Zee Entertainment Q3 net profit at Rs137.60 crore

Zee Entertainment’s revenue during the third quarter of this fiscal 2011-12 stood at Rs754.8 crore, as against Rs824.9 crore during the three months ended 31 December 2010

Zee Entertainment Enterprises (ZEEL) has reported a consolidated net profit of Rs137.60 crore for the third quarter ended 31 December 2011. During the three months ended 31 December 2010, the company's net profit was Rs155.50 crore, it said in a filing to the BSE. The firm’s revenue during the third quarter of this fiscal stood at Rs754.80 crore, as against Rs824.90 crore during the three months ended 31 December 2010.

“Operating revenues and expenditure for Q3 FY11-12 are not comparable to those for Q3 FY10-11 because of the change in accounting treatment of domestic subscription revenue, which is now being reported net of expenses,” the company said.

This change has been necessitated due to the formation of Media Pro, a joint venture, which pays subscription revenues to ZEE net of expenses.

“The competitive intensity in television segment continues to be high. Given the backdrop of slowdown in advertising spends, our performance reflects the same. However, our reliance on ad revenues is cushioned by the robust build-up in subscription revenues,” ZEEL chairman Subhash Chandra said.

The company’s advertising revenues during the quarter stood at Rs395.50 crore, a decline of 10.1% compared to the corresponding third quarter of 2010-11 fiscal. The total subscription revenue increased 15.7% during the quarter ended 31 December 2011 at Rs326.20 crore as against the corresponding period of previous fiscal.

Commenting on the results ZEEL managing director and CEO Punit Goenka said: “During the quarter we have been able to maintain healthy operating margins, partly due to lower sports losses and partly due to better cost efficiency measures.”

In the late afternoon, ZEEL was trading at around Rs117.35 per share on the Bombay Stock Exchange, 0.38% down from the previous close.

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RIL assures SC of paying VAT on sale of gas in UP from 1st February

According to the state, RIL, which is engaged in extracting and refining petroleum and petrochemical products, was supplying natural gas to various fertiliser companies in Uttar Pradesh and hence the state was entitled to levy VAT on the company

New Delhi: Reliance Industries (RIL) Monday assured the Supreme Court that it would start paying Value Added Tax (VAT) to the Uttar Pradesh government on sale of gas in the state from 1st February till a decision by the Allahabad High Court on its plea against the tax imposition, reports PTI.

Taking note of RIL’s submission, a bench headed by justice Altamas Kabir asked the high court to decide expeditiously the company’s plea against state government’s decision to impose VAT.

The company also submitted that the VAT imposed on its product would be passed on to the consumers.

The court’s order came on an appeal by the state government challenging the high court’s interim order staying imposition of the tax on the sale of gas by RIL.

The UP government had challenged a 26 July 2011 order of the high court which granted stay on levy of Rs724 crore as VAT for sale of the gas during 2009-2010.

The Supreme Court had on 23 August 2011 issued notice and sought responses of the Centre.

According to the state, RIL, which is engaged in extracting and refining petroleum and petrochemical products, was supplying natural gas to various fertiliser companies in Uttar Pradesh and hence the state was entitled to levy VAT on the company.

RIL had taken the plea in the high court that the transaction in question is central sale made by it from the state of Andhra Pradesh and it is not liable to pay local tax (VAT) to the state government.

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