Balaji Telefilms under selling pressure

Balaji Telefilms witnessed selling pressure in the early trades on reports that Sony Entertainment Television has decided to take the company's serial off air due to its poor performance.

By 10:45 IST, the scrip of the media company lost 11.84% to Rs 59.55, recording volumes of over 100,000 shares on the BSE till then.

Today's fall in the stock is on the reports that Sony Entertainment Television has decided to take the company's serial 'Kahani Teri Meri' off air due to its poor performance.

As per market talks the fall in the scrip is on the selling of Ketan Parekh shares in BTL, for paying its due to Bank of India.

Analysts said there was always concerns on the company's judicious decision to focus on TRP-Linked commissioned programmes from sponsored programmes. The concern with commissioned programmes are 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, they added.

With the news of its serials taken off air it has caused concerns over the company's future growth, which will have impact on the company's financials. Already the company's serials are facing a tough time due to severe competition from UTV and Contilogue.

Analysts said there is shift happening in the Television programming. For the past two years, TV producers were only looking at 'soap' as the successful genre. But, now TV producers are looking at comedy, game shows, action serials, and detective serials as also good success stories. So, there is a slow but steady shift in programming from soaps to other genres.

Balaji Telefilms has been a leader in the television industry with it huge success of its family soaps like 'Kahaani Ghar Ghar Ki' and 'Kyunki Saas Bhi Kabhi Bahu Thi'. But, of late, BTL serials' Television Ratings Points are on the decline.

Analysts said that if BTL has to cope up with the competition, the company should come up with new programmes with the popularity levels of 'Kahaani Ghar Ghar Ki' and 'Kyunki Saas Bhi Kabhi Bahu Thi'.

Earlier on 30 January 2003, 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. Revenues from commissioned programmes jumped by 87.6% to Rs 43.30 crore, while that from sponsored programmes climbed 32% to Rs 9.38 crore.

Meanwhile, 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.

As on 31 March 2003, the promoters' holding in BTL stood at 57.8%, while that of the public was at 6.05% and institutions (including foreign as well as domestic) at 29.57%.