Mumbai: Balaji Telefilms Ltd, a Mumbai-based television content and film producer, reported a 6.1% increase in net profit for the first quarter ended June. Net profit grew to Rs18.4 crore from Rs17.3 crore a year ago, while sales rose by 1.7% to Rs76.9 crore from Rs75.6 crore in the year-ago period.
In the first quarter, the company entered a joint venture with Star India Pvt. Ltd for launching channels in regional languages other than Hindi. The company has 49% stake in the joint venture and it is making an initial investment of Rs60 crore.
Analysts said the company’s performance was below expectations. “There was a flat growth in both the topline and bottomline. The production costs were low, which could mean that the programming was low during the quarter,” Mumbai-based research firm Angel Broking’s senior vice-president Hitesh Agrawal said.
The production and telecast cost in the first quarter was Rs34.7 crore, against Rs37.5 crore a year ago. Balaji reported earnings per share of Rs2.83 for the quarter ended 30 June compared with Rs2.66 for quarter ending 30 June 2006.