Results for the quarter ended September 3 0, 2005 compared to previous quarter ended June 30, 2005

Financial Highlights

• Income from operations up from Rs 633.33 mn to Rs. 701.38 mn, an increase of 10.75%
• Realization per hour increased to Rs 1.33 mn per hour, an increase of 26.26%
• Profit after tax up from Rs 125.16mn to Rs 170.16mn, an increase of 35.95%
• Operating profit increased from Rs 206.72 mn to Rs 282.80 mn , up 36.81%

• Rates of some of the serials on Star Plus have been hiked based on their Television Ratings Points (TRPs) during the quarter.
• Invested Rs.46.4 mn in production & post-production equipments and studios
• Balaji’s programming dominate 22 of the top 25 programmes in Hindi Cable & Satellite Channels (Source: Tam Ratings for the week ended 01.10.2005, Female 15 Plus, C & S, 29 Cities).
• Cash and Cash Equivalents of Rs. 1306.42 mn as on 30th September, 2005

Results for the quarter ended September 30, 2005

The un audited financial results for the quarter ended September 30, 2005 were taken on record by the Board at its meeting held on October 27, 2005.

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

Management discussion and analysis on Un audited Financial Results of the Company for the Quarter ended 30.09.2005

The Company recorded income from operations of Rs. 701.38 mn during the quarter, up 10.75% q-o-q.  Revenue contribution from commissioned programming was Rs.606.35 mn, up 28% q-o-q. The average realization per hour increased to Rs 2.35 mn, per hour, up 28%  q-on-q. This was mainly due to the increase in the rates of some of the serials on Star Plus, based on their Television Rating Points (TRPs). The revenue contribution from sponsored programming was Rs. 93.04 mn, up 6.6% q-on-q. The average realization per hour was Rs 0.35 mn against Rs 0.31 mn in the previous quarter.

The revenue-wise distribution between commissioned and sponsored programming during the quarter ended September 3 0, 2005, September 30, 2004 and June 30, 2005, is as follows:

Channel Wise Revenue

The Channel wise Revenue distribution during the quarter ended September 30, 2005, September 30, 2004 and June 30, 2005, is as follows:

Programming Mix

Commissioned & Sponsored Programs

The hour wise programming distribution during the quarter ended September 30, 2005, September 30, 2004 and June 30, 2005, is as follows:

The Other Income during the quarter was Rs. 12.84 mn against Rs. 11.84 mn in the previous quarter. 

The Company’s gross block increased from Rs. 586.20 mn to Rs. 638.87 mn as on September 30 2005.

During the period, the Company invested Rs. 46.4 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 30.09.2005, the Company’s investments were at Rs. 1306.42 mn.  The Company invested surplus funds in liquid/floating rate funds and short-term funds with the principal aim of safety. The market value of investments as on 30.09.2005 was Rs. 1338.20 mn.

Debtors

The Company’s debtors (in days of income) have maintained at 93 days as on 30.09.2005.

Inventories

The Company’s inventories (in days of turnover) decreased from 27 days to 25 days as on 30.09.2005. The Company’s inventories comprise of completed episodes waiting to be aired, incomplete episodes and feature films.

Loans and advances

Loans and advances decreased from Rs 170.28 mn to Rs 167.53 mn as on 30.09.2005. The Company’s principal loans and advances comprised lease deposits for offices / studios.

Change in Programming during the quarter

• The Company launched following serial/s during the quarter ended 30th Sep, 2005

• The following serial/s of the Company went off air during the quarter ended 30th September, 2005.

Serials on air

• As on 30.09.2005 the following 18 serials of the Company were on air on various channels.

{(Source – TAM Ratings for the week ended 01/10/05, Category –29 cities Female 15 Plus) except Zoom, 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.