Esha Media Research Ltd Management Discussions

(a) Industry structure and developments:

The Indian media industry has benefited from some fundamental growth drivers and has emerged as a growth engine for discretionary consumption products and services, especially media. With the evolution of the media industry, growth is increasingly being driven by increased consumer spending which has a large impact on revenue streams. The growth has been evident in varying proportions across the different segments of the Media Industry i.e. Television, Newspapers, Magazines, Print and Internet (Digital) being the major media in terms of size and growth rates apart from other segments such as radio, out of home, mobile. Your Company has set up adequate infrastructure along with a team of professionals for carrying on the business of the company efficiently.

(b) Opportunities and threats:

Immense opportunities exist in media Industry depending upon the growth of the television medium. The Media Industry is undergoing a structural shift in a converging media era where consumers are increasingly taking control of their media consumption. The Major threat to your companys fortune would be on account of competition on television medium and sentiments affected by advertising rates facing pressure from the global and domestic economic slowdown. Your Company manages proactively to mitigate the risk and grab the opportunities.

(c) Segment-wise or product-wise performance:

The Companys main business is television media monitoring and all the activities of the Company during the year are related to this business. As such there are no separate reportable segments.

(d) Outlook:

The Company continues to explore the possibilities of expansion in its activities through latest technology for tracking & monitoring the wide range of channels and is continually upgraded and will make the necessary investments when attractive opportunities arise.

(e) Risks and Concerns:

Your Company is exposed to the fluctuations of economy and industry cycles. The company manages these risks by remaining very conservative and following other risk management practices. The management believes that efficient business planning risk management and product diversification would help mitigate such risks.

(f) Internal Control Systems and their adequacy

As a part of the effort to evaluate the effectiveness of the internal control systems, your Companys internal audit system reviews all the control measures on a periodic basis and recommends improvements, wherever appropriate. The Company has in place adequate internal control systems and procedures commensurate with the size and nature of its business. These systems and procedures provide reasonable assurance of maintenance of proper accounting records, reliability of financial information, protection of resources and safeguarding of assets against unauthorized use. The management regularly reviews the internal control systems and procedures.

(g) Discussions on Financial Performance with respect to Operational Performance:

(Rs. in Lacs)

Highlights	2024-2025	2023-2024	Change in %
Revenue from Operations & other Income	316.39	13.62	2222.981%
Profit before Finance Cost, Depreciation	(56.41)	(7.68)	634.50%
and Tax
Finance Cost	32.37	-	-
Depreciation	13.57	1.22	1012.295%
Net Profit Before Tax	(102.35)	(8.90)	1050%
Provision for Taxation (Including Deferred	260.29	0.25	104016%
Tax & Fringe benefit tax)
Net Profit/Loss after Tax	(362.64)	(9.15)	3863.279%
Earnings per Share (in Rs.)
- Basic	(4.65)	(0.11)	4127.273%
- Diluted	(4.65)	(0.11)	4127.273%

(h) Human Resource Development:

The human capital today is one of the most decisive factors in the success of a company and thus we strive for excellence in the entire employee life cycle. Your Company continuously recruits skilled professionals from various streams and undertake several initiatives to retain the talent pool. Your Company also places emphasis on development and enhancement of skills and capabilities of employees to prepare them for future challenges. As in the past, the company enjoyed cordial relations with the employees at all levels. The Company focuses on improved Employee Engagement through several enterprise level initiatives. The Rewards and Recognition Programs here appreciate outstanding performers for their professionalism, dedication and outstanding contributions.

(i) Key Financial Ratios:

Ratio	2024-2025	2023-2024
Inventory Turnover Ratio	NA	NA
Net Capital Turnover Ratio	(0.52)	(0.54)
Debt Equity Ratio	(0.76)	(1.07)
Debt Services Coverage Ratio	NA	NA
Net Profit Ratio	(114.66)%	(67.22)%
Return on Capital Employed	26.35%	(17.20)%

Ratios where there has been significant change (i.e. change of 25% or more as compared to the immediately previous financial year): All the figures mentioned hereunder are Rs. in Lakhs.

Net Capital Turnover Ratio:

Sales divided by Net Working Capital. The Ratio changes from (0.54) in FY 23-24 to (0.52) in FY 24-25, mainly on account of revenue and its corresponding impact in net working capital.

Net Profit Ratio:

Net profit before tax divided by Sales. The Ratio changes from (0.67) in FY 23-24 to (114.66) in FY 24-25, mainly on account of revenue and its corresponding impact in net working capital.

Return on Capital Employed:

EBIT / Capital Employed. The ratio increases from (17.20) in FY 23-24 to 26.35 in FY 24-25 on account of increase in revenue during the year ended 31st March, 2025.

(j) The Details Of Return On Net Worth Are Given Below:

Particular	Year ended March 31, 2025	Year ended March 31, 2024
Return on Net Worth	(9.36)	(1.22)

Return on net worth is computed as net profit by average net worth. The ratio improves from (1.22) in FY 23-24 to (9.36) in FY 24-25 mainly on account of increase in revenue during the year ended March 31, 2025.