Indian Economy
Indias progress over the past decade has been quite remarkable.
In slightly over two decades, India grew at an average rate of 6% despite a global
pandemic and a global economic crisis, to rise from the 13th position in
2000-01 to become the fifth largest economy in the world. India has been the fastest
growing major economy for the third year in a row. As per EY projection, Indias per
capita income would exceed US$15,000, by 2047-48, putting it among the ranks of developed
economies. India is expected to remain a bright spot amid the global growth slowdown.
India has attained critical mass as the fifth largest economy in the world, realized
primarily on account of its policies of economic liberalization, which made it more
market-oriented, allowed for a greater role for private capital and in the process
increased its global competitiveness. The growth projections for the Indian economy are
the highest for any large economy over the coming decades.
As per The IMF in its January 2023 issue of the World Economic Outlook
Update Indias FY24 growth is projected to exceed global as well as EMDE growth by
2.1% points and 3.2% points, respectively. It is projected to outpace Chinas growth
by 0.9% points.
India has been the fastest growing major economy for the third year in
a row.
India is expected to remain the fastest growing large economy
The heavyweights: how the top 5 economies will grow according to the
OECD (Five yearly average growth rates in % terms)
|
China |
Germany |
Japan |
US |
India |
World |
| 2022 to 2025 |
4.9 |
2.0 |
1.1 |
2.2 |
8.2 |
3.7 |
| 2026 to 2030 |
3.7 |
0.7 |
0.6 |
1.6 |
5.9 |
2.7 |
| 2031 to 2035 |
2.9 |
0.7 |
0.5 |
1.5 |
4.7 |
2.3 |
| 2036 to 2040 |
2.1 |
0.8 |
0.4 |
1.4 |
3.8 |
1.9 |
| 2041 to 2045 |
1.6 |
0.9 |
0.3 |
1.4 |
3.1 |
1.7 |
| 2046 to 2050 |
1.3 |
0.9 |
0.2 |
1.3 |
2.7 |
1.5 |
| 2051 to 2055 |
1.3 |
0.9 |
0.4 |
1.3 |
2.4 |
1.5 |
| 2056 to 2060 |
1.2 |
1.0 |
0.5 |
1.3 |
2.3 |
1.5 |
Source (basic data): OECD; Note for India, data is on fiscal year
bases. 2022 implies FY23 and so on
A large telecom subscriber base of 1.2b and 837m internet users
combined with governments focus on building digital platforms have laid foundations
for a digital economy, enabled the development of a robust digital payment ecosystem and
strengthened governance. A special focus and consistent backing of the GoI over the last
decade in creating Indias uniquely scalable Digital Public Infrastructure has borne
fruit, yielding economic benefits and growth of innovation and entrepreneurship.
Indias FY24 growth is projected to exceed global as well as EMDE
growth by 2.1% points and 3.2% points.
Media and Entertainment Sector: Key Trends
|
2019 |
2020 |
2021 |
2022 |
2023E |
2025E |
CAGR 2022- 2025 |
| Television |
787 |
685 |
720 |
709 |
727 |
796 |
3.90% |
| Digital |
308 |
326 |
439 |
571 |
671 |
862 |
14.70% |
| Media |
|
|
|
|
|
|
|
| Print |
296 |
190 |
227 |
250 |
262 |
279 |
3.70% |
| Radio |
31 |
14 |
16 |
21 |
22 |
26 |
7.50% |
All figures are gross of taxes ( in billion) for calendar years : EY
estimates
The Indian M&E sector powered through to a growth of 20% to reach
2.1 trillion in 2022, which is 10% more than its pre-pandemic levels in 2019. Indias
M&E sector achieved its highest ever revenues in 2022. Almost every single segment
grew, across both traditional and new media. Media consumption increased across video,
audio, text and experiences. The sector is expected to grow 11.5% in 2023 to reach 2.34
trillion and further grow at a CAGR of 10.5% to reach 2.83 trillion by 2025. Digital
media grew the most at 132 billion and consequently, increased its contribution to the
M&E sector from 16% in 2019 to 27% in 2022.
Source: Advertising & M&E sector revenue: FICCI M&E reports
I Growth (Basic data): Second Advance Estimates, NAS Dated 28 February 2023, NSO, MoSPI
Note: While advertising and M&E sector revenues are estimated for a calendar year, GDP
estimates are for a fiscal year (April to March)
Advertising exceeded the 1 trillion benchmark in 2022 for the first
time. It is now 0.4% of Indias GDP, much lower than developed large markets like
USA, Japan and China, signalling further room to grow. Digital advertising contributed 70%
of the absolute growth in advertising in 2022.
Nominal GDP is for financial years I Data for FY23 (2022) are as per
advance estimates released by MoSPI on 06 Jan 2023
Outlook
The Indian M&E sector will grow at a CAGR of 10.5% and add 734
billion in three years. Overall, the M&E sector is poised for continued growth and
innovation as technology continues to evolve and consumer demand for diverse, high-quality
content remains strong. It is one of the fastest-growing sectors in India and has a
significant impact on the countrys economy and cultural landscape.
Print
The print segment grew 10% in 2022.
Advertisement Revenue
Advertising revenues grew 13% in 2022 as print remained a
"go-to" medium for more affluent and nonmetro audiences. Overall ad insertion
volumes increased 16% over 2021. Advertising in English publications recovered to 71% of
pre COVID-19 levels, while advertising in Hindi and regional language publications
recovered to around 90%. Share of advertising to total income of print segment stood at
68%, up from 64% in 2020. There were over 150,000 advertisers and 185,000 brands which
used print during 2022, compared 140,000 advertisers and 170,000 brands on print in 2020.
Print ad volumes were dominated by high value products.Top 5 sectors in 2022 contributed
57% of total print ad volumes.The number of advertisers and brands using print grew by
around 10% compared to 2021
Advertising revenues grew 13% in 2022 as print remained a
" go-to" medium for more affluent and non-metro audiences.
Circulation Revenue
* Circulation revenues grew 5% on the back of rising cover prices
* Several circulation innovations were noted
* Industry discussions noted several innovations in newspaper
circulation during 2022:
* Bundled offerings were introduced across:
• different newspaper genres or languages
• newspapers and magazines
* Physical print + premium digital news offerings were tried by many
publications
* Premium products were launched at high cover prices for niche
audiences
* Several newspapers took cover price increases to offset the increased
costs of newsprint and distribution
* Many companies extended the geographical coverage of editions to
neighbouring areas –sometimes with increased hyperlocal news coverage – to grow
the reader base
* Bulk digital deals were introduced to replace lost corporate sales
* Hindi continued as the largest contributor to ad volumes, given it
has the largest reach of any language in India
* The share of advertising volumes from regional language newspapers
increased by 1% to 36% in 2022 from 35% in 2021
* Digital revenues remain elusive for most newspaper companies
Outlook
* Print sector is expected to grow to 279.3 billion by 2025 at a 4%
CAGR
* Advertising will grow at a 5.3% CAGR, driven by access to
increasingly elusive NCCS A audiences
* Circulation will rationalise to core loyal readers, as extra copies
in the home get voiced. Market leaders will continue to thrive while less strong brands
will lose copies billion (gross of taxes) I EY estimates
Digital
* Digital media comprised 48% of total ad spends, up from 32%
pre-pandemic, and contributed to the highest share of advertising in India
* Digital advertising grew 30% in 2021 to reach 499 billion
* Ad insertions increased 52% in 2022 vs. 2021 and there were over 360
categories which had higher insertions on digital
* Online news reach grew in 2022 to 473 million unique users across
mobile and desktop users of news sites, portals and aggregators.This is approximately 55%
of internet users
* Hyperlocal news content services continued to grow
* Social media and news remained heavily connected
* News subscription reached 1.2 billion. We estimate around 1.5
million paid subscribers across all news platforms, which can double by 2025 on the back
of more speciality news and custom knowledge products
News subscription reached 1.2 billion. We estimate around 1.5 million
paid subscribers across all news platforms, which can double by 2025 on the back of more
speciality news and custom knowledge products
Focus on vernacular languages continued
* Google news is available in eight main languages and content in
several other languages is also aggregated
* Although vernacular platforms remain lower on reach than national
platforms, these platforms provide extremely high engagement
Outlook
Digital advertising will grow at a 15% CAGR; its share will increase
from 48% of total advertising in 2022 to 50% by 2023, and further to 54% by 2025.
Radio
Radio segment revenues grew 29% in 2022 to 21 billion. Ad volumes
increased by 25% in 2022 as compared to the previous year, though ad rates remained 20%
below their 2019 levels. Many radio companies are looking at alternate revenue streams to
grow faster. India had 1,233 operational radio stations, including 366 community radio
stations. Over 13,000 brands advertised on radio in 2022. Local advertisers share
reached 49% of total ad volumes.
Outlook
* Radio revenues to continue recovering and reach
26 billion by 2025
* Growth will be driven by the SME advertiser segment, retail
advertising and non-FCT revenues
* Rate recovery will continue to be a challenge, and require
significant innovation and concept selling
* As per The Hindu, I&B Secretary Apurva Chandra said the Central
Government was mulling fresh auction of FM radio stations in 2023, to expand its coverage
in the country from its current reach of 60%. This could further increase our estimated
revenue projections by 10% to 20%
* The launch of digital radio could grow the segment to 60 billion by
2026
As per The Hindu, I&B Secretary Apurva Chandra said, the Central
Government was mulling fresh auction of FM radio stations in 2023, to expand its coverage
in the country from its current reach of 60%.
DBCL Segmental Performance
D. B. Corp Ltd. (DBCL) is Indias largest media conglomerate with
strong presence across print, radio and digital segments. It is headquartered in Bhopal,
Madhya Pradesh, India, with around 5,500 employees across the country. As Indias
largest print media company, DBCL publishes 5 newspapers, namely, Dainik Bhaskar (43
editions), Divya Bhaskar (8 editions), Divya Marathi (6 editions), Saurashtra Samachar and
DB Star in 3 languages, i.e., Hindi, Gujarati and Marathi. DBCL is present across 12
states of Madhya Pradesh, Chhattisgarh, Rajasthan, Haryana, Punjab, Chandigarh, Himachal
Pradesh, Delhi, Gujarat, Maharashtra, Jharkhand and Bihar.
DBCLs other business interest areas span across radio and digital
mediums. In the FM radio segment, the brand has a strong presence in ‘94.3 MY
FM, which is available in 7 states and 30 cities, creating a valuable package for
advertisers in tier II and III cities, where Dainik Bhaskar is already a leader in the
print business. DBCL also has a strong online presence with 4 internet portals and 3
mobile applications and a very formidable position in almost 67% of the Indian language
media space. DBCL is the No.1 digital player in Hindi and Gujarati languages as well.
Print
DB Corp. Ltd. has world-class Production facilities at all its Printing
locations. All Printing plants are strategically located within the reach of 150 kms from
each other to ensure timely delivery of the Newspaper carrying the latest news content.
This also helps us regulate our business continuity plan efficiently to stay self-reliant.
The entire Newspaper Production Process is fully automated. News,
Photographs, Graphics and Advertisements are made in a CMS called Matrix and transmitted
on high speed WAN across the group in real time. DB Corp. Ltd. has also embraced Green
Technology like Vio Green Eco-friendly plates processed on CTPs (Computer to plate
devices) which totally eliminates use of water & chemistry for processing plate thus
contributing to the environment. DB also owns various variety of machines in various
variants i.e. Orient Super that can print 30,000 CPH to Highline Presses with 45,000 CPH
and KBAs with 85,000 CPH. These machines have further been customised to deliver
uncommon print innovations like Printing 3D, Fragrance, Fuzzy Folds, Butterfly Flaps,
French Window and Super Panorama for high impact advertising.
We map our nearest competitors every month in all the markets we
operate in to ensure that we too constantly upgrade our infrastructure & technology
accordingly to stay ahead of them.
Advertisement
For DB Corp, our Ad revenue grew by whopping 27% year-on-year and
crossed the pre-Covid level. As compared to the print industry advertising growth of 13%,
the higher (more than double) growth of companys Advertising Revenue is a reflection
of relentless working of the most energetic team and buoyant market trend in tier 2 and 3
cities. While the Hindi and Regional language publications recovered to around 90% of
their pre-Covid levels, company reached 97% of its pre-Covid advertisement revenue.
This year saw increase of interest and trust of advertisers in
traditional media like print. The growth in real estate, education, jewellery categories
was phenomenal, given the fact of postponed time schedules of various education courses,
exams and results. While for Education, Lifestyle, Electronics and FMCG categories it was
resuming of advertisement closer to its pre-Covid, level; for Real Estate, Health care,
Jewellery, Banking and Finance, it was a double-digit growth over even 2019-20 levels.
This year saw an increase of interest and trust of advertisers in
traditional media like print. The growth in real estate, education, jewellery categories
was phenomenal.
Circulation
* Industry structure and developments:
* Maximum markets covered 85% to 90% of the pre-Covid copies. Running
different circulation drives pan-India as per the requirement and necessity of the
markets.
* Dainik Bhaskar is known for Technology-driven circulation. Almost 90%
of the activities are online and transparent. In the coming era, we will try to cover up
100% activities online.
* We are seeking opportunities in the areas which are expanding
vertically in multi-storey buildings. Other areas where we are focussing through
Institutional Sales are Educational Institutes, Hospitals, Hotels, Trains etc.
Digital
* DB is executing very well on Content, Product, Tech.
* DB has the best team across all functions + a strong advisory board
which includes Mark Thompson, ex CEO, NYT.
* DB is the fastest growing News App in the last 3 years.
* DBs retention, engagement and user quality is the best compared
to other news apps.
* DB has the most depth and breadth across high quality local news as
well as premium journalism content.
* DB is investing in building a strong brand with very high user trust
focussed on Local News, and also developing organic and cost-effective distribution
channels.
DB has the most depth and breadth across high quality local news as
well as premium journalism content.
Market Opportunity:
* The online user base in India is growing rapidly. Mainly Video,
Content and News consumption online is also growing.
* India is one of the fastest growing markets in both mobile data users
and data consumption per user, expected to continue.
* News consumption is also shifting online, and will need a lot of
innovation.
* Local content is one of the biggest market needs especially in the
news category.
* Short video content is also emerging rapidly as a preferred content
format across categories.
* Advertising revenue is shifting more towards digital. Premium ad
inventory along with credible, high quality content is still not solved for.
* Subscription revenue for digital content online is growing across the
world, and in India too.
* Both are channels DB will invest in heavily, given the massive market
opportunity.
The Company continues to invest in Digital business with a focussed
digital strategy of increasing the App Daily Active Users
Premium, Original, Local Content worth paying for
- Dainik Bhaskar has invested consistently in delivering high
quality, premium journalism to its readers and users in multiple formats including rich
text, visual graphics and short videos. Our News App has been designed to make
mobile-native vertical video news with a large content library of real-time videos across
multiple categories that is renewed daily. This has been well received and has seen strong
traction as readers appreciate the premium, hyperlocal content being delivered to their
handheld devices. We continue to be focussed on "high quality journalism worth paying
for".
Strong Talent Pool - Dainik Bhaskar has built a strong technology
team from some of Indias leading companies with Consumer Product and Technology
backgrounds, under the able guidance of Mr. Mark Thompson, the ex-CEO of the New York
Times who was onboarded on our advisory board exclusively since 2021.
Continued Focus on Technology - Dainik Bhaskar continues to invest
substantially in technology in order to provide best-in-class personalised news
experiences that serve users from a massive pool of content while considering their
demographic attributes, content preferences, location, economic segment, and real-time
context to accurately predict, to maximise user engagement, long-term retention, and
loyalty as well as "willingness to pay" through not only great journalism, but
also a great user experience.
Radio
MY FM continues to connect with audience and augment listeners
engagement activities through innovative content creation. The key markets of MY FM have
been witnessing a strong uptick in growth, as economic activity is returning to normal, as
a result businesses across sectors are looking to increase their return on investment and
get the most out of their advertising budgets. Volume growth has also gained momentum
across sectors.
MY FM Initiatives in FY 2022-23
BRAND ALLIANCE
Din ki Achchi Shuruaat – MY FM & ZEE News (Morning Show
Content Alliance)
During the 3-week-long association, prominent MY FM RJs were featured
in the morning news show segment of Zee News. The RJ spoke how they spread positivity and
happiness to the listeners, the segment was aired daily between 9 am and 9.30 am.
MY FM Official Radio Partner of Indian Television Academy Awards
Yet again MY FM was the radio partner for ITA 2022 which is the TV
industrys most prestigious award. The awards night happened in Mumbai amongst the
presence of celeb both from TV and Bollywood. MY FM RJ Navneet and RJ Apurva were at the
Red Carpet.
Indian Media & Entertainment Industry - Opportunities and Threats
Opportunities
In India, the media and entertainment industry has constantly stood out
as unique and distinct from others. In 2022, media and entertainment companies experienced
a familiar landscape influenced by consumer behaviour dynamism, technological innovation,
competitive intensity, and industry reshaping. As the M&E sector stepped in to
educate, inform and entertain, time spent on entertainment, news and sports was higher
than ever. Seamlessly integrated into our daily lives, every home actively interacted with
some or the other part of M&E across multiple screens, to relax, to work or to study.
Our lives have admittedly changed permanently.
As per BCG (Boston Consulting Group) report, Indias M&E
industry is expected to grow between US$ 55-70 billion by 2030. Indias digital
advertising industry is expected to grow to 23,673 crore (US$ 3.09 billion) in 2022 from
18,938 crore (US$ 2.47 billion) in 2021. Television would account for 40% of the Indian
media market in 2024, followed by print media (13%), digital advertising (12%), cinema
(9%), and the OTT and gaming industries (8%). The market is projected to increase at a
CAGR of 17% between 2020 and 2023.
According to BCG, Advertising revenue in India is projected to reach
915 billion (US$ 12.98 billion) in 2023, from 596 billion (US$ 8.46 billion) in 2020.
Rising incomes and evolving lifestyles, leading to higher demand for
aspirational products and services.
Higher penetration and a rapidly-growing young population, coupled with
increased usage of 4G and portable devices, to augment demand.
The literacy rate in India is one of the major factors for
socio-economic progress in addition to academic achievement. A literate person is a vital
asset to the nations development. According to the report published by the National
Survey of India, the Literacy Rate of India in 2022 is 77.7%. The literacy rate in 2011
was 73%. There is an increase of 4% compared to the last census data.
India has retained its position as the third-largest economy in the
world in terms of purchasing power parity (PPP). India accounts for 6.7%, or $8,051
billion, out of the worlds total of $119,547 billion of global Gross Domestic
Product (GDP) in terms of PPP, a measure of relative consumer prices across countries.
According to NITI Aayog, Indias rural economy constitutes nearly
half of the nations income; therefore, its growth and development are key to the
overall growth of the country. Better employment opportunities, facilities for higher
education, and a quality standard of living are the major factors, rural India aspires
for.
As per BCG (Boston Consulting Group) report, Indias M&E
industry is expected to grow between US$ 55-70 billion by 2030.
Threats
1. Piracy: The digital media sub-sector in India has not been
able to fully monetise its content due to the prevalence of rampant piracy. Weak IP
regulations and ineffective enforcement have been a deterrent to producing original
content and IP. Also, with the growing global reach of the Indian Media and Entertainment
industry and the growth of the Indian diaspora abroad, the international piracy of Indian
content has also emerged as a key challenge.
2. Input Costs: The Indian newspaper industry imports more than
50% of its paper, mainly from the US, Russia and Canada. Being a significant component of
cost, players are sensitive to fluctuations in the price of paper. Rising prices and
depreciation of the Indian rupee are therefore generally a cause of concern for the
industry.
3. External Factors: Various external factors such as the
pandemic, war, etc., which are not in our control also affects the business in various
manners. The Company keeps itself well prepared and informed about all such uncertain
happenings but, still can be affected to some extent due to its unpredictable
consequences.
Internal Controls and Vigil Mechanism
The Company has built up a strong and efficient internal control
mechanism, commensurate with the size of its operations. It has laid down standard
operating guidelines and processes which ensure smooth functioning of activities and zero
ambiguity in the minds of people who actually execute the operations. The policies,
processes, guidelines and checklists relevant to the Standard Operating Procedures are
available to all on the Companys Intranet Portal.
Internal Controls
Over the years, DBCL has undertaken specific efforts to build up its
Processes and deploy Standard Operating Guidelines across all operational areas.
The Finance Heads at Corporate, State & Unit levels are accountable
for financial controls. They are fully responsible for accuracy of books of accounts,
preparation of financial statements and reporting in line with the Companys
accounting policies. DBCL has deployed a vigorous Internal Controls and Audit mechanism to
facilitate an accurate and fair presentation of its financial results. This process not
just ensures adherence to regulatory standards and meets statutory compliance
requirements, but also confirms that the Companys reporting is complete, reliable
and understandable. In addition, there is a specific impetus on safeguarding investor
interests with deployment of the highest levels of governance and regular communication
with them.
During FY 2022-23, the Company appointed Independent Chartered
Accountancy firms to assist in re-evaluating and testing its Internal Financial Controls
(IFC) which encompassed review, reclassification and rationalisation of controls.
Internal Audit
To support its Internal Audit structure, the Company has engaged
experienced Chartered Accountancy firms across all locations. A system of monthly Internal
Audit reporting, reviewing and monitoring is in place to ensure effective adherence to
establish processes, internal controls and internal audit mechanisms on a real-time basis.
Vigil Mechanism
Integrity and ethics have been the bedrock of all the Companys
corporate operations. DBCL is committed to conducting its business in accordance with the
highest standards of professionalism, honesty and ethical behaviour and has the best
systems in place to nurture a similar working culture, therefore, DBCL which is among the
first few companies in India who had taken active steps towards establishing a
‘Whistle-blowing Mechanism. This initiative was taken to encourage Employees,
Circulation/ Advertisement Agents and Suppliers/Vendors to report irregularities in
operations, besides complying with the statutory requirements under the Companies Act,
2013 and the Listing Regulations. Any DBCL Employees, Circulation/Advertisement Agents and
Suppliers/Vendors can raise his/her Concern/Complaint on the dedicated phone numbers; or
through email or post. These phone numbers are operational all 365 days. These reporting
channels can be accessed in Hindi, English, Marathi and Gujarati.
An Internal Ethics Committee has been established to operate this
policy under the supervision of the Audit Committee. All the Concerns/Complaints are
categorised and prioritised, based on their nature; and corrective or disciplinary actions
are taken based on the seriousness of the issue/findings. If the whistle blower is not
satisfied with the actions taken, the mechanism also has an Escalation Protocol in place.
Through this process, the mechanism considers and extends complete protection to the
whistle blower.
OPERATIONAL HIGHLIGHTS
Advertising Revenue
Advertising Revenue stands at 14,827 million for FY 2023 as
compared to 11,827 million for FY 2022.
Circulation Revenue
Circulation Revenue stands at 4,627 million for FY 2023 as compared
to 4,558 million for FY 2022.
Income from Operations
On a consolidated financial basis, DBCLs total revenue stands at
21,682 million for FY 2023 as compared to 17,885 million for FY 2022.
Raw Material Consumed
The cost of newsprint consumption increased by 54% YoY to 8,511
million for FY 2023 as compared to 5,533 million for FY 2022. This increase in cost was
majorly on account of global and domestic increase of newsprint prices.
Employee Cost
At a consolidated level, the employee cost increased by 3% YoY to
3,874 million for FY 2023 as compared to 3,751 million for FY 2022. Cost-efficiency
measures executed by the management enabled optimisation of cost.
Other Expenses
Other operating expenses increased by 6% YoY to 5,686 million for FY
2023 as compared to 5,374 million for FY 2022.
EBITDA
EBITDA grew by 12% to 3,611 million in FY 2023 from 3,228 million
in FY 2022.
Depreciation
Depreciation and amortisation expenses increased by 2% to 1,120
million during FY 2023 from 1,100 million during FY 2022.
Finance Cost
Finance Cost increased by 17% YoY to 213 million in FY 2023 from
182 million in FY 2022.
Finance cost of 213 million included IND AS 116 Lease Interest of
157 million.
Profit after Tax (PAT)
The Operational PAT stood at 1,691 million during FY 2023 as compared
to 1,426 million during FY 2022.
The quality and strength of the Balance Sheet of DBCL as on March 31,
2023 is satisfactory and can be gauged from the following ratios:
| Ratio |
FY 2022-23 |
FY 2021-22 |
| Current Ratio (times) |
2.49 |
3.17 |
| Debt-Equity Ratio (times) |
0.11 |
0.11 |
| Debt Service Coverage Ratio (times) |
4.47 |
5.24 |
| Return on Equity (%) |
8.76% |
7.67% |
| Inventory Turnover Ratio (times) |
4.61 |
2.95 |
| Trade Receivable Turnover Ratio (times) |
4.50 |
3.62 |
| Trade Payable Turnover Ratio (times) |
3.78 |
2.50 |
| Net Capital Turnover Ratio (times) |
3.68 |
2.00 |
| Net Profit Ratio (%) |
7.90% |
8.05% |
| Return on Capital Employed (%) |
11.46% |
10.14% |
Shareholder Value
DBCLs dividend distribution policy is aimed at sharing its
prosperity with its shareholders, subject to maintaining an adequate reserves for
liquidity and future growth. DBCL has declared an aggregate equity dividend of 60%, i.e.
6 per share which is a pay-out of around 62.9% of Consolidated PAT for the year.
Human Resource
Our topmost priority has been to establish and maintain a strong
connection with our employees. Like last year, we continued the webinar with promoters and
senior management team at a regular frequency, in which updates on organisations
progress and the priorities are shared.
This year, we launched "New Era Initiative" in which we are
focussing, on moving from leadership to dominance. The purpose of the initiative is to
gain dominance through leadership journalism in circulation resulting in higher growth in
revenue. This aligned and energised the entire organisation.
To foster a fresh pool of talent, ensure diversity, and promote the
growth of local talent, we have implemented an innovative programme of Fresher hiring
within the Ad Sales vertical and started working towards the same in the editorial
vertical. To ensure the continuous inflow of talent every quarter, a new batch will be
onboarded.
To groom the internal talent, we identified the fast trackers, prepared
individual development plans and implemented the same in editorial and circulation sales
functions. The objective of this programme is to groom the leadership for the future
needs.
While most of the HR processes were automated in last two to three
years, we continued our journey to fill the gaps in HR Automation. One of such processes
which touches a substantial number of employees is Salary advance. We automated this
process making it user-friendly and ensuring speedy processing of requests.
Overall these initiatives accentuate our commitment to nurturing talent
and foster diversity in the organisation.
This year, we launched "New Era Initiative" in which we are
focussing on moving from leadership to dominance.
Outlook
Print
The optimistic outlook for the Indian economy is driving increased
advertisement spending across various sectors. Dainik Bhaskar, with its strong presence in
Tier 2 and 3 cities, is well-positioned to capture the growth in these markets.
Tier 2 and 3 cities in India have been witnessing rapid development and
economic growth, often outpacing the growth rates of metros and tier 1 cities. These
cities are becoming significant consumer markets with rising disposable incomes,
urbanisation, and increased consumer spending. As a result, advertisers are increasingly
recognising the potential of these markets and allocating their advertisement budgets
accordingly.
Dainik Bhaskars status as a prominent print media outlet in these
regions positions it as an effective platform for advertisers to reach the growing
consumer base. Its strong readership and localised content cater to the specific interests
and preferences of the audience in tier 2 and 3 cities, making it an attractive choice for
advertisers targeting these markets.
Sectors like Education, Lifestyle, Electronics, FMCG have been
experiencing a recovery in their print advertisement spends since the impact of the
Covid-19 pandemic. While the advertisement spends in these sectors may not have reached
their pre-Covid levels, there is a positive trend indicating a gradual recovery.
Digital
We estimate that the digital segment will grow to 862 billion by
2025, at a 15% CAGR. Digital advertising will grow at a 15% CAGR; its share will increase
from 48% of total advertising in 2022 to 50% by 2023, and further to 54% by 2025. More
advertisers will implement ad fraud management solutions and validate ad spend efficiency
as digital becomes a larger portion of their media mix.
Radio
MY FM continues to connect with audience and augment listeners
engagement activities through innovative content creation. Our radio network continues to
maintain leadership position in key markets such as Chandigarh, Haryana, Punjab,
Rajasthan, Madhya Pradesh, Maharashtra and Chhattisgarh. Being the leading radio network
enables us to provide an extensive platform for advertisers to increase their consumer
base and visibility in the market.
Tier 2 and 3 cities in India have been witnessing rapid development and
economic growth, often outpacing the growth rates of metros and tier 1 cities.
| For and on behalf of the Board of Directors of |
| D. B. Corp Limited |
| Sd/- |
| Sudhir Agarwal |
| Managing Director |
| DIN: 00051407 |
| Place: Bhopal |
| Date: July 20, 2023 |
+91-9892691696
