Results for the quarter ended September 30, 2006 compared to previous quarter ended June 30, 2006

Financial Highlights

• Income from operations up from Rs 735.39 mn to Rs. 815.13 mn, an increase of 10.84%;
• Operating profit increased from Rs 260.37 mn to Rs 290.09 mn, an increase of  up 11.41%;
• Profit before tax up from Rs 254 mn to Rs 285.41mn, an increase of 12.36%.

Operational highlights

• Realization per hour from commissioned programming increased from Rs 2.24 mn to Rs. 2.57 mn, an increase of  14.73%;
• ‘Karam Apnaa Apnaa’ and ‘Thodi si Zameen Thoda sa Aasmaa’ launched during the quarter;
• Maintained production of 297.5 hours of Commissioned programmes during the quarter;
• Invested  Rs.24.96 mn in production & post-production equipments and studios;
• Balaji’s programming dominate 18 of the top 25  programmes in Hindi Cable & Satellite Channels (Source:Tam Ratings for the week ended September 30, 2006, MF 4+, C & S);
• Cash and Cash Equivalents of Rs. 1763.20 mn as on September 30, 2006

Results for the quarter ended September 30, 2006

The unaudited financial results for the quarter ended September 30, 2006 were taken on record by the Board at its meeting held on October 20, 2006

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

Particulars	Quarter ended September 30,		Growth%	Quarter ended June 30 2006	Growth % in Q2 FY07 over Q1FY07
	2006	2005
INCOME FROM OPERATIONS	815.13	701.38	16.22%	735.39	10.84%
TOTAL EXPENDITURE	525.04	418.58	25.43%	475.02	10.53%
OPERATING PROFIT Interest Depreciation	290.09 0.00 27.51	282.80 0.15 36.53	2.58% -24.69%	260.37 0.04 27.80	11.41% -1.04%
OPERATING PROFIT AFTER INTEREST & DEPRECIATION Other Income	262.58 22.83	246.12 11.83	6.69% 81.33%	232.53 12.28	12.92% 6.38%
PROFIT BEFORE TAX Provision for Taxation	285.41 92.44	258.96 88.80	10.21% 4.10%	253.99 80.22	12.37% 15.23%
NET PROFIT AFTER TAX	192.97	170.16	13.40%	173.77	11.05%
EARNINGS PER SHARE (Face Value is Rs. 2)	2.96	2.61	13.40%	2.66	11.28%
KEY RATIOS Operating Profit Margin (%) Net Profit Margin (%)	35.59% 23.67%	40.32% 24.26%		35.41% 23.63%

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

Revenues

The Company recorded income from operations of Rs. 815.13 mn during the quarter, up 16.22% y-on-y.  Revenue contribution from commissioned programming was Rs.765.30 mn, up 26.21% y-on-y while that of sponsored programming was Rs.49.82 mn. The share of commissioned programming in the revenues during the quarter was 93.89% while that of sponsored programming was 6.11%.
                     
The revenue-wise distribution between commissioned and sponsored programming during the quarter ended September 30, 2006, September 30, 2005 and June 30, 2006, is as follows:

Channel Wise Revenue

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

Programming Mix

Commissioned & Sponsored Programs

Other Income

The Other Income during the quarter was Rs. 22.83 mn against Rs. 21.47 mn in the previous quarter. 

Gross Block

The Company’s gross block increased from Rs. 721.64 mn to Rs. 724.39 mn as on September 30 2006.

During the quarter, the Company invested Rs. 24.96 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.

Investments

As on September 30, 2006, the Company’s investments were at Rs. 1683.16 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 September 30, 2006 was Rs. 1732.98 mn.

Debtors

The Company’s debtors (in days of income) have been maintained at 82 days as on September 30, 2006.

Inventories

The Company’s inventories (in days of turnover) have been maintained at 11 days as on September 30, 2006

Loans and advances

Loans and advances increased from Rs 216.63 mn to Rs 252.83 mn as on September 30, 2006. 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 September 30, 2006

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

Serials on air

As on September 30, 2006 the following 17 serials of the Company were on air on various channels.

{(Source – TAM Ratings for the week ended September 30, 2006, 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.