Results for the quarter ended June 30, 2006 compared to quarter ended June 30, 2005

Financial Highlights

Operational highlights

• Realization per hour from Commissioned Programming increased from Rs. 1.84 mn to Rs. 2.24 mn
• Average realisation per hour increase from Rs. 1.06 mn to Rs 1.52 mn
• Commissioned programming hours up from 257.50 hours to 298 hours, an increase of 16%
• ‘Kosmic Chat’ was re-launched on Zoom TV during the quarter
• One new state of the art studio became operational, thereby further improving the quality of programming
• Invested  Rs.32.50 mn in production & post-production equipments and studios
• Balaji’s programming continues to dominate 29 of the top 50 programmes in Hindi Cable & Satellite Channels (Source: Tam Ratings for the week ended July 1, 2006, MF 4+, C & S).
• Cash and Cash Equivalents of Rs. 1854.07 mn as on June 30, 2006.

Results for the quarter ended June 30, 2006

The unaudited financial results for the quarter ended June 30, 2006 were taken on record by the Board at its meeting held on July 27, 2006.

Particulars	Quarter ended June 30,		Growth%	Quarter ended March 31, 2006	Growth % in Q1 FY07 over Q4FY06
	2006	2005
INCOME FROM OPERATIONS	735.39	633.33	16.11%	769.12	-4.39%
TOTAL EXPENDITURE	475.02	426.61	11.35%	521.51	-8.91%
OPERATING PROFIT Interest Depreciation	260.37 0.04 27.80	206.72 0.02 34.01	25.95% -18.26%	247.61 0.25 29.87	5.15% -6.93%
OPERATING PROFIT AFTER INTEREST & DEPRECIATION Other Income	232.53 21.46	172.69 11.83	34.65% 81.33%	217.49 12.28	6.92% 74.84%
PROFIT BEFORE TAX Provision for Taxation	253.99 80.22	184.52 59.37	37.65% 35.12%	229.77 74.74	10.54% 7.33%
NET PROFIT AFTER TAX	173.77	125.15	38.85%	155.03	12.09%
EARNINGS PER SHARE (Face Value is Rs. 2)	2.66	1.92	38.54%	2.38	11.76%
KEY RATIOS Operating Profit Margin (%) Net Profit Margin (%)	35.41% 23.63%	32.64% 19.76%		32.19% 20.16%

Management discussion and analysis on unaudited Financial Results of the Company for the Quarter ended June 30, 2006

Revenues

The Company recorded income from operations of Rs. 735.39 mn during the quarter, up 16.11% y-o-y.  Revenue contribution from commissioned programming was Rs.668.53 mn, up 41.45% y-o-y, while that of sponsored programming was Rs. 66.48 mn.  The share of commissioned programming in the revenues during the quarter was 91%, while that of sponsored programming was 9%. 

Channel Wise Revenue

The Channelwise Revenue distribution during the quarter ended June 30, 2006, June 30, 2005 and March 31, 2006, is as follows:

Programming Mix

Commissioned & Sponsored Programs

Other Income

The Other Income during the quarter was Rs. 21.47 mn against Rs. 11.84 mn as on June 30, 2006. 

Gross Block

The Company’s gross block increased from Rs.597.33 mn to Rs. 721.64 mn as on June 30, 2006.

During the quarter, the Company invested over Rs. 32.50 mn in production / post-production equipments and construction of the state-of-the art studios in order to meet the increased programming requirements.

Investments

As on June 30, 2006, the Company’s investments were at Rs. 1791.03 mn.  The Company invested surplus funds in liquid/floating rate funds with the principal aim of safety The market value of investments as on 30.06.2006 was Rs. 1828.22 mn.

Debtors

The Company’s debtors (in days of income) have decreased from 95 days in FY06 to 82   days as on June 30, 2006.

Inventories

The Company’s inventories (in days of turnover) decreased from 15 days to 11 days as on June 30, 2006

Loans and advances

Loans and advances increased from Rs 170.48 mn as on March 31, 2006 to Rs 216.63 mn as on June 30, 2006. The Company’s principal loans and advances comprised lease deposits for offices / studios and advances for films.

Change in Programming during the quarter

• The Company re-launched following serials during the quarter ended June 30, 2006

• The following serial/s of the Company went off air during the quarter ended June 30, 2006.

Serials on air

As on June 30, 2006 the following 18 serials of the Company were on air on various channels.

{(Source – TAM Ratings for the week ended 01/07/06, Category – MF 4+ (C & S)}

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

• Sandeep Jain, Chief Financial Officer, Balaji Telefilms Limited, Tel: 91 22 26732275, Fax: 91 22 26732312, E-mail: sandeep.jain@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.