Report on Shemaroo

NDTV PAT up on lower expenses despite revenue drop

Operating EBIDTA was up 8.2 in FY 2020

BENGALURU: The Prannoy and Radhika Roy-led Indian media house New Delhi Television Ltd (NDTV) reported 6.4 percent lower consolidated revenue from operations for the year ended 31 March 2020 (FY 2020, year under review) as compared to the previous year FY 2019. The company however reported more than double consolidated (grew 145.8 percent) net profit after tax or PAT for FY 2020 as compared to the previous year. Reported consolidated revenues for FY 2020 and FY 2019 were Rs 373.17 crore and Rs 398.73 crore respectively. PAT for the year was Rs 27.92 crore as compared to Rs 11.36 crore for the previous year.  All figures mentioned in this paper are consolidated unless stated otherwise.

Total income including other revenue for FY 2020 declined 7 percent to Rs 392.97 crore from Rs 422.36 crore in FY 2019.  Calculated operating profit or EBITDA for the year under consideration was 8.2 percent higher at Rs 52.78 crore (14.1 percent margin) as compared to Rs 48.80 crore for FY 2019.

The company has been paring expenses – consolidated Total expenses for FY 2020 declined 8.6 percent to Rs 356.08 crore from Rs 389.73 crore in the previous fiscal.  Production expenses and cost of services in FY 2020 declined 0.9 percent to Rs 88.53 crore from Rs 89.37 crore in FY 2019. Employee Benefits Expenses in FY 2020 were 14.4 percent lower at Rs 119.33 crore as compared to Rs 139.46 crore in FY 2019. Finance costs declined 10.8 percent during the year under review declined 10.8 percent to Rs 24.87 crore from Rs 27.88 crore. Operating and administrative expenses for FY 2020 fell 4.3 percent to Rs 72.54 crore from Rs 75.83 crore. Marketing, distribution and promotional expenses for FY 2020 were 11.7 percent lower at Rs 39.99 crore as compared to Rs 42.73 crore in the previous year.

NDTV has two segments – Television, media and related operations; and Retail/E-Commerce. Television segment operating revenue declined six percent in FY 2020 to Rs 368.83 crore from Rs 392.36 crore in FY 2019. NDTV reported 12.4 percent decline in operating profit before exceptional items, share in profit/ (loss) of associate/ joint ventures, interest and tax to Rs 64.01 crore in FY 2020 from Rs 73.03 crore.

NDTV reported 38.7 percent fall in operating revenue for its Retail/E-Commerce segment in FY 2020 to Rs 7.04 crore from Rs 11.49 crore in FY 2019. The segment’s loss for the fiscal under review declined to Rs 2.25 crore in FY 2020 from a loss of Rs 12.52 crore in the previous year.

Excerpts from the notes that the company has mentioned in its financial statements

New Delhi Television Ltd, the television arm of the group, has earned Profit after tax of Rs 752 lakh (RS 7.52 crore) during the quarter ended 31 March 2020 as against profit of Rs 804 lakh (RS 8.04 crore) during the corresponding quarter ended 31 March 2019. As of 31 March 2020, New Delhi Television Ltd’s, the television arm of the group, current liabilities exceed its current assets by Rs 8,274 lakh (Rs 82.74 crore). The television arm of the group, New Delhi Television Ltd’s ability to continue as a going concern is significantly dependent on meeting its long term and short-term working capital requirements, ability to pay overdue payables, management’s implementation of initiatives like rationalising costs, initiatives to improve advertising revenue which are under pressure, negotiating extended credit terms with suppliers and lenders, sale/divestment of non-core businesses and building efficiencies in collections. Based on current business plans and projections prepared by the management, New Delhi Television Ltd expects improvement in operations with better operational efficiencies. The company has proposed to sell a subsidiary, proceeds of which will positively impact the cash flow for New Delhi Television Ltd and the company also has tax receivable of Rs 12,322 lakh (Rs 123.22 crore) as at 31 March 2020. The material nature of the aforesaid matters, may have material adverse impact on future plans of the company. However, management, based on their understanding of the overall business and the planned strategies, believes that the company will be able to meet its contractual obligations and liabilities that fall due in the near future. Accordingly, the financial statements have been prepared on going concern basis.

Latest Reads

Republic Media Network’s Editor-in-Chief Arnab Goswami is proud to formally announce the launch of Republic Bangla-- the Network’s hugely-awaited Bengali news channel. Republic Bangla will go live on-air on 7th March 2021 at 8 am.

Television TV Channels News Broadcasting
Empowering women with extra-ordinary short films on ShortsTV

This International Women’s Day, ShortsTV celebrates women who strive to make the world a better place to live in. Available on platforms such as Tata Sky, Dish TV, d2h, Airtel DTH, and Airtel Xstream, ShortsTV has a line-up of movies that embraces female empowerment.

Television TV Channels Viewership
Delhi HC stays PCI’s order regarding ad in Hindustan newspaper

The Delhi high court stayed a directive passed by the Press Council of India (PCI) to government departments, which had effectively stopped government advertisements in some editions of the Hindi daily, Hindustan.

Television TV Channels News Broadcasting
TRP scam: Interim relief to Arnab Goswami extended till 16 March.

The Mumbai police has told the Bombay high court that its assurance of not taking any coercive action against Republic TV's editor-in-chief journalist Arnab Goswami in the TRP scam case will continue till 16 March, news agency PTI reported on Friday.

Television TV Channels Viewership
News18 India gears up for West Bengal elections with ‘Sabse Bada Dangal’

New Delhi: With days left for the crucial West Bengal assembly elections, television news channels are gearing up to shore up viewership on their poll coverage. Amid the intense competition, News18 India has announced an array of programming under its election based viewer engagement campaign ‘...

Television TV Channels News Broadcasting
Nat Geo signs Colgate, Citroen & HDFC as sponsors for ‘Women of Honour: Destination Army’

National Geographic India has roped in three key sponsors — Colgate, Citroen, and HDFC for its upcoming Women’s Day special documentary titled Women of Honour: Destination Army that features women in the Indian Armed Forces.

Television TV Channels Viewership
Monetising Ishara is the primary focus in next few quarters: Aditya Pittie

In September 2016, Anand Mahindra-owned television channel Epic roped in Pittie Group CEO Aditya Pittie as its managing director. Since then, the Anand Mahindra-and Pittie-promoted IN10 Media has expanded – from television (Epic), to OTT platforms (Epic On and Docubay), and even a production house...

Television TV Channels GECs
No 1 channel of Bihar Jharkhand, ZEE Bihar Jharkhand reinvents itself

Earning the trust of the viewers and providing exceptional news coverage has kept ZEE Bihar Jharkhand a market leader for more than 4 years. The channel focusses not only on the states of Bihar and Jharkhand but every important news making story in the country and the world. Not only shows, the on-...

Television TV Channels Regional
KabaddiAdda enters livestream partnership with K7 Tournament

KOLKATA: KabaddiAdda will be live-streaming all the matches from ‘K7’, India’s premier professional junior kabaddi tournament. The entire tournament will span across multiple cities in India with the first leg of the qualifiers kicking off in Haryana under the aegis of Amateur Kabaddi Association...

Television TV Channels Sports

Sign up for our Newsletter

subscribe for latest stories

* indicates required