Raj Television Network Ltd Management Discussions

Economic Overview

Global Economic Overview

Global inflation is receding at a faster pace than anticipated. It declined from 8.7% in 2022 to 6.8% in 2023 and is expected to decrease to 5.9% in 2024 and 4.5% in 2025. While headline inflation has sustained a decline from its unprecedented peaks, core inflation has proven to be sticky. Central banks are exercising caution as premature easing of financial conditions could reignite inflationary pressures.

The IMF forecasts a global growth of 3.2% in both 2024 and 2025. The global economic outlook for 2024 will be impacted by higher interest rates, carrying the risk of resurgence in inflation due to persistent core inflation and shifts in the anticipated monetary stance. The withdrawal of fiscal support amid high debt levels weighing on economic activity, and low underlying productivity growth, contribute to economic uncertainties. Furthermore, the prolonged Russia-Ukraine conflict has the potential to dampen the overall economic outlook of the European Union.

This resurgence signals a robust pace of economic expansion, propelled by enhanced resilience in both the United States and emerging markets, alongside significant fiscal support measures in China. However, it is noted that advanced economies, including the United States, may witness marginal dips in growth rates before regaining momentum in 2025.

Regarding inflation, the outlook remains positive for the upcoming years. Forecasts suggest a decline in inflation to 5.8% in 2024, further dropping to 4.4% in 2025. These projections mark a substantial improvement from previous periods plagued by persistent inflationary pressures. This also underscores the influential role of the central banks policy rates in shaping economic activity, as well as the potential effects of withdrawing fiscal support on inflation dynamics.

Overall a more optimistic and favourable trajectory for global growth and inflation in 2024 and 2025, underlines the significance of policy actions and fiscal adjustments in navigating potential challenges and fostering economic resilience.

Indian Economic Overview

World Banks South Asia Development Update has forecasted Indias growth to reach 7.5% in FY 2023-24 but is anticipated to slow down to 6.6% in FY 2024-25, with a subsequent recovery expected in the following years. This deceleration in growth in FY 2024-25 is attributed to factors such as the subdued external environment, the normalization after the COVID-19 rebound, and a general slowdown in activity, especially in capital expenditure, during the election period. As per the Reserve Bank of Indias forecast, CPI inflation is expected to decline to 4.5% in FY 2024-25. However, volatile food prices hinder the trajectory of disinflation and obscure the inflation forecast.

India is the fifth-largest economy in the world and is assured to retain its position as the worlds fastest-growing major economy. As per the Second Advance Estimates of National Income, 2023-24, Indias real GDP is expected to grow by 7.6% in FY 2023- 24 as against 7.0% in FY 2022-23, driven by robust domestic demand, moderate inflation, a stable interest rate environment, and strong investment activity. Moreover, Indias 2023 G20 presidency has demonstrated Indias capability to cater to global needs and provided a platform to address global concerns. The Interim Budget 2024-25 sets the foundation for the vision of a Viksit Bharat (Developed India) by 2047. It outlines a multi-pronged economic management strategy, including infrastructure development, digital public infrastructure, taxation reforms and proactive inflation management. The projected growth in the Indian economy is expected to have a positive impact on the Media and Entertainment sector which in turn has shown a faster recovery compared to the overall India economy. As per the Ministry of Finance the Interim budget for 2024-25has allocated 4342.55 Crores for the Ministry of Information and Broadcasting (MIB).

INDUSTRY OVERVIEW

Indian Media & Entertainment Sector

According to EY-FICCI Media and Entertainment Outlook, March 2024, the Indian Media and Entertainment sector witnessed a growth of 8.1% in 2023, bringing its value to 2,32,000 Crores which signifies an increase of 17,300 Crores over last year. Although television maintained its status as the largest segment, digital media is expected to surpass it in 2024. The M&E sector is projected to grow at 10.2%, reaching 2.55 trillion by 2024 and further maintain a CAGR of 10%, reaching 3.08 trillion by 2026.

In the said report, except for television, all M&E segments grew in 2023. The growth of 173 billion was half of the 371 billion, growth that took place in 2022, mainly due to headwinds in advertising during the first half of the year. New media (digital and online gaming) grew the most, providing INR122 billion of the total growth, and consequently, increased its contribution to the M&E sector from 20% in 2019 to 38% in 2023. The share of traditional media (television, print, filmed entertainment, live events, OOH, music, radio) stood at 57% of M&E sector revenues in 2023, down from 76% in 2019. Experiential (outside the home and interactive) segments continued their strong growth in 2023, and consequently, online gaming, filmed entertainment, live events and OOH media segments grew at a combined 18%, contributing 48% of the total growth.

Advertising growth fell behind Indias GDP growth rate. Indias nominal GDP expanded by 9%, whereas advertising only grew by 7%. Currently advertising accounts for 0.33% of Indias GDP significantly lower than major developed markets, where the ratio ranges from 0.6% to 1%.

PRODUCT-WISE PERFORMANCE AND INDUSTRY OUTLOOK

Television

The television segment has witnessed some interesting, yet dichotomous developments in recent times. Although the number of pay TV subscribers continue to decline, the overall number of TV viewers continues to grow. While advertising shrunk, the number of TV screens is growing and the overall segment is expected to have a positive outlook in the coming times. Viewership of connected TVs would continue to grow and proliferate with the increase in broadband and 5G. Overall, while the coming times would provide many growth opportunities, the segment would also face competition from other avenues, such as social media, gaming and short videos.

Despite the rise of digital media, television remains a cornerstone in Indian households. In 2023, there was a 1% year-on-year increase in TV screens, totaling 18.2 Crores. Additionally, TV consumption grew by 2% from 2022, with both Hindi-speaking and southern regions seeing a slight uptick in viewership. In 2023, the count of television channels rose to 899, with 61% being free-to-air channels and 44% dedicated to news content. According to BARC, affluent audiences are decreased by 1%, while lower socio-economic classes increased by 4% compared to 2022, contributing to overall viewership growth. There was a 15% decline in the 15-to-21-year age group, reflecting a shift towards online digital platforms. Among regional languages, English and Bengali experienced the most significant declines in viewership.

Although news viewership grew by 11% in 2023, it remains over 30% lower than 2020 levels. News consumption has become multi-platform, with digital news reaching 45.6 Crores as of December 2023, diminishing the necessity for television visits. This led to innovations like increased focus on local news, non-news content, and specials and events.

Regarding content on TV, approximately 76% of content was produced for general entertainment channels and movies, a ratio that has remained stable for six years24. Genres like infotainment and music have decreased as consumption has shifted to digital platforms. Sports viewership also increased by 26%, driven by marquee events like the Cricket World Cup, however, non-cricket sports saw a 39% decline. In terms of revenue, distribution income reversed its falling trend in 2023 as television subscription revenues in India rose by 2% in 2023 despite a decline of 20 Lakh Pay TV homes to 11.8 Crores. This was due to a 4% increase in TV subscription ARPUs. On the other hand, free television remained steady at an estimated 4.5 Crore subscribers on the back of less expensive television sets, economic issues, and as an add-on connection to pay TV.

Advertisement

In 2023, digital advertising spending surged by 15%, primarily being driven by search and social media platforms. By 2026, the digital segment is projected to expand to 955 billion, representing a CAGR of 13.5%. Digital advertising is poised to grow at a CAGR of 13.5%, reaching 842 billion, buoyed by enhanced governance measures. Within this, SME and long-tail advertising encompassed in the aforementioned figure, are projected to increase from 208 billion in 2023 to 304 Billion by 2026. E-commerce advertising is expected to demonstrate the fastest growth, reaching

150 billion by 2026, while advertising on entertainment and sports on OTT platforms is forecasted to range between 80 - 90 billion. However, news OTT and music ad revenues are anticipated to face challenges unless they cultivate loyal, app-based audience. Subscription revenues are estimated to grow at a CAGR of 13%, reaching 114 billion in 2026, influenced by the emphasis on ad-supported platforms. The number of paid video subscriptions is projected to rise to 138 million across 65 million households by 2026. Additionally, music subscriptions are expected to double to 15 million by 2026, with a shift in content mix towards tent pole properties and low-cost content.

The slowing down of Indias nominal GDP growth to 9% in 2023 after two years of double-digit increases impacted advertising, which grew just 7%. Globally, too, ad growth was 6% compared to global nominal GDP growth of 9.9%.

Digital advertising has surpassed traditional advertising for the first time this year, with a growth of 15% to reach 57,600 Crores constituting 51% of total advertising revenues. This includes advertising by SMEs and long-tail advertisers exceeding 20,000 Crores, along with advertising earned by e-commerce platforms amounting to 8,600 Crores. Factors such as the growth of 5G, the rising per capita income of Indians, and the expanding SME advertiser base are driving digital ad spending.

Digital OTT Sector

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 the end of2024. Digital media in India experienced a 15% growth in 2023, with advertising revenue increasing from 49,900 Crores in 2022 to 57,600 Crores in 2023. Subscription revenue also saw growth, rising from 7,200 Crores in 2022 to 7,800 Crores in 2023. The total revenue for the industry reached 65,400 Crores in 2023, with a projected increase to 95,500 Crores by 2026.

In terms of consumption trends, Indians spent an average of 4.8 hours per day on their phones in 2023, a 9% increase from 2020.

Online video viewership grew by 7% in 2023, reaching 56.3 Crores, or 98% of smart phone owners and wired broadband subscribers. Original content production for streaming platforms remained stable compared to 2022, with a notable increase in regional language content. Music streaming saw a slight decline in users but an increase in paid subscriptions. The introduction of cricket as a free ad-supported streaming television (FAST) product on mobile phones resulted in a significant supply of inventory due to increased viewership. This move also enabled better segmentation of mobile and connected TV audiences for more precise ad targeting. The rise of generative AI and deep fake technologies underscores the importance of self-regulation to combat fake news effectively.

COMPANY OVERVIEW

Your company Raj Television Network Limited (Raj TV) 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 decade; 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 five 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

BUSINESS DESCRIPTION

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 extensiveline 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 4 music Channels (Tamil, Telugu, Malayalam & Kannada) channels. The regional portfolio is spread across 5 languages Tamil, Telugu, Malayalam; Kannada & Hindi are leaders in their segments. RAJ TVs 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

Opportunity and Threats

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:

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

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.

Segment

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

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 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.

Your Company has been continuously focusing on sustaining and enhancing its growth trajectory with all the channels from the network. All four network channels have a unique offering and are gaining market share and coverage with credibility from audiences as well as advertisers.

We have consistently strived to uphold unmatched reach and viewership

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.

RISK CONCERNS

Your Board gives due care and diligently employs risk mitigating ideas reinforced by internal controls, toensure 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:

INDUSTRY RISK

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. Asthe Company makes substantial investments incontent, non-performance of the shows/movies would have an adverse impact on the revenue and profitability of the Company.

Competition

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 smart phone 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.

In todays media landscape, one of the most significant threats to news Companys credibility arises from the proliferation of AI-generated deep fakes and fake news. These technologies have made it increasingly challenging to discern between authentic and manipulated content, undermining the trust that audiences place in journalistic integrity. Deep fakes, with their ability to create highly realistic but entirely fabricated audio and video content, can be used to spread misinformation at an unprecedented scale.

Uncertain Copyright Ecosystem

Unclear copyright laws pose a significant threat to media companies, especially in todays digital age where user generated content (UGC) and social platforms play a crucial role in news reporting. Many media teams rely on such sources to enrich their content and provide timely updates to their audience. However, the challenge arises when copyright holders exploit these laws to demand exorbitant fees or restrict the use of content, often conflicting with fair use policies. This not only limits the diversity and authenticity of news coverage but also imposes financial burdens on media organizations, hindering their ability to deliver comprehensive and unbiased reporting. Balancing the protection of intellectual property with the principles of fair use is essential to ensure a vibrant and informative media landscape.

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 andexpenses.

IT Security Threats

The pandemic 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.

REGULATORY RISK

Uncertainties in rules and regulations

The M&E industry is governed by the rules and regulations framed by the authorities and regulatory bodies of our country. 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.

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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.

INTERNAL CONTROL

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. Our internal control systems consist of the following main elements:

• Delegation of authority

• Standard Operating Procedures & Policies

• Effective IT systems aligned with business needs

• An internal audit framework

• An ethics framework

• Adequate segregation of duties Our robust internal control systems have demonstrated efficacy and have not undergone significant changes during the year.

HUMAN RESOURCE DEVELOPMENT

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 and 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, 2024, there were 246 employees on the rolls of the Company.

FINANCIAL OVERVIEW

Share Capital:

The Company has an authorized capital of 30 Crores divided into 6 crores Equity shares of 5/- each. The Company has only one class of issued share capital i.e., Equity Share Capital of 25.96 Crores divided into 5,19,13,344 Equity Shares of 5/- each. There has been no change in the share capital of the Company during the Financial Year under review.

Revenue:

During the Financial Year under review, the Company achieved a total revenue of 10,64,597.47 (in ‘000s) as compared to 8,47,876.87 (in ‘000s) during the previous Financial Year 2022-23,recording a growth of 25.56%. Other income during the Financial Year under review had decreased by 43.25% as compared to the previous year. During Financial Year ended 31^st March, 2024 the other income was 3,751.67 (in ‘000s) as compared to 6,610.47 (in ‘000s) during the Financial Year ended 31^st March, 2023.

Depreciation:

During the Financial Year 2023-24 the depreciation and amortization amounted to 15,052.76 (in ‘000s) as compared to 16,367.51 (in ‘000s) incurred during the Financial Year ended 31^st March, 2023.

Inventory

During the Financial Year under review, the inventory included a work in progress of the cost incurred for launching two new channels with a view aligned with the companys strategic objectives to expand its market footprint. The inventory amounted to 98,800.00 (in ‘000s) during the Financial Year 2023-24.

EBIDTA Margin:

The Earnings before Interest, Tax, Depreciation and Amortisation (EBIDTA) during the Financial Year ended March 31, 2024 was 48,444.55 (in ‘000s), representing 4.55% of revenues, as compared to 57,041.53 (in ‘000s) representing 6.73% of revenues in the previous Financial Year. Such a decrease in the EBIDTA margin is due to an increase in production cost, employees expenses and other expenses partially set off against an increase in revenue. EBIDTA as mentioned above doesnt include other income.

Your Company has earned a profit of 8,057.57 (in ‘000s) during the Financial Year 2023-24 as compared to 11,254.55 during the previous Financial Year 2022-23. The Key financial ratios, in pursuance to the SEBI (LODR), Regulations, 2015 are listed out below:

Key Ratios	2023-24	2022-23
Debtors Turnover (#)	4.16	3.32
Inventory Turnover (*)	NA	NA
Interest Coverage (#)	1.48	1.54
Current Ratio	1.56	1.26
Debt Equity Ratio (*)	0.27	0.40
Operating Profit Margin (%)	26.81	43.48
Net Profit Margin (%)	0.76	1.33
Return on Net Worth (%)	0.80	1.13
Basic EPS ( )	0.16	0.22

(*) = times; (#) = Number of days

Also please refer Note: 35 of the Financials

Ratios where there has been a significant change from FY 2022-23 to FY 2023-24.

Interest Coverage Ratio

The decrease is largely on account of the downfall in profit for the year.

Inventory Turnover

There is no inventory balance as of March 31, 2024, March 31, 2023 and March 31, 2022. Further, there is no cost of material consumed during the FY 2023-24 and 2022-23. Hence, the inventory turnover ratio is not applicable.

Operating Profit Margin

The operating profit margin has decreased due to a decrease in operating profit.

Net Profit Margin

Net profit margin has decreased due to a decrease in profit after tax, for the reasons mentioned earlier in Financial Overview.

Basic EPS

Basic EPS has decreased due to a decrease in profit after tax, being equity share capital remained the same.

CAUTIONARY STATEMENT

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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