News Broadcasting
NDTV PAT up on lower expenses despite revenue drop
BENGALURU: The Prannoy and Radhika Roy-led Indian media house New Delhi Television Ltd (NDTV) reported 6.4 percent lower consolidated revenue from operations for the year ended 31 March 2020 (FY 2020, year under review) as compared to the previous year FY 2019. The company however reported more than double consolidated (grew 145.8 percent) net profit after tax or PAT for FY 2020 as compared to the previous year. Reported consolidated revenues for FY 2020 and FY 2019 were Rs 373.17 crore and Rs 398.73 crore respectively. PAT for the year was Rs 27.92 crore as compared to Rs 11.36 crore for the previous year. All figures mentioned in this paper are consolidated unless stated otherwise.
Total income including other revenue for FY 2020 declined 7 percent to Rs 392.97 crore from Rs 422.36 crore in FY 2019. Calculated operating profit or EBITDA for the year under consideration was 8.2 percent higher at Rs 52.78 crore (14.1 percent margin) as compared to Rs 48.80 crore for FY 2019.
The company has been paring expenses – consolidated Total expenses for FY 2020 declined 8.6 percent to Rs 356.08 crore from Rs 389.73 crore in the previous fiscal. Production expenses and cost of services in FY 2020 declined 0.9 percent to Rs 88.53 crore from Rs 89.37 crore in FY 2019. Employee Benefits Expenses in FY 2020 were 14.4 percent lower at Rs 119.33 crore as compared to Rs 139.46 crore in FY 2019. Finance costs declined 10.8 percent during the year under review declined 10.8 percent to Rs 24.87 crore from Rs 27.88 crore. Operating and administrative expenses for FY 2020 fell 4.3 percent to Rs 72.54 crore from Rs 75.83 crore. Marketing, distribution and promotional expenses for FY 2020 were 11.7 percent lower at Rs 39.99 crore as compared to Rs 42.73 crore in the previous year.
NDTV has two segments – Television, media and related operations; and Retail/E-Commerce. Television segment operating revenue declined six percent in FY 2020 to Rs 368.83 crore from Rs 392.36 crore in FY 2019. NDTV reported 12.4 percent decline in operating profit before exceptional items, share in profit/ (loss) of associate/ joint ventures, interest and tax to Rs 64.01 crore in FY 2020 from Rs 73.03 crore.
NDTV reported 38.7 percent fall in operating revenue for its Retail/E-Commerce segment in FY 2020 to Rs 7.04 crore from Rs 11.49 crore in FY 2019. The segment’s loss for the fiscal under review declined to Rs 2.25 crore in FY 2020 from a loss of Rs 12.52 crore in the previous year.
Excerpts from the notes that the company has mentioned in its financial statements
New Delhi Television Ltd, the television arm of the group, has earned Profit after tax of Rs 752 lakh (RS 7.52 crore) during the quarter ended 31 March 2020 as against profit of Rs 804 lakh (RS 8.04 crore) during the corresponding quarter ended 31 March 2019. As of 31 March 2020, New Delhi Television Ltd’s, the television arm of the group, current liabilities exceed its current assets by Rs 8,274 lakh (Rs 82.74 crore). The television arm of the group, New Delhi Television Ltd’s ability to continue as a going concern is significantly dependent on meeting its long term and short-term working capital requirements, ability to pay overdue payables, management’s implementation of initiatives like rationalising costs, initiatives to improve advertising revenue which are under pressure, negotiating extended credit terms with suppliers and lenders, sale/divestment of non-core businesses and building efficiencies in collections. Based on current business plans and projections prepared by the management, New Delhi Television Ltd expects improvement in operations with better operational efficiencies. The company has proposed to sell a subsidiary, proceeds of which will positively impact the cash flow for New Delhi Television Ltd and the company also has tax receivable of Rs 12,322 lakh (Rs 123.22 crore) as at 31 March 2020. The material nature of the aforesaid matters, may have material adverse impact on future plans of the company. However, management, based on their understanding of the overall business and the planned strategies, believes that the company will be able to meet its contractual obligations and liabilities that fall due in the near future. Accordingly, the financial statements have been prepared on going concern basis.
News Broadcasting
Rajesh Sundaram joins NDTV Profit as senior editor, assignment
The 32-year newsroom veteran has launched channels on three continents and covered everything from 9/11 to South African television
MUMBAI: NDTV Profit has bolstered its newsroom with a hire who has done rather more than most. Rajesh Sundaram, a journalist with over three decades of editorial, managerial and consultative experience across India and international markets, joins as senior editor, assignment, tasked with sharpening the network’s newsgathering and real-time response.
Sundaram’s career reads like a tour of Indian media’s most formative moments. He began at Businessworld in 1994, moved to Zee News as bureau chief across Mumbai and Chennai, then joined NDTV in 2002 as part of its political bureau during a particularly febrile period in Indian politics. A stint as India correspondent for Al Jazeera International followed, where he covered key geopolitical developments and got his first serious taste of the global newsroom.
What sets Sundaram apart, however, is his serial channel-launching habit. At NewsX, he helped get the operation off the ground. At Headlines Today, part of the India Today Group, he served as editor. At News Nation, he helped launch the Hindi news channel and its digital ecosystem. He then crossed continents to lead the launch of ANN7 in South Africa as editor-in-chief, overseeing both television and digital. Back in India, he launched Tamil news channels News7 Tamil and Cauvery News, and later served as principal consultant for the launch of Marathi channel Lokshahi. Most recently, he helped build and lead the Press Trust of India’s video service and content studio, before stints consulting for Business Today and The Himalayan Times.
Rahul Kanwal, chief executive and editor-in-chief of NDTV, left little doubt about what Sundaram is expected to deliver. “The assignment desk is where a newsroom’s intent becomes action,” he said. “Rajesh brings a rare combination of field experience and leadership in building news operations at scale.”
Sundaram has reported from across India and the world, covering elections, civil conflicts, the aftermath of the 9/11 attacks and the 2008 US presidential election.
At NDTV Profit, he will lead the assignment desk, driving editorial coordination and real-time response across markets and breaking developments. For a business news network sharpening its focus on speed and multi-platform delivery, it has hired a man who has built newsrooms from scratch on three continents. The assignment desk is in good hands.
