Balaji Telefilms Ltd
Broadcasting & Cable TV
FV – Rs 2; 52wks H/L – 150/64; TTQ – 9629; CMP (June 13, 2016; 1.37 pm) – Rs 110;
Market Cap-Rs 836Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

• Revenues declined by 16% Y-o-Y on a consolidated basis owing to three shows off air during the quarter. The shows that ended were ‘Meri Aashiqui Tum Se Hi’, ‘Itna Karo Na Mujhe Pyaar’ and ‘Pyar Ko Ho Jane Do’.
• The Company raised Rs 150 Crs by allotting 10720000 Equity Shares on a preferential basisto Vanderbilt University, GHI LTP LTD, GHI HSP LTD, GHI ERP LTD, Atyant Capital India Fund-I in March 2016. The fund raise was for ALT Digital Media, its wholly owned subsidiary. The Equity capital has thus increased to Rs 15.19 Crs from Rs 13.04 Crs.
• Balaji Telefilms has over 18 movies in various stages of development has employed capital of Rs 181.22 Crs in the FY16 compared to Rs 83.79 Crs a year ago. In the movie segment, the company reported loss (profit before tax and interest) of Rs 13.41 Crs in FY16 from Rs 6.24 Crs in the earlier year.
• In FY15, the company had released movies like ‘Main Tera Hero’, ‘Kuku Mathur Ki Jhand Ho Gayi’ and ‘Ek Villian’ while in FY16 it released only one movie.

Valuation Parameters:

1. EV/EBITDA: 136.5
2. EV/Share: Rs 108
3. EV/Sale: 2.8
4. Market Cap/ Sale: 2.95
5. Debt to Equity: Nil
6. RoE: 0.5%

Recent Updates:

• ‘Udta Punjab’ row: Bombay high court to pass order on Monday
• The Company’s unit ALT Digital Media Entertainment Ltd will be launching an over-the-top (OTT) platform by mid FY17. The company is targeting 20 million global subscribers. Paid users, not downloads, matter for OTT platforms: Balaji Telefilms’ Nair

Bulk Deals:

Overview:

• Incorporated in the 1994, Balaji Telefilms is a Company promoted by Actor Jeetendra Kapoor and his family.
• The Company’s segments include:
• Commissioned Programmes
• Channels and Sponsored Programmes
• Commissioned Programmes derive income from sale of television serials whereas Channels and Sponsored Programmes draw income from telecasting of television serials on channels.
• It has produced over 15000 hours of television content since its inception, including content in Hindi, Tamil, Telegu, Kannada and Malayalam.
• Its brands include Alt Entertainment brand, which will be used on all content catering to a younger, more urban demographic, across the television, movie, mobile and Internet space; Hoonur, which will be used in the online and mobile space both for the entertainment portal and for user generated content, and ICE covers a specializations like Acting, Cinematography, Direction, Editing, Production, Scriptwriting, Sound and Vfx
• India’s Television industry is expected to grow at a CAGR of 16.2% over the next five years
• The company follows a de-risked business model, it pre-sells theatrical and satellite rights.

Management:

• Mr Jeetendra Kapoor is the Chairman
• Ms Shobha Kapoor is the MD
• Ms Ekta Kapoor is the Joint MD

Shareholding Pattern as on March 31, 2016

The Equity Capital is @ Rs 15.19 Crs consisting of 75930443 Equity Shares of FV Rs 2 currently held as under

None of the promoters’ holding is pledged

Share Price Trend

Consolidated Financial Trends – Amt in Rs Crs