Balaji Tele: Building on strengths - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Balaji Tele: Building on strengths

Oct 23, 2002

Balaji Telefilms has reported an impressive performance for the second quarter ended September 2002. The company has doubled its revenues for 2QFY03. Operating margins have also shown a marked improvement during the quarter.

(Rs m)2QFY022QFY03% Change1HFY021HFY03% Change
Sales 236 490 107.3% 473 887 87.7%
Other Income 5 0 - 6 0 -
Expenditure 142 240 69.3% 306 425 39.1%
Operating Profit (EBDIT) 94 249 164.5% 167 462 176.4%
Operating Profit Margin (%)39.9%50.9%35.4%52.1%
Interest - 0 - 0 0 41.4%
Depreciation 2 10 400.1% 4 19 414.7%
Profit before Tax 98 240 145.6% 169 443 162.4%
Extraordinary Income (8) (2) - (16) (5) -
Tax 24 84 259.1% 38 159 322.8%
Profit after Tax/(Loss) 66 153 130.8% 116 280 141.9%
Net profit margin (%)28.0%31.2%24.5%31.5%
No. of Shares (m)10.351.510.351.5
Diluted Earnings per share*5.111.94.510.9
P/E (x) 8.5
(*annualised)

One of the key reasons for the sharp spurt in revenues is the success of its programmes in various channels. Currently, the company's serials occupy 25 of the top 50 serials on air, based on TRP ratings, which is a commendable performance by any yardstick. It also has 3 serials re-running on the Star network. On the back of high TRPs, Balaji Telefilms has better bargaining power that enables the company to maximise revenues for a given slot in a channel. Revenues are up 88% for 1HFY03.

The sharp increase is margins has to be viewed in the context of favorable revenue mix that is inclined more towards commissioned programs. Generally, in commissioned programs, there is an assured margin for content producers. Since TRPs are higher for Balaji Telefilms, whenever there is an upward revision in rates, it directly adds to the profits for the company. However, in the long run, we do not expect the company to sustain such high margins due to competition from other content producers. The broadcasters also cannot keep increasing rates for content producers in the case of commissioned programmes, as their margins would come under pressure (there has been a number of upward revision in rates for Balaji Telefilms on the back of success of new programmes).

Despite a sharp spurt in tax outgo, net profits have risen impressively during the quarter. The company has declared an interim dividend of Rs 1.5 per share and the record date is November 12, 2002. The stock currenlty trades at Rs 92 implying a P/E multiple of 8.5x annualised 1HFY03 earnings.

Equitymaster requests your view! Post a comment on "Balaji Tele: Building on strengths". Click here!

  

More Views on News

BALAJI TELEFILMS 2020-21 Annual Report Analysis (Annual Result Update)

Oct 28, 2021 | Updated on Oct 28, 2021

Here's an analysis of the annual report of BALAJI TELEFILMS for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of BALAJI TELEFILMS. Also includes updates on the valuation of BALAJI TELEFILMS.

What Fuelled the Sudden Surge in PVR and Inox Shares Today (Views On News)

Sep 27, 2021

Shares of both multiplex chain operators surged almost 18% to hit their 52-week highs.

8 Penny Stocks with Exceptionally High Promoter Holding (Views On News)

Sep 25, 2021

While high promoter holding is a good thing, there can be rare cases where penny stock promoters use misleading information about the actual valuation.

Shareholder Activism Triggers a 30% Rally in Zee Entertainment Shares (Views On News)

Sep 14, 2021

Zee Entertainment shares zoom after top investors seek CEO and MD Punit Goenka's removal.

Here's Why Affle India Hit 5% Upper Circuit Today (Views On News)

Jul 2, 2021

In the past one year, the company's share price is up 202%. Can it go higher?

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

The Biggest Winners and Losers in India's Transition to Electric Vehicles (Profit Hunter)

Nov 26, 2021

How India's EV transition could be a major headwind for the incumbents.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

BALAJI TELEFILMS SHARE PRICE


Dec 7, 2021 03:10 PM

TRACK BALAJI TELEFILMS

  • Track your investment in BALAJI TELEFILMS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON BALAJI TELEFILMS

BALAJI TELEFILMS - PRIME FOCUS COMPARISON

COMPARE BALAJI TELEFILMS WITH

MARKET STATS