Revenue grows marginally by 1.4 % YoY
Operating expenses decline by 5% YoY
Operating margins improve by 380 basis points.
Profit after tax grows by 6% YoY due to higher tax outgo.
(Rs m) | 1QFY07 | 1QFY08 | Change |
Sales | 735 | 745 | 1.4% |
Expenditure | 475 | 450 | -5.3% |
Operating Profit | 282 | 319 | 13.1% |
EBIDTA margin(%) | 38.4% | 42.8% | |
Other Income | 21 | 24 | 14.3% |
Depreciation | 28 | 33 | 17.9% |
Interest | - | - | 0.0% |
Profit Before Tax | 254 | 287 | 13.0% |
Tax | 80 | 102 | 27.5% |
Minority Interest | - | - | 0.0% |
Profit After Tax | 174 | 184 | 5.7% |
Net Profit Margin(%) | 23.7% | 24.7% | |
No of shares (m) | 65 | 65 |
Programming hours | Q1FY07 | % of total | Q1FY08 | % of total | Change |
Commissioned | 298 | 57.5% | 204 | 59.0% | -32% |
Sponsored | 220 | 42.5% | 142 | 41.0% | -35% |
Total | 518 | 346 | -33% |
The company’s operating expenses have declined by 5% YoY leading to an improvement of 380 basis points in operating margins. A new studio became operational. ’Khwaish’ produced by Balaji Telefilms FZE went on air from June 25, 2007 on the foreign Channel ARY and debuted in India from July 16, 2007 on Sony Entertainment Channel. The first co-production ‘Shootout at Lokhandwala’ of Balaji Motion Pictures Ltd. was a commercial success.
New ventures: Balaji has entered into a joint venture with Star for launch of channels in regional languages other than Hindi. Balaji will acquire 49% equity in the joint venture, which includes the existing star group channel ‘Vijay’, for an initial investment of approximately Rs. 600 m. The launch of General Entertainment channels by the TV 18 GROUP, INX group, and TV 18 group should help Balaji to increase its programming hours. Infact, Balaji has announced that it will be producing a couple of serials for INX’s Hindi general entertainment channel, which would include reality shows. The satellite rights for a fixed number of feature films produced by Balaji in the future will also be sold to INX.