Financials
FM operators demand lower import duty, 8-year tax holiday
|
|
|
|
MUMBAI: Given that the radio industry is still at its infancy and has great employment and media opportunities in the semi-urban and rural markets, the FM operators are expecting a reduction in service tax in the forthcoming Budget 2008.
Since fringe benefit tax is a non-deductible expense, FM industry is looking for a concession in the qualifying rates to radio operators. They feel that would provide a competitive advantage and a boost to the radio Industry. Besides, they are looking for an eight-year tax holiday to FM radio operators.
Big FM COO Tarun Katial said, “Radio broadcasting should be removed from the ambit of service tax, just like print media. Print media is kept outside the ambit of service tax and the same benefit should be extended to radio as well, if we want to establish a level-playing field. If not, the local advantage extended by radio as a medium will diminish. Additionally, radio operators are required to pay licence fees on 4 per cent of gross revenues wherein, gross revenues include service tax, resulting in double taxation.”
The FM industry is stressing reduction of customs duty for import of equipment. This would particularly help FM stations lower their infrastructure costs and positively impact their margins especially in Tier II and III cities as the third phase of FM bidding is coming up.
Radio City CEO and AROI president Apurva Purohit said, “Last year in the budget, the government had reduced the customs duty for import of equipment for the radio industry from 40 to 20 per cent. Given the further expansion of FM stations post phase III later this year, one expects this to be further reduced.”
Likewise, the industry wants the government to look at reducing the excise duties on the items made domestically.
Radio broadcasters feel the current customs duty, countervailing duty (CVD), additional duties and educational cess are too high as the total import duties reach nearly 35 per cent. Nearly all of the capex of setting up studios and transmission infrastructure is incurred on imported items.
Radio Mirchi CEO Prashant Panday said, “Considering that radio projects in the future will come up in small towns (with population between 100000 and 500000), the government should look at totally removing additional duties and educational cess and significantly reducing the CVD on these items.”
Panday feels that the government must allow the loans given by banks to the radio sector (in B, C and D category towns as classified by the Ministry of I&B) to be classified as “priority sector lending.” This will make it easier for potential broadcasters to access funds when setting up radio stations in these small towns.
The government must extend the backward areas benefits to radio stations launched in B, C and D category towns – giving all advantages to radio broadcasters, similar to what other industries enjoy.
Highlights of FM radio‘s Budget 2008 wishlist
- 8-year tax holiday to FM Radio operators. Radio Broadcasting should be removed from the ambit of service tax, just like print media.
- Fringe benefit tax is a non-deductible expense. If a concession in the qualifying rates is provided to radio operators, it would really provide a competitive advantage and a boost to the radio industry.
- The government must look at reducing the total burden of imported equipment. It is well known that nearly all of the capex of setting up studios and transmission infrastructure is incurred on imported items. The current customs duty, CVD, additional duties and educational cess are too high – total import duties reach nearly 35 per cent.
- Likewise, the government must look at reducing the excise duties on the items made domestically.
- The government must allow the loans given by banks to the radio sector (in B, C and D category towns as classified by the I&B ministry) to be classified as “priority sector lending.” This will make it easier for potential broadcasters to access funds when setting up radio stations in these small towns.
- The government must extend the backward areas benefits to radio stations launched in B, C and D category towns – giving all advantages to radio broadcasters that are given to other industries.
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.
