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Global Economy

Overview

Global economic growth was estimated at a slower 3.2% in 2022, compared to 6% in 2021 (which was on a smaller base of 2020 on account of the pandemic effect). The relatively slow global growth of 2022 was marked by the

Russian invasion of Ukraine, unprecedented inflation, pandemic-induced slowdown in China, higher interest rates, global liquidity squeeze and quantitative tightening accordancewithRegulation34(3) by the US Federal Reserve. The challenges of 2022 translated into moderated spending, disrupted trade and increased energy costs. was 8.7% in 2022, among the highest in Global inflation decades. US consumer prices decreased about 6.5% in 2022, the highest in four decades. The Federal Reserve raised its benchmark interest rate to its highest in 15 years. The result is that the world ended in 2022 concerned that the following year would be slower.

The global equities, bonds, and crypto assets reported an aggregated value drawdown of USD 26 trillion from peak, equivalent to 26% of the global gross domestic product (GDP). In 2022, there was a concurrently unique decline in bond and equity markets; 2022 was the only year when the S&P 500 and 10-year US treasuries delivered negative returns of more than 10%.

Gross Foreign Direct Investment (FDI) inflows equity, reinvested earnings and other capital – declined 8.4% to USD 55.3 billion in April-December 2022. The decline was even sharper in the case of FDI inflows as equity: these fell 15% to USD 36.75 billion between April and December 2022. Global trade expanded by 2.7% in 2022 (expected to slow to 1.7% in 2023).

The S&P GSCI TR (Global benchmark for commodity performance) fell from a peak of 4,319.55 in June 2022 to 3495.76 in December 2022. There was a decline in crude oil, natural gas, coal, lithium, lumber, cobalt, nickel and urea realisations. Brent crude oil dropped from a peak of around USD 120 per barrel in June 2022 to USD 80 per barrel at the end of the calendar year following the enhanced availability of low-cost Russian oil.

Regional growth (%)	2022	2021
World output	3.2	6.1
Advanced economies	2.5	5
Emerging and developing economies	3.8	6.3

Performance of major economies:

United States	Reported GDP growth of 2.1% in
	2022, compared to 5.9% in 2021.
China	GDP growth was 3% in 2022,
	compared to 8.1% in 2021.
United Kingdom	GDP grew by 4.1% in 2022, compared
	to 7.6% in 2021.
Japan	GDP grew 1.7% in 2022, compared to
	1.6% in 2021.
Germany	GDP grew 1.8% in 2022, compared to
	2.6% in 2021.

Outlook

The global economy is expected to grow 2.8% in 2023, influenced by the ongoing Russia-Ukraine conflict. Concurrently,globalinflationis projected to fall marginally to 7% during the said period. Despite these challenges, there are positive elements within the global economic landscape. The largest economies like China, the US, the European Union, India, Japan, the UK, and South Korea are not in a recession. Approximately 70% of the global economy demonstrates resilience, with no major financial distress observed in large emerging economies. The energy shock in Europe did not result in a recession, and significant departure from its strict zero-Covid policy and the resolution of the European energy crisis, fostered optimism for an improved global trade performance. Despite high inflation, the US economy demonstrated robust consumer demand in 2022-23. Driven by these positive factors, global inflation is likely to be relatively

24. Interestingly, even as the global economy is projected to grow less than 3% for the next five years, India and

China are projected to account for half the global growth

 

(Source: IMF).

Indian Economy

Overview

Even as the global conflict remained geographically distant from India, ripples comprised increased oil import bills, inflation, cautious government and a sluggish equity market. Indias economic growth is estimated at 6.8% in financial year 2022-23. India emerged as the second fastest-growing G20 economy in financialyear 2022-23. India overtook UK to become the fifth-largest global economy. India surpassed China to become the worlds most populous nation (Source: IMF, World Bank).

Growth of the Indian economy
	FY 2020	FY 2021	FY 2022	FY 2023
Real GDP	3.7	-6.6%	8.7	6.8
growth(%)

Growth of the Indian Economy for FY 2022-23
	Q1	Q2	Q3	Q4
Real GDP	13.1	6.3	4.4	4.9
growth(%)

According to the India Meteorological Department, the year 2022 delivered 8% higher rainfall over the long-period average. Due to unseasonal rains, Indias wheat harvest was expected to fall to around 102 million metric tons (MMT) in 2022-23 from 107 MMT in the preceding year. Rice production at 132 MMT was almost at par with the previous year. Pulses acreage grew to 31 million hectares from 28 million hectares. Due to a renewed focus, oilseeds area increased 7.31% from 102.36 lakh hectares in 2021-22 to 109.84 lakh hectares in year 2022-23. Indias auto industry grew 21% in the year 2022-23; passenger vehicle (UVs, cars and vans) retail sales touched a record 3.9 million units in the year 2022-23, crossing 3.1 million units in the year 2021-22. The commercial vehicles segment grew 33%. Two-wheeler sales fell to a seven-year low; the three-wheeler category grew 84%.

Till the end of quarter three of the year 2022-23, total gross non-performing assets (NPAs) of the banking system fell to 4.5% from 6.5% a year ago. NPAs for the year 2022-23 was expected to be 4.2% and a further drop is predicted to 3.8% in the year 2023-24.

As Indias domestic demand remained steady amidst a global slowdown, import growth in the year 2022-23 was estimated at 16.5% to USD 714 billion as against USD 613 billion in the year 2021-22. Indias merchandise exports were up 6% to USD 447 billion in the year 2022-23. Indias total exports (merchandise and services) in the year 2022-23 grew 14% to a record of USD 775 billion and is expected to touch USD 900 billion in the year 2023-24. Till the quarter three of the year 2022-23, Indias current account deficit, a crucial indicator of the countrys balance of payments position, decreased to USD 18.2 billion, or 2.2% of GDP. Indias fiscal deficit was estimated in nominal terms at ~ H17.55 lakh crore and 6.4% of GDP for the year ending March 31, 2023. (Source: Ministry of Trade & Commerce)

Indias headline FDI numbers rose from USD74.01 billion in the year 2020-21 to a record USD 84.8 billion in the year 2021-22, a 14% year-on-year increase, till quarter three of the year 2022-23. India recorded a robust USD 36.75 billion of FDI. In the year 2022-23, the government was estimated to have addressed 77% of its disinvestment target (H50,000 crores against a target of H65,000 crores). Indias foreign exchange reserves, which had witnessed three consecutive years of growth, experienced a decline of approximately USD 70 billion in 2022, primarily influenced by rising inflation and interest rates. Starting from USD 606.47 billion on April 1, 2022, reserves decreased to USD 578.44 billion by March 31, 2023. The Indian currency also weakened during this period, with the exchange rate weakening from H75.91 to a US dollar to H82.34 by March 31, 2023, driven by a stronger dollar and increasing current account deficit. Despite these factors,

India continued to attract investable capital.

The Countrys retail inflation, measured by the Consumer Price Index (CPI), eased to 5.66% in March 2023. Inflation data on the Wholesale Price Index, (WPI) (calculates the overall price of goods before retail) eased to 1.3% during the period. In 2022, CPI hit its highest of 7.79% in April; WPI reached its highest of 15.88% in May 2022. By the close of the year under review, inflation had begun trending down and in April 2023 declined below 5%, its lowest in months. Indias total industrial output for the year 2022-23, as measured by the Index of Industrial Production or IIP, grew 5.1% year-on-year as against a growth of 11.4% in 2021-22.

India moved up in the Ease of Doing Business (EoDB) rankings from 100th in 2017 to 63rd in 2022. As of March 2023, Indias unemployment rate was 7.8%.

In the year 2022-23, total receipts (other than borrowings) were estimated at 6.5% higher than the Budget estimates. Tax-GDP ratio was estimated to have improved by 11.1% year-on-year in the year 2022-23. The total gross collection for the year 2022-23 was H18.10 lakh crores, an average of H1.51 lakhs a month and up 22% from the year 2021-22, Indias monthly goods and services tax (GST) collections hit the second highest ever in March 2023 to H1.6 lakh crore. For the year 2022–23, the government collected H16.61 lakh crores in direct taxes, according to data from the Finance Ministry. This amount was 17.6% more than what was collected in the previous fiscal.

Per capita income almost doubled in nine years to H1,72,000 during the year under review, a rise of 15.8% over the previous year. Indias GDP per capita was USD

2,320 (March 2023), close to the magic figure of USD

2500 when consumption spikes across countries. Despite headline inflation, private consumption in India witnessed continued momentum and was estimated to have grown 7.3% in the year 2022-23.

Outlook

There are green shoots of economic revival, marked by an increase in rural growth during the last quarter and appreciable decline in consumer price index inflation to less than 5% in April 2023. India is expected to grow around 6-6.5% (as per various sources) in the year 2023-24, catalysed in no small measure by the governments 35% capital expenditure growth. The growth could also be driven by broad-based credit expansion, better capacity utilisation and an improving trade deficit. Headline and core inflation could trend down. Private sector investments could revive. What provides optimism is that even as the global structural shifts are creating a wider berth for Indias exports, the country is making its largest infrastructure investment. This unprecedented investment is expected to translate into a robust building block that, going ahead, moderates logistics costs, facilitates a quicker transfer of products and empowers the country to become increasingly competitive. This can benefit Indias exports in general, benefiting several sectors. The construction of national highways in the year 2022-23 was 10,993 kilometers; the Ministry of Road Transport and Highways awarded highway contracts of 12,375 km in the last financial year(Source: IMF).

The global landscape favours India: Europe is moving towards a probable recession, the US economy is slowing, Chinas GDP growth forecast of 4.4% is less than Indias GDP estimate of 6.8% and America and Europe are experiencing its highest inflation in 40 years.

Indias production-linked incentive appears to catalyse the downstream sectors. Inflation is steady. India is at the cusp of making significant energy and other sectors and emerging as a suitable industrial supplement to China. India is poised to outpace Germany and Japan and emerge as the third-largest economy by the end of the decade. The outlook for private business investment remains positive despite an increase in interest rates. India is less exposed to Chinese economic weakness, with much less direct trade with China than many Asian peers.

Broad-based credit growth, improving capacity utilisation, governments thrust on capital spending and infrastructure should bolster investment activity. According to our surveys, manufacturing, services and infrastructure sector firms are optimistic about the business outlook.

The downside risks are protracted geopolitical tensions, tightening global financial conditions, and slowing external demand.

Union Budget Financial Year 2023-24 provisions

The Budget 2022-23 sought to lay the foundation for the future of the Indian economy by raising capital investment outlay by 33% to H10 lakh crores, equivalent to 3.3% of GDP and almost three times the year 2019-20 outlay, through various projects like PM Gatishakti, Inclusive Development, Productivity Enhancement & Investment, Sunrise Opportunities, Energy Transition and Climate Action, as well as Financing of Investments. An outlay of H5.94 lakh crore was made to the Ministry of Defense (13.18% of the total Budget outlay). An announcement of nearly H20,000 crores were made for the PM Gati Shakti National Master Plan to catalyse the infrastructure sector. An outlay of H1.97 lakh crore was announced for Production Linked Incentive schemes across 13 sectors. The Indian government intends to accelerate road construction in the year 2023-24 by 16-21% to 12,000-12,500 km. The overall road construction project pipeline remains robust at 55,000 km across various execution stages. These realities indicate that a structural shift is underway that could strengthen Indias positioning as a long-term provider of manufactured products and its emergence as a credible global supplier of goods and services.

Global advertising sector overview

The global advertising market, which drives television broadcasting revenues, was estimated to be USD 615.2 billion in 2022 and is expected to grow at a CAGR of 5.35% during the year 2023-2024, reaching a market size of USD 834.9 billion by 2028. The main types of advertising agencies are TV, digital, radio, print, out-of-home (OOH), and others. An increase in advertisement spending across industries is expected to drive the demand for theinvestments in renewable advertising agencies market.

Global advertising expenditure is projected to increase by USD 58 billion in 2022, with a forecasted total of USD 781 billion, compared to USD 723 billion in the previous year. The majority of this increase is expected to come from the US, which is predicted to grow by USD 33.0 billion in 2022. China is expected to contribute 9.1% to the global growth in advertising expenditure in 2022, followed by Japan with

6.2% and the UK with 5.8%. India, despite being the 12th largest global ad market, is projected to be the fastest-growing in percentage terms, accounting for 4.6% of the global ad spend growth in 2022. Indias advertising market is expected to grow by more than 20% in 2022, reflecting significant (Source: imarcgroup. com, thebusinessresearchcompany.com, whatsnewinpublishing. com)

Indian advertising sector overview

The Indian advertising market size was anticipated to be H743.0 billion in 2022 and is projected to reach H1,412.5 billion by 2028, with a CAGR of 11.2% during 2023-2028. The market growth is driven by factors such as the growing adoption of advertising for brand awareness, increasing proliferation of media and entertainment platforms and rising demand for digital advertising solutions.

Digital advertising is expected to remain a significant driver of the Indian advertising market, with a projected growth of 32% and a 40% share of total ad spends in 2023. TV advertising is expected to experience a growth of 7.2% in the Indian market, driven by the growing trend of online retail and brands utilizing TV to enhance brand awareness and achieve performance metrics. The retail media segment, which is a subset of digital advertising, has been estimated at USD 551 million in 2022 and is anticipated to witness nearly a twofold growth by 2027. Indias advertising revenue witnessed robust growth of 15.8%, reaching a total of USD 14.9 billion in 2022, primarily driven by the remarkable growth of pure-play digital advertising.

The total advertising expenditure (ADEX) in India is projected to reach H1.04 trillion, primarily driven by digital advertising, which is expected to capture a larger share of the total domestic adex at 41%, up from 38% in 2022. This will make digital advertising the largest advertising category for the second consecutive year, surpassing television, which is expected to account for 32% of the adex in 2023, down from 34% in the previous year. The share of print advertising is anticipated to be 19% in 2023, compared to 21% in 2022. The Internet advertising industry is projected to experience a compound annual growth rate of 12.1%, reaching H28,234 crores by 2026. The mobile sector is expected to rise to 69.3% by 2026.

Indias newspaper industry is expected to witness a steady growth in total revenue, with a projected CAGR of

2.7% to reach H29,945 crores in 2026.

 

(Source: imarcgroup.com, economictimes.com, business-standard.com, thehindubusinessline.com)

Indian television advertising sector overview

India is expected to become the fifth largest TV advertising market globally by 2026. Indias television industry is projected to grow from 20 million units in 2022 to an estimated 30.4 million units by 2026. TV penetration has increased to 69% in the year 2020-21, reaching semi-urban and rural areas, where 109 out of 197 TV sets are owned by rural India. Advertisement spending in the traditional TV advertising segment is projected at USD 4.82 billion in 2023 and expected to show an annual growth rate 3.61% to reach a market volume of USD 5.55 billion by 2027. In the traditional TV advertising segment, the number of users is expected to amount to 1,176.00 million users by 2027. Fast moving consumer goods (FMCG) continues to dominate TV ADEX and its degree of dominance stood at 45% in 2022. E-commerce is the second most important category in TV ADEX contributing 20% share. Education, including EdTech dramatically reduced its TV spends by 24%. The number of advertisers on sport increased from around 370 in 2021 to around 470 in 2022.

The General Entertainment Channel (GEC) sector in India had the largest share of 28.5% in overall TV ad volumes. Among the GEC channels, Hindi GEC emerged as the leader with a share of over 20% in the ad volumes. The top five subgenres within the GEC channel genre accounted for approximately 69% of the ad volumes in 2022. DD Free Dish, a Direct-to-Home (DTH) platform and Connected TVs are projected to reach over 90 million subscriptions by 2025 in India. The Free TV market is also expected to expand as DD Free Dish plans to increase its channel count from 164 in 2021 to around 200 by 2022. The DD Free Dish subscriber base is anticipated to cross 50 million homes by 2025. The Connected TV base in India is projected to surpass 40 million connected sets by 2025. TV advertising and subscription revenue in India is projected to reach H344 billion and H415 billion, respectively, in 2022. Furthermore, the overall number of TV connections is expected to continue growing at a healthy rate of over 5% per year, reaching over 67% of Indian households by 2025.

 

(Source: Statista, madisonindia.com, bestmediainfo.com, exchange4media.com)

Indian media and entertainment sector overview

Indias media and entertainment industry is poised for substantial growth, with a projected market size of H4,30,401 crores (USD 53.99 billion) by 2026. The advertising sector in India is expected to play a significant role in this growth, with advertising revenue projected to reach H394 billion (USD 5.42 billion) by 2024. Indias subscription revenue is projected to grow at a CAGR of 2% and reach H432 billion (USD 4.94 billion).

In 2022 (January-July 2022), PE/VC investments in the media and entertainment industry was at USD 3,389 million. FDI inflows in the information and broadcasting sector (including print media) stood at USD 9.85 billion between April 2000-September 2022. One of the key drivers of growth in the media and entertainment industry in India is the increasing demand for content among users. Within the media and entertainment sector in India, television is projected to retain its position as the largest segment, with an expected CAGR of 7%. TV segments revenue is expected to reach H847 billion (USD 12.01 billion) by 2023. The Indian mobile gaming market is poised to reach USD 7 billion, in value, by 2025. The advertising-based video on demand (AVoD) segment is expected to rise at a CAGR of 24% to reach USD 2.6 billion by 2025. The Government of India has increased the FDI limit from 74% to 100%. The growth of the media and entertainment sector in India is driven by various factors, including the rise of platforms such as YouTube that provide free access to recent and video content-linked music. This trend is expected to fuel the growth of the paid over-the-top (OTT) music sector, with an estimated 5 million end-users by 2023. This is projected to generate revenue of approximately H2 billion (USD 27 million).

Indias rural regions are anticipated to be the next frontier for growth in the media and entertainment industry. With the adoption of 5G technology and plans for 6G already in the pipeline, India is at the forefront of digital advancement. This push towards digitalization, particularly in rural areas, presents advertisers and publishers with significant opportunities to tap into untapped markets and contribute to the growth of Indias media and entertainment industry. (Source: IBEF)

Indian digital media sector overview

Digital ADEX in India has experienced remarkable growth, with a 50% increase in 2021 followed by a 35% growth in 2022. In just two years, the size of the Digital ADEX has doubled, reaching H34,405 crores in 2022 from H16,974 crores previously. This growth has propelled Digital advertising to become the largest medium in Indian ADEX, surpassing TV, with a current market share of 38%. In the global advertising landscape, Digital advertising commands a dominant share of 68%.

Video, Social, Display, Ecommerce and Search are the key drivers of Digital ADEX in India. Among these, Digital Video remains the dominant segment, with a 40% growth and an increased share from 29% to 30%. Indian internet users are expected to reach 900 million by 2025, from 622 million internet users in 2020, increasing at a CAGR of 45% until 2025. India secured the second position worldwide, after China, in terms of total app downloads in 2022. Indian consumers spent an average of 4.9 hours per day using apps in 2022. Additionally, Indian users downloaded more than 28 billion apps on their mobile phones in 2022, accounting for 5% of the global app downloads, which totaled 625 billion. Indias monthly mobile data usage per smartphone continues to exhibit robust growth, driven by the widespread adoption of 4G technology and the increased reliance on Work-From-Home arrangements. Within the media and entertainment sector, including news, books, music, video, and gaming, accounts for over 75% of the total data consumption in India. Indias per user data consumption rose to 19.5GB in 2022. India is expected to witness a significant with a projected doubling by 2024. Additionally, over 70 million 5G devices were estimated to have been shipped to India in 2022, indicating a strong demand and adoption of 5G technology in the market. (Source: thehindu.com, madisonindia.com)

Sectorial growth drivers

Rapid urbanization: Indias urban population is expected to reach 675 million by 2035, driving the demand for a larger consumer base for the advertising industry of India. Rising technological acceptance: In 2022, Indias e-commerce market is expected to reach USD 74.8 billion and USD 350 billion by 2030. Advertisers can leverage various digital channels such as social media, search engines and mobile apps to reach urban consumers, who are increasingly active online.

Rising population: Indias population stood at 1.4 billion in 2022 which lead to an emergence of new markets and segments, providing opportunities for advertisers to tap into untapped consumer segments and expand their customer base.

Government policies: Government policies can encourage advertising agencies and companies to invest in India and drive industry growth.

Young population: More than 50% of Indias current population is below the age of 25 and over 65% below the age of 35. The median age of the country is 28.4 years, an economically productive age compared to the global average of 30 years.

Rural development: The government strengthened electricity connectivity across all the cities and villages of India, which in turn boosted the advertisement market.

 

(Source: Times of India)

Budgetary allocations

• The Indian government has raised the Income Tax rebate limit from H5 lakhs to H7 lakhs, and has also implemented a 2.5% reduction in custom duty to promote value addition in TV manufacturing.

• The Credit Guarantee Scheme for MSMEs in India has been revamped with a capital infusion of H9,000 crores into the corpus.

• The scope of documents available on DigiLocker, a digital document storage platform in India, has been expanded.

• The Indian government has initiated the establishment of three Centres of Excellence for Artificial Intelligence in leading educational institutions, as well as the setup of 100 labs dedicated to developing applications using 5G services across the country.

• The Ministry of Information and Broadcasting (I&B) would receive H4,692 crores, an increase from H4,182 crores over the previous year.

• The Budget allocation for Prasar Bharati, the public service broadcaster of India, has been increased to H2,808.36 crores, compared to H2,764.51 crores in the previous fiscal year. Additionally, as a part of the Broadcasting and Infrastructure Development Programme, a budget of H600 crores has been earmarked by the government for the development of broadcasting infrastructure.

SWOT analysis

Strengths

• Most booming sectors of India due to its vast customer reach.

• Growing middle class and higher disposable income strengthened the industry.

• Technological innovations.

• Low cost of production and high revenues.

Weaknesses

• The media and entertainment industry is fragmented.

• Lack of cohesive production and distribution infrastructure.

• Lack of efforts in media penetration among the lower socio-economic classes.

Opportunities

• Increasing interest of global investors in the sector.

• Nascent stage of the new distribution channels offers an opportunity for development.

• Rapid de-regulation in the industry.

• Rise in viewership and the advertising expenditure.

Threats

• Piracy, violation of intellectual property rights poses a major threat to the industry.

• Lack of quality content.

• Uncertainty about success in the marketplace.

Company Overview

New Delhi Television Limited ("NDTV") founded in 1988, is a pioneering news television and digital journalism company in India. NDTV is a subsidiary of AMG Media Networks Limited, an Adani Group Company. The Adani group ventured into Media and Broadcasting business in financial year 2022-23, by taking over the control of

NDTV through its group companies RRPR Holding Private Limited and Vishvapradhan Commercial Private Limited. Over the past quarter century, NDTV has emerged as the most watched, credible and respected news network in India and a leader in the digital space. NDTV has been at the forefront of every news revolution in the Country, from the path-breaking ‘The World This Week program, which was nominated as one of Indias five best television programs since Independence, to the first private news program on Doordarshan, ‘The News Tonight, and the production of Indias first 24-hour news channel ‘Star

News. Today, NDTV is primarily an internet company, with ndtv.com as its flagship website, which is Indias number

1 destination for general news.

Our media and entertainment business

The Companys channels NDTV 24x7 (English), NDTV

India (Hindi) and NDTV Profit (Business) continue to raise the standards of journalism with innovative programming and uncompromising integrity.

Incisive and creative, the channels target the global Indian with news that is credible, true and fast. NDTV 24x7 is the only English News Channel from India which is beamed in the UK, USA, Canada, South Africa, Middle East, Australia, New Zealand, Mauritius and most of the SAARC Countries to reach out to the Indian Diaspora.

Outlook

Every Indian language has a rich history, legacy, culture and a large enough audience with its unique needs. It is important to serve these audiences by way of quality, credible, timeliness and device agnostic news & information. With marquee NDTV brand, it would be our imperative to expand and offer our unique content in a tech-savvy way. Content and technological evolution along with innovation in our offering will continue to be our guiding principle and our efforts and investments will be in that direction. More than 470 million individuals read internet news in 2022. Including users on mobile and desktop, there were 473 million unique users of news websites, portals, and aggregators in 2022. This is equivalent to about 55% of all internet users. The majority of online news viewers were made up of computer users, and NDTV, with its material in both English and Hindi, was among the top 8 in terms of unique visitors. 63% of visitors to news websites come through social media, according to the "Reuters Digital News Report 2022," demonstrating the continued importance of this relationship. We will continue to invest and make our digital offerings state of the art and establish a platform for serving our discerning audiences globally.

Our strengths

The ways in which NDTV uses its extensive audience to advocate for and engage with Indians make it one of its greatest sources of pride. The 7 Wonders of India, Save Our Tigers, the Greenathon, Jeene ki Asha, Marks for Sports, Support My School, the University Sports Championships, and the most recent Health4U campaigns on heart care, diabetes, cancer, and organ donation, Banega Swachh India, the Road to Safety, and Whats your Choice campaigns are just a few of the social issues that have been brought to light by more than 30 years of dedicated and innovative programming. Sincere, impartial, and brave campaigns of NDTV against injustice and human rights abuses have compelled inaction from governments and resulted in legislation.

Brands and segments

Other than its flagship channels NDTV 24x7 and NDTV

India in English and Hindi, NDTV runs vibrant and fast growing digital platforms for its consumers in the form of www.ndtv.com and www.ndtv.in in English and Hindi respectively. NDTVs YouTube Channels in English and Hindi have a combined subscriber base of 27.6 million. Additionally, there are special interest verticals on digital platforms in the areas of Business, Technology, Food, Movies, Sports, Health, and Lifestyle for the Company. In order to expand its offering and bring new audiences to its platforms, we will continue to invest in offering Business News TV and also expansion in regional languages to leverage the strength of the brand and business acumen.

NDTV Convergence Limited ("Convergence")

During the year your Groups digital arm, NDTV

Convergence declared a Net Profit of H271.84 million. The

total income from operations of the Company increased by 6.74% to H2,026.35 million as compared to the total income of H1,898.40 million during the previous year. Convergence, on account of its credibility in the digital news space has been chosen to a part of the Google News Initiative to build a trust index to drive and support responsible content creation that can be trusted by users and is expected to roll out by May 2023. NDTV has also partnered with Single Id technology provider Enigmatic Smile to launch a one of a kind NDTV Big Bonus property,

Indias first ever card-linked-offer App.

On social media, NDTVs following remains premium. NDTV is the most-popular news handle on Twitter with 17.7 million followers in India. NDTV channels on YouTube have a nearly 29 million subscribers. NDTV YouTube channel is the highest subscribed English news publisher in India. NDTV is also one of the most-followed English news account on Instagram in India.

Targeting a new younger demographic, Convergence has signed up as a paid content partner for new platforms like Snapchat, which drive engagement which drive engagement of an entire new target audience. NDTV videos views across online platforms are 5.5+ billion for the year. NDTV Convergence won several awards for its content including its infographics on state elections.

Brand Equity, Awards and Recognitions

NDTV is one the most respected media brands in the country with a rich legacy and standing and that has been reflected in numerous awards won over these years.

NDTV again proved its excellence in journalism with the Reuters Institute at Oxford University reporting that it is the countrys most-watched TV channel and most-popular news site. For a news organization, the best result lies in being trusted. Your Company, as ever is grateful for its audiences loyalty.

NDTV 24X7 won Most-Trusted English News Channel at the WCRCINT Awards, 2023.

NDTV and its journalists won the following awards:

• Ramnath Goenka Award in the Hindi Broadcast Category was awarded to Mr. Sushil Kumar Mahapatra and Mr. Ajay Singh;

• RedInk Awards in the Politics (TV) Category was awarded to Mr. Anurag Dwary;

• International Press Institute (IPI) India Excellence in Journalism Award, 2022 was awarded to Mr. Saurabh Shukla and NT Awards 2022 was awarded to Mr. Ravish Ranjan Shukla;

• E4M 40 under 40 Samachar Patrikarita Awards was awarded to Mr. Sharad Sharma, Mr. Saurabh Shukla, Mr. Sohit Mishra, Mr. Parimal Kumar and Ms. Puja Bhardwaj.

Exchange4Medias News Broadcasting Award:

• Best campaign for Social Cause: Banega Swasth India

• Best Programme Promo: Banega Swasth India

• Best Coverage on Social Cause: Banega Swasth India

ENBA Award:

• News Channel of the Year (Bronze)- Hindi

Berkshire Media, USA Award:

• Best Media Company in Asia for 2022: for its business ethics, culture and leadership.

IBC Infomedia Award:

• Asias Most Trusted Media Company 2022: for its content, innovation and reputation

Afaqs Media Brand Award:

• Gold : NDTV Convergence for ‘innovation in online content for Bengal election coverage

Special campaigns and events

Jai Jawan:

Jai Jawan with Kartik Aryan : Travelled to Navy Dockyard in Mumbai and shot on INS Kolkata, aired on Independence day; Jai Jawan with Vijay Deverakonda : Shot with the army at Uri with special focus on IED Explosives and Bomb Squad; aired on Diwali; Jai Jawan with Tapasee Pannu : Travel to Gulmarg at the infantry unit; aired on Christmas; Jai Jawan with Sonu Sood : A show with the BSF at Jaisalmer; aired on Republic Day.

Sadda Punjab:

NDTV Indias Conclave from the heart of Punjab on issues that matter. A day long Conclave from Chandigarh on November 9th with the Chief Minister, the hugely popular singers that have become a legacy now, Punjab DGP and those who made a mark at the farmer protest; all-in-all, a LIVE 360 degree visibility on NDTV India.

Ukraine - Russia War:

In April 2022, Uma Shankar Singh, travelled to war-stricken Ukraine and reported on the damage Kyiv, Ukraines capital, suffered due to the war. Amongst various unforgettable reports, one was from a mass grave and signs of what life would have been pre-war with a teddy bear discarded on the ground. He reported live from a mine field, a dangerous setting and a tough act to follow.

Sri Lankas Economic Crisis:

As Sri Lanka suffered an unprecedented political and economic turmoil, Uma Shankar Singh travelled to the country in July 2022, to show the ground reality, the serpentine lines to fill harsh realities of the place

Rwanda Special (Rwanda Ki Badli Raah):

In June 2022, Uma Shankar Singh and Kadambini Sharma travelled to East Africa to showcase the struggle people faced in rebuilding the nation after the 1994 Genocide. The Government of Rwanda invited both Uma Shankar Singh and Kadambini Sharma, to show how Rwanda, of today, has rebuilt itself from horrific tragedy and destruction of the past, which is evident by its economic, social and political developments.

Israel Special (Aaj Ka Israel):

In November 2022, Uma Shankar Singh highlighted the innovations, Israel has been making in defense and technology, helping them secure their borders. Developments like making water from air to effectively solve the issue of drinking water scarcity among other reports done.

Geographical Coverage

As we have a robust presence by way of our English and Hindi offerings nationally, we will continue to look at opportunities to expand our brand and offering in other languages to cater to the diverse languages, culture and local needs. Additionally, the Company will be getting into a Business News TV and also look at the opportunities which will be adjacent to be our core.

NDTV is currently available in 67 countries by a combination of dedicated feeds as well as content syndication and in line with our Chairmans vision the endeavor would be a global news brand originating from India.

Distribution

After the implementation of NTO 1.0 in financial year

2018-2019 which made large changes to how television is distributed, industry regulator TRAI has proposed new changes termed "NTO 2.0". This new proposal has two main features:

1. It wants to end the practice of a cluster (or bouquet) of channels being priced at rates that are more attractive than purchasing some of those channels individually. Sector regulator TRAI believes that this practice lures viewers into choosing bouquets that have more channels than they are genuinely interested in. This also forces broadcasters to offer a substantial discount in order to be included in the bouquet - and therefore take a hit on their revenue.

2. The other motive is to restrict the numbers of bouquets currently being offered to the subscribers with very little differentiation between them. fuel and the crises that exposed the

NTO 2.0 had been challenged in court but has now been implemented from March 2023. Effective March 2023, the company has also aligned its channel pricing, packages and package pricing as per the new guidelines circulated by TRAI.

Highlights of Distribution:

1. NDTV is available online now on these new platforms in India: TCL connected TV, Jio TV, Jio TV + and Samsung TV in India.

2. NDTV is the most widely-distributed Indian News Network in foreign markets including the UK and US.

3. NDTV 24x7 is the only Indian English news channel available on Virgin Media in the UK. We are now also available on Sky Glass (connected TV) in UK.

Human Resources

NDTV recognizes the pivotal role of its workforce as the source of its competitive advantage. The Company values its employees and acknowledges their diverse range of experiences across different sectors and industries, as well as their specialized technological knowledge and expertise. NDTVs HR philosophy is firmly grounded in a commitment to innovation and progress, constantly challenging traditional norms to maintain its competitiveness in the industry. The Company consistently makes employee-centric decisions that prioritize the professional and personal aspirations of its workforce. NDTV promotes a healthy work-life balance, fosters a sense of pride and belonging among its employees, and supports their growth and development.

The NDTV Human Resources effort this year ensured:

1) The health and safety of every employee;

2) Medical attention and supervision for all employees;

3) Maintaining world-class practices including highly-specialized deep-cleaning of all studios and office spaces;

4) A creche at our office with trained attendants.

On March 31, 2023, there were 508 employees on the rolls of the Company.

Risk Management and Mitigation

The Board diligently employs risk management processes, reinforced by internal controls, to ensure that the Company achieves its strategic objectives and remains safeguarded against unforeseen circumstances.

At NDTV, our focus is on becoming a sustainable business entity by acknowledging potential risks and establishing robust risk management policies. The effectiveness of our strategy directly correlates with the Companys ability to withstand unforeseen incidents. Consistency is a key aspect of our risk management approach, prioritizing long-term business sustainability over short-term profitability our corporate strategy. This ensures a clear understanding of feasible and non-feasible actions within our operational framework, involving all stakeholders.

The Company confirms that there is an extensive risk management framework in place including policy, procedures and evaluation methods to help the Company review organizational risks. The thoroughness of the process has improved corporate sustainability. Hence, risk management plays an important part of corporate management in the distant future.

Areas of special attention for Risk Mitigation

1. Core IT operations – The two primary services provided are email and Intranet applications: a. NDTV email is hosted and run on the cloud via Microsoft and there is no risk of outage other than those covered under standard SLA by Microsoft. b. NDTV intranet servers are regularly and on schedule backed up at Veeam backup solution on LTO tapes & HOT DR disaster recovery has been implemented to mitigate any possible risk associated with physical servers on-premises.

2. Broadcast television – Entire operations are managed and run in-house, inclusive of Studio, PCR & Transmission. In order to mitigate any risk of outage of TV channels following is the plan for business continuity: a. Teleport: In Archana, entire equipment chain is built in a manner that 1:1 redundancy is ensured, which means there is one chain for use and another entire equipment chain for back-up. It also provides back up for teleport. Further, we have multiple levels of power back up. Two DG sets of 1.5 MW & 0.750 MW serve as main & backup to each other in case of any electricity failures in supply. Then the next level of backup in case these DG sets also fail, is in the form of UPS that can provide support up to 1 hour for safe power to all Studio/PCR equipment. This UPS again has main and back up in terms of battery bank.

In addition, NDTV has tied up with Indo-Teleport as Disaster Recovery Site (a backup site which has the license & facility to carry out transmission of NDTV Channels) which could be brought up within a short notice of 6 –12 hours in case of any natural calamity such as earthquake, flood or fire where NDTVs own facilities cannot provide back-up for transmission. Recorded programs can be played on the channel till the entire set up resumes and the processes for this is in place. in b. Studio/PCR: In Archana, we have 3 fully functional Studios, two are used for individual channels (24x7 and India) and the third Studio with PCR can work as a back-up for any of the Channels, when needed. case of failure at physical location of Archana, recorded shows can be played out while Studio/ PCR facility would be rebuilt from scratch at a pre-designated location within 24 – 48 hours window. Editorial/ Production/Technology teams are trained to do this, and few locations identified (where we conduct telethons/ recently used as a back-up during the Covid phase).

3. Digital arm of the Company – Both the content management system and the user-facing websites are hosted on Amazon AWS cloud, which mitigates the risk of non-availability of the site. Further Akamais

CDN services are used to handle any huge traffic surges so that our digital platforms do not go down.

Financial Overview

Analysis of the Profit and Loss

Revenues: Revenues from operations reported a decline of 4.5% from H230.91 crores in the financialyear 2021-22 to H220.65 crores in the financial year 2022-23. Other Income of the Company reported a 36% decline and accounted for a 8% share of the Companys revenues, reflecting the

Companys dependence on its core business operations. Expenses: Total expenses increased by 10% from H201.61 crores in the financial year 2021- 22 to H221.65 crores in the financial year 2022-23. Production expenses and cost of services, accounting for a 23% share of the Companys revenues increased by 74% from H31.64 crores in the financial year 2021-22 to H54.94 crores in the financial year 2022-23. Employee benefit expenses, accounting for a 27% share of the Companys total expenses, increased by 5% from H60.99 crores in the financial year 2021-22 to H64.28 crores in the financial year 2022-23.

Analysis of the Balance Sheet

Sources of funds - The capital employed by the Company was H429.59 crores as on March 31, 2023, as against

H403.83 crores as on March 31, 2022. Return on capital employed, a measurement of returns derived from every rupee invested in the business, was 8% in the financial year 2022-23 as against 18% in the financial year 2021-22.

The net worth of the Company was H373.67 crores as on March 31, 2023, as against H345.49 crores as on

March 31, 2022, due to addition of profit for the year. The

Companys equity share capital, comprising 6,44,71,267 equity shares of H4/- each, remained unchanged during the year under review.

Long-term debt of the Company was H1.32 crores as on March 31, 2023. The debt-equity ratio of the Company stood at 4% in the financial year 2022-23 compared to 6% in the financial year 2021-22.

Finance costs of the Company decreased by 45% from

H11.76 crores in the financial year 2021-22 to H6.46 crores in the financial year 2022-23. The Companys debt service coverage ratio stood at a comfortable 3.59 times at the close of the financial year 2022-23 as against 1.42 times at the close of the financial year 2021- 22.

Applications of funds - Fixed assets (gross) of the Company was H53.76 crores as on March 31, 2023, as against H52.64 crores as on March 31, 2022. Depreciation on tangible assets was H4.56 crores in the financial year 2022-23 as against H3.78 crores in the financial year 2021-

22 during the year under review.

Investments - Non-current investments of the Company were H332.18 crores as on March 31, 2023, as against H336.96 crores as on March 31, 2022.

Working capital management - Current assets of the Company were H112.96 crores as on March 31, 2023, as against H135.37 crores as on March 31, 2022. The Current and Quick ratios of the Company stood at 56% and 52% respectively at the close of the financial year 2022-23 compared to 60% and 57%, respectively at the close of the financial year 2021-22.

Trade receivables were H65.27 crores as on March 31, 2023, as against H69.92 crores as on March 31, 2022. All receivables were secured and considered good. The Company contained its debtors turnover ratio at 3.24 times in financial year 2022-23 compared to 2.81 times in the financial year 2021-22.

Cash and bank balances of the Company were H16.69

crores as on March 31, 2023, as against H6.28 Crores as on March 31, 2022.

Margins- The EBIDTA margin of the Company decreased by 1500 basis points from 39% in the financial year 2021-22 to 23% in the financial year 2022- 23 while the net profit margin of the Company decreased by 1300 basis points.

Key ratios
Particulars	FY 2022-23	FY 2021-22
EBITDA/Turnover (%)	23%	39%
Debt-equity ratio	4%	6%
Return on equity (%)	8%	19%
Book value per share (H)	58	54
Earnings per share (H)	4.44	9.18
Debtors turnover ratio	3.24 times	2.81 times
Current ratio (x)	56%	60%
Net profit margin (%)	13%	26%

The Company has a strong internal audit system in place, which is regularly monitored and updated to safeguard assets, comply with regulations, and promptly address any issues. The Audit Committee diligently reviews internal audit reports, takes corrective action as required, and maintains open communication with both statutory and internal auditors to ensure the effectiveness of internal control systems. This robust internal audit framework ensures that the Company operates with integrity, transparency, and accountability, while mitigating risks and safeguarding the interests of stakeholders.

Cautionary Statement

Certain statements made in this section describes the Companys objectives, projections, expectation and estimations which may be ‘forward looking statements within the meaning of applicable securities laws and regulations. Forward– looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised by the Company. Actual result could differ materially from those expressed in the statement or implied due to the influence of external factors which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments.