Financial Performance Highlights

Consolidated Performance (Q2 FY27)

  • Total Revenue: INR 502 crore, representing 5% year-on-year growth
  • EBITDA: INR 88 crore, showing 26% year-on-year growth
  • EBITDA Margin: 17% versus 15% in same period last year
  • PAT: INR 39 crore
  • PAT Margin: Increased from 4% to 8% year-on-year
  • Net Cash Position: INR 930 crore (described as "very healthy")

Print Segment Performance

  • Operating Revenue: INR 386 crore, representing 8% year-on-year growth
  • English Print: 5% year-on-year growth
  • Hindi Print: 11% year-on-year growth
  • Operating EBITDA: Nearly flat with 6% decline primarily due to newsprint costs
  • Circulation Revenue: Remained flat at INR 54 crore (consolidated)
  • Hindi Circulation Revenue: Flat at INR 39 crore (same as last year)

Radio Segment Performance

  • Operating Revenue: INR 25 crore, representing 23% year-on-year decline
  • Rationalization: Results reflect surrendered loss-making stations
  • Profitability: Strengthened after station network rationalization

Digital Operations

  • Performance: Modest sequential improvement in both revenue and profitability
  • Strategy: Focus on leaner portfolio and quality of earnings with emphasis on sustainable and profitable growth

Key Operational Factors

Newsprint Costs

  • Higher newsprint costs industry-wide exerted pressure on margins
  • Costs compounded by rupee depreciation amid global uncertainty
  • Management believes costs have "already peaked out" but timing of downward movement uncertain
  • Rates described as "significantly higher than what they were last year"

Festive Season Impact

  • Shift in festive season by 20 days to Q3 FY27 affected Q2 performance
  • Expected to be captured in third quarter results

Cost Management

  • Employee expense reduction: INR 95 crore vs INR 99 crore (previous quarter) and INR 105 crore (previous year)
  • Company undertaking cost rationalization program on all indirect costs including people
  • Variations attributed to one-off variable payoffs, reversals, or timing differences

Capital Structure and Investments

Other Financial Liabilities

  • INR 555 crore in other financial liabilities (sundry deposits mostly)
  • Related to Ad for Equity (AFE) investments where company receives advances from investee companies
  • Counterpart sits in non-current assets (investments)
  • No one-to-one correlation due to timing differences between investment and advertising burn

Recent Investments

  • Board approved new AFE investments: INR 25 crore, INR 13.51 crore, and INR 50 crore
  • Described as beneficial for future advertisers and investment positions

Shareholding and Governance

Matthew Cyriac Investment

  • Investor now holds close to legally significant 10% stake through his companies
  • Management confirmed ongoing conversations with this substantial shareholder
  • Relationship described as "good conversations" and "cordial"
  • No confirmation of influence on capital allocation decisions
  • Board maintains control over company affairs

Capital Allocation Strategy

  • No current capital allocation decisions happening within the company
  • Previous OTTplay investment did not pan out well
  • Focus remains on creating long-term sustainable value for all shareholders
  • No forward guidance provided on return of capital or new business investments

Segment Outlook

Radio Business Outlook

  • Two-step strategy: (1) surrendered loss-making stations completed, (2) lobbying government for license fee structure review
  • Operating under old GOPA framework with higher license fees than new licenses
  • Government hasn't responded to industry requests yet
  • Expectation: profitability will return "in a big way" once license fee structure changes
  • Current status: business will not slip back into red or suck in more cash

Unallocated Segment

  • INR 12.37 crore loss includes corporate costs, auditor fees, KMP remuneration, and mark-to-market valuation changes
  • Consistent number across quarters with variations due to investment valuation changes
  • Not allocated to business segments as per segment reporting standards

Management Commentary

Chairperson's Statement

  • Company consolidated gains from Q1 and grew consolidated revenue year-on-year with improved profitability
  • Print continued to anchor performance with advertising growth across English and Hindi titles
  • Focus on strengthening core businesses and maintaining financial discipline
  • Emphasis on staying relevant in changing media landscape while balancing audience and shareholder interests

Closing Remarks

  • Third consecutive quarter of good numbers
  • Happy Diwali and season's greetings to all participants