Balaji Telefilms Limited — Q4 FY26

Balaji Telefilms Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=PJQzXqUwW5c Published: 3 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Balachi Telephones Limited Q4 and FI26 earnings conference 0:08 8 seconds call. This conference call may contain forward-looking statements about the company which are based on the beliefs, 0:16 16 seconds opinions and expectations of the company as on date of this call. 0:22 22 seconds These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. 0:30 30 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:40 40 seconds Should you need assistance during this conference call, please signal an operator by pressing star then zero on 0:47 47 seconds your touchstone board. Please note that this conference is being recorded. I now hand the conference over to Mr. 0:55 55 seconds Sanjay Diwi, group CEO and group CFO, Balaji Telephones Limited. Thank you and over to you sir. 1:05 1 minute, 5 seconds Good afternoon everyone and thank you for joining us for Balaji Telefilms Limited's earnings conference call for the quarter and full year ended 31st March 2026. 1:15 1 minute, 15 seconds On the call today, I have with me our finance controller, Virein Trii, and our investor relationship team from ad 1:23 1 minute, 23 seconds factors. I hope you had the opportunity to go through our financial results, presentation and press release shared on the exchanges. It is a pleasure to 1:32 1 minute, 32 seconds connect with you all over again. FY26 has been a transformational year for Bali 20s where we have built a strong 1:39 1 minute, 39 seconds foundation for future growth. While the financial performance reflects a transitional phase for the business and broader industry challenges, this year 1:46 1 minute, 46 seconds has been focused on building a stronger content pipeline, expanding our digital capabilities and repositioning the company for long-term growth across 1:55 1 minute, 55 seconds platforms. We believe the investment and strategic invest in initiatives undertaken over the last few quarters are helping create a stronger base for future execution and monetization. 2:07 2 minutes, 7 seconds Let me begin with some important developments from the recent period which reinforce our future growth trajectory. 2:16 2 minutes, 16 seconds One clearly strengthening our OTT partnership. We expanded our collaboration with Netflix with two new web series currently under development, 2:23 2 minutes, 23 seconds including a large scale period drama and another premium show. This marks a continuation and deepening of our long strategic partnership and reinforces our 2:33 2 minutes, 33 seconds position in the premium digital content ecosystem. We now have an order book of approximately 350 crores under this line 2:40 2 minutes, 40 seconds out of which we expect to realize over 135 cr or so within the ongoing finan financial year FY27. 2:47 2 minutes, 47 seconds Some of the shows under production here includes lockup and cope which is tentatively titled which will be released during this financial year. We 2:55 2 minutes, 55 seconds also have a show in pipeline which is in collaboration with Amazon. 2:59 2 minutes, 59 seconds DM recently entered into a strategic collaboration with Vertigo TV through biology telef studio models to produce Hindi vertical 3:07 3 minutes, 7 seconds micro drama tailored for mobile first audiences. This is a new storytelling format focused on short immersive high 3:14 3 minutes, 14 seconds engagement content. It aligns with the evolving consumer behavior especially among Gen Z and mobile first users. We 3:22 3 minutes, 22 seconds believe this format has the potential to emerge as an incremental growth and monetization opportunity over the medium term. 3:29 3 minutes, 29 seconds We are also expanding our digital ecosystem through IP creation. During the year we have continued to build our digital ecosystems including scaling of 3:36 3 minutes, 36 seconds cutting and AVOD like platforms strengthening of B2B digital content pipeline continued focus on IPLE growth. 3:44 3 minutes, 44 seconds Launch of Astrology app as a part of service diversification. We are seeing increasing traction in the digital segment supported by improving 3:51 3 minutes, 51 seconds visibility in the content pipeline and platform diversification initiatives. 3:57 3 minutes, 57 seconds There are some new growth verticles. We have also initiated steps towards expanding our presence beyond traditional production including 4:04 4 minutes, 4 seconds building new creative and talentled ecosystem within the digital segment exploring new formats partnership and content agencies. These initiatives are 4:14 4 minutes, 14 seconds aimed at diversifying revenue streams and strengthening our long-term content pipeline. 4:19 4 minutes, 19 seconds Just to briefly recap the key developments through the year. 4:22 4 minutes, 22 seconds Integration of all and marinating films which results into a huge cash saving as 4:29 4 minutes, 29 seconds we got an input crate of 113 crores and uh next four to five years we expect Balaji will be zero taxpaying company. 4:38 4 minutes, 38 seconds Launch of new digital platforms and initiatives. Strengthening of OTT partnership with content pipeline. 4:43 4 minutes, 43 seconds Continued investment in motion pictures and IP creation. 4:48 4 minutes, 48 seconds FY26 was essentially a year of building for the building the base for the future scale 4:55 4 minutes, 55 seconds segmental breakup digital business digital business to be our core growth engine. The addition of new formats like vertical micro dramas and expansion of 5:03 5 minutes, 3 seconds OTT partnerships significantly strengthens our position. The B2B orderbook and platform strategy provide strong revenue visibility. We are 5:12 5 minutes, 12 seconds building a multiformat multiplatform digital ecosystem. 5:16 5 minutes, 16 seconds Television business continued to remain an important business segment for us. 5:19 5 minutes, 19 seconds Although industry dynamics and viewership trends continue to evolve. 5:24 5 minutes, 24 seconds This year saw temporary softness due to show transitions and overall paradigm shift away from the traditional TV. We are now rebuilding the pipeline which 5:32 5 minutes, 32 seconds will support gradual recovery. Business AIA in the TV segment grew sequentially from a loss of 7 crores in the previous 5:40 5 minutes, 40 seconds quarter to a profit of 4 crores in quarter 4 FY26 indicating a turnaround in this segment performance with 5:46 5 minutes, 46 seconds successful shows like Sasri Kabi Bhoti 2 and Naggin 7 doing well we expect this momentum to continue 5:53 5 minutes, 53 seconds our motion to ch business continues to be supported by a strong pipeline of upcoming projects and a calibrated pre-salesled approach we remain focused on improving 6:02 6 minutes, 2 seconds content monetization enhancing revenue visibility and maintaining discipline capital allocation which we believe will support sustainable growth in this 6:09 6 minutes, 9 seconds segment over the medium term. Our recent release Bhut Bangla received excellent audience reception. In terms of our content slate, we have another 17 movies 6:18 6 minutes, 18 seconds in the pipeline planned over the next three years and we will have four movies released in this year out of which three movies have already been pre-sold of the 6:27 6 minutes, 27 seconds cost recover is 99%. As we have mentioned in the past, our film's business model is such that we strive to recover almost all the coop before the 6:35 6 minutes, 35 seconds release thereby reducing our risk exposure on theatrical performance. This has been the case of Bud Bangla and the next two movies that will be coming. 6:44 6 minutes, 44 seconds Financial performance. Coming to the financial performance quarter 426 was impacted by timing related delays in content monetization and the software 6:51 6 minutes, 51 seconds contribution from the traditional television business. Revenue from operations for the quarter stood at 47 crores. Abit loss for the quarter stood 7:00 7 minutes at around 7 o while loss after tax was 14 crores. For FY26, revenue from operation stood at 210 crores as against 7:08 7 minutes, 8 seconds 453 crores in FY25. A bitter loss for the year stood at 65.8 crores while loss after tax stood at 49.6 crores. The 7:17 7 minutes, 17 seconds performance during the year reflects the overall industry headwinds and changing landscape. lower activity levels in the tech television segment and continued investment towards strengthening our 7:25 7 minutes, 25 seconds digital ecosystem and future content pipeline. Having said that, we believe several of these factors are transitional in nature. Our focus 7:33 7 minutes, 33 seconds remains on improving monetization across the commission and digital businesses. 7:37 7 minutes, 37 seconds Strengthening content delivery across formats and leveraging our strategic partnership to drive growth with a healthy liquidity position. We have over 7:46 7 minutes, 46 seconds 165 crores liquid cash into the banks and mutual funds and a robust pipeline across television, films and digital 7:53 7 minutes, 53 seconds platforms. We remain confident about the medium to long-term growth opportunity for the business. Looking ahead, we expect FY27 to be the year focus on 8:01 8 minutes, 1 second execution, improved content monetization and gradual business normalization across segments and this uh upside in 8:10 8 minutes, 10 seconds the financial performance and its execution will be very much visible from the quarter 1 of FY27. Execution of our OTT partnership, improving traction in 8:18 8 minutes, 18 seconds the digital pipeline, newer content formats such as micro dramas, release of multiple films, and gradual stabilization of the television pipeline are expected to support business momentum going forward. 8:31 8 minutes, 31 seconds As we move forward, we expect digital scale and cinematic storytelling to play an increasingly role in our growth journey while television will continue to remain an important backbone for us. 8:42 8 minutes, 42 seconds With that I would like to open the floor for any questions. 8:47 8 minutes, 47 seconds The entertainment industry is rapidly evolving to a digital first format diverse and IPL content 8:53 8 minutes, 53 seconds consumption with strengthened OT partnership. Entry into a new age formats like micro series and a robust 9:01 9 minutes, 1 second content pipeline across format. Baji Telephone is well positioned to build a scalable and future ready entertainment business. 9:08 9 minutes, 8 seconds With that, I would like to you to open for the question Q&A session. 9:15 9 minutes, 15 seconds Thank you very much. We will now begin with the question and answer [clears throat] session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. 9:27 9 minutes, 27 seconds If you wish to remove yourself from the question queue, you may press star and two. 9:33 9 minutes, 33 seconds Participants, you are requested to use handsets while asking a question. 9:38 9 minutes, 38 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 9:50 9 minutes, 50 seconds A reminder to all the participants, you may press star and one to ask a question. 10:14 10 minutes, 14 seconds We have the first question from the line of Sukrit Dartin from Eyesight Private Limited. Please go ahead. 10:21 10 minutes, 21 seconds Good afternoon. I have two questions. 10:23 10 minutes, 23 seconds First question is uh I want to understand a forward guidance uh what type of strategic levers are you prioritizing in FI27 to strengthen 10:33 10 minutes, 33 seconds Balaji's OTT platforms uh al Balaji and uh television content pip uh content 10:40 10 minutes, 40 seconds pipeline while managing risk from rising production cost and competitive streaming dynamics. That's my first question. I'll ask my second question after this. Thank you. 10:49 10 minutes, 49 seconds Okay. So currently Balaji is a content storytelling company across formats acrossing formats and across platforms. 11:00 11 minutes If I just uh let you know what we have built over last one year which will play out in this financial year of FY27. If 11:08 11 minutes, 8 seconds my commissioned shows which is TV plus OTT which is B2B business which was around 160 odd crores in the FY 26 we 11:18 11 minutes, 18 seconds expect it to be around 330 crores in the coming fiscal year. So that's a huge upside there we are seeing with two of the premium shows coming on Netflix in 11:26 11 minutes, 26 seconds this financial year. One is lockup and second one is tentatively title escope which will come in February plus one 11:34 11 minutes, 34 seconds show on Amazon. So that's a huge upside which we are seeing. We have an order book of over 350 crores plus around 50 11:41 11 minutes, 41 seconds crores gets added each quarter. So we continue to build on those uh model. So whatever decline you are seeing in commissioning TV model gets compensated 11:49 11 minutes, 49 seconds by the upside which we are seeing on the OTTE content. However, I must admit here the margin as compared to television and 11:58 11 minutes, 58 seconds OTT vary differently and significantly I would say. See in TV what happens is the 12:05 12 minutes, 5 seconds show is it it runs for 6 months, 12 months, 18 months, 5 years. So the marginal costing and everything comes into play and you have a better yield. 12:15 12 minutes, 15 seconds Whereas the OTTE platform typically will not have that kind of field because these are all finite series. It gets shot on a schedule. So uh though even 12:24 12 minutes, 24 seconds the top line increases manifold, I believe the margin will not be as robust as uh television that is on the 12:31 12 minutes, 31 seconds television side. Now on coming to motion picture side, we hardly had any release last year. That was one of the issues which Balaji has been facing. Erotic 12:40 12 minutes, 40 seconds cycle, erratic u release of the movies. Now we have got 3 years late 70 movie pipeline is ready. 12:49 12 minutes, 49 seconds Each year we will have four to five movies releasing and uh we expect this year close to 400 crores stopline coming 12:56 12 minutes, 56 seconds from motion pictures itself as compared to only 15 cr which was there last year. 13:02 13 minutes, 2 seconds Then we have uh Balaji studio which is typically working with independent creators for the other leading platform. 13:09 13 minutes, 9 seconds We had 8 and a half crores revenue last year. We believe it will be around 70 odd crores this financial year. Plus 13:16 13 minutes, 16 seconds there is meta which we just started last year with a revenue of around 6 and a half crores. We believe that will be around which will be around 115 odd cr 13:26 13 minutes, 26 seconds this year. Similarly, Balajin Huner the talent agency which we started just uh the last quarter of financial year. We 13:33 13 minutes, 33 seconds have already uh have a talent pool of 50 plus artist. We have clocked a revenue of 1 and a half cr last quarter. We believe this will be uh at least doing 12 crores in the coming financial year. 13:45 13 minutes, 45 seconds and Balaji estrog which has been quite a successful app launched by us. We have app installed of around 1.8 million with 13:53 13 minutes, 53 seconds the wallet recharge for 26 was 56 lakhs plus and we expect close to 6 and a half to 7 crores in this financial year. So 14:02 14 minutes, 2 seconds this is the broad strategy which will play out in FY27. 14:08 14 minutes, 8 seconds Now I look forward to your second question. 14:11 14 minutes, 11 seconds Thank you. My second question uh is uh what type of capital allocation frameworks have been applied in 27 to 14:19 14 minutes, 19 seconds balance investments in digital content while sustaining the profitability margin given all Balagi's subscriber 14:27 14 minutes, 27 seconds churn and rising distribution cost just want to understand your uh view on this. Thank you. 14:34 14 minutes, 34 seconds So television doesn't typically require huge capital outlay television and commissioning model OTT platform because 14:41 14 minutes, 41 seconds it is also funded by the platform themselves. So maybe 3 months of capital which will be around 50 to 55 crores gets locked into this kind of segments. 14:51 14 minutes, 51 seconds Whereas on motion picture side we try to pre-sell all those movies and what happens is 50% of the cop gets funded by 14:58 14 minutes, 58 seconds the uh pre-sales which we do. So just to give an example if Bangla now this number I'm just giving an example if my 15:06 15 minutes, 6 seconds Bangla was costing me around 100 crores I I have got around 48 crores funded by the platforms and balance was funded by 15:15 15 minutes, 15 seconds us. So the way we approach now each business is turnaround time and return on capital that should be the 15:24 15 minutes, 24 seconds fundamental going forward instead of you know sometime movie takes 2 years 1 and a half years and we invest 100 crores 15:31 15 minutes, 31 seconds and get 10 crores out of which which typically is a very poor yield at times. 15:36 15 minutes, 36 seconds So the focus we have changed we clearly look at capital return now and uh all those things will play out in the FY 27 starting quarter one itself. 15:46 15 minutes, 46 seconds Thank you. Just typically we will have investment of around 125 to 150 crores at any given point of time because we we 15:54 15 minutes, 54 seconds certain movies will be on floor certain movies will be nearing release and certain movies will be in advanced stage of discussion and rolling out for the 16:03 16 minutes, 3 seconds next schedule and digital business not more than 10 to 15 crores we require working capital to run that stream. 16:12 16 minutes, 12 seconds Thank you and best wishes. Thank you. 16:17 16 minutes, 17 seconds Thank you. Before we take the next question, a reminder to all the participants, you may press star and one to ask question. 16:27 16 minutes, 27 seconds We have the next question from the line of Yajut Sha an individual investor. Please go ahead. 16:34 16 minutes, 34 seconds Hi sir, uh as you have mentioned, food bangla cost has been recovered. Could you give a guidance on how much we have 16:43 16 minutes, 43 seconds earned from the movie and also our share in the net box office collection? 16:50 16 minutes, 50 seconds So we we don't give that kind of guidance note in the conference call. 16:56 16 minutes, 56 seconds But I can assure you um we have got a very uh significant u returns on this 17:03 17 minutes, 3 seconds capital employed which will be visible in the quarter one numbers here. Okay sir. Thank you. 17:12 17 minutes, 12 seconds Yeah the film has done exceedingly well at the box office. The numbers is there for everybody to see. 17:19 17 minutes, 19 seconds Okay sir. So we can expect the numbers in the Q1 release. Absolutely. Absolutely. Absolutely. Thank you. 17:27 17 minutes, 27 seconds Yeah, thank you. A reminder to all you may press star one to ask a question. We 17:37 17 minutes, 37 seconds have the next question from the line of Yash Parker, an individual investor. Please go ahead. Uh hi, am I audible? 17:45 17 minutes, 45 seconds Yeah. 17:46 17 minutes, 46 seconds Uh thank you so much for the opportunity. Uh so uh my question is regarding the recent amalgamation of uh 17:53 17 minutes, 53 seconds alt digital media entertainment and marinating films uh with our biology telephones. Uh it was uh effective from 18:03 18 minutes, 3 seconds hand. So what specific uh operational synergies or cost rationalization have we realized in FI26 and what incremental benefits can we expect in uh FI27? 18:17 18 minutes, 17 seconds So uh I would just lay down the two broad u indicators of the benefits which will be reflective in the financial 18:26 18 minutes, 26 seconds statement. So if people would recollect that all was burning around 125 to 145 crores each year when uh or say two 18:34 18 minutes, 34 seconds years back the whole idea was to make it leaner make it uh more cash efficient. 18:40 18 minutes, 40 seconds Last year our cash burn was 50 lakhs there about per month. So it is around 6 cr of cash loss on the total digital 18:48 18 minutes, 48 seconds initiatives including the newer launches like um uh say Astro or we do whatever initiative. So that way we have brought 18:56 18 minutes, 56 seconds it down to bare minimum. The turnaround is expected in FY27 with overall digital business will be cash positive. Two, the 19:05 19 minutes, 5 seconds other major initiatives or the significant benefits which will arise for the parent company which is Balaji tele is the uh huge input credit for GST 19:15 19 minutes, 15 seconds which is around 170 N crores. So we have that asset which is remains to be utilized and plus uh I believe next four 19:22 19 minutes, 22 seconds to five years there won't be any incidence of direct tax also which will be reflected in the P&L statement. So that's u uh that's the key benefits 19:30 19 minutes, 30 seconds coming out of it and plus there is operational efficiency and all those things which happens which is getting reflected in the cash saving which I just mentioned we are burning around 50 19:38 19 minutes, 38 seconds lakhs per month and which is seeing a downward trend there also sir uh so another question is regarding 19:47 19 minutes, 47 seconds this uh AI automation and IP uh which are the three pillars for the company going forward. So could you like 19:55 19 minutes, 55 seconds elaborate on how are we using AI and automation? Is it for content production? Uh is it for distribution 20:02 20 minutes, 2 seconds targeting or like uh for measuring some efficiency or something like that? How are we using AI? 20:09 20 minutes, 9 seconds Yeah, we we have set up our own AI team into the company. There is a captive team which sits here on and works on the 20:16 20 minutes, 16 seconds various formats which we do. We we have done uh many uh uh newer things using AI 20:24 20 minutes, 24 seconds tools. One is the creating a short format reels and shows and we also won awards for it. Two, we have also 20:32 20 minutes, 32 seconds generated AI music um uh library which is doing uh very well on the internet 20:40 20 minutes, 40 seconds and uh we we are bullish on this segment. We are little cautious on the investment side and we gradually hope to 20:48 20 minutes, 48 seconds scale it up as time passes and we it will be a full-fledged AI team integrated into the overall uh 20:55 20 minutes, 55 seconds production um uh efficiency model which we have inhouse. So this is going to play a critical role here too. 21:03 21 minutes, 3 seconds uh including shoots, including VFX those things we are developing inhouse so that we have the skill within the company to 21:10 21 minutes, 10 seconds because we are present in all the formats be TV, be it digital, be it motion pictures and web series. So it 21:18 21 minutes, 18 seconds makes more sense to have a specialist in the company to run the show for 24 hours. 21:25 21 minutes, 25 seconds Mhm. Uh that answers uh another question so is regarding inventories. So uh it 21:33 21 minutes, 33 seconds rose from around 73 odd crores to somewhere around 207 crores. Uh so uh 21:40 21 minutes, 40 seconds could you give us a little breakdown on this inventory? How much has uh movies and production versus digital uh and you 21:49 21 minutes, 49 seconds know what is the expected delivery uh uh timeline or maybe uh when will you start is coming out of motion pictures. So 21:58 21 minutes, 58 seconds what you see as of March is largely your Bangla one and Hiroi Horine that three 22:07 22 minutes, 7 seconds movies inventory is residing there. So typically what happens as an accounting is when you sign talent and when you give advances it resides as an advance 22:15 22 minutes, 15 seconds onto the balance sheet. The moment it grows on floor it it gets translated into inventory till you see the first monetization. When the first 22:24 22 minutes, 24 seconds monetization you do typically that is a theatrical. From that time onward we start um kind of amotizing these 22:32 22 minutes, 32 seconds inventories and on the last leg of the monetization this inventory is fully written off. So we don't carry any 22:39 22 minutes, 39 seconds intangibles to the balance sheet the uh last monetization. Yeah correct. And so uh last question from my 22:48 22 minutes, 48 seconds side the cash and the investments that we have have declined from uh 178 odd crores to nearly 127 crores uh in FI26. 22:58 22 minutes, 58 seconds So uh could you explain the difference between uh the balance sheet figures and the current level right now? 23:06 23 minutes, 6 seconds Earlier question the earlier question will uh kind of answer your uh the last question on cash and cash equivalent. So 23:13 23 minutes, 13 seconds if you see a C liquid cash we have around 165 crores and uh balance is into inventory. 23:21 23 minutes, 21 seconds Okay. Uh and so what is the minimum liquidity threshold uh that we are comfortable with going forward into into motion pictures? 23:32 23 minutes, 32 seconds Yes. Close to 125 to 150 crores. Okay. Uh that answers my questions. 23:40 23 minutes, 40 seconds Thank you so much. Thank you. 23:44 23 minutes, 44 seconds Thank you. We will take the next question from the line of Wrath from JJ Investment. Please go ahead. 23:55 23 minutes, 55 seconds Hello. Yeah. Uh hi. Am I audible? Yeah. 24:01 24 minutes, 1 second Yeah. Uh good afternoon sir. Uh so I just I had just one question. uh shows like uh 24:10 24 minutes, 10 seconds and Naggin 7 are doing so well on TRP basis. 24:15 24 minutes, 15 seconds Uh what do you think uh how confident the management is about this momentum for FI27 or are you going to slow down? 24:26 24 minutes, 26 seconds Okay. So I think um on the television side uh they are not kind of innovative 24:35 24 minutes, 35 seconds enough in terms of the uh show formats or in terms of the content which they want to play. You will find more of this 24:42 24 minutes, 42 seconds TV business are playing very safe with the conventional model. The yield is going down. In fact if you just compare 24:50 24 minutes, 50 seconds the yield to the precoid uh year rate we are still down by 25 to 30%. So, so 24:56 24 minutes, 56 seconds there is a uh the investment into the content from the broadcast side has significantly slowed down and 25:03 25 minutes, 3 seconds considerably reduced. As a result, all the production houses will see their margin getting depleted and uh it affects biology tele. 25:13 25 minutes, 13 seconds So the kind of efforts which we put in and the kind of reward which we get because it is primarily the IP is owned by the broadcast. So it is becoming less 25:22 25 minutes, 22 seconds liquidity for a production house to kind of run this kind of business where the yield is year on year keeps degrowing 25:31 25 minutes, 31 seconds and uh the uh the the the tenure of the shows also is getting reduced. You know earlier the show used to run for a year, 25:39 25 minutes, 39 seconds two years, 3 years and there was enough and more opportunities for production house also to make a decent return. With the tenure of the shows um very few shows run more than a year these days. 25:49 25 minutes, 49 seconds If you just scan the uh each of these broadcast um companies, you'll find 6 to 9 months is becoming the norm. So 25:58 25 minutes, 58 seconds everybody's going through the tried and tested formula. Format shows will play. 26:01 26 minutes, 1 second We we we intend to build our own uh IP around that and uh take it from there 26:09 26 minutes, 9 seconds on. So IP retention will be key rather than just doing work for higher business. I think that's the way currently it is looking like. But uh I 26:17 26 minutes, 17 seconds still believe television as a medium still has a life. I think 10 12 15 years it can still survive but they need to invest into content which I currently 26:25 26 minutes, 25 seconds don't see them doing it. However, they are bullish on the OTT segment. So that's another challenge for them. They bleed on OTT but where the profit is 26:33 26 minutes, 33 seconds getting generated uh they are not investing so much of content. 26:37 26 minutes, 37 seconds Mhm. Okay. So uh uh regarding uh you mentioned that uh uh a particular show runs for approximately 6 to 9 months. 26:47 26 minutes, 47 seconds Yeah. So do we uh for example do we prepare a future thing where the pipeline next show? 26:58 26 minutes, 58 seconds Yeah. So we we do we do because as a business we have to have uh active discussion with the broadcast. If one if 27:06 27 minutes, 6 seconds my show is coming to an end what is that show which we should be pitching. So but there is a lag between by the time the show ends and by the time you go with 27:13 27 minutes, 13 seconds the another show on air. Hence what we are doing is we we are building the B2B business of the with the leading OTT 27:21 27 minutes, 21 seconds platforms. So whatever uh dip you will see in the top line of the television traditional business will get compensated by the business which we generate from the OTT platform. 27:33 27 minutes, 33 seconds Okay. So this is one of the security measures for the dip. Any other uh steps you take? 27:39 27 minutes, 39 seconds Yeah. Because OTT OTT business you can see a swing there. There is an upside there. So we believe this whatever decline you see on TV will get compensated by that medium. 27:50 27 minutes, 50 seconds Done. Uh sir uh if I can ask one more uh regarding the merger of ALT and MFPL. 27:57 27 minutes, 57 seconds So uh what are the specific cost savings or any operational synergies that will be reflected moving forward? 28:05 28 minutes, 5 seconds I I just covered it in the earlier questions. Mhm. 28:08 28 minutes, 8 seconds So but largely the financial benefit I can lay out for you as well. uh one is the indirect tax benefit of around 117 28:17 28 minutes, 17 seconds crores we have input tax credits as a state cash savings onto the balance sheet and next uh four to five years company will not be paying any tax 28:25 28 minutes, 25 seconds because of the brought forward losses of all businesses and um that's again on the P&L side other operational 28:32 28 minutes, 32 seconds efficiencies I have already illustrated in the earlier questions with the gentleman had asked no issues sir thank you so much uh have 28:40 28 minutes, 40 seconds a great day sir all the best thank you thank Thank you. Before we take the next question, a reminder to all the 28:49 28 minutes, 49 seconds participant, you may press star and one to ask a question. 28:55 28 minutes, 55 seconds We will take the next question from the line of Chetria Des Pande and individual investor. Please go ahead. 29:02 29 minutes, 2 seconds Good afternoon sir and thank you for the opportunity. 29:06 29 minutes, 6 seconds So my first question is how should investors think about Balaji's business mix in [clears throat] the next two to three years? 29:16 29 minutes, 16 seconds I would put it this way. See, historically, Balaji was known as a television production company. 29:24 29 minutes, 24 seconds Okay. I believe in next two next two to three years this pyramid will shift and Balaji will be more an IPled content 29:33 29 minutes, 33 seconds creator with uh movie contributing more than 50% to the top line and profitability followed by digital 29:40 29 minutes, 40 seconds business and television will um be the least contributor to the segment that's my uh take so we'll be more IPL 29:49 29 minutes, 49 seconds television anyway we were not having IPS it was more like contract for hire And um in the long term though it used to 29:57 29 minutes, 57 seconds give us a strong um kind of uh uh profit but uh over the years since last 5 years 30:05 30 minutes, 5 seconds the margin has been depleting the content production cost is under pressure broadcast are not investing much into these television space. So we 30:14 30 minutes, 14 seconds clearly see an upswing into the OTT side and uh we believe this Balaji motion picture will be more of an IPled company 30:23 30 minutes, 23 seconds where we we intend to retain IP we build our own scale. So motion pictures will become the key business for the Balaji 30:30 30 minutes, 30 seconds telems. We have a strong pipeline of 17 movies over next 3 years which four to six movies in each year and we continue 30:38 30 minutes, 38 seconds to build on it with a proper uh dish formula where we pre-sell all the movies before we go on 30:45 30 minutes, 45 seconds floor and uh the clear focus will be on the taround time which we have for the project how quickly we can turn around 30:53 30 minutes, 53 seconds and clearly the last and the most important uh feature which we have introduced internally is the capital 31:00 31 minutes return on the motion pictures. So, quick 31:05 31 minutes, 5 seconds return, healthy returns and uh virtually risk-free business model. 31:15 31 minutes, 15 seconds Okay. And sir, um how much revenue visibility are we currently seeing for FI27? 31:22 31 minutes, 22 seconds So FY27 if I say we we will be expecting close to around say 31:30 31 minutes, 30 seconds 800 odd crores topline largely driven by motion pictures movie 31:37 31 minutes, 37 seconds will give almost 50% of it okay and uh how scalable is the current digital content pipeline 31:46 31 minutes, 46 seconds for digital business I believe um when I say digital means uh it's B2C the way we Digital business is B2C. Whatever we do 31:55 31 minutes, 55 seconds for leading OTT platform, we still call it commission model. So television plus commission model will be close to around 300 odd crores. Motion pixels will 32:04 32 minutes, 4 seconds contribute around 400 crores and uh B2C business where we own IP, we retain everything with us and we monetize. I 32:12 32 minutes, 12 seconds think that will be contributing around 100 odd crores in this financial year. Okay. 32:17 32 minutes, 17 seconds Up to 800. Which of our business vertical is seeing currently seeing a strongest traction? 32:24 32 minutes, 24 seconds Sorry, I didn't get you. 32:26 32 minutes, 26 seconds Uh, which business vertical is currently seeing the strongest traction? 32:31 32 minutes, 31 seconds Yeah, it's motion pictures followed by digital. Okay. All right. Thank you so much, sir. Thank you. 32:40 32 minutes, 40 seconds Thank you. A reminder to all the participants, you may press star and one to ask a question. 32:59 32 minutes, 59 seconds Thank you very much ladies and gentlemen. As there are no further questions from the participants, we now conclude the question and answer 33:07 33 minutes, 7 seconds session. I now hand the conference back to Mr. Sanjay Di for the closing comments. Thank you and over to you sir. 33:15 33 minutes, 15 seconds Thank you. Thank you all and hopefully quarter one number when we release it will reassure most of the people and 33:23 33 minutes, 23 seconds investors about the strategies which we have worked upon last year. We were hard at work and I think uh all the efforts 33:31 33 minutes, 31 seconds which we have put in last year should play out in the year to come. More specifically I am quite clear from quarter one itself it will be seen in 33:38 33 minutes, 38 seconds the financial numbers. With that I would like to thank you all for taking the time to join us today. Thank you. 33:45 33 minutes, 45 seconds Thank you members of the management. On behalf of Balaji Telephones Limited, we conclude this conference. Thank you all for joining with us today.