MUMBAI: In our continuing series on India's best kept secrets, today we talk about an advertising agency known for its eye-catching creative work for brands like Vodafone, Cadbury and Fevicol...
Good creative work has not only got O&M the reputation of being the most creative, it has brought in profits as well.
O&M closed financial year 2007 with revenue of Rs 228 crore, a 25 % jump over FY06. The company reported net profit of Rs 63 crore in FY07- a marginal increase over the previous fiscal. This translates to an earnings per share of over Rs 650.
While profits were from existing clients like Asian Paints, Castrol/BP, Vodafone, Fevicol and Cadbury, O&M also added an impressive list of new clients in 2007.
Some big-ticket account wins include Birla Sun Life Insurance, Canara Bank, Dabur, HDFC Bank, Unitech and Videocon Industries.
In a service industry like advertising, attracting talent and retaining good people is a huge cost. And it's no different in the case of O&M. Staff cost at O&M jumped nearly 20% to Rs 71 crore in FY07 .
With these results, O&M India has managed to be the number three agency in the worldwide WPP rankings. While it is a known fact that 74% of O&M India is held by parent WPP and 26% by Indian employees, what is not known is the fact that Piyush Pandey, executive chairman and chief creative officer, holds more than any other individual in the agency.
Pandey with his 18,500 shares owns 2% in the agency. Chief financial officer S N Rane owns close to 16,000 shares. In 2007, a dividend of Rs 505 per share was declared by the agency, which means Piyush Pandey took home nearly Rs 1 crore just as dividend!
O&M closed financial year 2007 with reserves and surplus of nearly Rs 75 crore and a cash balance of over Rs 70 crore.
Financials
| |
FY07 |
FY06 |
| Revenues (Up 25%) |
Rs 228 cr |
Rs 183 cr |
| Net Profit (Up 14.5%) |
Rs 63cr |
Rs 55cr |
| EPS |
Rs 657 |
Rs 574 |
| Salaries |
Rs 71cr |
Rs 53cr |
New Clients 2007
- Birla Sun Life Insurance
- Canara Bank
- Dabur
- HDFC Bank
- Unitech
- Videocon
Shareholding Pattern
WPP - 74%
Employees - 26%
Piyush Pandey - 2% (18,560 shares)
S N Rane - 1.8% (15,850 shares)
(This exclusive series uncovers information and numbers regarding some of the biggest companies in India, but which are not in the public domain.)
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