Financials
Demonetisation impacts ZEEL ad revenue for Q3-17
BENGALURU: The Subhash Chandra led content and broadcast player Zee Entertainment Enterprises Limited (ZEEL) reported a small hike of 3.1 percent in advertisement revenue in the quarter ended 31 December 2016 (Q3-17, current quarter) as compared to the corresponding quarter of the previous year (Q3-16). Consolidated revenue from operations (Total Income from Operations or TIO) increased 3.2 percent year-over-year. Though subscription revenue increased 13.7 percent y-o-y, other sales and services declined 35.5 percent and hence pulled down TIO. ZEEL reported consolidated TIO of Rs 1,639.12 crore in Q3-17 as compared to Rs 1,588.12 crore in Q2-16.
Ad revenue in the current quarter was Rs 945.45 crore (58.3 percent of TIO) as compared to Rs 926.39 crore (58.3 percent of TIO) in Q316. Subscription Income in Q3-17 was Rs 593.46 crore (36.2 percent of TIO) and in Q3-16, it was Rs 521.79 crore (32.8 percent of TIO) Other Sales and Services Income in the current quarter was Rs 90.21 crore (5.5 percent of TIO) as compared to Rs 139.94 crore (8.8 percent of TIO) in Q3-16.
ZEEL chairman Chandra said, “Government’s decision to demonetise high value currency had an impact on businesses across sectors. Notwithstanding the short term disruption caused by demonetisation, we believe that it is a step in the right direction. Demonetisation along with implementation of GST and push towards cashless economy would help country’s long term growth.”
ZEEL’s Profit After Tax (PAT) in Q3-17 increased 8.6 percent y-o-y to Rs 250.81 crore (15.3 percent of TIO or margin) from Rs 230.86 crore (14.5 percent margin). Operating Profit (EBIDTA) in the current quarter also increased 19.4 percent y-o-y to Rs 515.79 crore (31.5 percent margin) from Rs 432.16 crore (27/2 percent margin).
Total Expenditure in Q3-17 reduced 2.4 percent to Rs 1,148.23 crore (70.1 percent of TIO) from Rs 1,176.31 crore (74.1 percent of TIO) in Q3-16.
Finance costs in the current quarter reduced 14.7 percent y-o-y to Rs 9.02 crore (0.6 percent of TIO) from Rs 10.57 crore (0.7 percent of TIO) in the corresponding year ago quarter.
Employee benefit expense in Q3-17 increased 13.2 percent to Rs 141.88 crore (8/7 percent of TIO) from Rs 125.34 crore (7.9 percent of TIO) in Q3-16.
The company spent 12.4 percent less towards Advertising and Publicity expense in the current quarter at Rs 104.90 crore (6.4 percent of TIO) as compared to Rs 119.75 crore (7.5 percent of TIO) in Q3-16.
Company speak
Chandra said further, “The result once again demonstrates our commitment towards profitable growth and enhancing shareholders’ wealth. Despite the impact of demonetisation, we have delivered growth in advertising revenues and growth in subscription revenues remained strong. We believe the adverse impact of demonetisation is transient and with a strong portfolio of national and regional channels we are confident of delivering sustainable growth.”
ZEEL managing director and CEO Punit Goenka said, “We are happy to deliver another quarter of strong profit growth in a challenging environment. Despite the impact of demonetisation on our advertising revenues, we have improved our EBITDA margins. This highlights our ability to manage costs to drive profitable growth on a consistent basis.”
Gonka revealed, “Acquisition of broadcasting business of RBNL is in line with our strategy to expand our offering in key genres and focus on regional space. BIG Magic, a comedy channel, will complement our Hindi GEC portfolio. BIG Ganga, the leading Bhojpuri channel, will give us entry into the attractive Bhojpuri market. We are confident that these two channels will benefit immensely from the strength of our network.”
Goenka informed, “The deceleration in our advertising revenue growth during the quarter is largely attributable to demonetisation. Advertisers’ willingness to invest in their brands remains intact. However, the timing of spends has been re-calibrated to an extent to suit the change in dynamics due to demonetisation. As economic situation is normalizing, ad spends have already started moving up from December levels.”
International Business
In its earnings release, ZEEL said that its international business continues to perform strongly driven by global demand for our products. For Q3-17 the international business had total revenue of Rs 253 crore which included Advertisement Revenue of Rs 81.70 crore; subscription Revenue of Rs 111.7 core and other Sales and Services of Rs 59.6 crore.
Note: (1) The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.
(2) All numbers in this report are consolidated unless stated otherwise.
(3) Some of the numbers have been rounded off
MUMBAI: It’s time to brief the markets: Page Industries is showing that even when regulations tighten, it can still keep its footing in the innerwear business. The Bengaluru-based apparel major has reported its financials for the quarter ended 31 December 2025, delivering a performance that remains steady and well put together.
The company’s top line showed plenty of elasticity this quarter. Revenue from operations stretched to Rs 1,38,675.71 lakhs, a healthy jump from the Rs 1,29,085.82 lakhs reported in the preceding quarter. Compared to the same period last year, which stood at Rs 1,31,305.10 lakhs, it’s clear the brand’s grip on the market isn’t loosening. Total income for the quarter, including other finance gains, reached a comfortable Rs 1,39,919.03 lakhs.
However, it wasn’t all smooth silk. The Government of India’s new unified Labour Codes, covering everything from wages to social security, officially kicked in on 21 November 2025. This regulatory shift forced Page Industries to account for a one-time “exceptional item” cost of Rs 3,500.42 lakhs to cover incremental employee benefits and related obligations. Despite this Rs 35-crore legislative snag, the underlying business remained robust. Profit before tax stood at Rs 25,625.35 lakhs after the exceptional hit, and without that one-off cost, the figure would have been a more muscular Rs 29,125.77 lakhs. Net profit for the quarter came in at Rs 18,953.64 lakhs.
Total expenses rose to Rs 1,10,793.26 lakhs, driven largely by raw material consumption of Rs 30,162.65 lakhs and employee benefits of Rs 23,310.66 lakhs. Even so, the company’s operational strength ensured the bottom line remained firmly stitched together.
For shareholders, the news is particularly “fitting.” The Board has declared a third interim dividend for 2025-26 of Rs 125 per equity share. The record date has been set for 11 February 2026, with the payment scheduled on or before 6 March 2026. This follows two previous interim dividends of Rs 150 and Rs 125 declared earlier in the financial year, reinforcing the company’s commitment to sharing the spoils of its success.
Looking at the nine-month stretch ending December 2025, Page Industries has amassed total income of Rs 4,04,090.59 lakhs, with total comprehensive income of Rs 58,231.49 lakhs. While the basic earnings per share for the quarter dipped slightly to Rs 169.93, compared to Rs 183.48 in the same quarter last year, the year-to-date EPS remains a solid Rs 524.57.
Auditors at S.R. Batliboi & Associates LLP have given the results a “limited review” thumbs up, reporting no material misstatements. It seems that, as far as Page Industries is concerned, the business remains as well-constructed as its famous Jockey briefs.
