raj television network ltd share price Management discussions


The market size of Media and Entertainment sector in India is very huge and the leading position in the contribution to this sector is held by the Television Industry. The after effects of the global pandemic has been felt in every sector in the Financial Year 2022-23, though the global economy has grown at slower pace despite the unprecedented global inflation and the Ukraine invasion which has affected the global economy at large. The challenges of 2022 translated into moderated spending, disrupted trade and increased energy costs.

In the Financial Year 2022-23, India has emerged as the fastest growing G20 economy. India has also emerged to be the preferred Asian country for business expansion as the market size and global reach of India has shown a remarkable growth.



Indias media and entertainment industry is heading towards a substantial growth with a projected market size of more than Rs. 4,00,000 Crores by 2026. The major role on the said sustainable growth shall be played by the advertising sector. Within the Indian Media and Entertainment Industry, television is projected to retain its position as the largest segment. The growth of Media and Entertainment sector in India is driven by various factors is driven by various factors, including the rise of platforms such as YouTube that provides 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, 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.


India is expected to become the fifth largest TV advertising market globally by 2026. Indias television industry is projected to grow by 2026. Advertisement spending in the traditional TV sector 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. The number of advertisers on sports have increased from 370 in 2021 to around 470 Crores. 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. Furthermore, the overall number of TV connections is expected to continue growing at a healthy rate of over 5% per year. Even though the economy is facing a backlash, the advertising industry has managed to hold a stable growth in the sector. As our advertisement rates are very competitive, we are not expecting any adverse impact on our ad revenue. During the Financial Year 2022-23 around 25% of the total revenue from operations was received from the advertisements.


With the digitalisation the Over The Top (OTT) sector has become popular throughout the world. The industry is changing widely to adapt to the digitalisation and technology. In just two years, the size of the Digital ADEX has doubled. 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%. India is expected to witness a significant increase in mobile data consumption with a projected doubling by 2024.


Your company, Raj Television Network Limited (Rajtv) is one of Indias largest entertainment content companies. Starting with the launch of Indias Second Tamil satellite channel, RAJTV, in 1994, RAJTV has evolved into an integrated entertainment content company over the last two and a half decades. The Company incorporated in 1994, broadcasts thirteen channels presently in various southern languages. Raj TV, its flagship television channel launched in 1994 was the first general entertainment channel of the Company. The Company caters to the entire spectrum of customers entertainment needs with production of content across different formats and platforms, such as fiction and reality shows for television, movies, music, digital, plays and live events. Over the years, the Company has built strong a content library of 100,000+ hours reaching over a billion viewers globally.

Your company has a Strong content creation capability, over the last two and a half decades, we have built strong in-house content creation expertise and developed an eco-system that seamlessly delivers engaging content at a competitive cost. We have long-standing partnership with the artist fraternity and our leadership position makes us their preferred partner. While we work with multiple creative partners, with an in-house TV studio, movie production and Distribution Company and a music label, we are uniquely positioned to offer a range of content for diverse audience.

Business of the Company:

Raj TV currently operates 13 television channels in -ve languages including Tamil, Telugu, Kannada, Malayalam and Hindi. The company earns its revenue from following main segments:- a. Advertisement b. Air Time Charges c. Pay Channel Distribution Revenue d. Subscription Revenue, e. Sale of Rights f. Sales export Revenue


Raj Television network content offerings span across the globe. Today, we have a footprint across more than 172 countries with a portfolio of channels catering to the Indian and south Asian diaspora as well as local audiences of the 13 channels in the international markets, 1 Channel is dedicated to non-Indian audience, offering them entertainment content in their native languages. Our network covers USA, EUROPE, MENAP, AFRICA and APAC regions. The company undertakes several production projects with the right mix of self-produced and outsourced productions, to mitigate financial risk and obtain large revenues. With self-produced content, the company gets complete right over the content, and can build its own intellectual property base. RAJ Network has an advantage of being a mass channel with its extensive line up of attractive programming to cater the entire family. The channels of the network reach a wide variety of audiences as it satisfies people of all ages, The Channel offers a right mix of movies, serials, debates, cultural, educational, cookery, handicrafts and religious programmes satisfying the needs of the entire community ranging from Urban to the rural audience.

Regional Entertainment Channels Tamil Movie Cluster
RAJTV is one of the largest providers of regional entertainment in India, with a bouquet of 13 channels of 3 GECs (Tamil, Telugu & Hindi), 4 News channels (Tamil, Telugu, Kannada & Malayalam) 1 movie channel (Tamil) and 4musix Channels (Tamil, Telugu, Malayalam & Kannada) channels. The regional portfolio is spread across 5 languages Tamil, Telugu, Malayalam, Kannada & Hindi are leaders in their segments,. RAJTVs regional channels uniquely position it as a pan- India provider of high- quality entertainment content, appealing to a wide variety of audiences. RAJTV has a portfolio of 1 SD channel (Raj digital plus) catering to different segments of audiences and genres. The flagship channel, Raj Digital Plus, is a family entertainer, with movies that appeal to all age-groups. &pictures caters to the urban audience with edgy content. RAJTVs is Indias leading destination of retro Tamil films with an extensive library of all- time hits.


This sector has a very good opportunity to grow with the rapid growth in the urbanisation and digitalisation globally. Some key factors which shall boost the growth opportunities are 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. 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.

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 can encourage advertising agencies and companies to invest in India and drive industry growth. 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. The government strengthened electricity connectivity across all the cities and villages of India, which in turn boosted the advertisement market.

Precisely it can be concluded that your Company a part of the Media and Telecommunication industry has a bright future citing the following 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.


It is difficult to predict our revenues and expenses as they fluctuate significantly given the nature of the markets in which we operate. This increases the likelihood that our results could fall below the expectation of market analysts. Certain threats are summarized below: The commercial success of Raj Television Network Limited Channels (RAJTV) depends on our ability to cater to viewer preference and maintain high audience shares which could be affected. Subscription and Advertising income continue to be the major source of RAJTVS revenues, which could decline due to a variety of factors. Technological failures could adversely affect our business. Our inability to effectively deploy and manage funds could affect our profitability. The competition and increasing prices may adversely affect our ability to acquire desired programming and artistic talent.

RAJTV operates in an intensely competitive industry. RAJTV is a regional broadcaster, who may limit our opportunities for growth as well as our attractiveness to advertising customers and others. Piracy, violation of intellectual property rights poses a major threat to the industry. Lack of quality content. Uncertainty about success in the marketplace.


Raj Television Network Limited operations predominantly relate to a single segment “Broadcasting”.


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 RAJTV 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. The Indian Media and Entertainment Industry grows at 8.8% of CAGR to land at Rs.4300 Billion by 2026.Traditional media will hold their steady growth rate over the next few years alongside the Digital Media platforms.

The Television Advertisement industry has a current market capitalisation of Rs.340 Billion and is expected to reach Rs. 435 Billion by 2026 with a CAGR of 6.3% .At this time, India will be the fifth-largest TV advertising market globally, after the US, Japan, China and the UK. Digitisation of the cable distribution sector to attract greater institutional funding, improve profitability and help players improve their value chain

The OTT Video industry has a current market capitalisation of Rs.125 Billion and is expected to reach Rs. 210 Billion by 2026 with a CAGR of 14.09%*. Raj Television Network Limited delivers a steady flow of highly popular programs and a dominant share of audience viewership which has given the network tremendous pricing power vis-a-vis competitors. The presence of Raj Television Network Limited across genres and with a dominant market share in the five southern states of India (Tamil Nadu, Kerala, Karnataka, Andhra Pradesh and Telangana) ensures continued and sustained viewership and prominent role in the Media and Entertainment Industry.


Your Board gives due care and diligently employs risk mitigating ideas reinforced by internal controls, to ensure that the Company achieves its strategic objectives and remains safeguarded against unforeseen circumstances. Your Company focuses 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 in our corporate strategy. This ensures a clear understanding of feasible and non-feasible actions within our operational framework, involving all shareholders. The Company confirms that there is an extensive risk mitigation framework to help the Company review organizational risks. The thoroughness of the process has improved corporate sustainability. Hence, risk mitigation framework plays an important part of our corporate management. The Risk factors of the Company are discussed below:


Ever-changing trends in media sector Entertainment needs of the audience are constantly evolving, and it is difficult to predict the consumer behaviour with accuracy. It is also influenced by new trends and the environment around consumers. As the Company makes substantial investments in content, non-performance of the shows/movies would have an adverse impact on the revenue and profitability of the Company.


The Company operates in a highly competitive environment and faces competition from both domestic as well as international players in all its businesses. While the competitive intensity in the broadcasting space is largely stable with no new major entrants, most of the markets have multiple players competing for a higher share of the viewership pie. In the digital space, there are over two dozen players vying for consumers time. Similarly, in the other business also the Company competes with established and new players. Any new competition in the space can have an impact on the Companys revenues.

Faster than expected shift to digital platforms Increasing smartphone penetration and affordable data tariffs have led to an increase in digital content consumption. While this trend is expected to continue, digital consumption so far has been largely supplementing television viewing. If there is a faster than expected migration to digital platforms from television, it may have an impact on the television business revenue of the Company.

EXTERNAL RISKS Macro-economic environment

The advertising revenue of the media industry are inextricably linked to the economic growth of the country. Poor macro-economic environment can adversely impact advertising revenues of the Company, which is the largest component of revenues.

Global/Local Pandemic

Fallout of COVID-19 not only created an extremely volatile macro-economic environment, it also impacted the normal business operations. It led to disruption in content production and had a significant impact on the ways of working. Any pandemic breakout in the future could have an impact on the Companys ability to produce content and monetise it.

Exchange rate fluctuations

The Company has operations outside India, and a portion of its revenues and expenses are in foreign currencies. Thus, the Company is exposed to fluctuations in the exchange rates. Any extreme fluctuations of foreign currencies against Indian Rupee could have an impact on its revenues and expenses.

IT Security Threats

COVID-19 has forced organisations to embrace remote working and new technologies. This has created an ideal situation for cyber criminals to attack IT infrastructure and launch a range of hacking strategies. A security breach or disruption to IT infrastructure could lead to loss of sensitive data or information, legal and regulatory non-compliance, reputational damage as well as revenue loss.


Uncertainties in rules and regulations The M&E industry is governed by the rules and regulations framed by the authorities and regulatory bodies of the different countries the Company operates in. Further, COVID-19 has forced governments to bring new regulations which companies need to adopt swiftly and effectively. Any changes in laws and regulations could have a material impact on the revenues and cost of doing business for the Company.

INTERNAL RISKS Increase in content costs

The Company spends a significant amount for acquisition of rights to movies and music across its broadcast, digital and international business. With increasing competition, content creation and content acquisition costs could rise to a level not commensurate with the monetization potential and estimated cost recovery.

Failure to hire and retain best talent The Companys ability to attract, develop and retain a diverse range of skilled people is critical if to compete and grow effectively. The loss of management or other key personnel or the inability to identify, attract and retain qualified personnel could make it difficult to manage the business and could adversely affect operations and financial results.


Companys internal control systems are commensurate with the nature of its business and the size and complexity of its operations. These are routinely tested by Statutory as well as Internal Auditors and cover key business areas. Significant audit observations and follow up actions thereon are reported to the Audit Committee. The Audit Committee reviews adequacy and effectiveness of the Companys internal control processes and monitors the implementation of audit recommendations, including those relating to strengthening of the Companys risk management policies and systems. Further the Audit Committee has directed stringent controls for mitigating any potential risk implications while issuing letter of comfort by the Company or its subsidiary in the course of the business.


Your Company 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 an industries, as well as their specialized technological knowledge and expertise. The Companys 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. The Company promotes a healthy work-life balance, fosters a sense of pride and belonging among its employees, and supports their growth and development. The Human Resources effort this year ensured: 1) The health and safety of every employee;

2) Medical attention and supervision for all employees;

3) Maintaining specialized deep-cleaning of all studios and office spaces; On March 31, 2023, there were 246 employees on the rolls of the Company.

Financial Overview



During the year under review, the Company achieved a total revenue of 8,47,876.87 (in ‘000s) as compared to 6,92,603.96 (in ‘000s) during the previous Financial Year 2021-22 recording a growth of 22.42%. Other income during the Financial Year under review also recorded a whopping growth rate of 76.07% as compared to the previous year. During Financial Year ended 31st March, 2023 the other income was 6,610.47 as compared to 3,754.43 during the Financial Year ended 31st March, 2022.


During the Financial Year 2022-23 most of the Plant & Machinery block of assets life got fully depreciated and hence the depreciation for the Financial Year 2022-23 has declined as compared to the previous Financial Year 2021-22.


During the Financial Year under review, the serial stock has been re-grouped under the Intangible Assets under Intellectual Property Rights as compared to Inventory during the Financial Year 2021-22.

EBIDTA Margin:

The EBIDTA margin of the Company has decreased from 17.43% during the Financial Year 2021-22 to 7.51% during the Financial Year 2022-23 while the Net Profit ratio has a slight decline from 1.57 during the Financial 2021-22 to 1.33 during the Financial Year 2022-23. Your Company has earned a profit of 11254.54 during the Financial Year 2022-23 as compared to 10862.80 during the previous Financial Year 2021-22. The Key financial ratios, in pursuance to the SEBI (LODR), Regulations,2015 are listed out below:

Key Ratios
Key Ratios 2022-23 2021-22
Debtors Turnover (#) 1.57 1.28
Inventory Turnover (*) NA NA
Interest Coverage(#) 1.53 1.35
Current Ratio 1.26 2.26
Debt Equity Ratio (*) 0.40 0.33
Operating Profit Margin (%) 5.58 7.51
Net Profit Margin (%) 1.33 1.57
Return on Net Worth 1.13 1.10

(*) = times; (#) = Number of days Also please refer Note: 26 of the Financials


Certain Statements in the Management Discussion and Analysis may be forward-looking in nature within the meaning of applicable Securities Laws and regulations. Actual results may differ materially from those projected or implied. These Statements refer to the Companys growth strategy, financial results, performance and development programmes based on certain assumptions and expectations of future events. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements based on subsequent developments or information of events.

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For and on behalf of the Board
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Place: Chennai M Raajhendhran M Ravindran
Date: 14.08.2023 Managing Director Whole-time Director
DIN: 00821144 DIN: 00662830