

expected to increase by 20%

APPENDIX:

Franchise Owner(s)Price

(USD)

Mumbai Indians Mukesh Ambani (Reliance Industries) $ 111.9 m

Royal Challengers Bangalore Vijay Mallya (UB Group) $ 111.6 m

Deccan Chargers Deccan Chronicle(Venkat Ram Reddy) $107.0 

m

Chennai Super Kings India Cements (N.Srinivasan) $ 91.90 m

Delhi Daredevils GMR Holdings (Grandhi Mallikarjuna Rao) $ 84.0 m

Kings XI Punjab Ness Wadia (Bombay Dyeing), Priety Zinta,

Mohit Burman (Dabur) and Karan Paul

(Apeejay Surendera Group)

$ 76.0 m

Kolkata Knight Riders Red Chillies Entertainment (Shahrukh

Khan, Gauri Khan, Juhi Chawla and Jay

Mehta)

$ 75.1 m

Rajasthan Royals Emerging Media (Lachlan Murdoch, A.R

Jha and Suresh Chellaram), Shilpa Shetty,

Raj Kundra

$ 67.0 m

Kolkata Knight Riders

Player Sign-in/bid price ($)

S Ganguly 1,092,5000

Dinda 62,500

Pujara 62,500

Debabrata Das 62,500

Laxmi Shukla 62,500

Rohan Banerjee 62,500

Lahiri 62500

Taibu 125,000

Saha 62,500

Chopra 62,500

Hodge 62,500

Gayle 800,000

Iqbal Abdulla 30,000

Hafeez 100,000

Ponting 400,000

Siddharth 30,000

Umar Gul 150,000

Ajit Agarkar 350,000

McCullum 700,000

David Hussey 625,000

Ishant Sharma 950,000

Murali Karthik 425,000

Salman Butt 100,000

S Akhtar 450,000

Yashpal Singh 62,500

Ranadeb Bose 62,500

Buchanan (Coach)

Total $ 6.2m

The salary offer is valid for three years, although there is the possibility of

player transfers in future years

There is an overall salary cap of $5m, while franchises have to spend atleast $3.3m

Franchises were allowed to nominate one “icon” player who would have

to play for their team – with the promise that they would earn 15% more than the

next highest paid player in that team.

A franchisee has to pay 10% of total franchisee costs every year to IPL. Assuming that a team

is bought by a franchise at US$100mn – it would have to pay US$10mn per year

KOLKATA KNIGHT RIDERS INCOME STATEMENT for YEAR 1

REVENUES AMOUNT

(CRORES)

EXPENSES AMOUNT

(CRORES)

BROADCASTING

RIGHTS

35 FRANCHISE FEE 31

TEAM SPONSORS 34 TEAM EXPENSES 25

GATE RECEIPTS 20 PROMOTION 20

TOTAL REVENUE 89 TOTAL EXPENSES 76

KOLKATA KNIGHT RIDERS INCOME STATEMENT for YEAR 2

REVENUES AMOUNT

(CRORES)

EXPENSES AMOUNT

(CRORES)

BROADCASTING

RIGHTS

41 FRANCHISE FEE 31

TEAM SPONSORS 23 TEAM EXPENSES 25

GATE RECEIPTS 4.8 PROMOTION 12

TOTAL REVENUE 68.8 TOTAL EXPENSES 68

RESEARCH PAPER OF BRAND FINANCE:

IPL as a business proposition is valued at $2bn and Kolkata Knight Riders (KKR) team is

the richest in terms of brand value. My first reaction was WTF. Second reaction was – are

you kidding me? Third reaction – let’s look at the data.

The valuation is done by Brand Finance which has done other valuations for Indian companies.

It is the company which placed Bharti Airtel among the top 25

global telecom brands.

If it is from any other source I would have rubbished the report.

But, it is coming from Brand Finance and I respect that. Traditional

media has reported this and I tried to search the website of Brand Finance but nothing came up.

I will leave at that.

Brand Finance took various things in valuing the brand. Most of the things were relevant if the

tournament was conducted in India.

9. Revenue lines such as broadcasting,

10. IPL sponsorship,

11. Team sponsorship,

12. Merchandising and gate receipts

13. The effect of performance,

14. The catchment population of the city,

15. The capacity of the stadium

16. The presence of iconic players

Look at the things which Brand Finance has considered it all fits. But, only if the tournament is

conducted in India. The reasons 6, 7 and 8 above are all in favor of Kolkata Knight Riders team

because of the stadium capacity (Eden Gardens) and the population of Kolkata city.

In fact except the effect of performance everything else is in favor of Kolkata Knight Riders.

This explains why KKR is the richest team on the circuit. But, that still does not explain their

pathetic performance on the ground.

“Despite propping up the bottom of this year’s edition of the IPL taking place in South Africa,

the Kolkata Knight Riders are the most valuable franchise brand at USD 42.1 million.

Celebrity co-owner Shah Rukh Khan’s hard-selling of the KKR brand has counteracted the

team’s poor on-field performance,” Brand Finance said.

Kolkata Knight Riders is more a fancy dress competition than a cricket team. Still they have

managed to bring up a better valuation for the team. All of it goes it the superstar Shah Rukh

Khan and Brand Finance did not mention that. Without Shah Rukh the team got nothing to

show. So, if Shah Rukh sells, whoever buys it might have to take a few million off the price for

brand Shah Rukh.

Rajasthan Royals is the other team which returns maximum revenue on your investment.

Shilpa Shetty will be mighty pleased about this.

Brand valuations of the IPL teams :

9. Kolkata Knight Riders  – $42.1 million

10. Mumbai Indians  – $41.6 million

11. Rajasthan Royals – $39.5 million

12. Chennai Super Kings – $39.4 million

13. Delhi Daredevils – $39.2 million

14. Royal Challengers Bangalore – $37.4 million

15. Kings XI Punjab – $36.3 million

16. Deccan Chargers – $34.8 million

The valuations are an arbitrary number based on some calculations and does not reflect the real

value of the team. The reason for Mumbai Indians being a better brand just behind KKR is

because of the list of sponsors Mumbai has. It has 11 sponsors and KKR has 10 sponsors.

Rajasthan Royals has only 3 sponsors to its credit.

Clearly this is not about cricket. It has moved beyond cricket and is at a place where no body

yet knows what it is.  And I thought it was about cricket – silly me.

If you are still not convinced, let me leave you with this quote from the Fake IPL Player.

We are being paid by the 200 Million Indians who are following this tournament. Everybody

who has put in money – the tournament organisers, TV channels, team owners etc. – sell rights

and properties to brands and earn big profits. The brands, who have already paid millions, put

in a few millions more and advertise on every inch they can lay their hands on. Eventually, all

you guys who have spent 4-8 hours in front of your TV watching a little bit of cricket and a lot

of advertisements go out to the market and purchase the colas, the mobile phones, the clothes,

and the potato chips that you didn’t really need. And that’s how brands make their profit –

from every rupee of your hard earned money that you spend on them.

Two, some others have been asking me if the matches are fixed. I want to ask you, why fix

matches when you can fix the game? You take a 5-day game, make it into a day game, and

then further shorten it to a 3.5 hour game. Throw in scantily dressed dancers, cleavage-showing

anchors, beauty contests, dumb ass commentators with stupid jokes. And some seriously good

competitive cricketers. And you have a magic potion that can hypnotize 200 Million people for

4 hours every day for more than a month. That 200 Million population has more money in their

hands than any betting syndicate in the world. The game’s about your time and your money.

On the issue of fixed matches, having seen guys like Aila, Sheikh, Lordie, Priest, Deewar from

fairly close quarters now, I can tell you that no amount of money can lure them to lose a match

intentionally.

Highest TRP for Kolkata knight riders in IPL2

Financially, the Knight Riders were easily the most successful franchise in the IPL,

achieving a profit of Rs. 13crore.