Balaji Telefilms' financials: an improving picture in Q4 2013

MUMBAI: Television production powerhouse Balaji Telefilms, (led by the dynamic duo of Ekta Kapoor and her mother Shobha Kapoor), which has recently made successful forays into the movie business, has posted an impressive 235 per cent jump in net profit to Rs 5.17 crore in the latest quarter ended 31 March 2013 as against Rs 1.5 crore in Q4-2012. It has done well even when one compares its performance against the previous preceding quarter ended 31 December 2012 when it recorded a net profit of Rs 4.94 crore. However, what looks disappointing is the 28 per cent dip in its net profit in FY 2013 to Rs 14.58 crore as against Rs 20.44 crore in FY 2012.

The company recently ran into accounting troubles with the I-T Department, resulting in a dip of around 20 percent in its share price

and it hit an all-time low of Rs 35.25 on 27 May.

However, it has been moving northward since this morning‘s announcement of its financials and it closed at Rs 37.80.

Let us look at the Q4-2013 financials as against Q4- 2012

Q4-2013 financials report a healthy growth in its net profits at Rs 5.17 crore as against Rs 1.54 crore in the corresponding last year‘s Q4-2012. The massive surge is attributed to reduction in expenses especially if one looks at the staff costs which have halved in Q4-2013 at Rs 1.57 crore as against Rs 3.44 crore (Q4-2012).

Expenses fell 13.5 per cent in Q4-2013 at Rs 34.72 crore as compared to Rs 40.16 crore in Q4-2012. The investments of the company have paid off well in the quarter with a reported Rs 7.05 crore pouring in as other income. (Through its other non-core operations considering its non current investments for the year FY-2013 have nearly doubled at Rs 31.72 crore (Rs 17.60 crore in FY-2012)).

While net sales revenue has increased to Rs 31.77 crore in Q4-2013 as against Rs 27.88 crore in Q4-2012, the total revenue for the quarter has shrunk by 8 per cent to Rs 34.09 crore in Q4-2013 as against Rs 36.92 crore. Its major revenue source continues to be from commissioned programs amounting to Rs 32.7 crore, a rise from last corresponding quarter‘s Rs 25.88 crore.

Let us look at the Q4-2013 financials as against Q3-2013

When it reported Q4-2013 revenues of Rs 34.09 crore as against Rs 33.32 crore in Q3-2013, it was the first time in three quarters that it registered a positive uptick in revenues. Its Q4-2013 net profit at Rs 5.17 crore is an improvement over Q3-2013‘s Rs 4.94 crore.

Let us now look at the consolidated year ending results of FY-2013

Even after a euphoric performance maintained during Q4 and Q3 quarters, the financials for FY-2013 fail to show an impressive growth YoY. The consolidated revenues for FY-2013 at Rs 204.36 crore report a decrease as compared to Rs 221.66 crore in FY-2012, which also included Rs 6.62 crore from its discontinuing operations.

Better and efficient production in FY-2013 saw its expenses fall to Rs 186.05 crore as against Rs 202.13 crore in FY-2012.

PAT for the year ending 31 March 2013 stood at Rs 14.58 crore, as against Rs 20.44 crore in FY-2012, a disappointing 28.6 per cent drop YoY.

In spite of the drop in profits, the Board has recommended a dividend of Rs 0.40 per equity share, considering a healthy growth momentum sustained in its last couple of quarters.

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