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D B Corp Ltd Management Discussions

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Dec 26, 2024|03:31:10 PM

D B Corp Ltd Share Price Management Discussions

Indian Economy:

India is projected to become the third-largest economy in the world between fiscal 2025 and 2031. According to IMFs World Economic Outlook (October 2023), India overtook the UK as the fifth-largest economy in nominal US$ market exchange rate terms in 2021 (FY 2022). It is projected to become the worlds third-largest economy by 2027 (FY 2028), crossing Germany and Japan. The IMF, in its January 2024 issue of the World Economic Outlook Update, has forecasted Indias growth at 6.7% in FY 2024, stabilising at 6.5% over the next two years. The National Statistical Office (NSO) has estimated India to continue showing a strong real GDP growth at 7.3% in FY 2024, as compared to 7.2% in FY 2023. This robust performance has been delivered largely by investment growth led by the GoIs emphasis on capital expenditure. Indias 2024 (FY 2025) growth is projected to be 2.1 times global growth and 1.6 times EMDE growth in this year. It is also projected to outpace Chinas growth by 1.9% points

GDP 2024

Country

Nominal (US$ billion) Nominal Rank PPP (US$ billion)

Rank

United States

27,967 1 27,967

2

China

18,560 2 35,043

1

Germany

4,701 3 5,715

5

Japan

4,286 4 6,711

4

India

4,105 5 14,261

3

United Kingdom

3,588 6 3,985

10

France

3,183 7 4,010

9

Source (basic data): IMF World Economic Outlook October 2023

In 2024 (FY 2025), Indias nominal GDP at market exchange rate is estimated at US$ 4.1 trillion, accounting for 3.7% of global GDP. In purchasing power parity (PPP) terms, India is estimated to be the third-largest economy at PPP US$ 14,261 billion in 2024 (FY 2025). Based on CRISILs expectation of average annual growth of 6.7%, the size of Indian economy will inch closer to the US$ 7 trillion mark at that point. Emerging sectors such as electric vehicles (EVs), semiconductors and electronics will dominate investments, driven by market dynamics and global supply-chain diversification. CRISIL MI&A Consulting expects aggregate infrastructure capex to double by 2030 from ~ 67 lakh crore during fiscals 2017-2023 to ~ 143 lakh crore during fiscals 2024-2030. Manufacturing sector to touch 20% of GDP by fiscal 2031against current 17%. Manufacturing and services to grow 9.1% and 6.9%, respectively, between fiscals 2025 and 2031. Indias large population automatically makes it a large market. Demographically, India has the largest young population among major global economies and is expected to add ~ 70 million to the workforce (15-64 age groups) between 2023 and 2030. Indias rise from the lower middle-income level at present to the upper middle-income level by fiscal 2031 will improve the quality of consumption, with increasing demand for discretionary goods. Some 94% of Indias villages (with a population of 100 and above) are now electrified, implying that the "big problems" have been largely resolved. According to PRICE, the middle class now represents 31% of the population, and will be 38% by 2031 and 60% (crossing one billion people) by 2047. It estimates the middle-income segment will total nearly 263 million households in 2046-47, up from 165 million in 2030-31and 91 million in 2020-21.

Source (basic data): IMF World Economic Outlook October 2023; IMF World Economic Outlook January 2024 update Notes: (1) For India, a year represents the fiscal year. For instance, the year 2020 refers to the fiscal year 2020-21. (3) Growth for 2024 and 2025 are as per projections by the IMF (January 2024)

Media & Entertainment Sector

Indias media and entertainment industry tends to outpace the nations GDP growth. While traditional media, such as television, print and radio, continue to dominate the market reaching 800 and 400 million consumers respectively, digital has truly caught up, recording a reach of 600 million. What is clear from 2023 is that digital is not eating away share from the other mediums but is additive to the industry. Print segment is expected to grow to _288 billion by 2026, at a CAGR of 3.4%. Despite this digital boom, traditional media is also experiencing steady growth and thus India is a "Linear and Digital Market" rather than "Linear or Digital Market". Indian M&E sector grew over 8% in 2023 to cross _2.3 trillion, outpacing that of many developed countries. We expect the M&E sector to grow 10.2% to reach _2.55 trillion by 2024, then grow at a CAGR of 10% to reach _3.08 trillion by 2026. The share of traditional media (television, print, filmed entertainment, live events, OOH, music, radio) stood at 57% of M&E sector revenues in 2023. Nominal GDP growth is expected to be 10.5% for FY 2025 (2024) and advertising is expected to outpace that based on past trends. Advertising now constitutes 0.33% of Indias GDP, much lower than developed large markets, which are all between 0.6% and 1%.

2019 2022 2023 2024E 2026E CAGR 2023- 2026

Television

787 709 696 718 766 3.20%

Digital media

308 571 654 751 955 13.50%

Print

296 250 260 271 288 3.40%

 

2019

2022 2023 2024E 2026E CAGR 2023- 2026

Online gaming

65

181 220 269 380 20.70%

Filmed entertainment

191

172 197 207 238 6.50%

Animation and VFX

95

107 114 132 185 17.50%

Live events

83

73 88 107 143 17.60%

Out of Home media

39

37 42 47 54 9.30%

Music

15

22 24 28 37 14.70%

Radio

31

21 23 24 27 6.60%

Total

1,910

2,144 2,317 2,553 3,081 10.00%

Growth

21% 8% 10%

Outlook

Over the next three years, the Indian M&E sector is projected to achieve a compound annual growth rate (CAGR) of 10%, contributing an additional _763 billion to the economy. Assuming Indias GDP maintains a growth rate of at least 7%, all segments are expected to expand, barring unexpected circumstances.

The print segment grew by 4% in 2023 and is expected to grow at a CAGR of 3.4% until 2026. This growth will propel print to

_288 billion, driven by premium advertising targeting hard-to-reach affluent audiences, as well as cover price increases in certain markets. Print companies will continue to focus on enhancing the core print product to increase its utility and appeal to loyal audiences. Meanwhile, publishers digital initiatives will evolve into a separate enterprise that extends beyond news. Despite the availability of multiple information channels, newspaper brands maintain the highest level of trust among readers. Readers desire for in-depth content, multiple perspectives, explanations, and analysis is driving them to seek out credible and unbiased mediums.

COVID-19 levels, while advertising in Hindi and regional language publications recovered to around 93%. Advertising accounted for 67% of total print segment revenues. Auto, FMCG, Real Esate, Education and Government were the largest contributors to print revenue. Government ad spends, both at state and national levels, were initially low, but with elections approaching, spending is gradually increasing. Hindi continued as the largest contributor to ad volumes, given it has the largest reach of any language in India

Share

Rank Publication

2022 2023

Language

1 Hindi

38% 38%

2 English

26% 27%

3 Marathi

9% 8%

4 Telugu

5% 6%

5 Tamil

5% 5%

6 Kannada

5% 5%

7 Gujarati

3% 3%

8 Malayalam

3% 3%

9 Oriya

2% 2%

10 Bengali

1% 1%

Others

7% 8%

Total

100% 100%

_billion (gross of taxes) : EY estimates

Publishers either maintained or increased cover prices in 2023. Revenues of Indian language publications increased by 2%.

Outlook

Print segment can grow to _288 billion by 2026, at a CAGR of 3.4%. Advertising will grow at a 4.7% CAGR, driven by access to increasingly elusive affluent audiences and premium inventory formats. Soft newsprint prices will help news companies improve margins, which can enable them to re-invest in growing circulation through schemes and bundling. Two years back, the newsprint prices were at around US$ 950 spot price has now come down to around US$ 500 spot price, providing substantial much-needed relief and improving the earnings.

Digital

Internet penetration increased by 8% to 938 million subscriptions by December 2023. Smartphone users increased to 574 million in 2023 from 538 million in 2022, a penetration of around 40% of Indias population. There were 456 million digital news consumers in India, of which over 80% consumed news on their mobile phones. Mobile devices were the preferred mode for consuming online news, accounting for 86% of total reach. On an average, consumers spent 137 minutes consuming news each month, with short video and short text being the most preferred formats for consumption. 73% of online news consumers in Indian languages showed interest in hyperlocal news, with the highest interest observed among Hindi and Gujarati language users. Digital advertising grew 15% to reach

_576 billion in 2023, as several categories increased the share of their ad spends on digital media. All categories increased spending on digital media in 2023 as compared to 2022.

Outlook

Digital advertising is projected to grow at a 13.5% CAGR to reach _842 billion, driven by improved governance. It is expected to surpass television as the largest segment by 2024, continuing to narrow the gap.

Radio

Radio segment revenues grew by 10% in 2023 to _23 billion. Radio ad insertions grew by 17% in 2023. Over 13,600 brands advertised on radio in 2023, a 5% increase from 2022.

Outlook

3 Revenue is anticipated to recover to _27 billion by 2026

3 Growth drivers include:

3 SME and retail advertisers, where spends can be easily attributed to sales

3 Launch of several new and challenger brands in FMCG, durables and electronics, where retail ad media are effective in creating awareness

3 Non-FCT revenues as radio companies create brand extensions to leverage additional opportunities for community building, content production, influencer marketing and short video

DBCL Segmental Performance

D. B. Corp Ltd. (DBCL) is Indias largest media conglomerate with strong presence across print, radio and digital segments. It is headquartered in Bhopal, Madhya Pradesh, India, with over 5,295 employees across the country. As Indias largest print media company, DBCL publishes 5 newspapers, namely, Dainik Bhaskar (43 editions), Divya Bhaskar (8 editions), Divya Marathi (6 editions), Saurashtra Samachar and DB Star in 3 languages, i.e., Hindi, Gujarati and Marathi. DBCL is present across 12 states of Madhya Pradesh, Chhattisgarh, Rajasthan, Haryana, Punjab, Chandigarh, Himachal Pradesh, Delhi, Gujarat, Maharashtra, Jharkhand and Bihar.

DBCLs other business interest areas span across radio and digital mediums. In the FM radio segment, the brand has a strong presence in ‘94.3 MY FM, which is available in 7 states and 30 cities, creating a valuable package for advertisers in tier II and III cities, where Dainik Bhaskar is already a leader in the print business. DBCL also has a strong online presence with 4 internet portals and 3 mobile applications. DBCL is the No.1 digital player in Hindi and Gujarati languages as well.

Print

State-of-the-Art Printing Infrastructure: DB Corp Ltd has a cutting-edge printing infrastructure that spans across 12 states, with 51 printing centres and 84 state-of-the-art machines. This setup enables the company to effectively produce high-quality newspapers efficiently.

Advanced Technology: DB Corp Ltd has invested heavily in advanced technology that includes state-of-the-art CTPs, High-speed presses from renowned brands like KBA Germany and Manugraph India. The current infrastructure ensures that the company can produce large quantities of newspapers quickly with high precision quality.

Capacity and Reach: With an installed capacity of approximately 32.93 lakh copies per hour, DB Corp Ltd has the capacity to reach a vast audience across all locations in the shortest possible time and provide readers the latest content.

Innovative Printing Solutions: DB Corp Ltd has developed innovative printing solutions that cater to the diverse needs of its advertisers & readers. The company offers a range of Industry leading print innovations, including 3D printing, fragrance printing, fuzzy folds, butterfly flaps, French windows, and super panorama, to name a few.

Eco-Friendly Practices: At DB Corp Ltd, we are committed to environmental sustainability and have adopted eco-friendly practices such as using Vio green eco-friendly plates processed in CTP devices. This reduces the companys carbon footprint and supports its mission to minimise environmental impact.

Strategic Locations: DB Corp Ltd has strategically located its printing centres to ensure timely delivery of its newspapers. This allows the company to maintain its competitive edge and stay ahead of the competition.

Continuous Upgrades: We monitor our competitors continuously & upgrade our infrastructure and technology to always stay ahead of the curve. This ensures that the company remains at the forefront of innovation in the print industry.

Efficient Operations: DB Corp Ltd has implemented efficient operations to stay lean on costs and high on productivity through automation of various processes, digital properties, and effective cost management for total cost productivity.

Quality Control: At DB Corp Ltd, we have a robust quality control mechanism in place as per the recommendations of IFRA to ensure that its newspapers deliver the highest standards of quality.

Advertisement

DB Corp Ltd witnessed significant growth, particularly driven by government advertising. Our consolidated advertising grew by more than 18% with retail advertising leading the growth, well supported by increase in disposable income due to various freebies announced by the local government during the state elections.

Education, Real Estate, and Automobile sectors continued to dominate commercial advertising:

3 Education remained the largest commercial advertising category, achieving steady growth of 5% YoY.

3 Real Estate also saw a 5% YoY growth but moved to the third position in commercial advertising.

3 The Automobile sector bounced back strongly from the supply issues of 2022-23, registering an impressive 27% YoY growth. This resurgence propelled the automobile category to the second position, displacing real estate.

3 The Jewellery category is emerging rapidly, with a 10% YoY growth. National jewellers are making significant inroads into Tier 1 and Tier 2 cities, fostering fierce competition with local players.

Overall, advertising sentiments have remained positive, an encouraging sign of the sectors resilience and potential. Commercial businesses, while still on a path to fully resuming their advertising momentum, show promising scope for growth. Advertisers are becoming increasingly result-oriented, moving beyond traditional advertising to more innovative and impactful strategies.

In response to these evolving needs, our company has developed varied solutions, including special initiatives and ground activations, tailored to capture market dynamics and deliver exceptional results for our clients. It is important to note that by the end of FY 2023-24, even national advertisers have shown a strong inclination towards these special initiatives.

As we move forward, we remain committed to innovation, excellence, and delivering value to our clients and stakeholders. Together, we will continue to navigate the challenges and seize the opportunities that lie ahead.

Circulation

As per Audit Bureau of Circulation (ABC) report July-Dec23, Dainik Bhaskar remained the Largest Circulated Newspaper Group in India with a significant lead over second competitor.

Group has adopted market-specific innovative strategies to actively acquire readers and expand the distribution.

FY 2023-24 has been the year of Industry First Circulation initiatives of DB in the areas of Win Back of Closed readers, Channel Empowerment and Automation. Riding high on the opportunity of closed readers of the industry, DB has strategically initiated mass contact programme comprising automated profiling of closed readers and bringing them back through showcase of product supremacy. This programme has got overwhelming response from the closed readers. They were amazed with the way DB touched their hearts, remembered them and engaged their family. Whole activity is captured online in DCR Portal specially developed for this project.

DB Channel Partners has been further empowered to self-care their base which is another Industry-first initiative which has been successfully initiated. Dainik Bhaskar is pioneer and leading media house which has automated its circulation function and attained the objective of cost effectiveness and transparent functionality.

DB Circulation team relentlessly study readers behaviour, pattern & needs and therefore, we came out with a unique proposition for our readers i.e. "Bachat Coupons". This initiative has given our readers an opportunity to save money through the newspaper. DB has done a Tie-up with the Top Brands of the 24 selected Cities those have offered special discounts exclusively for Bhaskar Readers. On every Saturday, Bachat Coupons is getting published at a fixed place, fixed size & fixed design. This is also gaining popularity among DB readers and in the times to come this would emerge as big differentiation of DB in the market .

Digital

Digital Business has emerged as a cornerstone of our growth strategy, driving significant advancements and solidifying our position in the market. Through relentless innovation, we have maintained a strong competitive edge, offering a highly personalised product experience that integrates text, graphics, videos, and innovative formats. Notably, our user base has surged from 2 million in January 2020 to approximately 18 million by May 2024, (as per Comscore data) cementing Dainik Bhaskars leadership as the top provider of Hindi and Gujarati News Apps. DB Corp MAU stands far better than its competitors with the second-largest digital news app standing at 3.7 million MAUs as on May 2024.

1. DB Corp is executing very well on Content, Product, and Tech.

2. DB has the best team across all functions and a strong advisory board which has been composed of Industry Experts and Global News Leaders like Mark Thompson (Ex CEO - NYT) in the past.

3. DB Corp is the fastest growing News App in the last 4 years.

4. DB Corps retention, engagement and user quality is the best compared to other news apps.

5. DB has the most depth and breadth across high quality local news as well as premium journalism content. This forms a solid base for a digital news subscription offering in the future.

6. DB is investing in building a strong brand with very high user trust focussed on Local News, and also developing organic and cost-effective distribution channels.

Market Opportunity:

1. The online user base in India is growing rapidly. Mainly Video, Content and News consumption online is also growing.

2. India is one of the fastest growing markets in both mobile data users and data consumption per user, expected to continue.

3. Local content is one of the biggest market needs especially in the news category.

4. Short video content is also emerging rapidly as a preferred content format across categories.

5. Subscription revenue for digital content online is growing across the world, and in India too. Theres a big opportunity here if we build a direct audience with high engagement and loyalty.

The Company continues to invest in Digital business with a focussed digital strategy of increasing the App Daily Active Users with a very high level of Engagement and recurring use to build the foundation for a sustainable Digital Subscription business in the future.

3 High Quality Journalism worth paying for - Dainik Bhaskar offers high-quality local news thats worth paying for - which is in depth, exclusive and original - while being hyperlocal at very high quality. We provide premium journalism in various formats like text, graphics, and short videos. Our News App features mobile-friendly vertical video news, with a large and constantly updated library of real-time videos in different categories. Readers love the premium, local content available on their phones. We remain dedicated to delivering top-notch journalism thats worth the cost.

3 Analytical, Deeply Relevant & Highly Engaging Content during Big News Events like Elections - We plan to offer detailed, engaging election content based on our recent experiences with interactive content during the 2023 state elections and the 2024 national elections. Our goal is to provide in-depth, local coverage through digital platforms, making election news real-time, personalised, and engaging for users. These insights will help us maximise growth and user engagement during future big news events including elections across India.

3 Innovative, Interactive Content Experiments - We intend to leverage interactive and innovative content formats to drive word of mouth and organic growth via sharing as well as amplify our marketing pushes with compelling new innovations to grow our Direct App User

Base by creating some really novel experiences generating high engagement, loyalty and long-term "willingness to pay" within our users. This will go beyond the standard formats like articles, videos etc. and be highly engaging, yet simple enough for the masses to consume and derive value from.

3 Going Beyond News - We are experimenting with building other levers within our App to ensure were able to engage and form daily habits with our readers even beyond serious news content, by ensuring we serve additional adjacent needs linked to knowledge and information in a light fun way to delight and hook them in. This will help us sustain engagement and retention even on slow news days.

3 Ongoing Investment in Technology Talent & Infrastructure - Dainik Bhaskar invests heavily in technology to offer highly curated, world-class, personalised news experiences. We tailor content based on users demographics, preferences, location, economic status, and real-time context. This approach aims to boost user engagement, long-term retention, loyalty, and willingness to pay by providing not only great journalism but also an excellent user experience. To power this, Dainik Bhaskar has built a strong technology team with experience from top Indian companies in consumer products and technology.

Radio

BRAND ALLIANCE

MY FM - The Official Radio Partner of the Indian Television Academy Awards 2023: 5th Year in a Row

It was a spectacular gala of Bollywood, television and OTT celebrities in Film City, Goregaon, Mumbai. Many celebrities graced the ceremony with their presence - Hrithik Roshan, Rani Mukherjee, Kapil Sharma, Bhumi Pednekar and many more. It was indeed a grand celebration of excellence in Entertainment.

Honourable President of India felicitated Ministry of Culture and MY FM for creating world record for ‘Har Ghar Healthy campaign.

MY FM, in collaboration with the Ministry of Culture, launched the "HAR GHAR HEALTHY" campaign to promote a healthy lifestyle across India. The campaign spread across 90 days, initiated during the Amrit Mahotsav of Independence, garnered immense support with over 1,800 touchpoints covering 30 cities in 7 states, engaging around 100 million people.

MY FM Dekhta Hai

The unique IP property of MY FM, launched in 9 cities across the network. The activity is targeted to drive traffic awareness amongst people. The activity is executed along with city traffic police. This time Finolex associated with this unique activity for these markets.

MY FM Hosted Global Impact Brand Recognition – 3rd Year In A Row

The event was held at the Amari Watergate Bangkok, Thailand, on December 5, 2023. Following the Achievers Awards in Dubai and Singapore in 2021 and 2022, MY FM recently hosted the Global Impact Brand Recognition 2023 in Thailand. The event aims to acknowledge and celebrate the outstanding visionaries, innovators, business professionals, corporate professionals, entrepreneurs across diverse sectors, transcending boundaries to make a global impact.

Indian Media & Entertainment Industry - Opportunities and Threats

Opportunities

Traditionally, the growth rate in the media and entertainment sectors has outperformed that of Indias GDP growth rate. What makes this interesting is that consumer spending in this sector is discretionary. With the per capita outlook for the Indian economy looking to increase several notches in the coming years, the consequent overall consumer spend outlook in the sector remains positive.

In addition, favourable FDI policy in telecom and digital channels would impact investment trends positively across all segments. A third of India does not have a television, and over half do not yet use social media. 90% of Indians do not visit cinemas, and only one in 10 Indian households has a wired broadband connection. The potential for growth is immense, and both digital and traditional media have significant headroom to scale in the years ahead.

India is projected to remain the fastest growing major economy in the medium term. The National Statistical Office (NSO) has estimated India to continue showing a strong real GDP growth at 7.3% in FY 2024, as compared to 7.2% in FY 2023. This robust performance has been delivered largely by investment growth led by the GoIs emphasis on capital expenditure.

Indias 2024 (FY 2025) growth is projected to be 2.1 times global growth and 1.6 times EMDE growth in this year. It is also projected to outpace Chinas growth by 1.9% points. Digital surpassed traditional advertising for the first time this year, and will drive growth in the sector moving forward.

Traditional print, radio and cinema advertising trends also indicate healthy growth in the coming times. Higher penetration and a rapidly-growing young population, coupled with increased usage of 5G and portable devices, to augment demand. The literacy rate in India is one of the major factors for socio-economic progress in addition to academic achievement. A literate person is a vital asset to the nations development.

Urbanisation of rural India and rising per capita income will drive growth for the mass segment. Increase in Indias per capita income from US$ 2,500 in 2022 to around US$ 3,000 by 2025, and reduction of income inequalities due to direct subsidy transfers, employment guarantee schemes, investment in infrastructure. Rural growth and growing middle class will also be key factors.

Threats

Indian Economy: The turbulence in global scenarios due to the State war and resultant impact on the supply chain may have a cascading impact on the global economy and resultant Indian Economy. Weak Indian economy performance will adversely impact media spends.

Piracy: The digital media sub-sector in India has not been able to fully monetise its content due to the prevalence of rampant piracy. Weak IP regulations and ineffective enforcement have been a deterrent to producing original content and IP. Also, with the growing global reach of the Indian Media and Entertainment industry and the growth of the Indian diaspora abroad, the international piracy of Indian content has also emerged as a key challenge.

Input Costs: The Indian newspaper industry imports more than 50% of its paper, mainly from the US, Russia and Canada. Being a significant component of cost, players are sensitive to fluctuations in the price of paper. Rising prices and depreciation of the Indian rupee are therefore generally a cause of concern for the industry.

External Factors: Various external factors such as the pandemic, war, etc., which are not in our control also affects the business in various manners. The company keeps itself well prepared and informed about all such uncertain happenings but, still can be affected to some extent due to its unpredictable consequences.

Internal Controls and Vigil Mechanism

The Company has built up a strong and efficient internal controls mechanism, commensurate with the size of its operations. It has laid down standard operating guidelines and processes which ensure smooth functioning of activities and zero ambiguity in the minds of people who actually execute the operations. The policies, processes, guidelines and checklists relevant to the Standard Operating Procedures are available to all on the Companys Intranet Portal.

Internal Controls

Over the years, DBCL has undertaken specific efforts to build up its Processes and deploy Standard Operating Guidelines across all operational areas.

The Finance Heads at Corporate, State & Unit levels are accountable for financial controls. They are fully responsible for accuracy of books of accounts, preparation of financial statements and reporting in line with the Companys accounting policies. DBCL has deployed a vigorous Internal Controls and Audit mechanism to facilitate an accurate and fair presentation of its financial results. This process not just ensures adherence to regulatory standards and meets statutory compliance requirements, but also confirms that the Companys reporting is complete, reliable and understandable. In addition, there is a specific impetus on safeguarding investor interests with deployment of the highest levels of governance and regular communication with them.

During FY 2023-24, the Company appointed Independent Chartered Accountancy firms to assist in re-evaluating and testing its Internal Financial Controls (IFC) which encompassed review, reclassification and rationalisation of controls.

Internal Audit

To support its Internal Audit structure, the Company has engaged experienced Chartered Accountancy firms across all locations. A system of monthly Internal Audit reporting, reviewing and monitoring is in place to ensure effective adherence to establish processes, internal controls and internal audit mechanisms on a real-time basis. Around 58 CA firms are working as Internal Auditors at different locations.

Vigil Mechanism

Integrity and ethics have been the bedrock of all the Companys corporate operations. DBCL is committed to conducting its business in accordance with the highest standards of professionalism, honesty and ethical behaviour and has the best systems in place to nurture a similar working culture, therefore, DBCL which is among the first few companies in India who had taken active steps towards establishing a ‘Whistle-blowing Mechanism. This initiative was taken to encourage Employees, Circulation/Advertisement Agents and Suppliers/Vendors to report irregularities in operations, besides complying with the statutory requirements under the Companies Act, 2013 and the Listing Regulations. Any DBCL Employees, Circulation/Advertisement Agents and Suppliers/Vendors can raise his/her Concern/Complaint on the dedicated phone numbers; or through email or post. These phone numbers are operational all 365 days. These reporting channels can be accessed in Hindi, English, Marathi and Gujarati.

An Internal Ethics Committee has been established to operate this policy under the supervision of the Audit Committee. All the Concerns/Complaints are categorised and prioritised, based on their nature; and corrective or disciplinary actions are taken based on the seriousness of the issue/findings. If the whistle blower is not satisfied with the actions taken, the mechanism also has an Escalation Protocol in place. Through this process, the mechanism considers and extends complete protection to the whistle blower.

OPERATIONAL HIGHLIGHTS

Advertising Revenue

Advertising Revenue stands at 17,524 million for FY 2024 as compared to 14,827 million for FY 2023.

Circulation Revenue

Circulation Revenue stands at 4,791 million for FY 2024 as compared to 4,627 million for FY 2023.

Total Income

On a consolidated financial basis, DBCL has reported highest-ever total revenue of _24,821 million for FY 2024 as compared to 21,682 million for FY 2023.

Raw Material Consumed

The cost of newsprint consumption decreased by 14% YoY to 7,352 million for FY 2024 as compared to 8,511 million for FY 2023. The decrease in the raw material cost is owing to the softening of newsprint spot prices from as high as US$ 950 to around US$ 500.

Employee Cost

At a consolidated level, the employee cost increased by 12% YoY to _4,317 million for FY 2024 as compared to

3,874 million for FY 2023.

Other Expenses

Other operating expenses (including net impairment loss on financial assets) increased by 8% YoY to 6,118 million for FY 2024 as compared to _5,686 million for FY 2023.

EBITDA

EBITDA grew by 95% to 7,033 million in FY 2024 from

3,611 million in FY 2023. The reported EBITDA of 7,033 million is the highest ever EBTIDA reported by DB Corp Ltd.

Depreciation

Depreciation and amortisation expenses increased by 2% to 1,140 million during FY 2024 from 1,120 million during FY 2023.

Finance Cost

Finance Cost increased by 12% YoY to 238 million in FY 2024 from 213 million in FY 2023.

Profit after Tax (PAT)

DBCL has reported highest-ever operational PAT of 4,255 million during FY 2024 as compared to 1,691 million during FY 2023. The significant growth in PAT has also resulted in improved ROE at 20.33% for FY 2024.

The quality and strength of the Balance Sheet of DBCL as on March 31, 2024 is satisfactory and can be gauged from the following ratios:

Ratio

2023-24 2022-23

Current Ratio (times)

2.94 2.45

Debt-Equity Ratio (times)

0.11 0.11

Debt Service Coverage Ratio (times)

8.92 4.47

Return on Equity (%)

20.33% 8.76%

Inventory Turnover Ratio (times)

4.18 4.47

Trade Receivable Turnover Ratio (times)

4.92 4.5

Trade Payable Turnover Ratio (times)

3.15 3.78

Net Capital Turnover Ratio (times)

2.65 3.77

Return on Capital Employed (%)

23.75% 11.46%

Interest Service Coverage Ratio (times)

24.74 11.66

Operating Profit Margin3(%)

24.50% 11.66%

Net Profit Ratio (%)

17.68% 7.90%

Return on Investment

19.64% 9.61%

Shareholder Value

DBCLs dividend distribution policy is aimed at sharing its prosperity with its shareholders, subject to maintaining an adequate chest for liquidity and growth. DBCL has declared an aggregate equity dividend of 130%, i.e. _13 per share which is a pay-out of around 54.3% of Consolidated PAT for the year.

Human Resource

Commitment to People Development, Engagement, Performance, and Growth: Dainik Bhaskar Groups Achievements in FY 2023-24.

At Dainik Bhaskar Group, we have always prioritised the development, engagement, performance and growth of our talent. Over the past year, we have launched and sustained numerous initiatives that reflect our unwavering commitment to people growth, underscoring our role as a leading employer. Our efforts have not only driven organisational performance but have also fostered a culture of growth and excellence.

Our commitment to our people is further evidenced by our Ambition Box Employee Choice Awards achievement. With a stellar rating of 4.4/5, we are among the top 0.1% of companies in India to receive this prestigious award. This recognition is a testament to our positive work culture and our focus on employee satisfaction.

Here are the highlights of our achievements in FY 2023-24:

Performance and Growth Initiatives

In our pursuit of excellence, we have introduced several initiatives aimed at enhancing performance and fostering growth. This year, we again initiated fast track programmes in Ad Sales, Circulation, and Editorial departments.

Our Internal Development Program (IDP) for Editorial continues to be a cornerstone of our talent development strategy.

We are also proud to announce the Rising Club for Ad Sales employees, identifying high-potential individuals based on their sustained performance and potential for higher roles.

We have also taken proactive steps in revising the minimum salaries to _18k per month and advancing increments by a quarter. In specific functions like Editorial and Sales, the minimum salaries have been increased to _20k per month, with some roles reaching _30k per month and

_ 35k per month.

People Development and Engagement

One of our key initiatives this year was the BaatCheet sessions. These sessions provided a platform for open communication and feedback, significantly enhancing employee engagement.

We also placed a strong emphasis on employee health and well-being. With special focus on ‘above 40 category and a total of 85% employees completed their health check-ups this year.

Recognition and Reward Programmes

Recognising and rewarding employee contributions is fundamental to our organisational culture. Over the last year, we have announced 130 GREAT Champions (Exemplary demonstration of organizational values) awarded 2082 Spot Awards and 73 Editorial awards.

From the last financial year, we have also started the "Bhaskar Journalist of the Year" award, which is given for the top 5 journalistic contributions during the year on the occasion of World Press Freedom Day. This year, 6 journalists won these awards.

Employee Satisfaction and Community Engagement

Our Abhivyakti Employee Satisfaction and Wellness Survey saw a 91% participation rate this year, with an overall satisfaction index of 87%.

We also celebrated Prerna Diwas on November 30, 2023, the birth anniversary of Shri Ramesh Ji, with activities including blood donation camps with over 9,500 donors donating for a noble cause, food donations to orphanages and old-age homes & health check-ups at old-age homes at more than 60 locations, and painting competitions for Bhaskarites children.

In conclusion, FY 2023-24 has been a year of significant achievements for the Dainik Bhaskar Group. Our commitment to people development, engagement, performance, and growth has been evident through our numerous initiatives and programmes. We remain dedicated to fostering a positive and supportive work environment, ensuring that our employees are recognised, valued, and empowered to achieve their best.

Outlook

Print

Improved per capita income and overall GDP growth of India has put good amount of disposable income on ground resulting in higher spends further reflecting in improved advertisements. All the major sectors are showing positive atmosphere with improved advertisement spends. Our leadership in most of the tier 2 & 3 cities is further advancing to dominance and we are confident enough to reflect this on the books in the coming years.

Sectors like Education, Real Estate, Auto, FMCG are consistently contributing to DBCL advertisement revenue. The emerging sectors are also pitching in the print advertisement revenues.

Digital

As the second-largest segment in 2023, it continues to reduce the gap with television, and we expect it to become the largest segment in 2024. All categories increased spend on digital media in 2023 as compared to 2022 and this share is expected to grow going ahead. Digital advertising will grow at a CAGR of 13.5% till 2026 to reach _842 billion. Its share will increase from 51% of total advertising in 2023 to 54% by 2024, and further to 57% by 2026.

Radio

MY FM continues to report industry leading EBITDA margins with continued engagement with its clients and continuous connect with audience and augment listeners engagement activities through innovative content creation. Our radio network continues to maintain leadership position in key markets such as Chandigarh, Haryana, Punjab, Rajasthan, Madhya Pradesh, Maharashtra and Chhattisgarh. Our efforts at building the Radio business with strategic investments, strong focus on content and various engagement events lead us to believe that this performance is sustainable.

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