BENGALURU: One of the most successful television content production houses in India, the Shobha Kapoor and Ektaa Kapoor-led Balaji Telefilms Ltd (Balaji) reported more than double standalone profit after tax or PAT (up 117.6 percent) y-o-y for the quarter ended 30 September 2019 (Q2 2019, quarter or period under review) as compared to the corresponding year ago quarter Q2 2019. Standalone revenue from operations increased 58.7 percent y-o-y in Q2 2020. Though it has yet to become profitable, Balaji’s OTT platform ALTBalaji operating revenue increased 40.8 percent y-o-y at Rs 20.11 crore during the period under review as compared to Rs 14.28 crore in Q2 2019. The company reported an operating loss for ALT Balaji at Rs 28.71 crore for Q2 2020 as compared to an operating loss of Rs 23.23 crore for Q2 2019.

Balaji’s Standalone PAT for Q2 2020 and Q2 2019 was Rs 15.50 crore and Rs 7.12 crore respectively. The company incurred a lower consolidated loss in Q2 2020 at Rs 10.73 crore as compared to a consolidated loss of Rs 15.44 crore in Q2 2019. Standalone EBITDA almost quintupled (increased by 389.5 percent y-o-y in Q2 2020 to Rs 30.83 crore from Rs 6.30 crore.

Standalone operating revenue for Q2 2020 and Q2 2019 was Rs 179.35 crore and Rs 119.07 crore respectively. Consolidated operating revenue in Q2 2020 increased 57.4 percent y-o-y to Rs 187.46 crore from Rs 119.07 crore.

Though Balaji produced more programming hours during the quarter under review at 210.5 hours as compared to 193 hours in Q2 2019, lower realisation per hour in Q2 2020 at Rs 0.36 crore as compared to Rs 0.40 crore in Q2 2019 resulted in a revenue decline according to the company’s investor presentation. Revenue from the company’s television business declined 1.9 percent y-o-y to Rs 75.6 crore in Q2 2020 as compared to Rs 77.1 crore in Q2 2019.

Consolidated operating revenue in Q2 2020 increased 57.4 percent y-o-y to Rs 187.46 crore from Rs 119.07 crore. Revenue from commissioned programmes declined 4.7 percent y-o-y to Rs 84.29 crore from Rs 88.42 crore. Operating profit  for Commissioned Programmes segment almost doubled (up 98.4 percent) y-o-y to Rs 25.89 crore from Rs 13.05 crore.

Revenue from Films segment almost quadrupled (increased 270.7 percent) y-o-y in Q2 2020 to Rs 93.89 crore from Rs 25.33 crore. Films segment reported operating profit of Rs 16.25 crore as compared to an operating profit of Rs 1.32 crore in Q2 2019.

Company Speak

Balaji Telefilms managing director Shobha Kapoor said in the investor release, ”This quarter we created good, compelling and entertaining content across all our business verticals and this has resulted in a very strong financial performance. Apart from driving the top line, we remain focused on cost-saving measures that allow us to leverage economies of scale in content production, yielding an improved bottom line. We will continue to focus on growing the business profitably and utilising our existing cash reserves prudently, as we have been doing.”

Let us look at the other numbers reported by Balaji

Consolidated total income for Q2 2020 at Rs 192.63 crore was 53.2 percent higher y-o-y as compared to Rs 125.76 crore. Consolidated total expenses for the period under review increased 37.3 percent y-o-y to Rs 192.58 crore from Rs 140.22 crore.

Consolidated cost of production declined 5.9 percent y-o-y in Q2 2020 to Rs 92.76 crore from Rs 98.57 crore. Consolidated marketing and distribution expenses in Q2 2020 more than tripled (up 233.6 percent) y-o-y to Rs 37.22 crore from Rs 11.16 crore. Consolidated employee benefits expense in Q2 2020 declined 50.1 percent y-o-y to Rs 6.53 crore from Rs 13.08 crore. Consolidated other expenses in Q2 2020 increased 96.2 percent y-o-y to Rs 20.56 crore from Rs 10.48 crore.