Not sure what to make if their new business interests and foray into new businesses. Anyone has more insight into it?
My 2 cents on their distribution foray and the concerns arising henceforth, the filming of the movie Ayalan started closely 5 years ago and being a VFX heavy project the filmmaker got the same team(PhantomFx) from his previous movie (Indru netru naalai) , with over 4500 vfx shots this ended up being amongst the movies with the most number of VFX shots in India, they overshot the budget and subsequently the producer ran into financial issues, that is when phantomFx would have chiped in with their idea of co-producing (albeit unintentionally) to recover their costs. If the movie sees the light of the day soon they perhaps will recover the costs because the directorâs earlier movie had a good storyline backed by decent VFX.
I could be wrong here, they have made their intentions clear that they would target international projects and OTT content more and their foray into distribution appears to be a one off incident which they were forced into.
If we look at VFX industry as a whole then one can compare it to IT service industry, at least at the top. And the factors which played out in favor of IT sector in India, similar factors such as labor arbitrage, good communications skills etc. can play out in VFX industry and we possibly can see VFX service exports growing at handsome rate.
However, there is one major difference between the two. The VFX industry is commodity industry as compared to IT service companies because in case of VFX, the skills required, the operations to be performed and the output to be delivered has limited variations. The only differentiating factor is the creativity and decision making around how one wants to design & shoot a particular shot and in turn a movie. And this is the factor that no movie maker would want to outsource. I think Phantom could possibly in a better condition considering that it is a creative studio rather than just a skill based studio.
Also was thinking about disruption that AI can cause in the VFX industry. As @SambitMishra has pointed out in his post earlier that there is possibility that AI can take away some base level jobs and I had similar feedback from a relative of mine who works as cinematographer with very known production house. So the question remains - If AI can do some of the low level jobs and can reduce the time & efforts required, wouldnât it reduce the cost difference that Indian studios were able to offer because of the labor arbitrage?
This site has a list of VFX studios in India and the projects they have worked in. Some of them are working on the same film. Maybe the production house divides the scenes among various studios.
Phantom AGM Notes - https://x.com/Wealth_Finder/status/1707080507962573157?s=20
Is there any update on the audit from Paramount?
Ayalaan - Official Teaser. Phantom seems to have done a good job.
They did a great job with the VFX. Ac excerpt from the Producerâs interview "The team has invested years in perfecting the VFX. Ayalaan has over 4,500+ VFX shots, making it the firstfull-length live-action film in Indian cinema to achieve this feat. Earlier, 2. 0 had used over 2,800 VFX shots while recently, Brahmastra had around 4,000+. However, the latter had a lot of effects that didnât involve any live-action process or characters,â
Lot size now 300 from 600.
Fund raising of 60 cr! Looks like there is solid plan for expansion and coming up into new domain (as mentioned in the agm- it could be gaming vfx)
Hollywood actors are set to end their nearly four-month strike.
https://x.com/vivekchadha1996/status/1722462558869995799?s=46
Good News for Vfx Studios!
Basilicâs results didnât seem to be affected much by the strike. Should have affected Phantom even less in all likelihood. But this is a gokd overhang thats out of the way.
In the basilic concall the management has clearly mentioned the impact of hollywood strike, please listen to it.
Any strike in hollywood is having direct or indirect impact on indian vfx players.
Things are sorted out, Capacities/Resources are already their to meet the upcoming demand.
Interesting time ahead for both companies!
#Invested #Biased #NoRecommendation
Yes ofcourse there is an impact, I meant Basilicâs resukts weee solid despite the strike and despite the fact that over 80% of their business is foreign led and largely skills based.
Phantom on the other hand has a sizable India business too, and so it should be less impacted than Basilic was.
Thanks, why stock has fallen over 8% post results despite strong EPS growth?
They have not given QOQ result. They have given half yearly result. QOQ there is 30% drop. I donât know if they have deliberately compared half year results or thats the format they follow.
So, whats the verdict on results? Any red flags?
Also short term borrowings and receivables have gone up sharply. Will the be a concall?
