The Hindu Business Line : Order book, expansion plans buoy Moving Picture Co

The stock on Thursday moved up by 2.30 per cent to close at Rs 24.80 after opening at its 52-week high at Rs 27 on the BSE and logged a trading volume of 3.54 lakh shares. In the last one week, the stock has gained 17.81 per cent in terms of price. The recent volume surge in the counter was backed by bulk deals too.

The company, promoted by Mr Ramesh Sharma and Ms Uma Gajapati Raju, provides TV content and 3-D animation. Mr Sharma, CMD of the company, confirmed to Business Line that the order backlog and revenue generation from royalties for the current fiscal are around Rs 25 crore. In 2004-05, the company posted a total income of Rs 10.83 crore. Mr Sharma said the company's expansion plans include the launch of a new Capital-specific channel called `Dilli One' and the upgradation of its studio infrastructure and animation wing.

Mr Sharma said the total project cost in two phases would be around Rs 50 crore. The financing of the project could be through a combination of equity and debt. "Means of financing are yet to be finalised. The equity issue could be through a preferential route or rights or GDRs," he observed. The promoters' holding as on June 30, 2005 was around 43.91 per cent. The company's current equity is Rs 7.66 crore, while the debt is around Rs 7 crore.

Among the recent developments that are likely to augment the company's revenue this fiscal is a docu-feature co-produced with two UK-based companies on Daniel Pearl, the American journalist who was abducted and killed during the Afghan war. The royalty income from the film, which is in the final stage of production, is expected to be around Rs 13 crore this fiscal.

A 52-minute documentary and 3-D animation series rights sold to a Sharjah-based company is to fetch around Rs 9 crore ($2 million). The exclusive terrestrial rights in Hindi and all Indian regional languages for a 10-part 3-D animation show is to earn Rs 5 crore. Another Rs 2 crore is slated to come from a 90-minute tele-film on the late Prime Minister Lal Bahadur Shastri.

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