Balaji Telefilms shows impressive Q1 results

(Posted on 1 August 2001, 9:15 pm)

Balaji Telefilms Ltd has announced its financial results for the quarter ended ended 30 June 2001 which show impressive growth as well as a strong bottomline.

The income from operations is reported at Rs 236.58 million which is quite high compared to the financial Year 2000 figure of RS 488.82 million. Net profit has been registered at RS 49.3 million which is more than the FY2000 figure of RS 43.54 million.

Other income is low at RS 23,000 compared to the FY2000 figure of RS 7.9 million. When contacted, Ajay Patoria, company secretary, Balaji Telefilms said that it is because of the fact that the fund invested in mutual funds shows income only when the dividend is declared. So other income will see a rise in the coming quarters.

Production costs and telecasting fees have remained more or less at the same levels. The wage bill has gone up as the company is hiring more people in programming as well as production. Other expenditure has remained at the same level as last year. Financial costs have gone down considerably as Balaji Telefilms is moves towards becoming a debt free company.

The company has changed its accounting practice from last year in writing off 100 per cent cost of production of programmes in the same financial year when it is telecast. This will benefit the company in the long term to strengthen its bottomline.

"Our realisation was higher in this quarter which has given a boost to income," says Patoria. At the same time control on expenses, lower interest expenses have boosted the bottomeline.

The EPS (earning per share) for the quarter is at 4.79 which is more than the annualised EPS of 4.23, which shows that company has been successful in maximising shareholders value.

The share market has reacted positively to the result. The scrip touched an intraday high at Rs179.85 and closed on the higher side at RS 188 with more than 2.9 millions share being traded on the BSE.

For Balaji, the future looks bright with its programmes doing exceedingly well on C&S channels, both in the north and in the south. If content be the king, Balaji certainly seems to be producing most the successful stuff on display at present.

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