A Project Report On Balaji Telefilms Ltd.
By- Pranay Shah A-46 Indira School Of Business Studies
INDEX
Sr.no
Topics
Page. No
1
Executive Summary
3
2
Introduction
4
3
Brands
5
4
Vision
6
5
Organizational Organizational Structure
7
6
Executive Profiles
8
7
Financial Highlights
10
8
12
9
Business Status Shareholding & Market Capitalization
10
SCOT Analysis
14
11
Auditors Report
16
12
Balance sheet
17
13
Cash Flow Statement
19
14
Financial analysis
20
13
Executive summary
Promoted by Jeetendra Kapoor, Shobha Kapoor and Ekta Kapoor in 1994, Balaji Telefilms Limited (Balaji) is India’s leading media and entertainment sector. Headquartered in Mumbai, Balaji is one of the largest production houses both, in terms of television content created and studio facilities. From a leading television content provider, Balaji has today evolved into a media conglomerate with apresence across television, motion pictures, internet and mobile. Balaji has remained contemporary with the times and widened its corporate vision, bringing in an experienced professional team to drive its strategic objectives. Recently, the Company underwent a rebranding exercise, unveiling a refreshed visual identity and brand character. Balaji’s shares are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Introduction Balaji Telefilms is a production house based in Mumbai, India, and is promoted by Ekta Kapoor, Shobha Kapoor, Jeetendra and Tushar Kapoor. Balaji Telefilms has produced a number of famous serials in India and has become the largest television production house in South Asia, Southeast Asia and the Middle East. "K" is meant to be lucky for Ekta Kapoor so most of her productions starts with the letter "K". Balaji Telefilms was incorporated in 1994 and has redefined the Indian television space in this period. Making a strong start with hit shows like “Hum Paanch”, the company rose to unprecedented heights in the late 1990s and 2000s. The performance of the Hindi television channels and the dominance of the Hindi General Entertainment Channel was pioneered by Balaji content and run successfully for over a decade, with blockbuster shows like “Kyunki Saas Bhi Kabhi Bahu Thi” and “Kahaani Ghar Ghar Ki” garnering unheard of TRPs. The company has produced over 15,000 hours of television content since its inception, including content in Hindi, Tamil, Telegu, Kannada and Malayalam. Balaji also entered the motion picture business in the late 1990s, producing and distributing a number of films. Today, the company occupies a dominant space in the television content creation space, with the No.1 show on Indian television to its credit and all of its shows among the Top 50 on television. Balaji has also diversified itself into all the 4 screens by bringing in new teams for the motion pictures, internet and mobile space. The company has also evolved with the times and significantly corporatized itself, bringing in a Group CEO and experienced professional team for driving the future strategic direction of the company. Balaji Telefilms operates from its Head Office in Andheri West and has studios in Film City and other locations in Mumbai. In terms of studio facilities Balaji Telefilms is one of the largest productions houses in Mumbai's Large film and television production hub. Balaji Telefilms is making a range of television serials for STAR Plus, STAR One, Zee TV, Imagine TV, Colors TV, and Sony TV.
Brands:
Balaji today is a different firm from what it was even one year back. Pioneering widely different genres of content across several distribution media, the firm has completely redefined its brand architecture to reflect these far-reaching changes.
The new Balaji logo reflects its fresh new outlook, while still reflecting the core values it stands for. The Balaji logo will be used for all of its traditional television content, as well as familyoriented, large scale feature films.
Envisaged as a cutting-edge, youth oriented brand, the Alt Entertainment brand will be used on all content catering to a younger, more urban demographic, across the television, movie, mobile and internet space.
Hoonur is our recently-launched online portal for media professionals and entertainment consumers. The brand will be used in the online and mobile space both for the entertainment portal and for user generated content.
Vision To consistently provide delightful and innovative entertainment experiences by engaging audiences and nuturing talent.
Enduring Values
Storytelling We always delight audiences with our content and the way we deliver it to them
Passion We go that extra mile because we love what we do
Integrity We are honest and ethical in all our dealings
Compassion We care about our people, we listen, we take the initiative to understand what each one of us wants and work together as a team
Excellence We push the bar and never settle for second-best.
Organization structure
Executive profiles Jeetendra Kapoor, Chairman A popular movie star throughout the 1970s and 1980s, Mr. Kapoor starred in more than 200 films in a 45 year film career. In his long film career, he won a number of awards including a Filmfare Lifetime Achievement Award, the Legends of Cinema Award and the Dadasaheb Phalke Academy Award. Mr. Kapoor has been the company's Chairman since 2000.
His extensive relationships in the Indian entertainment industry have proved to be extremely beneficial for the firm in its formative years, and he continues to open new frontiers for the company. Mr. Kapoor also spearheads the real estate initiatives of the company, such as the state-of-the-art film studio that is being constructed on the outskirts of Mumbai.
Shobha Kapoor, Managing Director Mrs. Kapoor has been instrumental in building the company from its small beginnings in 1994 to India's largest television content company today. From its inception, Mrs. Kapoor has been hands-on in the operational management of the company, controlling on set activity, operational efficiency. Given her wealth of experience, today, she works closely with the Group CEO in helping him discharge his responsibilities. Her stellar work in creating the Balaji organization and brand has resulted in a slew of awards, including CEO of the Year (Indian Telly Awards), Businesswoman of the Year (The Economic Times), and numerous Best Producer awards for television shows produce d by Balaji.
Ekta Kapoor, Joint Managing Director Ekta Kapoor has almost single-handedly revamped the television landscape in India. She pioneered an entire genre of television content, creating among the most successful shows and heralding the satellite television boom in the country. Balaji's shows have been channel drivers for broadcasters in India, and even today, have a place in the top 2 - 3 shows on each channel.
As the creative force behind Balaji's success, Ekta believes in a hands-on approach to the day-today creative direction of each of Balaji's TV shows and films, routinely putting in 16 - 18 hour work days. Ekta continues to innovate and move with the rapidly metamorphosing television climate in the country, and is also expanding her unmatched creative vision to the motion picture and new media verticals.
Her stellar work in creating a large content conglomerate at a very young age has garnered her several distinguished awards, including The Economic Times (Businesswoman of the Year 2002), Ernst & Young (Entrepreneur of the Year 2001) and the American Biographical Institute (Woman of the Year 2001), among others. Under her creative guidance, Balaji has also won every major television award in India.
Financial Highlights 1) Sales
Sales 350
328.97 298.81
300 250 200
164.02 Sales
150 100 50 0 2009-10
2008-09
2007-08
(Rs. in crores)
2) Operating Profit
(Rs. in crores)
Operating Profit 140
123.9
120 100 80 Operating Profit
60
43.65
40 20
10.61
0 2009-10
2008-09
2007-08
3) Gross Profit
Gross Profit 160
141.18
140 120 100 80
61.04
Gross Profit
60 40
32.39
20 0 2009-10
2008-09
2007-08
(Rs in crores)
4) EPS(Rs)
EPS 16 13.48
14 12 10 8
EPS
6 4.09 4
2.33
2 0 2009-10
2008-09
2007-08
Business Status We continue our relationship with Star Network, in 2009 -10, we derived 29% of our total revenue from Star. The historical dependence on one channel was however, no longer tenable. We have adopted a multi-channel approach, aggressively marketing our content across the GEC space. We now have a footprint across all Hindi GEC’s. Our shows are now becoming increasingly popular on all leading channels. In 2009-10, the revenue share from Imagine stood at 26%, Colors 18%, Zee TV 15% and Sony 12%. And of course, we have rebuilt our relationship with Star and our serials are back on Star Plus. Our revenue model now is,therefore, far more robust and de-risked.
Share(%) 35 30 25 20 15 10 5 0 Colors
Zee TV
Sony
Star
Imagine
Share Holding & Market Capitalization
Market capitalization of Balaji Telefilms LTD is Rs.230.81 crores.
SCOT Analysis
Strengths
1. High Production Capabilities. 2. Huge infrastructure. 3. Talent Hunting / Artist Management. 4. Pioneers in creating special Content for Mobile. 5. Solid Financial Position. 6. Strong Presence across Hindi, Tamil, Telegu, Malayalam & Kann ada. Only production house to have the shows on air in 9 different channels. 7. A good mix of sponsored & commissioned shows . 8. Integrated film maker -Production, Marketing & Distribution of films. 9. Stringent Risk Management practices.
Challenges
1. High Cost of Production against industry average. 2. Concentrated Clients. 3. Dependence on few key people for concept & creativity. 4. Genre specific presence - mainly in fiction.
Opportunities
1. Create content for other regional languages / international market. 2. Enter nonfiction, reality segments. 3. Monetization of content through other delivery pla tforms. 4. Expand presence in digital space.
Threats
1. Rising Competition. 2. Piracy. 3. Gaining popularity of other entertainment options like sports, gaming, internet, malls, travelling etc. 4. Change in Government Policies. 5. Rising labour Cost & Energy Cost.
Aduitor’s Report
The above auditor’s report gives an idea how and why audit is done and with the help of what they were able to do it.
Financial Analysis
Ratios
March'10
March'09
Operating Margin (%)
13.15
18.47
Gross Profit Margin (%)
6.39
10.49
Net Profit Margin (%)
9.71
8.76
Current Ratio
4.92
2.25
Quick Ratio
4.86
2.07
Operating Margin- It is calculated by dividing ope rating profit by sales. Operating profit is net profit less interest and taxes. It helps to measure the operating performance of the firm. Gross Profit Margin- It is calculated by dividing gross profit by sales. Gross profit is sales less cost of goods sold. It reflects the efficiency with which the management produces each unit of product. This ratio indicates the average spread between the cost of production and the sales revenue. Net Profit Margin- Net profit is obtained when operating expenses, interest and taxes are subtracted from the gross profit. The net profit margin ratio is measured b y dividing profit after tax by sales. A firm with high net margin ratio would be in an advantageous position to survive in the face of falling selling prices, rising costs of productions or declining demand of the product. Current Ratio- Current ratio is calculated by dividing cu rrent assets by current liabilities. It is a measure of the firm’s short term solvency. It indicates the availability of current assets in rupees for every rupee of current liability. A ratio of greater than one means that the firm has more current assets than current claims against them. The current ratio of the company has increased from the last year from 2.25 to 4.92, which shows company’s strong short term solvency. Quick Ratio- Quick ratio is calculated by dividing quick assets by current liabilities, where quick assets are current assets less inventories. Quick ratio of the company is 4.8 6 which mean if the inventories of the company do not sell, and it has to pay all its current liabilities, it may find it difficult to meet its obligations because its quick assets are 4.86 times of cu rrent liabilities.
