Investors are hereby informed that statements in this Management Discussion & Analysis describing the objectives, projections, estimates and expectations of Cyber Media Research & Services Limited ("CMRSL"/"the Company") may be forward-looking statements within the meaning of applicable laws and regulations. The following discussions and analysis should be read in conjunction with the Companys financial statements included herein and the notes thereto .
This MDA covers the overall business of Cyber Media Research & Services Limited including its subsidiary. The financial figures are provided for the consolidated business of the group. If stand-alone numbers are considered, they are highlighted as such.
Industry Overview & Digital Ad Market Size in 2025
The report reference for industry overview and analysis is "Pitch Madison Advertising Report 2025"
In the year 2024, the Indian economy continued an aggressive transition towards a digital economy. The new digital economy is revolutionizing the Indian advertising industry as well. At present, digital advertising industry stood at a market size of Rs. 45,292 growing at 14% over 2023. This represents 40% of overall advertising spends in FY2024-25. The forecast for 2025 is expected at 11% growth in overall industry, and 17% growth in digital marketing spends.
Digital Ad Market Size in 2024
Key growth drivers would remain commerce, rapidly growing fintech ecosystem, gaming, healthtech and edtech. The pie of digital marketing is primarily contributed to by online videos (28%), social media marketing (23%), and paid search (18%). Connected TV while at a small base is likely to aggressively increase its market share over the next 5 years. A major trend underlining paid marketing is a continued transition to programmatically buying ads across above segments.
Digital media spends across industry verticals
The FMCG segment makes the biggest contribution of 32% (INR 18,541 crore) and has grown only 4% over the previous year. This is followed by e-commerce category contributing 11% (Rs 6,131 crore). Other major industry verticals were automotive at INR 5,266 crores, and BFSI at INR 2,942 crores.
CMRSLs Business
CMRSL had a poor performance in FY 2024-25 recording INR 75.03 Crore with an EBITDA of INR 3.73 Crore and a PAT of INR 2.32 Crore. The performance reflects a reduction in spends across our advertisers. Despite this CMRSL maintains a strong pipeline of customers and expects to bounce back in the current fiscal year.
CMRSL retained a high percentage of customers in an advertising and programmatic space, while increasing a share of wallet in many cases. The company continued to maintain processes and discipline around collections thereby maintaining good cashflows.
The CMRSL management team has closely assessed the performance and are taking necessary action at a team, processes, and automation level. This includes continuing to leverage internal and external tools that are aligned with customer success and sales. Despite, some uncertainty in the global geo-political and economic situation, digital marketing is expected to continue to evolve and grow.
Therefore, it is crucial that CMRSL increase its adaptability and continues to integrate new technologies particularly with respect to AI workflows. Therefore, CMRSL will look to continue investing in technology as well as expand its team. It is relevant to note that AI will have significant impact on the marketing industry. New technology platforms such as OpenAIs ChatGPT and Googles Gemini will bring fast technological changes, automation, simplification and data-centric decision making. CMRSL is already taking steps and aims to be an AI native Company. This will help CMRSL create competitiveness at a global scale.
With a well defined product roadmap and excellence in services, CMRSL is on a path towards long-term growth. The management expects to continue growing the team and the business not only in India, but across international markets as well in FY 2025-26.
Media Buying Agency A New Approach
CMRSLs demand side efforts were focused on performance marketing and programmatic media buying. The company has merged these business units to be able to deliver higher value proposition to its customers. This strategically will allow CMRSL to increase its outreach as well as vie for larger budgets across its customers in FY2024-25.
This merger has led to improvement in our programmatic business which we are expecting to grow steadily. Our team has ably worked towards enabling customer success and serviced clients with the expertise necessary to drive marketing returns. Our media buying and performance marketing services continue to provide data driven ROI to advertisers. These campaigns involve campaign management, app installs, advisory services, creative services, social media planning, and social media execution.
CMRSL has also continued to build its partnerships with platforms like Google, Meta and LinkedIn. In addition to these we have also expanded our relationships with other major Adtech players including Magnite, Pubmatic, InMobi among others. The continued investment towards CMGalaxy is also enabling a data and technology oriented approach, making CMRSL among the few technology driven marketing agencies in India. CMGalaxy is a market intelligence tool that allows advertisers to map their entire marketing funnel across multiple paid marketing channels. This enables advertisers to harness their data and make intelligent decisions to derive most out of their marketing. By leveraging AI/ML the platform is able to significantly improve marketing outputs.
CyberMedia Research (CMR) - CMRSLs Marketing Research & Data Analytics Business
CMR offers premier research and consulting firm offering customers strategic and tactical insights. The Companys research and advisory services operates with premium data across technology, telecom, life sciences, automotive, manufacturing, and other industry verticals.
Key offerings include building more market trackers, custom data and custom dashboards for clients. The Team provides data-as-a-service by empowering its customers with ability to collect, process, visualize and effectively deliver insights from large data sets. Key sectoral focus includes:
Technology Market Intelligence & Analytics: CMR provides in-depth market research and analysis, giving clients a clear understanding of technology trends, market trends, competitor landscape, and customer behaviour.
CMRs Expertise in Emerging Technologies and Consumer Trends: CMR is the preferred partner for clients in unlocking key insights on emerging technologies, including Generative AI and AI, Cloud, and Data Centers, amongst others, and consumer technology trends, including smartphones and smart devices, and others.
Go-to-Market Services: CMR assist clients in launching and scaling their businesses in India. This includes developing effective go-to-market strategies specific to the Indian market, building channel partnerships, and establishing a strong local presence
Market Advisory: CMRs team of experts offers strategic guidance on market entry, expansion plans, and product positioning, ensuring clients make informed decisions.
Custom Consulting: CMRs bouquet of consulting services address specific client needs.
CMR was among the strongest performing business units in FY 2024-25, successfully adding enterprise clients such as HP, Samsung,
IBM, TTSL, among others.
Publisher Monetization Improving Quality of Inventory
The Publisher Monetization Team continues to aid publishers in monetizing their ad inventory. This is done in partnership with major global adtech players including Google, Pubmatic, Magnite, among others. The Company is a Google Publishing Partner on GAM360, AdSense and AdX products which gives it the added advantage of being able to operate a world-class ad tech stack.
The publisher team has successfully worked towards protecting its publishers against ad fraud and operates high quality inventory on which premium ad campaigns are delivered. Auxo Ads platform allows publishers to optimize revenues across demand partners and manage their traffic more effectively. The Publisher business has experienced a steady performance in FY 2024-25 and focused on successfully adding quality inventory to its network. Increased competition in this sector requires an investment in creating new technology for clients. The Company expects steady growth in the Publisher revenue stream while it looks to add improved product offering in the current financial year.
Opportunities and Threats Opportunities
Segments that are up-and-coming and expected to fuel growth in the coming years include programmatic media buying, connectTV, digital out-of-home, and Web3 technologies.
Martech via our product CMGalaxy is a large opportunity that can allow the company to scale to new heights. In addition, CMRSLs programmatic presence continues to strengthen in the market.
The AI Opportunity
Artificial intelligence based on large-language models will create substantial shifts across the advertising industry. Being a digital marketing organization that has its own technology stack, the Company sees this as a necessary space of investment and growth. Brands are likely to adopt and require large set of AI driven marketing solutions.
CMRSL through CMGalaxy and Auxo Ads will rapidly look to enter this space and fill this need across ecosystem stakeholders. This initiative will further strengthen the offering to attract more international clients as well.
Expand our Current Business Relationships
CMRSLs goal is to build long-term, sustainable business relationships with our customers to generate increasing revenues. The Company will expand the scope and range of services provided to our existing customers by continuing to build expertise and extending capabilities into new and emerging marketing technologies. In addition, the Company intends to continue to invest towards building more powerful martech and ad-tech solutions. In addition, the Company intends to continue to build relationships with various global companies as business partners which can provide us with better benefit by introducing local clients.
Optimal Utilization of Resources & Establishing Better Processes
The Company constantly endeavours to improve its technical process, and will increase service activities to optimize the utilization of resources. For FY 2024-25, developments include deployment of HRMS SaaS for all Cyberites, deployment of internal finance platform Arya that automates multiple functions, roll-out of OKRs to track better productivity across teams, usage of Jira project management tool to track technology development, more effective cashflow management systems, among other steps towards good governance.
CMRSL has developed effective internal systems, and intends to continue to establish processes to ensure effective management control and team betterment.
Attract, develop and retain highly-skilled employees
CMRSL employees are one of its most important assets. The Company focuses on the quality and level of performance that our employees deliver by investing in recruitment, training, retention practices, maintenance of a culture of innovation. The Company also creates a balance between a challenging and rewarding work environment. CMRSLs talent development strategy focusses on engaging, motivating and developing a high performing workforce and aim to create and sustain a positive workplace culture for the employees. The Company also has a competency training framework, seamlessly integrated into our business that has been designed for new employees to be "project-ready".
Threats
The increasing spread of fake and bad quality content has emerged as a major concern for social media. Further, with dynamic technological innovations taking place, the media sector is facing considerable uncertainty.
While AI is an opportunity, it is also a threat. The Company is committed to investing in AI, however the pace of change in this area demands continued investment in products for the long-term.
Furthermore, as we to foray ahead, we anticipate increased competition in the digital domain from other businesses trying to emulate us, as well as from several niche enterprises in the digital media, social media, and other online services, with whom we are competing, using our expertise and brand position in the market as a single-stop shop.
The company is continuously monitoring the various threats which can hamper growth and is taking appropriate and effective steps in this regard.
Operating segment-wise performance
The highlights of segment wise overall performance on consolidated basis are as under:
(INR in Lakhs)
Particulars |
Digital Services | |
2024-25 | 2023-24 | |
Income | 7,593.71 | 8,808.93 |
Expenses | 7,300.48 | 8,237.91 |
Earnings before interest, tax, depreciation and amortization (EBITDA) | 373.42 | 679.78 |
Business Outlook
CMRSL continues its transition towards growing product-led revenues at an aggressive pace. The management team has seen very good progress and is confident of delivering growing impact from these investments. Therefore, the business outlook remains one focusing on growth and profitability.
In addition, our team continues to service key stakeholders across the ecosystem including advertisers, publishers, and agencies. The emphasis on quality services combined with innovation technology gives the organization a strong mix of ingredients for long-term success. Our steps towards creating global alliances with adtech and martech partners will further allow our products to expand in international markets. The Company constantly endeavours to improve its technical process, and will increase service activities to optimize the utilization of resources, and bring cost optimizations. By investing in AI we are taking focused steps towards becoming an AI native company in a progressive manner.
Risks and Concerns
The Company has established a risk management framework to identify and mitigate risks arising from external and internal factors. A risk identification exercise is carried out periodically to identify various strategic, operational, financial and compliance-related risks.
Few risks and uncertainties that can affect the business include the inherent risk of cybercrimes and data breach that may impact reputation, exposure to litigations and competition from emerging digital platforms and other social media apps.
Potential risks are reviewed on an ongoing basis and mitigating controls are deliberated upon as an integral part of decision-making. To stay ahead of the competition and minimize exposure to risk, the Company has taken various initiatives like continuous engagement with the editorial team and upgradation of editorial processes to ensure factual accuracy of content published, greater focus on reaching newer segments and geographies. Further, to monitor status of statutory compliances across all locations/ functions helps the Company to minimize its exposure to any non-compliance to statutory and legal requirements.
Further, the Company is continuously evaluating the evolving situation and taking necessary steps to mitigate its impact, while ensuring business continuity. The Company is also taking cost optimization efforts across businesses and functions.
Information Security
The Company accords great importance to the security of its information assets. To ensure that this gets desired focus and attention,
Information Officer is entrusted with the task of ensuring that your Company has the requisite security posture.
Internal Control Systems and their Adequacy
CMRSL has aligned its current systems of internal financial control with the requirement of Companies Act 2013. The Company has adopted the internal control integrated framework which is intended to increase transparency and accountability in an organizations process of designing and implementing a system of internal control. The framework requires a company to identify and analyze risks and manage appropriate responses. The Company has successfully laid down the framework and ensured its effectiveness.
CMRSLs internal controls are commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorization and ensuring compliance with corporate policies. CMRSL has a well-defined delegation of power with authority limits for approving contracts as well as expenditure. Processes for formulating and reviewing annual and long-term business plans have been laid down. CMRSL uses a state-of-the-art enterprise resource planning system that connects all parts of the organization, to record data for accounting, consolidation and management information purposes. It has continued its efforts to align all its processes and controls with best practices.
CMRSL management assessed the effectiveness of the companys internal control over financial reporting (as defined in Regulation 17 of the Listing Regulations as of March 31, 2025).
M/s. Goel Minrti & Associates, the statutory auditors of CMRSL have audited the financial statements included in this annual report and have issued an attestation report on the companys internal control over financial reporting (as defined in section 143 of Companies Act,
2013).
CMRSL has appointed M/s. R R R S & Associates, Chartered Accountants to oversee and carry out internal audit of its activities. In line with best practice, the conduct of internal audit is oriented towards the review of internal controls and risks in the companys operations such as service delivery, accounting and finance, procurement, employee engagement, statutory compliances.
The audit committee reviews reports submitted by the management and audit reports submitted by internal auditors and statutory auditors. Suggestions for improvement are considered and the audit committee follows up on corrective action. The audit committee also meets CMRSLs statutory auditors to ascertain, inter alia, their views on the adequacy of internal control systems and keeps the board of directors informed of its major observations periodically.
Based on its evaluation (as defined in section 177 of the Companies Act, 2013 and Regulation 18 of the Listing Regulations), CMRSLs audit committee has concluded that, as of March 31, 2025, the companys internal financial controls were adequate and operating effectively.
Financial performance
The discussions in this section relate to the consolidated financial results pertaining to the year that ended March 31, 2025. The financial statements of Cyber Media Research & Services Limited and its subsidiary (collectively referred to as CMRSL or the Company) are prepared in accordance with the Indian Accounting Standards (referred to as Ind AS) prescribed under section 133 of the Companies
Act, 2013, read with the Companies (Indian Accounting Standards) Rules, as amended from time to time. Significant accounting policies used in the preparation of the financial statements are disclosed in the notes to the consolidated financial statements.
The following table gives an overview of the consolidated financial results of the company:
(INR in Lakhs)
Particulars |
2025 | 2024 | |||
Revenue | % of Revenue | % Growth | Revenue | % of Revenue | |
Revenue from operations | 7502.63 | 100 | (14.09) | 8,732.77 | 100 |
Earnings before interest, tax, depreciation and | 373.42 | 4.98 | (45.07) | 679.78 | 7.78 |
amortization (EBITDA) | |||||
Profit before tax (PBT) | 293.22 | 3.91 | (40.56) | 493.32 | 5.65 |
Profit after tax (PAT) | 231.64 | 3.09 | (35.52) | 359.26 | 4.11 |
Earnings per share (in Rs.) | 7.91 | - | - | 12.27 | - |
Analysis of revenue growth
On a reported basis, CMRSLs revenue fell by 14.09% in FY 2025, as compared to the growth by 38.34% in FY 2024.
Key financial ratios
Key financial ratios on consolidated basis are given as under:
Particulars |
Unit | 2024-25 | 2023-24 |
Profitability Ratios |
|||
PBITD / Total Income | % | 4.92 | 6.83 |
PBIT / Total Income | % | 4.80 | 6.52 |
PBT / Total Income | % | 3.86 | 5.60 |
PAT / Total Income | % | 3.05 | 4.08 |
Return on Capital Employed | % | 15.62 | 23.79 |
Financial Ratios |
|||
Return on Networth | Times | 0.13 | 0.23 |
Net Debt / Equity | Times | 0.35 | 0.55 |
Debtors Turnover | Days | 124.48 | 79.55 |
Current Ratio | Times | 1.60 | 1.66 |
Interest Coverage | Times | 5.10 | 7.10 |
Human Resources
The Companys culture and reputation as a leader in digital technologies, adtech, data analytics, and next-generation technologies (including AI) enable us to attract and retain high quality talent. The competency development of our employees continues to be a key area of strategic focus for us. The management is keen to continuously improve hiring practices, and improve the quality of the team across all functions. Furthermore, the Company has an increasing focus on internal training, external upskilling and team building activities that help maintain a culture of camaraderie, innovation and motivation within the organization.
The Company invested in building tighter control systems improving processes and operational efficiencies as a result. By establishing smooth WFH processes and remote collaboration, our operation teams are able to ensure that client service level agreements are met and project milestones delivered on time.
This continual pursuit has led to high retention rates among employees. Your company believes and recognises the employees as asset of the Company. The overall attrition rate of employees of the Company was 1.40 percent at March 31, 2025.
The Company believes and maintains the diversity of employees and in order to support the women, during the year, the women employees percentage was 35.23 percent.
The Company will continue to connect with all stakeholders on a regular basis, communicate in an open and transparent manner that yield desired results. The total number of employees in the Company as on March 31, 2024 were 85.
Sexual Harassment Policy
The Company is committed to creating and maintaining an atmosphere in which employees can work together, without fear of sexual harassment, exploitation or intimidation. Every employee is made aware that the Company is strongly opposed to sexual harassment and that such behaviour is prohibited both by law and by CMRSL. Your Company has formed an Internal Committee pursuant to the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
No complaints were received by the Company during the year under review. There was no pending complaint at the opening and closing of the financial year under review.
Cautionary Statement
Some of the statements in this management discussion and analysis describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Companys operations include a downtrend in industry, significant changes in political and economic environment in India and abroad, tax laws, import duties, litigation and labour relations.
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