Balaji Telefilms gained ground on Thursday on renewed buying support ahead of its Q3 results, that are likely to be impressive.

The scrip of the television content firm was up by 4.05% at Rs 74.55 on the BSE at 11:50 IST, recovering from its early low of Rs 69.50. A total of 24,148 shares changed hands on the counter. In the last nine sessions between 16 and 29 January 2003, the Balaji Telefilms scrip shed 17.8% to Rs 71.65 from Rs 87.20.

BTL is scheduled to unveil its third quarter results (ended 31 December 2002) later on Thursday. The company is expected to register a massive 90-100% rise in its net profit to Rs 16.2-17 crore on a 70-75.5% increase in sales to Rs 51.4-53 crore.

Analysts said the earnings growth may even surpass the estimates as the company's television serials have done well, helping it to garner huge revenues. Regarding the concerns that the company is increasing its focus on commissioned category of programmes, analysts said the company may do well in this segment as well. Also, the shift from sponsored programmes to television rating points-linked commissioned programmes has worked well for the company till now.

Analysts, however, said that if BTL's serials are taken off the air due to some reason, the company's margins could come under tremendous pressure as the cost of producing a serial is too high.

Meanwhile, for the full year ending 31 March 2003, BTL had issued a guidance of a 60% rise in total income and a 95% growth in net profit.

The promoters' holding in BTL stands at 57.8%, while public and institutions hold 4% and 32% respectively.