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Balaji Tele: Non stop growth - Views on News from Equitymaster

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Balaji Tele: Non stop growth

Oct 25, 2001

Balaji Telefilms has reported revenues of Rs 153 m for 1HFY02. Operating margins of the company leapfrogged to 35%, a jump of 800 basis points over the corresponding period last year. For FY01, operating margins had dropped due to change in accounting policy for write off in production expenses.The company has now changed the method of accounting and has provided for entire production expenses in the year in which it has been incurred.

(Rs m) 1HFY01 1HFY02 % Change FY01
Sales 167 473 183% 489
Other Income 1 6 472% 8
Expenditure 121 306 152% 413
Operating Profit (EBDIT) 46 167 265% 76
Operating Profit Margin (%) 27.4% 35.4%   15.5%
Interest 3 0 -95% 7
Depreciation 1 4 334% 3
Profit before Tax 42 169 298% 74
Extraordinary Income (8) (16) 86% (17)
Tax 4   -100% 14
Profit after Tax/(Loss) 30 153 410% 43
Net profit margin (%) 18.0% 32.4%   8.7%
No. of Shares (eoy) (m) 10.3 10.3   10.3
Diluted Earnings per share* 5.8 29.7   4.1
P/E (at current price) 8.9  
(*- annualised)        

Balaji Telefilms continues to maintain its niche in providing high quality, multi-lingual content which has helped in creating a strong bargaining power for the company. Balaji has 4 out of the top 10 serials on air, in all C&S (cable and satellite TV) homes. The company's most popular soap 'Kyunki Saas…' continues to top the TRP charts.

The company's weekly programming output of around 33 hours across 10 different channels compares favourably with other prominent content providers. The revenue mix of the company is changing in favour of commissioned programs, which are expected to account for around 45-50% of the total revenues. The company earns assured margins of around 35% on commissioned programs but has to part with the IPR of the content. Apart from Hindi, other linguistic soaps of the company also figure in the top TRP list.

At the current market price of Rs 265, the stock is trading at 9x 1HFY02 annualised earnings. There is no doubt that Balaji has become in a leader in content creation in a short span of time. The success of the company is something which is unparelled in the industry. Going forward the company needs to maintain its content quality to maintain its leadership position in the industry. The operating margins may inch up a bit further, as further utilisation of IPO funds is likely to result in cost savings. However, the company's diversification in the past into areas like event management and film production remain a cause for concern.


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BALAJI TELEFILMS Announces Quarterly Results (3QFY19); Net Profit Down 10.0% (Quarterly Result Update)

Feb 13, 2019 | Updated on Feb 13, 2019

For the quarter ended December 2018, BALAJI TELEFILMS has posted a net profit of Rs 273 m (down 10.0% YoY). Sales on the other hand came in at Rs 963 m (up 47.9% YoY). Read on for a complete analysis of BALAJI TELEFILMS's quarterly results.

BALAJI TELEFILMS 2017-18 Annual Report Analysis (Annual Result Update)

Jan 1, 2019 | Updated on Jan 1, 2019

Here's an analysis of the annual report of BALAJI TELEFILMS for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of BALAJI TELEFILMS. Also includes updates on the valuation of BALAJI TELEFILMS.

BALAJI TELEFILMS Announces Quarterly Results (2QFY19); Net Profit Down 211.5% (Quarterly Result Update)

Nov 27, 2018 | Updated on Nov 27, 2018

For the quarter ended September 2018, BALAJI TELEFILMS has posted a net profit of Rs 154 m (down 211.5% YoY). Sales on the other hand came in at Rs 1 bn (up 8.5% YoY). Read on for a complete analysis of BALAJI TELEFILMS's quarterly results.

BALAJI TELEFILMS 2017-18 Annual Report Analysis (Annual Result Update)

Aug 20, 2018 | Updated on Aug 20, 2018

Here's an analysis of the annual report of BALAJI TELEFILMS for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of BALAJI TELEFILMS. Also includes updates on the valuation of BALAJI TELEFILMS.

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