Balaji Telefilms' stock only responded to the fantastic show put up by the company for Q3, as it rose 2.89% to Rs 76.55 even as the market proved sour.
Volumes were placed at 21,000 shares on the counter of the TV content provider on BSE by 10:30 IST on Friday. Before the Q3 results were announced, Thursday, the scrip of the media company finished higher by 3.8% at Rs 74.40.
After market hours Thursday, BTL posted a massive 105.3% rise in net profit to 17.47 crore (for Q3 ended 31 December 2002) compared to Rs 8.51 crore in the corresponding period of the previous year. Total income increased by 73.5% to Rs 52.74 crore from Rs 30.40 crore in DQ 2001.
Analysts were expecting net profit in the Rs 16.2-17 crore region. Net sales were expected to grow 70-75.5% to Rs 51.4-53 crore.
Revenues from commissioned programmes jumped 87.6% to Rs 433.04 crore (Rs 4.33 billion), while that from sponsored programmes climbed 32% to Rs 93.89 crore (Rs 71.09 crore).
The company's television serials continue to do well, helping it to garner huge revenues. As for the company's increasing focus on the commissioned category of programmes, analysts feel the company is proving impressive there as well. Therefore, the shift from sponsored programmes to television rating points-linked commissioned programmes is proving to be a judicious decision.
However, the only cause for concern is that the company's margins will come under pressure if BTL's serials are taken off air for some reason or the other. Production of serials under the commissioned category is costlier.
BTL had issued a guidance for the full year ending 31 March 2003, which set out a 60% rise in total income and a 95% growth in net profit.
The promoters' holding in BTL stands at 57.8%, while that of the public and institutions is 4% and 32%, respectively.