Results for the quarter ended September 30, 2004 compared to previous quarter ended June 30, 2004

Financial Highlights

• Profit after tax up from Rs 110.20 mn to Rs 112.83 mn, an increase of 2.38%
• Income from operations marginally down from Rs 453.54 mn to Rs. 452.45 mn, a decrease of 0.24%
• Operating profit down from Rs 186.01 mn to Rs 177.11 mn, a decrease of 4.79%
  

Operational highlights

• Increase in realization per hour from commissioned programming by 9.43% from Rs 1.72 mn to Rs 1.88 mn
• Balaji programming continues to dominate 12 of the top 12 programmes and 31 of the top 50 programmes in Hindi Cable & Satellite Channels.
  
• 5 new show were launched during the quarter.
  
  

Other highlights

• At the extra ordinary general meeting held on September 17, 2004 the shareholders have granted their approval to issue 17.263 mn shares and share warrants convertible into equity shares at Rs 90 per share aggregating Rs 1.55 billion to Asian Broadcasting FZ- LLC (ABF), an affiliate of Star group. This allotment would give an equity stake of 25.1% to ABF in the Company. The Company is in the process of obtaining regulatory approvals for completing the transaction.
• At the meeting of the Board of Directors held on October 16, 2004, the Board decided to convene another meeting, upon there being reasonable certainty in relation to the receipt of regulatory approvals for the aforesaid proposed investment, to consider and if deemed fit, to declare an interim dividend of Rs 16 per equity share.

Results for the quarter ended September 30, 2004

The un audited financial results for the quarter ended September 30, 2004 were taken on record by the Board at its meeting held on October 16, 2004.

The profit and loss account is summarized below: (in Rs. mn except per share data)

Management discussion and analysis on Unaudited Financial Results of the Company for the Quarter ended 30.09.2004

The Company recorded income from operations of Rs. 452.45 mn during the quarter, down marginally by 0.24% q-o-q. Revenue contribution from commissioned programming was Rs. 382.54 mn, against 380.58 mn in the previous quarter while that of sponsored programming was Rs 66.79 mn against Rs 70.53 mn. The share of sponsored programming in the revenues during the quarter was 15%, while that of commissioned programming was 85%. The realization per hour for commissioned programming increased from Rs 1.72 mn to Rs 1.88 mn while that of sponsored programming reduced from Rs 0.47 mn to Rs 0.37 mn.

The revenue-wise distribution between commissioned and sponsored programming during the quarter ended September 30, 2004,September 30, 2003 and June 30, 2004, is as follows:

Channel Wise Revenue

The Channel wise Revenue distribution during the quarter ended September 30, 2004, September 30, 2003 and June 30, 2004, is as follows:

Programming Mix

Commissioned & Sponsored Programs

The hour wise programming distribution during the quarter ended September 30, 2004, September 30, 2003 and June 30, 2004, is as follows:

The Other Income during the quarter was Rs. 15.31 mn against Rs. 6.24 mn in the previous quarter. .  

The operating margins reduced from 41% to 39% during the quarter mainly due to the launch of five serials during the quarter. Also, the cost of production of some of the shows was on the higher side which put pressure on the margins. These shows are currently off air.

The Company's gross block increased from Rs. 463.49 mn to Rs. 513.72 mn as on Sep 30, 2004.

During the period, the Company mainly invested in construction of sets/studios.

As on 30.09.2004, the Company's investments were at Rs. 783.29mn. The Company invested surplus funds in debt mutual funds with floating rates with the principal aim of safety.

Debtors

The Company's debtors (in days of turnover) has increased from 80 days to 81 days as on 30.09.2004.

Inventories

The Company's inventories (in days of turnover) increased from 16 days to 25 days as on 30.09.2004 largely on account of the incomplete feature films under production. The Company's inventories comprise of completed episodes waiting to be aired, incomplete episodes, stock of videotapes and related material and feature films.

Loans and advances

Loans and advances increased from Rs 139.54 to Rs 165.09 mn as on 30.09.2004. The Company's principal loans and advances comprised lease deposits for offices / studios.

Change in Programming during the quarter

• The Company launched following serials during the quarter ended 30th Sep, 2004

• The Following serial/s of the Company went off air during the quarter ended 30th September, 2004.

Serials on air

  • As on 30.9.2004 the following 18 serials of the Company were on air on various channels.

{(Source – TAM Ratings for the week ended 02/10/04, Category – Female 15 Plus) except Zoom and Hungama- category MF 4+}

For further information on results, please contact us on following nos.:

• V. Devarajan, Chief Financial Officer, Balaji Telefilms Limited, Tel: 91 22 26732275, Fax: 91 22 26732312, E-mail: devarajan@balajitelefilms.com

Safe Harbor

Certain statements in this update concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company.