mahindra lifespace developers ltd share price Management discussions
CHANDAMAMA INDIA LIMITED
ANNUAL REPORT 2005-2006
MANAGEMENT DISCUSSION AND ANALYSIS
Results of Operation:
Profitability of the Company has increased substantially. While the Company
made a Cash Profit of Rs 48.98 Lakhs, the Net Profit stood at Rs. 39.43
Lakhs, which is 60% higher than the previous year figure. This is made
possible by rationalising the production process and introduction of New
Cost Re-engineering Methodologies.
BUSINESS REVIEW:
The spiralling Newsprint Prices sent shockwaves to the entire Publishing
Industry. The Cost per Tonne of Imported Paper continued to rise when
compared to that of the precious year. Unable to absorb the increase in
input costs, the entire Publishing Industry witnessed price revision by all
the players. And your Company could be no exception. While retaining the
price of English Magazine, the price of Junior Chandamama is revised with
effect from February 2006 to Rs. 15/- from Rs.13/- previously. Similarly,
the price of all the Regional language editions was revised to Rs. 13/-
from its previous figure of Rs.12/- with effect from February 2006 during
the year under review.
The increase in the input costs of paper and printing coupled with the
lacklustre support of the Advertisers towards the Print Medium, forced all
the players to take a re-look at their costs. Accordingly, the clients of
our Print Syndication Division, opted either for the in-house generated
Contents or switched to cheaper substitutes. This trend is reflected in our
Syndication revenue falling from Rs. 23.25 lakhs during the previous year
to Rs. 8.22 lakhs during the year under review.
The Singapore Ambulimama, a Bi-Lingual Magazine, which was running
profitably, ran into difficulties with its Overseas Distributor.
Accordingly, the magazine got suspended during the year. Efforts of the
Management to identify another Distributor in the territory of Singapore,
has yielded positive results and your company has Just tied up with
singapore Tamil Teachers Union (STTU) to distribute the magazine.
MOU WITH TIMES INTERNET LTD. (INDIA TIMES.COM):
Your Company has entered into an MOU with TIMES INTERNET LTD. (INDIA
TIMES.COM) for the distribution of its content over Internet, Mobile, SMS,
MMS, & Voice Based Services. As per the MOU, India Times would provide
their 8888 Service as a platform for showcasing & Distribution of
Chandamamas Content. Accordingly, India Times would market the concept of
A Chandamama Story of the Day on the India Times Voice Portal.
ADVERTISEMENT & SUBSCRIPTION:
Despite the lacklustre support of the Advertisers to the Print Media, your
company booked Net paid Advertisements of Rs.50.75 Lakhs as against
Rs.48.89 Lakhs during the previous year.
Similarly revenue from Subscription also increased to Rs.19.79 lakhs from
Rs.17.64 lakhs during the previous year.
WEB & MULTIMEDIA:
The Growth of Web & Multimedia Division has been impressive with a Total
Revenue of Rs.32.69 lakhs as against Rs. 18.37 lakhs during the previous
year.
Outlook for the year 2006-2007:
As the growth of Web & Multimedia Division of the company has been
consistent over the years, the Management shall be focussing on the Web &
Multimedia Division and also would endeavour to make its Content available
across all the New age Medium including SMS and Voice Based Services. A
step in this direction is the MOU that your company has entered into with
Times Internet to distribute its Products through the 8888 Service in their
FM Channel.
Your Company would be looking for more such strategic tie up with leading
National and International players in the Children segment.