Results for the year ended March 31, 2005 compared to previous year ended March 31, 2004

Financial Highlights

· Income from operations up from Rs 517.31 mn to Rs. 544.17 mn, an increase of 5.19%

· Profit after tax up from Rs 93.46mn to Rs 96.47mn, an increase of 3.23%

· Operating profit down from Rs 166.86 mn to Rs 143.56 mn


Year ended March 31, 2005 vs Year ended March 31, 2004

· Income from operations up from Rs1782.96mn to Rs1967.48mn, an increase of 10.35%

· Profit After Tax down from Rs  554.08 mn to Rs 412.96 mn, a decrease of 25 .47 % 

· Realization per hour marginally down from Rs 1.2 mn to Rs 1.13 mn, a decrease of 5%

· Operating profit down from Rs 867.58mn to Rs 673.54mn

Operational highlights during the year ended March 31, 2005

· Realization per hour from Commissioned Programming maintained at Rs1.77 mn

· Programming hours up from 1485.5 hours to 1719.5 hours, an increase of  15.75%

· Kkavyanjali and Kaisa Ye Pyar Hai, both launched during the last quarter, have been well accepted by the viewers.

· During the year 14 new shows were launched across various channels.

· Five new state of the art studios became operational, thereby further improving the quality of programming

·Invested Rs.107.72 mn in production & post-production equipments and studios

· Exploited the software library by achieving an export turnover of Rs.10.94 mn.

· Balaji's programming continues to dominate 30 of the top 50 programmes in Hindi Cable & Satellite Channels (Source: Tam Ratings for the week ended 02.04.2005, Female 15 Plus, C & S, 29 Cities).

· Cash and Cash Equivalents of Rs. 1167.5 mn as on 31 st March, 2005

Results for the year ended March 31, 2005

The audited financial results for the year ended March 31, 2005 were taken on record by the Board at its meeting held on May 20, 2005.

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

Results for the quarter ended March 31, 2005

The audited financial results for the quarter ended March 31, 2005 were taken on record by the Board at its meeting held on May 20, 2005.

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

Management discussion and analysis on Audited Financial Results of the Company for the Quarter and Year ended 31.03.2005

The Company recorded income from operations of Rs. 544.17 mn during the quarter, up 16.16% y-o-y.  Revenue contribution from commissioned programming was Rs.459.15 mn, up 19.89% y-o-y, while that of sponsored programming was Rs. 85.02 mn.  The share of commissioned programming in the revenues during the quarter was 85%, while that of sponsored programming was 15%. 

During the year the Company achieved export revenues of Rs. 10.94 mn representing revenues from the export of television software to UAE & USA.

The revenue-wise distribution between commissioned and sponsored programming during the quarter ended March 31, 2005 , March 31, 2004 and December 31, 2004 , is as follows:

Channel Wise Revenue

The Channel wise Revenue distribution during the quarter ended March 31, 2005, March 31, 2004 and December 31, 2004, is as follows:

Programming Mix

Commissioned & Sponsored Programs

The hour wise programming distribution during the quarter ended March 31, 2005, March 31, 2004 and December 31, 2004 , is as follows:

The Other Income during the quarter was Rs. 24.27 mn against Rs. 21.81 mn in the corresponding quarter in the previous year. 

Dividend

The Board of Directors considered the interim dividend of Rs 16 per share paid during the year as the final dividend for the year ended 31 st March, 2005. The dividend recommended for the year is Rs 16 per share ( 800 % on par value of Rs. 2 per share) amounting to Rs. 824.26 mn. Gross Block

The Company's gross block increased from Rs. 438.31 mn in FY04 to Rs. 559.28 mn as on March 31 2005.

During the period, the Company invested over Rs. 107.72 mn in production / post-production equipments and construction of the state-of-the art studios in order to meet the increased programming requirements and further improve the quality of programming

As on 31.03.2005, the Company's investments were at Rs. 1137.46 mn.  The Company invested surplus funds in liquid/floating rate funds  with the principal aim of safety The market value of investments as on 31.03.2005 was Rs. 1153.03 mn.

Debtors

The Company's debtors (in days of income) has increased from 83 days in FY04 to 99 days in FY05.

Inventories

The Company's inventories (in days of turnover) increased from 15 days in FY0 to 44 days in FY05 due to the carrying of inventory of feature films slated to be released in 2005-06 

Loans and advances

Loans and advances increased from Rs 120.71 mn in FY04 to Rs 174.53 mn in FY05.  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 31 st March, 2005

· The Following serial/s of the Company went off air during the quarter ended 31 st March, 2005.

Serials on air

· As on 31.03.2005 the following 21 serials of the Company were on air on various channels.

{Source – TAM Ratings for the week ended 02/04/05, Category – Female 15 Plus) except Zoom, MTV 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: mailto: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.