Zee Telefilms declined further on Tuesday on sustained selling pressure.

The stock of India's largest listed media company was the biggest loser among BSE Sensex constituents, shedding 3.42% to Rs 69.25. Over 641,000 shares changed hands on the counter by 13:55 IST. The stock, from its recent high of Rs 90 on 18 February 2003, has lost 23.2% to its day's low of Rs 69.10. Earlier, it had hit a 52-week low of Rs 68.75 on 17 March 2003.

Analysts said the slide on the Zee Telefilms counter was due to fears that the company's financial performance for the next two quarters may be dismal due to pressure on advertising revenues as a result of the World Cup Cricket telecast (it ended on 23 March 2003). The shift of viewers' focus towards the World Cup matches has hit the advertising revenue of ZTL adversely.

Earlier, ZTL had said there could be an impact on the business of the company due to a shift in advertising revenues to a rival channel telecasting the Cricket World Cup matches.

However, analysts said that with the ZTL stock almost touching its bottom, it may not decline further.

Recently, there were reports that Delgrada has pledged another 7.6% equity of the company with brokerage Credit Suisse First Boston. The Mauritius based overseas corporate body, Delgrada, is promoted by ZTL's' founders. But CSFB, despite the share pledge agreement, does not have any voting rights in ZTL.

Analysts said the pledging of shares will benefit ZTL as the funds may be used by the promoters for improving the company's fortunes.

For the third quarter ended 31 December 2002, ZTL's consolidated net profit jumped by 36% to Rs 70.88 crore, compared to Rs 52.11 crore in the corresponding period of the previous year. Total income increased by 9.89% to Rs 325.02 crore (Rs 3.25 billion) from Rs 295.76 crore (Rs 2.95 billion) in DQ 2001.

On a stand-alone basis, for the quarter ended 31 December 2002, ZTL recorded a net profit of Rs 22.19 crore on total income of Rs 141.13 crore (Rs 1.41 billion).

BSE code: 505537