Indian Macroeconomics scenario
(Source- FICCI report on Media & Entertainment dated April23)
India is expected to remain a bright spot amid the global growth
slowdown.
The National Statistical Office (NSO) estimated Indias real GDP
growth at 7.0% in FY23, as compared to 9.1% in FY22. Growth in FY22 was high partly due to
a favorable base effect on account of a contraction of (-)5.7% in the Covid year of FY21
The IMF in its January 2023 issue of the World Economic Outlook Update
has projected Indias growth to dip transitorily to 6.1% in FY23 before improving to
6.8% in FY24. Despite this, India is projected to remain the fastest growing major economy
in the world. In comparison, the world economy is forecasted to slow down to 2.9% in 2023
from 3.4% in 2022
Indias FY24 growth is projected to exceed global as well as
Emerging Market and Developing Economy growth by 2.1% points and 3.2% points,
respectively. It is projected to outpace Chinas growth by 0.9% points India is
expected to contribute 15% of global growth in 2023
The IMF has attributed this primarily to Indias efforts towards
digitalization, and a strong policy framework
In particular, the 2023 (FY24) Union Budget has signaled a resumption
of fiscal consolidation while boosting capital expenditures, and an increasing emphasis on
transitioning to a green economy
These measures would enable laying down a strong foundation for a
robust medium-term growth India is expected to remain the fifth largest economy in 2024
(FY25)
According to IMFs World Economic Outlook (October 2022), India
overtook the UK as the fifth largest economy in nominal US$ market exchange rate terms in
2022 (FY23)
In 2024 (FY25), Indias nominal GDP at market exchange rate is
estimated at US$4,170 billion, accounting for 3.6% of global GDP, ranking fifth among all
economies
In purchasing power parity (PPP) terms, India is estimated to be the
third largest economy at PPP$13,973 billion in 2024 (FY25)
Media and Entertainment Industry
As the calendar turns to 2023, M&E leaders are taking decisive
action to achieve ambitious growth plans and position their companies for future success
as the industry continues its ever-evolving transformation. The business of content
creation, distribution, advertising, and monetization is more fluid and uncertain than
ever before, and media companies are racing to adapt. Here are five trends in the M&E
sector to watch in the year ahead as competition intensifies and the stakes rise.
Market Dynamics
The Indian M&E sector continued its strong growth trajectory. It
grew by INR348 billion (19.9%) to reach INR2.1 trillion (US$26.2 billion), 10% above its
pre-pandemic 2019 levels
While television remained the largest segment, digital media cemented
its position as a strong number two segment, followed by a resurgent print
The filmed entertainment segment recovered as theatrical releases
doubled, and reclaimed the fourth position overtaking online gaming
The share of traditional media (television, print, filmed
entertainment, OOH, music, radio) stood at 58% of M&E sector revenues in 2022, down
from 71% in 2019
We expect the M&E sector to grow 11.5% in 2023 to reach INR2.34
trillion (US$29.2 billion), then grow at a CAGR of 10% to reach INR2.83 trillion (US$35.4
billion) by 2025
Except for TV subscription, all M&E segments grew in 2022
Digital media grew the most at INR132 billion and consequently,
increased its contribution to the M&E sector from 16% in 2019 to 27% in 2022. If one
were to include data charges associated with digital consumption in sizing, its share
would stand at 50% of the total M&E sector.
Experiential (outside the home) segments recovered in 2022, and
consequently, filmed entertainment and live events segments recovered by INR79 and INR41
billion, respectively
Overall, half the growth was driven by traditional media, and the
balance by digital, online gaming and VFX segments
Television Television advertising grew 2% to end 2022 just behind its
2019 levels, on the back of volume growth. Subscription revenue continued to fall for the
third year in a row, experiencing a 4% de-growth due to a reduction of five million pay TV
homes and stagnant consumer-end ARPUs. While linear viewership declined 7% over 2021, 8 to
10 million smart TVs connected to the internet each day, up from around 5 million in 2021.
Digital advertising Digital advertising grew 30% to reach INR499
billion, or 48% of total advertising revenues. Included in this is advertising by SME and
long-tail advertisers of INR180 billion and advertising earned by e-commerce platforms of
INR70 billion
Digital subscription Digital subscription grew 27% to reach INR72
billion. 99 million paid video subscriptions across almost 45 million Indian households
generated INR68 billion, an amount which is over 60% of broadcasters share of TV
subscription revenues. Due to a plethora of free audio options, just 4 to 5 million
consumers bought music subscriptions, generating INR2.2 billion while online news
subscriptions generated INR1.2 billion
Government Initiatives
Source- https://www.ibef.org/industry/media-entertainment-india)
In April 2023, Prime Minister Mr. Narendra Modi commissioned Low Power
FM Transmitters of capacity of 100 watt at 91 locations. These transmitters have been
installed in 84 districts of 20 states. With this, the network of transmitters with All
India Radio has increased from 524 to 615. The addition will further boost the coverage of
AIR to 73.5% of the population of the country.
A partnership was announced in April, 2023 between the Ministry of
Information & Broadcasting and Amazon India in the field of media, entertainment, and
public awareness.
The Government of India has increased the FDI limit from 74% to 100%
In November 2021, the government announced that it is working towards
creating a National Centre of Excellence for AVGC (animation, visual effects, gaming and
comics)
The Telecom Regulatory Authority of India (TRAI) is set to approach the
Ministry of Information and Broadcasting, Government of India, with a request to Fastrack
the recommendations on broadcasting, in an attempt to boost reforms in the broadcasting
sector. The Government of India has agreed to set up National Centre of Excellence for
Animation, Gaming, Visual Effects and Comics industry in Mumbai. The Indian and Canadian
Government have signed an audiovisual co-production deal to enable producers from both the
countries exchange and explore their culture and creativity, respectively.
Growth Outlook
Source- https://www.ibef.org/industry/media-entertainment-india and
FICCI report on M&E dated April23
The Indian M&E industry is on an impressive growth path. The
industry is expected to grow at a much faster rate than the global average rate. This can
be majorly credited to rising incomes, increasing internet penetration and a growing push
toward digital adoption.
The Indian M&E sector powered through to a growth of 20% to reach
INR 2.1 trillion in 2022, which is 10% more than its pre-pandemic levels in 2019. While
Television retained its market size as the largest segment even under 10% growth and 166
million households, digital media with over 30% growth, cemented its position as a strong
No 2. Smart connected TV sets will exceed 40 million daily active users by 2025.
With disruption such as free digital IPL on Jio Cinema, a digital
forward economy has already seen content and data consumption levels reach monumental
proportions by global standards. Indians now consume nearly 20GB data per month on
average, No. 1 in the world already, and expected to reach 46 GB by 2027.
Its an exciting time to be in the M&E business, and it looks
like its only going to get bigger and better as we expect the sector to grow 11.5%
in 2023 to reach INR 2.34 trillion and further grow at a CAGR of 10.5% to reach INR 2.83
trillion by 2025. It would be my dream to see us smash through these forecasts as we grow
exponentially across the entire M&E value chain be it through democratization of the
creator economy or disruption in digital distribution.
In the long run, growth is the M&E industry is expected in retail
advertisement on the back of several players entering the food and beverages segment,
E-commerce gaining more popularity in the country, and domestic companies testing out the
waters. Indias rural regions are expected to be the next regions for growth. India
has also gotten on board with 5G and is already planning for 6G well ahead of the future.
This push towards digital adoption especially in the rural regions will provide
advertisers and publishers with an immense opportunity to capture untapped markets and
help grow Indias media and entertainment industry forward.
Company Profile:
TV Vision Limited, a Sri Adhikari Brothers Enterprise, is engaged in
the TV Channel Broadcasting business. The Company has completed 16 years of pioneering
Indian Media and Entertainment Industry and growing at a rapid rate. The Company has
listed its Equity Shares on Bombay Stock Exchange and National Stock Exchange w.e.f. 15th
September, 2016. The Company has been reporting a decent operating and financial
performance, despite of challenging market situation.
During the fiscal year as a listed Company, the total consolidated
revenue is Rs. 7126.92 lakh. EBITDA is Rs. 23.23 Lakh.
The mainstream broadcasting channels are MASTIII, MAIBOLI, DHAMAAL and
DABANGG. The Company remained focus on enhancing business from existing advertisers as
well as adding new advertisers to widen the client base. The same was evident from repeat
business and higher number of new clients.
Mastiii- the flagship channel from the networks bouquet has
completed 13 years of broadcasting and continues its successful run as the industry leader
with unparalleled consistency in the music genre. The channel has a universal appeal
caters to a variety of music lovers of various age groups becoming the most loved Music
channel in India. The channel understands music lovers and their choices which make it an
undisputed leader in the Music genre for over a decade.
During the year under review, the channel was able to adapt to the
changing viewer habits as well as changes in sample size & demographics and audience
profiling introduced by BARC & still maintain leadership in the 15+ segment. This
shows the strength of the platform as a product.
Unchallenged No. 1 Music & Youth channel for over a year Relative
Viewership Share of Top 5 Channels
The top Marathi Music Channel from our company has enticed viewers like
never before! Its unparalleled dominance over its competitors continues to captivate the
audience. The channel is renowned for its exceptional on-air presentation and
well-coordinated programming across different time slots. Over time, Maiboli has
successfully captured the hearts of Marathi viewers, positioning itself as a formidable
brand, admired by both the audience and advertisers.
One of its popular shows, Filmy Gappa, provides the latest updates on
the Marathi movie industry and features engaging interactions with various Marathi
celebrities. With such captivating content, the channel has evolved into a complete family
entertainer for the region.
Dabangg is one of networks premier regional entertainment
channel. Your company was the first to identify the potential and tap the territory of UP,
Bihar & Jharkhand by providing a channel specifically catering to viewers in this
territory. The Channel is widely distributed in the targeted territory. Localisation of
content with a devotional time band coupled with well timed popular World TV premiers have
seen the channel garner good viewership numbers and command a considerable clout in the
segment. The vision of the channel is vindicated by the fact that the segment is now
attracting prominent players who are in line to make their presence felt. We are treating
this development positively and hope that this leads to increase in market share &
expansion of advertising base made available to this segment. Channel has an extensive
library of exclusive and non-exclusive movies and music content.
Your Companys LC1 channel has been growing in its market from
strength to strength. It has now added film based programming in its presentation which
has led to increase in its performance.
Opportunities & Strength:
Customer Preference: The immense experience of the promoters in the
broadcasting industry has proved to be an added advantage in understanding the taste of
audience and telecasting differentiated contents which are based on consumer behavior.
New Channels to be launched: Growth in number of FTA channels
especially in niche/regional categories will give the Company new opportunities to expand
and create various genres of programming based on demand.
Growing Advertiser Base- Company continuously puts in best possible
efforts to grow its audiences and advertiser base to maximize revenues.
Digital Platforms- Companys effort to expand into digital media
platforms and new age media contents can lead to future growth.
Government Initiatives: The Government is taking various initiatives
that support the M&E industrys growth such as increase in FDI limit from 74 per
cent to 100 per cent in cable and DTH satellite platforms, digitizing the cable industry
to get more institutional funding, and granting industry status to the film industry.
Challenges and Threats:
External Risk:
Competition from other players: Company operates in highly competitive
environment across all its business segments that are subject to innovations, changes and
varying levels of resources available to each player across segment. Failure to remain
ahead of the curve or respond to competition may harm the business.
Differentiated Products: Due to increase in the number of channels the
content broadcasted needs to be unique to attract viewers. Also, with a view to produce
differentiated content, the production cost also increases.
Low Entry Barriers: Vast plethora of channels is available at
viewers disposal which has given rise to increased competition.
Consistency: Consistency of programming quality is essential to
maintain targeted revenues.
Availability of advertisement run time: In order to maintain the
revenue income, the Company continuously needs to have maximum advertisement run time, any
shift in the same may affect directly the revenue of the Company.
Growing viewership of digital mediums: The growing viewership of
digital medium can lead to drop in television viewership which in turn can negatively
affect channel reach and ratings.
Rise in Cost of DD Free Dish: There has been a substantial increase in
cost of channel placement on DD Free Dish DTH which is indispensable for the company. Such
cost escalation can pose a threat to the existence of business.
Internal risk:
Change in Consumer Preference Risks: The Content carried by the Company
on its channels need not appeal to the target audience always as the target audience
preferences are bound to change. The level of creativity required for the audience
targeted varies with the vast options available to the consumers.
Channel Distribution Risk: The Company distributes its channels in the
target market through MSO, DTH, cable operators etc. Any shift in the distribution network
could affect the viewership of the channels.
Technological Risks: Advancement of the technology for creation of the
content and distribution of channel is necessary with the new technologies being adopted
by the competitors.
Regulatory Matters: The business may have a positive or a negative
impact on the revenues in future due to changes in the regulatory framework and tax laws
as compared to the current scenario.
Management continuously monitors and makes efforts to arrest and/or
decline the adverse output of any of these factors.
Consolidated Financials:
Disclosure of Accounting Treatment:
The Financial Statements of the Company for the year ended March 31,
2023 have been prepared in accordance with the Indian Accounting Standards (IND AS)
prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued
thereunder and other accounting principles generally accepted in India and there is no
change in the same.
1. Share Capital:
As on March 31, 2023, the Authorized Share Capital of the Company stood
at Rs. 5,500 lakh divided into 5,499 lakhs comprising of 549.9 lakh Equity Shares of Rs.
10/- each and Rs. 1 lakh comprising of 0.1 lakh Preference Shares of Rs. 10/- each.
As on March 31, 2023, the Paid-up Share Capital of the Company is Rs.
3675 Lakhs divided into Rs. 3674 Lakhs comprising of 367.44 lakhs Equity Shares of Rs.
10/- each full paid-up and Rs. 1 lakh comprising of 0.1 lakh 0.01% Non-Convertible
Non-Cumulative Redeemable Preference Shares of Rs. 10/- each fully paid-up.
Further, the Company has allotted 20,00,000 (Twenty Lakh) Fully
Convertible Warrants convertible into 1 (one) fully paid up Equity Share of the Company
having face value of Rs. 10/- each at an Issue Price (including the warrant subscription
price and the warrant exercise price) of Rs.10/- (Rupees Ten only) each for consideration
in cash, aggregating up to Rs. 2,00,00,000/- (Rupees Two Crores only), during the
aforesaid period.
2. Reserves And Surplus:
The total Reserves and Surplus as at March 31, 2023 amounted to
Rs.(13,138.14) lakh. The reserves include Capital Reserves of Rs. 8,553.05 lakh, Security
Premium Reserve of Rs.1,884.30 lakh, Retained earnings of Rs.(23,546.48) lakh and deficit
as per the statement of Profit and Loss of Rs.(79.01) lakh.
3. Financial Liabilities- Non Current Liability
The Financial Liabilities as at March 31, 2023 amounted to Nil.
4. Financial Liabilities- Current Liability
The Financial Liabilities as at March 31, 2023 amounted Rs.10,700.49
lakh is term loan from banks.
5. Fixed Assets:
Depreciation of Rs.1,880.68 lakh was charged to the statement of Profit
and Loss. The Net Block of Tangible Fixed Assets and Intangible Fixed Assets as on March
31, 2023 was Rs.27.49 lakh and Rs.5,869.33 lakh respectively.
6. Revenues:
The Company earned total revenues of Rs.7,126.92 lakh during the year
ended March 31, 2023 as against Rs.8,025.75 lakh of the previous year ended March 31,
2022.
Critical accounting policies
The principles of revenue recognition are as under:
Revenue from advertisements is recognised on telecast basis and revenue
from sale of program/content rights is recognised when the relevant program/content is
delivered.
Segment wise Performance
The Company is operating in single primary business segment i.e.
Broadcasting. Accordingly, no segment reporting as per Accounting Standard - 17 has been
reported.
Internal Controls and Adequacy of those controls
Adequate systems of internal controls that commensurate with the size
of operation and the nature of business of the Company have been implemented. Risks and
controls are regularly viewed by senior and responsible officers of the company that
assure strict adherence to budgets and effective use of resources. The internal control
systems are implemented to safeguard Companys assets from unauthorized use or
disposition, to provide constant check on cost structure, to provide financial and
accounting controls and implement accounting standards.
Human Resources
Human capital is a very important asset in a media Company. The Company
has a professional and healthy work culture built around strong corporate values. It also
encourages and supports its employees to upgrade their skills on a continual basis. Over
the years, the Company has built up a human resource structure, which has enabled the
Company to grow and take up challenges. The Company has a qualified team of professionals.
As on March 31, 2023, the Company had 91 permanent employees on its
payroll.
Details of significant changes in key financial ratios:
| TVVISION LTD. (standalone) Ratios |
Formula Used |
2022-23 |
2021-22 |
| Debtors |
Turnover Revenue from operations / Average Debtors |
4.31 |
3.85 |
| Inventory |
COGS / Average Inventory Turnover |
112.25 |
64.39 |
| Interest Coverage Ratio |
Earnings before Interest and Tax / Interest Expense |
(13.25) |
(15.01) |
| Current Ratio |
Current Assets / Current Liabilities |
0.14 |
0.16 |
| Debt Equity Ratio |
Debt / Equity |
(1.76) |
(2.67) |
| Operating Profit Margin (%) |
EBITDA / Revenue from operations |
0.01 |
(0.06) |
| Net Profit Margin (%) |
PAT without exceptional items / Revenue from operations |
(0.27) |
(0.39) |
| Return on net worth (%) |
PAT without exceptional items / Total Equity |
0.32 |
0.77 |
Interest Coverage Ratio: Loss for this financial year has reduced which
has resulted in the change of the ratio.
Debt Equity Ratio: The negative Other Equity has increased
substantially as compared to previous year due to losses during current and previous year.
Operating Profit Margin: The loss of the Company has reduced as
compared to previous year due to which there is a change in ratio.
Return on Net Worth: The return on networth is negative, due to loss in
current year & previous year, however since the numerator and denominator both are
negative, the ratio is positive.
Note: Debt Equity Ratios has only long term loan from institutions as a
debts.
Cautionary Statement
Statements in the Management Discussion and Analysis Report describing
the Companys objectives, projections, estimates, expectations may be
“forward-looking statement” within the meaning of applicable securities laws and
regulations. Actual results could differ materially from those expressed or implied.
Important factors that could make a difference to the Companys operations include
economic conditions affecting demand/supply and price conditions in the domestic and
overseas markets in which the Company operates, changes in the Government regulations, tax
laws and other statutes and other incidental factors.
+91-9892691696
