Chennai Super Kings Cricket Limited
Chennai Super Kings Cricket Limited is an Indian company that owns and operates the Chennai franchise in the Indian Premier League (IPL).
About Company :
The Indian business Chennai Super Kings Cricket Limited is the owner and manager of the Chennai Indian Premier League team (IPL).
IPL Championship
- In 2023, CSK won the IPL for the fifth time. Chennai Super Kings have shown their dominance in cricket time and time again, winning five IPL titles and making ten finals appearances. In2010,2011,2018,2021, and 2023, the team triumphed.
- 2010 and 2014 Champions League Twenty20 (CLT) Champions
- The Chennai Super Kings have proven to be a formidable force in Twenty20 cricket, having qualified for the playoffs twelve times.
MS Dhoni and CSK
MS Dhoni and CSK are closely associated and exclusive brands for the millions of Indian cricket fans who follow the team. In attendance were approximately 35,000 spectators who witnessed a spectacular opening stand, wickets from the CSK spinners, and of course, the classic Dhoni display. Although it's still unclear if Dhoni will participate in the upcoming Indian Premier League, he is the team's captain.
Joburg Super Kings (Pty) Ltd.
1 In South Africa, the company owns a wholly-owned subsidiary called Johannesburg Super Kings (Pty) Ltd. In Johannesburg's T20 league's inaugural season, the team placed in the semifinals. In addition, ahead of the second SA20, JSK has decided to hold onto eight players: Leus du Plooy, Reeza Hendricks, Lizaad Williams, Nandre Burger, Donovan Ferreira, Aaron Phangiso, Sibonelo Makhanya, and Kyle Simmonds.
CSK has partnered with a local investor for the Texas franchise, per a report in ESPNCricinfo. With CSK's arrival in the MLC, IPL franchises will own four of the six teams. The Mumbai Indians for New York and the Kolkata Knight Riders for Los Angeles will both manage their respective teams independently.
SUPERKING VENTURES PRIVATE LIMITED
The company launched several academies in Chennai, Salem, Hosur, Tiruppur, Tirunelveli, and Tiruchirapalli during the course of the fiscal year. As of right now, there are seven in total. These academies are now home to over 400 students.
Revenue Streams:
- Central Rights: Digital rights, broadcasting rights, and additional centralized sources of income
- Sponsorship: The Company receives revenue from a variety of brands and businesses through sponsorship.
- Membership and Facility Use: The Company's academies act as a talent pipeline and make money from the use of their facilities and membership fees.
- Talent Management: As a new business venture, the company has entered the talent management space, concentrating mainly on cricket.
Sales of merchandise: jerseys, hats, and other fan gear
Additional Revenue from the Tournament: Ticket Sales, Stadium Advertising, and Other Unrelated Revenue.
Industry Analysis:
- According to BCCI, the Indian Premier League (IPL) is now the second most valuable sporting league in the world after its media rights were recently sold for an incredible Rs 48,390 crore for a five-year term.
- It is only a matter of time until the IPL experiences even greater growth and a substantial valuation increase. The Gujarat Titans (GT) and the Lucknow Super Giants are the two new teams that have increased the total number of games in the IPL 2022 from 60 to 74. (LSG).
- The Indian Premier League will feature 94 matches by 2027. Businesses will bid more for media rights as the number of matches rises. The broadcasting channels will profit from an increase in revenue and more time for advertising. Even the possibility of an IPL held twice a year shortly is being discussed.
- In 2021–2022, the Indian Premier League achieved a significant milestone. For example, Star, owned by The Walt Disney Company in India, was paid Rs 23,575 crore for the television rights for the Indian subcontinent, while Viacom18 was paid Rs 23,758 crore for the digital rights to 410 matches. That is, a nearly threefold increase in revenues over the next five years over the rights income earned over the previous five.
- The IPL teams and BCCI will make roughly Rs. 10,000 crores a year. Teams will receive 50% of the total, with the remaining 50% going to BCCI. In South Africa's upcoming Twenty20 League, the Johannesburg franchise will be owned by Chennai Super Kings Limited.
- In most countries, the franchise model has gained popularity. Currently, England also has a 100-ball franchise league. Since everything is switching to a T-20 format, the owners are eager to make investments in each franchise. This could eventually raise its value.
Marketing Strategies:
- Additionally, the company has opened up a new business venture in "Talent Management". In this sector of the economy, the company will oversee the business ventures of some of the skilled professionals involved in a variety of sports, chiefly cricket.
- The "Super Family" is one of Chennai Super Kings' most noteworthy initiatives. The goal of the 2019 launch initiative is to build a community of devoted followers. By registering on the team's official website, supporters can become a part of the Super Family.
- The Chennai Super Kings have also introduced the "Whistle Podu Express." The project seeks to give Chennai Super Kings supporters a one-of-a-kind fan experience.
- The team charters a train to travel from Chennai to Pune, where they play their home games. The fans enjoy interacting with the players, playing games, and winning prizes during the train ride.
- The business interacts with many of its affiliates and sponsors. TVS Eurogrip, India Cements, Gulf, British Empire, SNJ 10000, Reliance Jio, Nippon Paint, and Astral Pipes are some of CSK's main business partners.
- Dream11, an online fantasy sports platform, and Aqilliz, a blockchain solutions provider with its headquarters in Singapore, have been announced as the CSK's Digital Partners for the 2022 Indian Premier League.
- Garuda Aerospace, Vision11, ICICI Bank, Coca-Cola, and Sunfeast Supermilk are the official partners.
- Merchandise Partners: Hello FM, FanCraze, PlayR, and FanPlay IoT.
Financial Performance:
| Particulars |
Year ended 31.03.2023 |
Year ended 31.03.2022 |
Year ended 31.03.2021 |
| Total Revenue (in crores) |
292.34 |
349.14 |
253.69 |
| Profit / (Loss) before Interest, Depreciation & Exceptional Items (in Crores) |
84.21 |
49.41 |
67.79 |
| Less : Finance Cost (in Crores) |
10.05 |
5.67 |
5.26 |
| Less: Depreciation / Amortization (in Crores) |
3.63 |
2.4 |
3.33 |
| Profit / (Loss) Before Tax (in Crores) |
70.52 |
41.33 |
59.19 |
| Less: Current Tax (in Crores) |
18.64 |
11.02 |
17.63 |
| Less: Deferred Tax (in Crores) |
-0.29 |
-181.68 |
129.82 |
| Profit / (Loss) After Tax (in Crores) |
52.17 |
32.12 |
40.26 |
Financial Analysis
Revenue CAGR: 7.35%
Profit After Tax CAGR: 13.83%
- . Growth in Revenue and Profit: The growth in Revenue and Profit After Tax has been moderate. Positive sign since Revenue grows more slowly than Profit After Tax.
- . Profit Margin: Variable, showing a decline in 2022 and a rise in 2023. requires observation to ensure stability in the future.
- Finance Cost: Growing percentage of profit before depreciation, interest, and exceptional items that goes toward financing costs. Possible cause for concern should it keep rising.
- . Depreciation: as a percentage of Profit Before Interest, Depreciation, and Exceptional Items: Relatively stable. a generally encouraging indication.
- SWOT Analysis
Strength
- Reputation and Consistency: The Chennai Super Kings (CSK) have made a name for themselves as the Indian Premier League's (IPL) most reliable team. Their most recent victory in the May 2023 IPL Championship enhanced their already solid reputation.
- Successful Track Record: CSK has demonstrated its cricketing prowess by winning five IPL titles and making it to the finals ten times.
- Robust Income Streams: The business gets money from several sources, such as central rights, sponsorship agreements, academy memberships, talent management, merchandise sales, and income from tournaments. This varied source of income ensures stability in finances.
- Important Shareholders: CSK has substantial financial support from important shareholders such as Life Insurance Corporation of India, Mrs. Rupa Gurunath, Trustee, Sri Saradha Logistics Private Limited, and EWS Finance and Investments Private Ltd.
Weakness:
- Dependency on Cricket: Cricket-related activities constitute CSK's main source of income. Due to its reliance on a single sport, the business may be more susceptible to changes in the cricket market.
- Variable Profit Margins: The business's profit margins have varied, declining in 2022. Financial stability may be hampered by this inconsistency.
- Growing Financing Costs: If not properly managed, the growing finance costs as a percentage of profit before interest, depreciation, and exceptional items may cause concern.
Opportunities :
- Increasing the IPL: CSK has the chance to gain more broadcasting rights and advertising revenue as a result of the IPL's ongoing expansion, which includes talks about hosting it twice a year and the addition of teams.
- Worldwide Franchise Trend: Globally, franchise-based leagues are becoming more and more popular. CSK's valuation may rise as a result of its participation in the T20 league in South Africa and possible investments in other teams.
- Diversification: CSK may be able to lessen its reliance on cricket by expanding into other non-cricketing businesses and talent management.
Threats
- Strong teams and franchises make the IPL a fiercely competitive environment. It's never easy to stay consistent and successful in this cutthroat environment.
- Market Risks: CSK's earnings and standing may be impacted by shifts in the cricket scene, such as incidents involving match-fixing or injuries to players.
- Economic Factors: Consumer spending on merchandise and match tickets and sponsorship agreements can be impacted by economic downturns or unanticipated events.
- Regulatory Shifts: CSK's operations and revenue streams may be impacted by modifications to the BCCI's or IPL's rules or governance.
Major Highlights:
By sustaining strong broadcasting and other indirect revenue streams, CSK has been able to navigate through the difficult waters of the pandemic thanks to its strong brand value and popularity. For FY22–23, it is anticipated that CSK will continue to bring in a sizable sum of money from sponsorships, merchandise sales, prize money, and digital viewership.
The leading two- and three-wheeler tire brand in India, TVS Eurogrip, recently signed a record-breaking hundred crore rupee contract to serve as the primary sponsor of the Chennai Super Kings for a three-year term.
When a team plays well, their rating and brand value rise, which in turn raises the team's valuation or per-share value. Furthermore, the CSK Share Price will increase if CSK wins an IPL.
Conclusion
In summary, investing entails risks at all times, but CSK's history, market potential, and financial stability make it an alluring offer. Getting a piece of CSK could be a winning move if you adhere to the "Whistle Podu" philosophy!
CSK shares appear promising given the recent increase in valuation, the possible triggers, and the fervor for cricket in India. But before making a choice, as with any investment, you should evaluate your risk tolerance, do extensive research, and speak with a financial advisor.
