Results for H1 FY14
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Financials 3 - 22 About Balaji Telefilms 23 - 24 Television 25 - 27 Motion Pictures 28 - 33 Business Outlook FY2014 34 - 35 2 3 Q2 & H1 FY14 (Standalone) Results for Q2 FY14 • Revenues stood at ` 29,84 lacs {` 34,83 lacs in Q2 FY13} • EBITDA is at (` 65) lacs {` 73 lacs in Q2 FY13} • PAT is at ` 80 lacs {(` 1,16) lacs in Q2 FY13} Results for H1 FY14 • Revenues stood at ` 51,79 lacs {` 70,76 lacs in H1 FY13} • EBITDA is at (` 1,92) lacs {` 3,30 lacs in H1 FY13} • PAT is at ` 8,23 lacs {` 3,22 lacs in H1 FY13} • Diluted EPS not annualised was at ` 1.26 per share {` 0.49 in H1 FY13} Contd…. 4 Q2 & H1 FY14 (Standalone) Contd… • Lower margin owing to launch of two new shows which takes at least a quarter to stabilise: o Jodha Akbar a first time ever costume drama has achieved No.1 position on Zee TV and No.2 across GECs o Pavitra Bandhan was launched on Doordarshan • Hours for Hindi Commissioned programs stood at 121 hours • Average realisation per hour was at ` 24.66 lacs {` 17.61 lacs in Q2 FY13} • EBITDA loss of ` 65 lacs as against profit of ` 73 lacs in Q2 FY13 – due to drop in revenues • Other overheads costs continues to be lower as a result of strict cost controls • PAT grew by 169% to ` 80 lacs mainly due to other income as compared to Q2 FY13 5 Shows Channel Time Schedule Position Monday to No.1 Fiction show Bade Achhe Lagte Hain Sony TV 22.30-23.00 Thursday of the Channel First time ever Monday to Jodha Akbar (June 18, 2013 Launch) Zee TV 20.00-20.30 costume drama, Friday No. 1 on channel Monday to No.1 Fiction show Pavitra Rishta Zee TV 21.00-21.30 Friday of the Channel Monday to Popular show of Pavitra Bandhan DD 20.30-21.00 Friday the Channel Popular show of Savdhaan India (Limited Episodes) Life OK 22.30-23.30 Friday the Channel Popular show of Gumraah 3 Channel V 19.00-20.00 Sunday the Channel Popular show of MTV Webbed MTV 19.00-20.00 Saturday the Channel 6 Total Income EBIDTA ` Lacs ` Lacs PAT ` Lacs 7 Statement of Standalone Profit and Loss Account YoY Comparision QoQ Comparison YoY Comparision Particulars Q2 FY14 Q2 FY13 % PQ Q1 FY14 % PQ H1 FY14 H1 FY13 % FY 13 ` Revenue from Lacs in 29,83.98 34,83.09 -14% 21,94.71 36% 51,78.69 70,76.36 -27% 135,01.25 Operations Other Operating 48.73 82.69 -41% 44.87 9% 93.60 2,67.72 -65% 5,83.99 Income Total Operating 30,32.71 35,65.78 -15% 22,39.58 35% 52,72.29 73,44.08 -28% 140,85.24 Revenue Cost of Production (25,24.82) (28,91.38) -13% (18,33.97) 38% (43,58.78) (58,72.46) -26% (109,19.85) Gross Margin 4,59.17 5,91.71 -22% 3,60.75 27% 8,19.91 12,03.90 -32% 25,81.40 Gross Margin % 15% 17% - 16% - 16% 17% - 19% Overheads 3,80.22 4,33.77 -12% 3,55.38 7% 7,35.60 7,29.95 -24% 17,74.13 Staff Cost 1,92.57 1,67.58 15% 1,77.01 9% 3,69.58 4,11.23 -10% 7,51.78 EBITDA (64.89) 73.05 -66% (1,26.77) 20% (1,91.67) 3,30.44 -158% 6,39.48 Depreciation 1,34.24 2,01.94 -34% 1,79.49 -5% 3,13.73 4,04.27 -22% 7,86.37 Other Income 3,01.55 1,57.72 91% 12,86.28 -77% 15,87.83 6,62.07 140% 18,16.81 Finance Cost - - - - - - - - 8.52 PBT 1,02.42 28.83 255% 9,80.01 -90% 10,82.43 5,88.24 84% 16,61.41 Current tax 22.00 1,45.27 -85% 2,37.46 -91% 2,59.46 2,66.03 -2% 3,28.45 PAT 80.42 (1,16.44) 169% 7,42.55 -89% 8,22.97 3,22.21 155% 13,32.96 Q2 FY14 Other income is mainly on redemption of mutual fund investments (` 3,01.55 lakhs) Q1 FY14 Other income includes receipts on maturity of a Keyman Insurance policy (` 6,73.00 lakhs) 8 Show Type Revenue for the Quarter Ending (` Lacs) Percentage Sep-13 Jun-13 Sep-12 Sep-13 Jun-13 Sep-12 Commissioned* 29,72 21,13 33,51 100% 100% 96% Sponsored** - - 1,32 - - 4% Total 29,72 21,13 34,83 100% 100% 100% Revenue Per Hour 25.62 22.96 11.41 - - - *Excludes regional segment and Event Business ** Exited less profitable Sponsored segment in the previous year Show Type Hours for the Quarter Ending Percentage Sep-13 Jun-13 Sep-12 Sep-13 Jun-13 Sep-12 Commissioned* 116 92 217 100% 100% 71% Sponsored** - - 88 - - 29% Total 116 92 305 100% 100% 100% *Excludes regional segment and Event Business ** Exited less profitable Sponsored segment in the previous year 9 As at September 30, As at March 31, 2013 2013 ` Shareholders’ funds Lacs in Share capital 13,04.21 13,04.21 Reserves and surplus 412,41.64 404,18.67 425,45.85 417,22.88 Current Liabilities Trade payables 17,25.83 20,01.39 Other current liabilities 14,12.70 2,98.16 Short-term provisions 6.51 3,14.47 31,45.04 26,14.02 Total 456,90.89 443,36.90 Non-current Assets Tangible Asset 22,98.28 25,92.73 Capital work-in-progress - 3.15 Non-current investments 61,76.69 61,76.69 Deferred tax assets (net) 1,22.22 1,49.06 Long-term loans and advances 49,00.80 3,450.22 134,97.99 12,371.85 Current Assets Current investments 116,87.12 118,65.78 Inventories 5,11.77 3,46.27 Trade receivables 29,88.08 36,40.07 Cash and cash equivalents 8,48.58 9,71.49 Short-term loans and advances 161,57.35 151,41.44 321,92.90 319,65.05 Total 456,90.89 443,36.90 10 Current Sr.no Contingent Liabilities Status ` Demands (including interest) raised by Prasar Bharti Broadcasting Corporation of India (Corporation). The Lacs in Company is in discussions with the Corporation for a one-time settlement, including by way of supply of 1 various old television content. The Company has already made a payment of ` 200.00 lacs to the 7,57.20 Corporation. The accounting effect of the final outcome, either by way of supply of content or payment, as stated above, will be given on completion of the negotiations. During the previous financial years, the Company had received notices of demand from the Department of Sales Tax, Government of Maharashtra, to the extent of ` 17,107.87 lakhs (including interest and penalty) pertaining to the years 2000 to 2004. The Company has appealed against the said order of the Sales Tax Officer to the Deputy Commissioner (Appeals) and the same is pending adjudication. Further in the current quarter, for the year 2004-2005, the sales tax authorities have levied an additional sales tax demand of ` 515.44 lakhs. The Company is contesting these additional claims of the sales tax authorities and is in the process of filing appeal against this order. The Company had applied to the Office of the Commissioner of Sales- tax, Mumbai, to ascertain whether 2 the Company's sales are liable to tax under the Sales- tax laws before passing any assessment orders. The 176,23.31 matter is still pending before the Sales -tax authority. Since, the Commissioner of Sales Tax had not decided on the said application, the Company had filed a Writ Petition before the Honourable Bombay High Court to direct the Commissioner to determine the applicability of tax on the Company’s sales. The Court heard the matter on July 9, 2013 and directed the Commissioner of Sales Tax to decide the determination application pled by the Company not later than September 30, 2013. The Commissioner passed the order, refusing to determine the applicability of the tax on Company’s sales on the ground’s that since the Company had been assessed by the Department for certain years and the Company is already in appeal against those assessment orders, the application is not maintainable. The Company is exploring further legal options against in the matter. 11 Current Sr.no Contingent Liabilities Status ` in Lacs in During the previous financial years, the Company had received demand notices from the Office of the Commissioner of Service Tax, Mumbai aggregating to ` 92,45.00 lakhs (excluding interest and penalty) pertaining to Service tax for the period from April 2006 to March 2010 on exports made to one of the 3 92,45.00 customers of the Company. On appeal, the matter pertaining to the period from April 2006 to March 2008 was adjudicated in favour of the Company. The Commissioner has further filed an appeal against the adjudication with the Customs, Excise & Service Tax Appellate Tribunal. The Company had received demand notice from the Office of the Commissioner of Service Tax, Mumbai pertaining to Service Tax for the period April 2006 to March 2009 on certain transactions. The Company has contested these claims and a hearing was granted to the Company. However, the Commissioner passed 4 an adverse order confirming the tax demand and levied interest and penalty.