Global Economy
The global economy, on the back of inflation and geopolitical tensions has experienced
a slowing growth rate. Powerful economies such as China, the Eurozone, and the U.S. are
exhibiting a phase of economic vulnerability. This situation negatively impacts emerging
and developing markets. The broad-based monetary policy tightening implemented by advanced
economies to mitigate inflation, has impacted the overall global financial climate.
In the latter part of (calendar year) CY 2022, rising inflation and the imposition of
monetary tightening led to a slowdown in global output.
The U.S. Federal Reserves decision to increase interest rates resulted in the dollar
gaining strength against most other currencies. This development, in turn, widened current
account deficits and amplified inflation in economies with a net import balance.
Despite the challenges, the global economy still managed a growth of 3.5% in CY 2022.
Growth in emerging and developing economies was around 4.0% in CY 2022 which is a
significant decrease from growth of 6.8% that was reported in CY 2021. However, second
half of CY 2022, saw gradual alleviation of supply chain pressures indicating potential
economic recovery.
Outlook
Global growth is projected to decline to 3.0% in CY 2023, driven by the lingering
impact of the pandemic, hawkish monetary policy, and global military conflicts. A
combination of elevated inflation, worsening financial conditions, and increased energy
prices presents considerable challenges, particularly for low-income countries and
emerging markets.
Trade growth is projected to decrease to 1.7% in CY 2023, reflecting a reduction in
global demand.
Concurrently, advanced economies are projected to experience a growth slowdown to 1.5%
in CY 2023, with a modest recovery expected in 2024 as policy-related challenges diminish.
In spite of these adversities, resilience is evident in global economies, bolstered by
healthy household spending, corporate investments, and stable labour markets. In several
nations, inflation rates have started to decline.
Indian Economy
The National Statistical Office (NSO) of India projects a GDP growth of 7.2% for the
(fiscal year) FY 2022-23, predominantly fuelled by private consumption and investment.
This momentum is further reinforced by strategic government policies, enhanced labour
market conditions, and rising consumer confidence.
However, the inflation rate has remained tenaciously high, projected at around
6.5%-6.7% for FY 2022-23, largely due to global macroeconomic influences. Despite these
challenges, Indias growth rate of 7.2% for FY 2022-23 exceeds the projections from both
the Reserve Bank of India (RBI) and the World Bank, solidifying Indias position as one of
the fastest- growing economies.
Looking to the future, optimistic outlooks are projected for the manufacturing,
services, and agricultural sectors, which are set to boost domestic consumption further.
The enhancement of business and consumer confidence, coupled with accelerated credit
expansion, are poised to play crucial roles in supporting economic growth. Government
initiatives, such as financial inclusion policies, rural demand stimulus, the Make in
India campaign, and support for start-ups are expected to generate significant job
opportunities. This, in turn, is likely to increase disposable income, thereby stimulating
consumer demand.
In terms of corporate debt, India stands in contrast to many countries with a lower
debt-to-GDP ratio, underscoring the resilience of its corporate sector. This robust debt
profile has played an instrumental role in preserving Indias overall macroeconomic
stability.
Outlook
Indias economic recovery following the pandemic is progressing led by vigorous
domestic demand and enhanced capital investments. The Economic Survey projects a baseline
GDP growth of 6.5% for FY 2023-24. This positive projection is rooted in supportive credit
provisions, favourable investment cycles and the widespread adoption of public digital
platforms. Government initiatives such as industry-focused and production-linked programs
are expected to stimulate manufacturing output.
With energy costs under control and international supply chains reopening, inflation is
projected to decline, providing an additional boost for growth.
The improving financial health of businesses and the banking sector sets the stage for
accelerated growth in FY 2023-24, facilitated by robust loan distribution and capital
investments. The decreasing urban unemployment rate, alongside the rise in Employee
Provident Fund registrations, too suggests that private consumption and capital formation
will serve as key contributors to Indias economic advancement in FY 2023-24.
15
Indian Media and Entertainment Industry
In CY 2022, the Indian media and entertainment (M&E) industry demonstrated a
remarkable recovery from the impact of the pandemic experienced in previous years,
returning to its growth trajectory from before the pandemic. The sector saw significant
expansion, increasing by INR 348 billion — a growth of 19.9% — to reach a total
of INR 2.1 trillion. This figure exceeds its pre-pandemic levels from CY 2019 by 10%.
Despite the evolving landscape, television continues to dominate as the most
significant component of the media and entertainment industry. Meanwhile, digital media
has further consolidated its strong second position. Print media, experiencing a
resurgence, has claimed the third spot. The filmed entertainment sector has also bounced
back due to an increase in theatrical releases, surpassing online gaming to reclaim its
fourth position. Traditional media—which includes television, print, filmed
entertainment, out-of-home (OOH) advertising, music, and radio—accounted for 58% of
the M&E sectors revenues in CY 2022. This statistic implies a shifting trend towards
digital media and other emerging segments.
The video Over-The-Top (OTT) segment is anticipated to become increasingly prominent in
the creation, distribution, and promotion of entertainment media content. OTT streaming
platforms persist in offering a wide range of high-quality and specialized content for
audiences.
Outlook
Looking forward to CY 2023, forecasts suggest that the Media & Entertainment
(M&E) sector will grow by 11.5% to reach a value of INR 2.34 trillion. Moreover, the
sector is expected to maintain a compound annual growth rate (CAGR) of 10.5%, rising to
INR 2.83 trillion by CY 2025. This growth is likely to be largely fuelled by digital
media, online gaming, and television, which are collectively projected to account for 65%
of the growth. Other significant contributors will include animation and VFX (11%), live
events (8%), and films (8%). By 2025, the number of daily active users of smart connected
TVs is anticipated to exceed 40 million.
Despite changes in the media landscape, print media remains a crucial component for
effective brand building and reaching educated and affluent audiences.
The aggregation of Over-The-Top (OTT) platforms is poised to serve as a key growth
accelerator for Connected TV (CTV). Moreover, entertainment OTT platforms, including
sports, are projected to generate approximately INR 60 billion in advertising revenue by
2025. The trend of bundling various OTT platforms by Internet Service Providers (ISPs) and
telecommunications companies, among others, is likely to gather speed.
Simultaneously, the changing consumer demand for personalization is altering the
landscape of the media and entertainment industry. Users are increasingly seeking
immersive and enriching experiences when interacting with media and entertainment content.
In light of these trends, the Indian M&E sector is primed for considerable growth in
the coming years. Adaptation to shifting consumer preferences and the adoption of
innovative technologies will be central to determining the industrys future trajectory.
Overall, the Indian M&E sector offers a promising future filled with substantial
growth prospects.
Print
In CY 2022, the print sector experienced a growth of 10%, recovering to 85% of its
revenue level prior to the pandemic. Nevertheless, hurdles such as escalating newsprint
costs, geopolitical tensions like the Russia-Ukraine conflict, and depreciation of the
Indian Rupee continue to apply pressure on newsprint prices, consequently impacting print
business margins.
The revival of events and activations presents a promising opportunity for print
companies to connect with their audiences through local sponsored and ticketed events. In
CY 2022, over 150,000 advertisers and 185,000 brands leveraged print for their
advertising, branding, and promotional needs, a marked increase from the 140,000
advertisers and 170,000 brands in CY 2020.
In the near to medium term, the print medium is anticipated to attain stability,
fostered by a loyal reader base, largely constituted by the growing demographic of NCCS A
audiences who seek trustworthy news and information.
The Print industry is projected to expand to INR 279 billion by CY 2025. Ad revenues
from Print industry are projected to grow by 7% for CY 2023 as compared to CY 2022.
Hindi Print Advertising
Hindi publications, despite a slight slump, persist as the top contributors to
advertisement volumes. In CY 2022, they were responsible for 38% of total print
advertising volume, compared to 40% in CY 2021 and 41% in CY 2020. However, due to its
status as the most widely spoken language in India, Hindi remained the major vernacular
medium of print advertising. For Hindi and regional publications, advertising in CY 2022
recovered to nearly 90% of their pre-pandemic levels.
Hindi Print Circulation
Hindi dailies continue to garner a lions share of newspaper circulation within the
country. The widespread readership and influence of Hindi newspapers emphasise the
enduring inclination of a substantial segment of the Indian populace for news and
information in vernacular print. However, Hindi language newspaper circulation remains
approx. 20% below their pre-pandemic levels for the industry.
Company Overview
Hindustan Media Ventures Limited (HMVL) is part of the Hindustan Times Group and a
subsidiary of HT Media Limited - a diversified media company. Hindustan, HMVLs flagship
publication, is among Indias largest newspaper dailies, serving a long-standing and
extensive readership base.
The Company in keeping up with evolving digital media trends in the country has also
ventured into the OTT space with the launch of OTTplay - a OTT aggregator platform.
Product Basket
Hindustan
Hindustan, boasting a large and diverse readership, stands as one of the countrys most
prestigious Hindi daily newspapers. The publication has adeptly evolved alongside a
rapidly transforming India, all the while preserving its trusted journalistic tradition
and principles. Catering to its broad audience, Hindustan covers a multitude of topics
including politics, business, sports, and entertainment, among others. Renowned for its
accuracy and reliability, Hindustan plays an instrumental role in molding public sentiment
and keeping its readers abreast of the nations latest happenings. For an overgrowing
reader base, it remains a trustworthy and primary source of high-caliber news content.
Enjoyed by individuals of all ages, Hindustan has successfully upheld its reputation
among readers and advertisers alike. The newspaper holds a dominant position in the
Hindi-speaking belt, boasting a high market share in key regions such as Bihar, Jharkhand,
Uttar Pradesh, Uttarakhand, and the Delhi-NCR area.
OTTplay
The Indian OTT sector stands out as one of the most rapidly expanding segments within
the Media & Entertainment industry. Recognising this potential, Hindustan Media
Ventures Ltd. aims to capitalise on this trend through the introduction of OTTplay.com, a
platform that consolidates and offers a wide range of OTT content. This platform focuses
on delivering abundant content choices, convenience, personalised experiences, and
affordability to its users.
Financial Overview (Consolidated)
Revenue from Operations
Revenue from Operations increased by 6.6% in FY 2022-23 to reach INR 713 crores from
INR 669 crores in FY 2021-22 on the back of gradual improvement in operating environment.
Profitability
There was a reduction in Companys EBITDA margin, dropping to -1.1% in FY 2022-23 from
11.6% in FY 2021-22 due to increase in raw material costs and expenses associated with new
business initiatives.
Consequently, PAT margin also decreased to -5.1% in FY 2022-23 from 5.8% in FY 2021-22.
In line, Return on Networth came in at -2.5% in FY 2022-23 from 2.6% in FY 2021-22 prior
fiscal year.
Earnings per Share
Earnings per share dropped to INR -5.2 in FY 2022-23 from INR 5.5 in FY 2021-22 on
account of reduced profitability owing to higher raw material costs and new business
initiatives.
Debtors Turnover Ratio
Debtors Turnover ratio increased to 6.2 times in FY 2022-23 from 5.7 times in FY
2021-22 due to higher revenue for the fiscal year under consideration, offset by marginal
decrease in average account receivables.
Inventory Turnover Ratio
Inventory Turnover ratio increased to 4.5 times in FY 2022-23 from 3.7 times in FY
2021-22 due to rise in raw material cost.
Interest Coverage Ratio
Interest Coverage ratio decreased to -2.4 times as on March 31, 2023 from 6.0 times on
March 31, 2022, mainly due to decrease in EBIT level profitability and increase in finance
cost in line with elevated interest rate environment.
Current Ratio
Current ratio decreased to 1.2 times in FY 2022-23 from 1.9 times in FY 2021-22,
primarily attributable to decrease in current financial investments during the fiscal
year.
Debt Equity Ratio
Debt Equity ratio decreased to 0.04 times in FY 2022-23 from 0.07 times in FY 2021-22
due to lower current borrowings for the fiscal.
Debt Service Coverage Ratio
Debt Service Coverage ratio reduced to -0.6 times as on March 31, 2023 from 0.5 times
on March 31, 2022, owing to lower earnings before interest & tax, coupled with
increase in interest on borrowings.
Editorial Highlights
The Companys flagship Hindi daily, Hindustan, set itself apart through its timely and
comprehensive reporting, ground-level narratives, robust data, and analytical pieces.
Throughout the year, numerous initiatives undertaken by Hindustan proved highly
successful, garnering considerable recognition and prominence for the Company. The
following encompasses some noteworthy editorial endeavours of Hindustan.
Bazaro ko Bachaiye
Hindustan ran an extensive “Bazaron ko Bachaiye” campaign in key cities. In
the campaign Hindustan visited top 20 markets in the city along with relevant officials
and raised issues that were not resolved since long. The issues ranged from parking,
encroachment, women toilets, cleanliness and traffic management. Immediate impacts were
visible with some on spot solutions by officials and rest of the issues being given a
time-line for resolution. The campaign was widely appreciated by the trade unions and
consumers alike.
Medical Waste
HMVL has implemented initiatives to address medical waste management in communities,
ensuring safe disposal and environmental sustainability focussing on protocols for the
collection, segregation and disposal of medical waste. These efforts promote public
health, protect the environment, and comply with regulatory guidelines.
Khatam karo Intezar
Hindustan has launched the Khatam karo intezar initiative to highlight the various
issues that plague development polices and advancement of local communities. Throughout
the year a multitude of concerns in the manner of stalled projects, incomplete
initiatives, delayed programs, etc. that directly impact the lives and livelihoods of
citizens were highlighted with the single intention to “end the wait”.
Hindustan Aapke Dwar
The Hindustan Aapke Dwar endeavour has been successful in bringing the plight and
concerns that plague the common people to the forefront in their interaction with relevant
authorities via special meets organized across administrative regions. Such a platform
brings relevant government bodies and the impacted populace on a common forum which
facilitates smoother solutions to ongoing concerns of the public. Many lives have been
made easier over the year through such campaigns.
Circulation
In the concluded fiscal year, HMVLs circulation business displayed signs of healthy
growth. To propel circulation revenue, strategic measures were adopted, such as augmenting
cover prices in crucial markets. Moreover, the Company prioritised booking drives and
trade interventions. This encompassed implementing trade schemes in certain locations to
improve point-of-sale statistics. The Company remains steadfast in its commitment to
retaining and further expanding its market share through initiatives targeted in key
markets.
Operations
The Company provides coverage in Uttar Pradesh, Uttarakhand, Delhi NCR, Bihar, and
Jharkhand through a combination of own, franchise, and outsourced printing facilities.
HMVL continues to focus on key strategies to enhance operations and cost optimisation
by initiating multiple approaches aimed at operational efficiency improvement. These
include driving total circulation planning programs, prioritising machine overhauls and
technical upgrades across ancillary & utility machine parks. Additionally, operational
control of various utilities was enhanced, and energy conservation measures were
undertaken.
Procurement
In the year under review, HMVLs procurement strategy was shaped by the obstacles
experienced in global supply chains, largely attributed to geopolitical circumstances
leading to elevated input expenses and shipping restrictions. As a result, the Companys
central focus was the assurance of uninterrupted supply while preserving cost efficiency.
In pursuit of this, HMVL prioritised the augmentation of sourcing, notably newsprint, from
domestic suppliers, taking advantage of its strong business relationships.
Moreover, the Company maintained the application of tactics such as linear
replenishment, the 3Rs (Reduce, Reuse & Recycle), and the allotment of orders to
cost-effective suppliers to enhance operations and curtail costs. Multiple initiatives
were implemented to guarantee a steady newsprint supply, including network optimisation,
re-evaluation of inventory norms based on supply conditions, creation of safety stocks,
and diligent monitoring of fill rates. For other raw materials, inventory standards were
set and a linear replenishment model was adopted to ensure punctual deliveries and tackle
supply difficulties.
The Company continues to uphold its commitment to devising strategies such as
strengthening vendor collaboration and engaging in price negotiations, aiming to uncover
additional opportunities for cost reduction.
Human Resources
The Companys human capital plays a vital role in the growth and success of HMVL. The
Company strives to foster a vibrant and diverse workplace that provides equal
opportunities for the personal and professional growth of every employee. To enhance the
productivity and efficiency of the organisation, the human resource (HR) department
focuses on developing skills and competencies of each employee, both in functional areas
and in technological capabilities.
As on March 31, 2023, the total employee strength of the Company is 1,138.
HR Initiatives
• The Company relaunched the Journalist of the Month programme across newsrooms
to honour exceptional performance. Every month, submissions for the Journalist of the
Month award are accepted, and a respected team of judges evaluate them based on ideation,
creativity, exclusivity, and overall presentation. The editorial management then selects
the outstanding stories for the award.
• To promote honest and transparent communication between employees and the
leadership team, the Company conducts various employee connect programmes like townhalls,
one-on-one meeting with leaders, and planning and review meetings. In addition, it has
fostered Employee Connect through activities like the annual sports meet, office-based
festival celebrations, and HR hour sessions to address concerns about Company policies
and procedures.
• HMVL has revolutionised its learning and development strategy by partnering with
multiple online learning platforms. The goal is to provide employees with the opportunity
to upskill and reskill according to their interests and at their own pace through these
digital platforms.
• The Company implemented several initiatives to engage employees through
platforms, such as sharing the hot topic of the month, recognising the Top Learner of
the month, DEAL (Drop Everything and Learn) sessions every Friday, and user training
with the platforms SPOCs.
• By implementing various modules, the Company was able to fully utilise the ERP
opted in for HR, resulting in
a state-of-art and user-friendly interface for employees while streamlining HR
processes and achieving desired outcomes.
• The Company revamped its strategy to create a younger and more diverse
workforce.
Safety of Women at Workplace
The Company prioritises the safety and dignity of women at workplace in accordance with
the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redress) Act of
2013. Strict adherence to the Acts requirements is followed, and the Company has
established policies to protect women from harm. The intranet provides access to the
Companys policy, and an internal committee handles issues related to womens safety.
Regular and relevant training courses are conducted for employees and committee members. A
robust POSH policy is in place to create a safe, equitable, and healthy work environment.
To raise awareness, a virtual platform and an online programme on womens safety at work
have been established. During the year under review, the Company had received 1 complaint
which was redressed and closed subsequently.
Risk Management
The Company has a well-established risk management framework in place to identify,
manage, and mitigate both external and internal risks. Regular risk identification
exercises are conducted to assess various financial, operational, sectoral,
sustainability, information, and cyber security risks, considering their likelihood and
potential impact. Some of the key risks and uncertainties the Company faces include the
accelerated shift in consumer preferences towards digital offerings, talent attraction and
retention in the current environment, adverse macroeconomic conditions, geopolitical
tensions impacting revenue growth, and the risk of newsprint price volatility and supply
constraints leading to higher costs. Additionally, the intense competitive landscape and
the risk of cyber threats are among the Companys key concerns.
The Company continually reviews potential risks and incorporates mitigating controls as
an integral part of decision making. To stay competitive and minimise risk exposure, the
Company has undertaken various initiatives. These include re-pivoting the business model
for long-term sustainability, expanding the client base with new-age acquisitions,
diversifying the product portfolio, and leveraging cost synergies by combining print
offerings with digital products of the HT Group to meet evolving consumer expectations.
Significant investments have been made in technology and
cyber security initiatives, and employee IT security awareness training programs have
been implemented. Measures have also been taken to manage newsprint price and supply
volatility, such as benchmarking import prices with domestic rates, optimizing domestic
sourcing, and enhancing newsprint consumption efficiency.
The Company has prioritised employee welfare and engagement through regular leadership
town halls, customised recognition and reward programs, and the introduction of an
AI-powered Learning Management System (LMS) for employee skill development. Furthermore,
an automated compliance tool is utilised to monitor the status of statutory compliances
across all locations and functions, ensuring adherence to legal requirements and
minimising exposure to non-compliance.
Internal Control
The Company has an effective system of internal controls corresponding with its size,
nature of business and complexity of operations. The internal controls mechanism comprises
a well-defined organisational structure with a clearly laid out authority and
responsibility matrix and comprehensive policies, guidelines and procedures governing the
operations of respective functions. These controls have been designed to safeguard the
assets and interests of the Company and its stakeholders and also ensure compliance with
Companys policies, procedures and applicable regulations. The Company has an established
Code of Conduct (CoC) framework and whistle-blower mechanism, which is duly approved by
the Board of Directors in compliance with the regulatory requirements. A designated CoC
committee with cross-functional representation is in place tasked with monitoring and
review of whistle-blower complaints and ensuring proper and transparent complaint
management and reporting, including reporting to the Audit Committee, wherever applicable.
The Company has a strong focus on technology and the establishment of appropriate
automated controls to further enhance the existing control framework. A robust ERP system
is used for accounting across functions. The Company also has a Shared Service Centre
(SSC), the ambit of which is being widened to aid the centralisation of processes and
activities. These systems enhance the reliability of financial and operational information
by facilitating system-driven control activities reducing manual intervention, segregation
of duties and enabling stricter controls.
The internal control system is supplemented by an extensive programme of operational
and IT audits to evaluate the adherence to laid down processes and controls on a periodic
basis. The in-house internal audit function supported by professional external audit firms
conducts comprehensive risk- focused audits and assesses the effectiveness of the internal
control structure across functions on a regular basis. A Group- level central Revenue
Assurance function has also been set up to further streamline and enhance the controls
around revenue recognition across different revenue streams. In addition to internal audit
activities, the Company has also developed an internal financial control framework to
periodically review the effectiveness of controls laid down across all critical processes.
The Company performed extensive operating effectiveness testing of its Internal Financial
Control (IFC) framework, including rationalisation of existing controls in line with
dynamic business practices. The Company also uses a workflow-based online compliance
management tool and has established a concurrent audit mechanism of the same to ensure
effective compliance oversight. Further, the Company has an Audit Committee which meets
once every quarter to review internal control systems, accounting processes, financial
information, internal audit findings and other related areas including their adequacies.
Way Ahead
HMVL is resolute in bolstering its principal Print business through strengthening its
brand pledge, offering inventive and meaningful journalism, all with a view to grow its
readership. Despite facing significant hurdles such as commodity inflation and
geopolitical issues over the concluded fiscal, HMVL remains steadfast in its commitment to
provide reliable and quality news, powered by exceptional journalism.
With an innovative approach at the forefront, the Company is optimistic about further
building onto its market position and also protectively addressing the shifting needs of
its readership audience through novel solutions adopted for its Print business.
Further, HMVL is poised to exploit the rising popularity of OTT platforms in the
country, courtesy of its recent launch of OTTplay.com. In the ensuing year, the Company
anticipates revenue generation through effective strategies focused on monetising its new
venture in the OTT aggregation space i.e. OTTplay.
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