Will not launch any fresh programme in Q4 FY10: Balaji Tele

Excerpts from Bazaar on CNBC-TV18 Watch the full show »

In an interview with CNBC-TV18, Puneet Kinra, Group CFO of Balaji Group spoke about the results and his outlook for the company.

Below is a verbatim transcript of the interview. Also watch the video.

Q: What happen on the profit after tax (PAT) level and how much you have been able to scale down administrative cost and start-up cost this quarter?

A: If you look at PAT this year - year-to-date, we are looking at a loss of Rs 2.9 crore. We have broken even this December but on quarter-on-quarter basis, we are still running a loss. We scaled down the cost drastically on the cost per hour this year. So from last year's cost of almost Rs 17 lakh per hour, we have come down to almost Rs 11 lakh per hour.

Q: The number of soaps seems to be going up but your rate yield per hour seems to have come down. Do you see further drifting down of rate yield for your commissioned programmes?

A: No we do not. I think that's bottomed out. It dropped drastically from Rs 27 lakh per hour last year to Rs 15-16 lakh per hour this year. So from a revenue perspective we think it's bottomed out and as the client for us, which is a broadcaster if the advertiser revenues starts to go up we can see that start to go up as well.

Q: A clarification on 26% stake that Star holds in Balaji, you had an option on that, but I believe that option has expired. Can you take us through any discussion that you had with Star on who they want to sell it to? How that issue will be resolved?

A: It's not an option for the company. I am not aware if there is an option for the shareholders per se. So as a company we haven't had visibility on that stock. For us, they are an investor holding 26% in the company.

Q: What is the nature of your relationship with Star now? Can you talk about whether or not there is a pipeline, which you have going with Star now?

A: We have always had decent relation with Star. Even the last year when both parties decided to go separate ways in terms of management, we continued two shows with Star and the relationship mark is as solid as it used to be.

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