The Hyderabad-based Padmalaya Telefilms Ltd has taken over the operations of the Zee Telefilm-owned SitiCable network in Andhra Pradesh.
As per the agreement, Padmalaya will manage the operations on a revenue share basis, both from advertisements and cable subscription, while the assets will be with Zee. The new initiative is expected to boost the topline and bottomline of Padmalaya during the current fiscal.
SitiCable is currently clocking revenues of about Rs 2.5 crore a month, while plans are afoot to further the spread of SitiCable under the new management.
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Siti is the leading cable operator in the state with a presence in 56 major centres including Hyderabad. It has a connection base of over 3 lakh.
The Rahejas-promoted C Channel and the Hindujas-promoted InCable are the two other major operators in Hyderabad, while SitiCable has a clear edge in the towns.
Zee Tele holds about 30 per cent stake in Padmalaya Telefilms through a 60 per cent equity stake in Padmalaya Enterprises Pvt Ltd, a closely-held company that owns a majority stake in Padmalaya. Zee had acquired this stake about an year back.
Meanwhile, Padmalaya Telefilms has recorded a 68 per cent jump in net profit and 31 per cent increase in income for the year ended March 31, 2003. It posted a net profit of Rs 19.96 crore on an income of Rs 88 core for the year compared with Rs 11.86 crore and Rs 67 crore, respectively, in the previous fiscal.
On an equity base of Rs 12.49 crore, it works out to an earnings per share of Rs 15.46. Padmalaya made a provision of Rs 6.74 crore for tax (including deferred taxation) and Rs 4.78 crore for depreciation.
Meanwhile, the promoters