Sandesh Ltd Management Discussions

Indian Economy

Indias economic trajectory remains firmly on course, reafirming its position as the worlds fastest-growing major economy. In FY 2024–25, the nation achieved a robust real GDP growth of 6.5%, with the Reserve Bank of India forecasting a similar growth path for FY 2025–26. This sustained momentum despite global headwinds and economic volatility underscores the resilience, depth, and agility of Indias economic framework.

The domestic economic engine continues to draw strength from buoyant consumer demand, supportive inflationary trends, vibrant financial markets, and a strong uptick in outbound trade. Macroeconomic indicators remain healthy, foreign exchange reserves have reached historic highs, the current account deficit stays within manageable bounds, and foreign direct investment flows are accelerating, highlighting enduring global confidence in Indias long-term prospects.

Inflation, which once posed a challenge, has moderated meaningfully. As of May 2025, CPI-based inflation fell to 2.82% year-on-year, its lowest level in over six years, providing much-needed relief to both households and enterprises. Even more notably, food inflation declined to just 0.99%, as per the Consumer Food Price Index (CFPI), reinforcing a broad-based disinflationary trajectory.

Indias export performance is giving a strong push to its growth story. The country is making notable progress in services, high-tech manufacturing, defence, and electronics, steadily expanding its presence in global trade. With a growing industrial base and rising competitiveness, Indias globally connected growth model is playing a key role in driving its economic progress.

Looking ahead to FY 2026, the outlook remains decidedly upbeat. Growth is expected to remain strong, fuelled by improving external conditions and firm domestic fundamentals. Disinflation, investor optimism, and prudent fiscal management are poised to support multi-sector expansion. With sustained focus on advanced manufacturing, digital transformation, and clean energy, India is well-positioned to deliver inclusive, resilient, and sustainable growth in the year to come.

Industry Structure and Development

Indias Media & Entertainment (M&E) sector is undergoing a profound transformation, fuelled by accelerated digitalisation, evolving audience preferences, and the integration of advanced technologies. Traditional boundaries between content creation, distribution, and consumption are rapidly blurring, giving rise to a digitally native ecosystem. As we enter 2025, India is poised to emerge as a global content powerhouse, anchored by innovation, compelling storytelling, and strategic capital deployment.

A defining milestone in 2024 was the ascent of digital media as the leading segment within the M&E landscape, surpassing television to contribute 32% of the sectors total revenue. This shift was propelled by deepening internet penetration, the meteoric rise of Free Ad-Supported Television (FAST) platforms, and the proliferation of creator-led content-collectively positioning India as a dynamic and increasingly global content hub.

The sectors evolution is being further catalysed by increased private equity activity and targeted strategic investments, driving innovation, enhancing platform scalability, and expanding audience reach. Today, the M&E sector resonates across four foundational pillars:

• Informing through trusted news and community engagement

• Entertaining via immersive _ction and non-_ction formats

• Enabling commerce by fusing storytelling with consumer behaviour

• Empowering expression through social platforms, creator ecosystems, and professional networks In 2024, the sector grew by a modest 3.3%, adding INR 81 billion to reach a total market size of INR 2.5 trillion (USD 29.4 billion), contributing 0.73% to Indias GDP. Momentum is expected to build in 2025, with projected growth of 7.2%, reaching INR 2.68 trillion (USD 31.6 billion), and accelerating to INR 3.07 trillion (USD 36.1 billion) by 2027 at a CAGR of 7%.

This upward trajectory not only reflects economic expansion but also signifies the sectors growing cultural and societal relevance, solidifying its role as a cornerstone of Indias digital economy.

							(INR in Billion)
Segment	2019	2022	2023	2024	2025E	2027E	CAGR (2024–2027)
Digital Media	308	571	686	802	903	1104	11.2%
Television	788	726	711	679	676	667	-0.6%
Print	296	250	259	260	262	267	0.9%
Out-of-Home	51	48	54	59	66	79	10.2%

Television

In 2024, linear pay-TV faced notable headwinds, with advertising expenditure falling by 6% and subscription revenue declining by 3%. The segment also witnessed a contraction of approximately six million households. Despite these setbacks, the increasing adoption of free and Connected TV platforms signalled a clear shift in viewing preferences. Encouragingly, the rise in smart TV penetration presents a promising avenue for future recovery and re-engagement with evolving audiences.

Digital Media

Digital media has solidi_ed its position as the largest contributor to Indias Media & Entertainment (M&E) industry, commanding approximately 32% of the sectors total revenue. In 2024, digital advertising surged by 17%, reaching _700 billion, fuelled by the rapid expansion of performance marketing, robust e-commerce activity, and targeted campaigns by small and medium enterprises.

Paid subscriptions also witnessed strong momentum across video, music, and news formats. Video subscriptions grew by 11 million to reach 111 million users, while music streaming subscriptions climbed to 10.5 million, reflecting evolving content consumption habits and a deepening digital footprint nationwide.

Print Media

In 2024, the print segment demonstrated resilience, registering a 1% increase in total revenue, a performance that de_ed global trends of contraction. Growth was primarily driven by premium advertising formats, offsetting a modest decline in subscription revenue and limited digital contribution, which remained below 5% of the segments total. This performance reinforces the enduring relevance of print in Indias diverse media landscape.

Out of Home (OOH)

The Out-of-Home (OOH) advertising segment experienced a solid 10% growth in 2024, driven by increased demand for premium ad placements and the expansion of urban mobility infrastructure. The most notable shift was the remarkable 78% surge in digital OOH, which grew its share from 7% to 12% of total OOH revenues, signalling a transformative shift in format preference and advertiser strategy. From _26 billion in 2021 to _59 billion in 2024, the segment has emerged as one of the fastest-growing pillars within the traditional media landscape, underscoring its renewed relevance in a digitising ecosystem.

PRINT MEDIA Challenges

The Indian print media industry continues to face headwinds on multiple fronts. Circulation and subscription levels have not fully recovered to pre-pandemic numbers. Even as the economy has rebounded, reader habits have shifted, particularly among younger and digitally savvy audiences. The proliferation of smartphones and low data costs has driven over 456 million Indians to consume news digitally, reducing the time spent with newspapers.

Additionally, advertising revenues have stagnated, growing only around 1% in 2024, and remain approximately 14% below 2019 levels. With advertisers increasingly shifting budgets to digital platforms where targeting and measurability are superior, prints traditional business model faces structural pressure. Attracting younger audiences also remains a key concern, as they gravitate towards multimedia and interactive formats rather than traditional print.

Opportunities

Despite the challenges, print media retains several inherent advantages that can be strategically leveraged. It continues to hold strong appeal among premium and affluent demographics, an audience segment highly valued by advertisers. This gives newspapers pricing power and an opportunity to explore premium formats, sponsored content, and niche editorial sections.

There is also a resurgence in demand from certain advertiser segments, such as retail and real estate, particularly in regional markets where print maintains high trust and reach. Furthermore, publishers are actively diversifying their revenue streams beyond print. Many are investing in ancillary businesses like events, digital subscriptions, affiliate marketing, and monetizing content archives, collectively expected to contribute a notable portion of revenues in the years ahead. Print media can also target SME advertisers, who are increasing their media spend faster than larger advertisers, and develop self-serve platforms for them, potentially aided by generative AI tools. Critically, print continues to command a high degree of credibility in an era of widespread misinformation, an asset that remains unmatched in the broader media ecosystem.

Outlook

The outlook for the print media sector in India is cautiously optimistic. While growth may be modest, it is expected to be steady, with overall revenues projected to reach _288 billion by 2026, registering a CAGR of around 3–4%. Advertising revenue is also forecast to grow at approximately 4.7% annually. The future of print lies in hybrid models, bundling traditional newspapers with digital formats like e-papers, newsletters, podcasts, and community events.

Regional and Tier-II/Tier-III markets, where print still holds cultural significance, are likely to drive the next phase of growth. Publishers are also expected to deepen their focus on editorial quality, hyperlocal reporting, lifestyle content, and reader engagement programs to create differentiated value. By reinventing both the product and its positioning, the print sector can continue to remain relevant in a media environment that is rapidly evolving. Ultimately, the report underscores that for print media to maintain its relevance and thrive in the evolving media landscape, "reinvention is the need of the hour."

NEWSPAPER

Challenges

Indias newspaper industry continues to confront formidable challenges amid stagnating advertising and subscription revenues. The broader Print segment recorded a modest 1% revenue increase in 2024, driven largely by premium advertising formats. However, subscription revenue dipped by 1%, and critically, digital monetisation remained limited, contributing less than 5% to overall earnings. These figures underscore a sector grappling with evolving consumer preferences and persistent monetisation barriers.

While India retains a sizeable print readership, consumer migration toward digital news consumption is undeniable. Advertisers are recalibrating their spend toward digital platforms that offer granular targeting and measurable performance. At the same time, fixed costs associated with print production and distribution continue to compress margins. Traditional newspapers now face mounting competition from a rapidly expanding ecosystem of free digital news sources, including aggregators and social media, that deliver real-time content. This shift poses a particular challenge in retaining younger audiences, who are increasingly disengaged from physical media.

Opportunities

Despite these headwinds, the newspaper segment holds multiple avenues for reinvention. Digital monetisation offers a key growth lever, through curated subscription models, tiered paywalls, and premium content formats such as newsletters, explainers, and podcasts.

Local and hyper-local reporting remains a strategic differentiator. Community-focused journalism can deliver unique value that national platforms often overlook. Moreover, the institutional trust commanded by legacy print brands is a powerful asset in an era dominated by misinformation. Investments in investigative reporting and editorial rigor can deepen reader loyalty and reinforce brand credibility. Hybrid advertising packages that integrate print and digital channels also offer expanded reach and value for advertisers.

Qualitatively, the enduring consumer a_nity for physical print remains noteworthy. The perceived value of tangible media creates opportunities for niche publications, curated content bundles, and premium print formats. Leveraging this sentiment through a hybrid strategy can bridge traditional engagement with digital innovation.

Outlook

The trajectory of Indias newspaper industry will likely depend on its ability to adopt a balanced, hybrid approach. While gradual declines in print circulation are expected, strategic investments in digital infrastructure, exclusive content curation, and audience engagement will be central to revenue diversification.

Consolidation within the sector is anticipated, as smaller players align with larger media houses to unlock cost synergies and digital scale. In the long term, newspapers that embrace a digital-first mindset, utilise analytics for content and audience insights, and foster robust subscription ecosystems are poised to remain relevant. The sectors adaptability will determine its evolution from a print-reliant model to a sustainable, multi-platform content provider.

DIGITAL MEDIA Challenges

Despite its expansive reach, digital media continues to face monetisation hurdles. In 2024, digital advertising commanded over 55% of total ad spend, yet translating this reach into sustainable revenue remains complex, hinging on effective paywall strategies and compelling premium content. Subscription growth, while strong, is showing signs of plateauing: paid video subscriptions rose to 111 million, but growth is slowing, and paid news and audio services remain underpenetrated with only a few million users.

News consumption is increasingly moving to online video and text, with youth consuming news on social and other digital platforms. This shift necessitates news media to rethink their content, monetization, and measurement strategies. Content needs to be created in multi-format and multimedia, tailored for younger audiences and different segments, moving beyond traditional formats. For news subscriptions, similar to music, the presence of numerous free alternatives limits the growth of the paid subscriber base.

Opportunities

Digital media continues to redefine Indias M&E landscape. In 2024, it overtook television to become the industrys largest segment, contributing 32% of overall revenue (_80,200 crore) and over half of total ad spend. This shift is propelled by an ecosystem of rapid smartphone adoption, expanding broadband access, low data costs, and rising connected TV usage. With 562 million active smartphone users and 945 million broadband subscribers, India is on track to surpass 910 million digital screens by 2030. Indias mobile-first dominance means a significant portion of time is spent on mobile phone apps related to entertainment and media. Mobile news aggregators are rapidly growing and are primary news sources for Indian users, who prefer watching news over reading.

The sectors revenue potential is vast: digital advertising is projected to cross _1 trillion by 2026, while total digital media revenues could reach _110,400 crore (~USD 13 billion) by 2027. A key enabler of this growth is AI and automation. According to EY, AI-driven enhancements could elevate media revenues by up to 10%, reduce operating costs by 15%, and enhance content localisation, personalised recommendations, and targeted advertising, giving platforms a strategic edge in user experience and monetisation. Publishers are investing in digital technology to broaden newspapers appeal and remain relevant, including redeveloping newsletters and incorporating more paywalled content, which has shown to increase engagement and subscriptions. Further, Publishers are focusing on increasing physical newspaper utility through hyper-local content and community initiatives, which can be extended to digital platforms

Outlook

Digital media is firmly positioned as the growth engine of Indian M&E. It is expected to contribute over half of the industrys absolute expansion through 2027, with a CAGR of 7–8% and an anticipated outperformance relative to the broader market. Notably, it is likely to become the first segment in the industry to cross _1 trillion in advertising revenues by 2026. Also, while news subscriptions remained at 3.1 million in 2024, the EY report indicates a focus on growing subscription revenues across the M&E sector, suggesting potential for news media to expand their paid digital offerings. Nonetheless, news media will need to continuously rethink their monetization and measurement strategies to adapt to the evolving digital landscape, including exploring new business models, strategic alliances, and industry consolidation.

As the market matures, consolidation will play a central role in scaling efficiencies and expanding capabilities. M&A activity rose 9.5? in 2024, with nine transactions exceeding _500 crore, marking the beginning of a structural shift in platform strategies. AI integration is set to redefine content delivery and monetisation models through features such as dynamic ad inserts, automated dubbing and subtitling, and hyper-personalised subscriber journeys. At the same time, emerging concerns around IP rights, ethics, and data privacy will demand proactive governance and strategic foresight.

TELEVISION Challenges

Indias linear television sector continues to face sustained revenue pressure for a second consecutive year. In 2024, advertising spends declined by approximately 6%, while subscription revenues slipped by around 3%, primarily due to the loss of six million pay-TV households. This shift directly impacts the traditional revenue and viewership models of regional TV news channels. Although overall viewership has remained largely stable, advertiser priorities have shifted towards digital and Connected TV platforms, resulting in lower ad volumes. The decline from 151 million pay-TV subscribers in 2018 to 111 million in 2024 underscores the structural erosion of traditional television ecosystems.

The industry witnessed a watershed moment in 2024 as digital media overtook television to become the largest segment in Indias Media & Entertainment (M&E) sector. Television, by contrast, registered a marginal contraction of -0.6% during the year. The proliferation of smart TVs and expanding broadband connectivity has accelerated the consumer pivot toward digital-first, on-demand, and personalised content, highlighting a fundamental shift in content consumption patterns.

The rapid rise of Over-The-Top (OTT) platforms and Free Ad-Supported Television (FAST) channels intensi_es competition for viewership and advertising revenue. Regional news channels must compete with a vast array of digital content, both national and international. Audiences, particularly younger demographics, are increasingly consuming news through online video, text, and social media platforms. This necessitates a fundamental rethink of content creation, distribution, and monetization strategies for regional channels accustomed to linear broadcasting.

Opportunities

Despite systemic challenges, television still presents notable opportunities for transformation and growth. A standout area is the rapid expansion of Connected TV (CTV), with CTV households rising from 23 million in 2023 to 30 million in 2024 and projected to reach 48 million by 2027. There is a significant and increasing adoption of regional content, indicating a strong audience base interested in local news and affairs. This presents a key opportunity for regional TV news channels to leverage their existing brand and to deliver digital-grade experiences on large screens, unlocking targeted advertising and interactive content formats that mirror the precision of digital platforms.

The growing adoption of Free Ad-Supported TV (FAST) channels offers another promising avenue. By delivering cost-free, advertiser-supported content, broadcasters can engage cost-conscious audiences while diversifying monetisation beyond subscription-based models.

Additionally, localised and thematic programming represents a powerful opportunity. Given Indias rich linguistic and cultural diversity, broadcasters can deepen engagement by offering tailored content for regional audiences, providing advertisers with precision reach and cultivating loyal viewer communities that national digital platforms may struggle to serve. The M&E sector is seeing the co-existence of traditional and new mediums. Regional TV news channels can embrace hybrid models, maintaining their linear presence while aggressively investing in digital platforms to capture a wider, digitally native audience.

Outlook

While legacy TV revenues are forecasted to decline by nearly _12 billion by 2027, the overall television ecosystem retains underlying resilience. The number of TV households is expected to rise modestly, from 190 million in 2024 to 196 million by 2027, largely driven by the expansion of CTV and Free TV offerings. Although pay-TV subscriptions may decline further, dropping to an estimated 95 million by 2027, growth in CTV and Free TV is expected to partly cushion this fall.

While traditional TV faces challenges, regional television, alongside other traditional media, has shown resilience and profitability in India. This suggests that with strategic digital adaptation, regional TV news channels can continue to thrive by catering to the unique demands of their local markets.

Future advertising growth will depend on televisions ability to align with digital imperatives, through data-driven targeting, performance-based formats, and integration with CTV and FAST platforms. Television is evolving into a strategic component of an omni-platform content ecosystem, where legacy linear broadcasts serve as a foundation for hybrid engagement strategies that blend traditional reach with streaming-led agility. To ensure future relevance and growth, regional TV news channels will need to continue their digital transformation, focusing on seamless integration of their linear and digital operations.

OOH (OUT-OF-HOME) Challenges

Indias Out-of-Home (OOH) advertising industry continues on a robust growth path, registering _5,920 crore in revenues during 2024, a year-on-year increase of 10%. However, despite this momentum, the sector faces persistent structural challenges. Regulatory inconsistencies and fragmented governance across municipalities lead to operational ambiguities for advertisers and media owners, particularly around safety and quality standards.

Infrastructural limitations, ranging from poor connectivity to inadequate digital preparedness, constrain the rollout of advanced and interactive formats. Meanwhile, the rapid digitisation of the industry has exposed a widening talent gap in areas such as data analytics, programmatic advertising, and immersive technologies, which hampers full-scale innovation and long-term capability building.

Opportunities

OOH media remained a strong performer in 2024, expanding 10% across traditional and transit formats. Alongside digital media and live events, it was among the leading contributors to the overall 8.1% growth in advertising revenues across Indias M&E sector.

The digital transformation of OOH presents substantial upside. Digital OOH (DOOH) now accounts for ~12% of total OOH revenues (_700 crore in 2024) and is projected to reach 17% by 2027, growing at a CAGR of ~24%. DOOH offers advertisers advanced capabilities, programmatic ad placements, real-time content updates, and hyper-targeted messaging calibrated to variables such as location, time, weather, and audience profile.

Transit media is emerging as a high-value vertical, contributing ~28% to total industry revenues. Within this, airport advertising leads the charge, accounting for over half of transit OOH spend. Simultaneously, the industry is embracing sustainability, with efforts to repurpose vinyl flex materials, adopt solar-powered units, and switch to recyclable alternatives, strengthening its environmental credentials and reducing its ecological footprint.

Outlook

OOH media is expected to sustain its upward trajectory, led by the accelerating adoption of Digital OOH. As part of the traditional media cluster (which includes TV, print, _lm, and radio), OOH is projected to be a meaningful contributor to the 41% share of M&E sector revenue expected from this group by 2027.

With Indias transit infrastructure scaling rapidly, 400 new airports planned by 2047 and over 1,000 km of metro lines under development, transit OOH is set to become an even stronger growth engine. Future revenue expansion will hinge on dynamic ad formats and immersive brand experiences across high-footfall urban locations such as malls, airports, and metro stations, reinforcing OOHs role as a vibrant pillar of Indias evolving media ecosystem.

Company Overview

The Sandesh Limited is a prominent Indian media house, headquartered in Ahmedabad, Gujarat, with a rich history spanning over ten decades. Incorporated on March 11, 1943, the company has evolved from a pioneering newspaper publisher into a diversified media conglomerate with a significant presence across various platforms.

The primary business of The Sandesh Limited revolves around the printing and publishing of newspapers and periodicals. Its flagship product is "SANDESH," a leading Gujarati daily newspaper that holds a strong readership in the Gujarat region.

The Company publishes multiple editions across key cities in Gujarat, including Ahmedabad, Vadodara, Surat, Rajkot, Bhavnagar, and Bhuj.

Currently, the business affairs of The Sandesh Limited are managed by Mr. Falgunbhai C. Patel (Chairman & Managing Director), Mr. Parthiv F. Patel (Managing Director), and Shri Rahoulbhai Shah (Whole-time Director) supported by a professional team of executives.

The Companys enduring legacy is built on a commitment to authentic and neutral journalism, empowering its readers with knowledgeable and analytical news coverage. Its continuous adaptation to the evolving media landscape, from print to digital and broadcast, underscores its forward-thinking approach and dedication to remaining a leading and in_uential media voice in Gujarat.

SWOT Analysis

Strengths	Weaknesses
- Strong regional presence and reader/viewer loyalty in Gujarat	- Geographical concentration in a single State
- Diversified media portfolio: Print, Digital, Broadcast, OOH	- Dependence on print for revenue
- Editorial credibility and journalistic integrity
- Financially sound with robust internal controls
- Proactive digital transformation efforts (Mobile App, e-paper)
Opportunities	Threats
- Rising digital consumption enabling monetisation via ads & subscriptions	- Shift in consumer preference from print to digital
	- Intense competition from national & digital-only media players
- Increasing demand for vernacular and hyperlocal content	- Rising input costs (e.g., newsprint, distribution)
- Growth in OOH advertising, especially in Tier-II/III cities	- Regulatory changes affecting content and advertisement policies
- Use of data analytics to personalise content and ads

Internal Control System & Its Adequacy

The Company maintains a robust framework of internal controls meticulously tailored to the scale and nature of its operations. These controls fully align with all regulatory and statutory mandates, guaranteeing the accurate and timely recording of all transactions and the reliable reporting of financial information.

At the core of the Companys operations is a well-defined risk management framework, seamlessly integrated into its business processes. The Company leverages an Enterprise Resource Planning (ERP) System (SAP) for all accounting functions, enhancing efficiency and data integrity. A prime example of the Companys proactive risk mitigation is its approach to newsprint price fluctuations. It diligently monitors market trends and strategically plans purchases to ensure continuous, efficient operations and optimise profitability.

The Companys comprehensive risk management system is designed to identify, monitor, and control internal enterprise business risks, addressing them with informed and objective strategies. The Board of Directors has formally adopted a Risk Management Policy, which outlines identified risks and their corresponding mitigation plans. This ensures that all potential risks are timely identified, assessed, and effectively mitigated in accordance with the Companys policy.

Further oversight is provided by the Audit Committee of the Board of Directors, which regularly reviews both the internal control system and the internal audit reports prepared by the Companys Internal Auditors. The Company also maintains a robust whistleblower policy for employees to report concerns, and it confirms that no employee was denied access to the Audit Committee or its Chairman during the past year.

Developments on the Human Resources/Industrial Relations Front

The Company views its employees as the fundamental architects of its achievements, rather than mere workers. The company fosters a culture of continuous learning, empowering its human capital to embrace challenges, innovate, and contribute fresh perspectives. This strategic investment in its workforce directly translates into a significant competitive advantage, enabling the company to consistently deliver exceptional results. The collective talent, passion, and collaborative spirit of its people truly distinguish the organisation.

The Companys commitment to employees extends beyond mere recognition; it actively cultivates a work environment that prioritises well-being. This involves making employee-centric decisions designed to mitigate stress and promote a calm atmosphere, all while steadfastly ensuring the health and safety of its entire team. Furthermore, the company is unreservedly dedicated to upholding the highest standards of conduct, strictly adhering to the PoSH Act, 2013, to foster a safe and respectful environment for every individual.

As of March 31, 2025, the Company proudly employs 442 dedicated and highly motivated individuals. Their unwavering commitment and contributions are pivotal to the organisations sustained growth, development, and profitability, as well as to their own professional advancement, a testament to the companys employee-friendly HR policies and favourable working conditions.

Discussions of Financial Performance with Respect to Operational Performance Summary Financial Information

				( in Lakhs)
	Standalone		Consolidated
Particulars	2024-25	2023-24	2024-25	2023-24
Revenue from Operations	29,234.32	32,018.84	29,418.38	32,208.83
Other Income	3,705.56	16,552.37	3,729.94	16,577.96
Total Revenue	32,939.88	48,571.21	33,148.32	48,786.79
Operating Expenditure (excl. Depreciation & Finance Cost)	22,345.43	23,820.19	22,574.70	24,032.51
EBITDA	10,594.45	24,751.02	10,573.62	24,754.28
EBITDA Margin	32.16%	50.96%	31.90%	50.74%
Finance Cost	20.36	25.67	20.36	25.67
Depreciation & Amortisation Expenses	722.31	650.16	732.02	662.75
Total Expenditure	23,088.10	24,496.02	23,327.08	24,720.93
Exceptional Item	47.49	12.63	47.49	12.63
Profit Before Tax	9,899.27	24,087.82	9,868.73	24,078.49
Tax Expenses (Current, Deferred & Other Tax Expenses)	2,153.61	5,218.63	2,156.58	5,219.92
Profit After Tax	7,745.66	18,869.19	7,712.15	18,858.57
PAT Margin	23.51%	38.85%	23.27%	38.66%
Dividend (% of Paid-up Share Capital)	25%	50%	N.A.	N.A.

Summary Financial Ratio

Summary Financial Ratio
Particulars	2024–25	2023–24	% Change	Reasons for Change
Debtors Turnover (times)	6.29	7.31	-14.05	--
Inventory Turnover (times)	11.81	16.33	-27.70	The ratio declined due to an increase in average inventory and a decrease in sales during the current year compared to the previous financial year.
Interest Coverage Ratio (times)	--	--	--	There is no borrowing, and hence, this ratio is not applicable.
Current Ratio (times)	19.38	17.57	10.3	--
Debt Equity Ratio (times)	--	--	--	There is no borrowing, and hence, this ratio is not applicable.
Return on Capital Employed (%)	7.49	20.73	-63.86	The ratio declined due to a significant decrease in unrealised gains of the investments during the year compared to the previous financial year.
Operating Profit Margin (%)	33.77	75.27	-55.13	The ratio declined due to a significant decrease in unrealised gains of the investments during the year compared to the previous financial year.
Net Profit Margin (%)	26.50	58.93%	-55.04	The ratio declined due to a significant Decrease in unrealised gain of the investments during the year as compared to the previous financial year.
Return on Net Worth (%)	5.94	16.34%	-63.65	The ratio declined due to a significant Decrease in unrealised gain of the investments during the year as compared to the previous financial year.

Risk Management

In an evolving and increasingly complex business environment, effective risk management is crucial to sustaining long-term growth and resilience. The Company adopts a proactive and structured approach to identifying, assessing, and mitigating potential risks that may impact its operations, reputation, or financial performance. By integrating risk management into strategic planning and daily operations, the Company ensures agility in responding to uncertainties while safeguarding stakeholder value.

Regular monitoring, robust internal controls, and a strong governance framework underpin the Companys risk management practices, enabling informed decision-making and fostering a culture of accountability and preparedness. Some of the key risks and their mitigation strategies are discussed below:

Competition Risk

National media outlets are increasingly expanding their coverage to include local news, directly competing with local news organizations for the same audience. This trend poses a significant challenge as larger outlets often have more resources, broader reach, and established brand recognition, potentially drawing readers away from local publications. The competition extends to both traditional and digital platforms, making it harder for local entities to maintain their unique position and audience share.

Mitigation Strategy

To counteract this, the Company differentiates itself by delivering in-depth, high-quality coverage that is meticulously tailored to specific local topics and communities. Unlike national outlets that might offer a glance at local events, the Company focuses on relevant local issues, providing a level of detail, context, and nuance that national competitors cannot match. This hyper-local focus ensures that the content remains relevant and valuable to the community, fostering a loyal readership that seeks comprehensive local insights.

Independence Risk

The integrity of editorial independence is a critical concern, as external pressures from advertisers, political entities, or special interest groups could potentially compromise it. Such compromises risk leading to biased content, which can severely erode public trust and damage the Companys credibility. Maintaining a neutral and objective stance is paramount for a news organization, and any perceived deviation can have long-lasting negative impacts on its reputation and readership.

Mitigation Strategy

The Company upholds strict ethical journalism standards as a foundational principle. This involves a commitment to avoiding sensationalism and ensuring that all content remains balanced, accurate, and thoroughly researched. Robust editorial guidelines are in place to prevent undue influence, and a culture of journalistic integrity is fostered among all staff. This steadfast adherence to ethical practices reinforces the Companys commitment to unbiased reporting, thereby safeguarding its credibility and public trust.

Financial Risk

The financial performance of the Company is inherently susceptible to fluctuations in local economic conditions. A downturn in the local economy can lead to reduced advertising spending, lower consumer disposable income affecting subscriptions, and overall decreased revenue. This vulnerability necessitates a robust financial strategy to ensure sustainability, especially given the dynamic nature of the media industry.

Mitigation Strategy

To maintain financial resilience, the Company employs a diversified revenue model. . By not relying on a single revenue stream, the Company mitigates the impact of a downturn in any one area. This multi-faceted approach provides a stable financial foundation, allowing the Company to navigate economic uncertainties more effectively.

Regulatory and Compliance Risk

The media landscape is subject to evolving government regulations, including media-related laws, content guidelines, and advertising codes. Changes in these regulations can significantly impact the Companys operations, requiring adjustments in content creation, distribution, and business practices. Non-compliance can lead to legal penalties, fines, and reputational damage.

Mitigation Strategy

A dedicated legal and compliance team is in place to proactively monitor policy developments and ensure timely adherence to all relevant regulations. The Company stays abreast of legislative changes and advises the concerned teams on necessary operational adjustments. Furthermore, regular training sessions are conducted for both editorial and business staff to keep them informed about current regulations and compliance requirements, fostering a culture of legal awareness and responsibility throughout the organization.

Technology Risk

The rapid evolution of technology demands constant upgrades in digital infrastructure and platforms for media organizations to remain relevant and competitive. Failure to adapt to new technological advancements can lead to outdated delivery methods, diminished audience engagement, and loss of market share to more technologically agile competitors. This necessitates continuous investment and strategic planning in technological adoption.

Mitigation Strategy

The Company is committed to staying ahead of technological advancements by actively adopting modern digital tools for content creation, distribution, and audience interaction. This includes investing in analytics tools and interactive digital features. By actively monitoring technological developments and integrating new solutions, the Company ensures its platforms remain current, engaging, and efficient, thereby maintaining its relevance in the digital age.

Reputation Risk

The Companys reputation is vulnerable to local disputes or the spread of misinformation, which can significantly affect public perception and trust. In an era of rapid information dissemination, false narratives or controversies can quickly tarnish a brand built on credibility, leading to a loss of readership and community support.

Mitigation Strategy

With a legacy spanning over 100 years, the Company has cultivated a deeply trusted brand rooted in credibility and consistent community engagement. This long-standing history serves as a strong bu_er against reputational threats. The Company reinforces public trust through consistent excellence in reporting, active participation in community initiatives, and transparent communication, leveraging its established reputation to counter misinformation and maintain its esteemed position within the community.

Accounting Treatment & Cautionary Statement

During the reporting period, there has been no deviation from the accounting treatments prescribed under the applicable Accounting Standards. The financial statements have been prepared in compliance with the prescribed standards, and no alternative treatment has been adopted.

This discussion and analysis contain forward-looking statements that are subject to risks and uncertainties. The Company assumes no obligation to publicly update or revise these statements, whether as a result of new information, future developments, or otherwise. Actual outcomes, including financial results, performance, or achievements, may differ materially from those anticipated or implied. Information presented in this report has been sourced from publicly available materials. Any inaccuracies or discrepancies in such details are entirely unintentional and incidental. Readers are advised not to place undue reliance on forward-looking statements, which reflect the Companys views only as of the date of this document. This discussion should be read in conjunction with the Companys audited financial statements and accompanying notes, as presented herein.