New Delhi Television Ltd Management Discussions

Global Economic Overview

The global economy demonstrated remarkable resilience in 2023, marked by a steady but slow recovery with regional variations. According to the International Monetary Fund (IMF), the global economy grew at a modest rate of 3.2% in 2023. Despite ongoing geopolitical challenges, including the Russia-Ukraine war, the Israel-Hamas conflict and the Red Sea crisis, global economic growth has decelerated but not halted. Higher inflation, volatility in energy and food markets, higher-for-longer interest rates and sluggish recovery in China have contributed to the moderation in global economic growth.

Global inflation is receding at a faster pace than anticipated. It declined from 8.7% in 2022 to 6.8% in 2023. While headline inflation has sustained a decline from its unprecedented peaks, core inflation has proven to be sticky. The conjunction of tumbling inflation and steadfast growth has raised hopes that the ongoing disinflationary trend may lead to further relaxation of financial conditions.

The prospect of decreasing interest rates has prompted an upswing in equity markets, although uncertainty persists regarding the timing of interest rate reductions. Financial market sentiments have been fluctuating, with evolving perspectives on an early pivot by central banks in advanced economies (AEs). Central banks are exercising caution as premature easing of financial conditions could reignite inflationary pressures.

Economic growth in several emerging markets and developing economies (EMDEs) has exceeded expectations in 2023. The US economy has experienced the strongest recovery among major economies. A tight labour market, rising wages and healthy consumer spending have supported economic growth. The European Union has demonstrated resilience navigating through unprecedented shocks from the prolonged Russia-Ukraine war and higher interest rates. Although its GDP growth contracted from 3.6% in 2022 to 0.1% in 2023, the European Union managed to avoid the recession in 2023. The slower economic growth recovery in China in 2023 is attributed to a prolonged downturn in the real estate market and subdued demand. Chinas central banks announced cutting the reserve requirement ratio (RRR) for all banks by 50 basis points (bps) as part of a slew of measures to support the fragile economy. Japans economic growth is bolstered by pent-up demand, a surge in inbound tourism, accommodative policies and a rebound in auto exports that had earlier been held back by supply chain issues.

Performance of major economies

	GDP Growth	GDP Growth
	2023	2022
United States	2.5%	1.9%
China	5.2%	3.0%
United Kingdom	0.1%	4.3%
Japan	1.9%	1.0%
Germany	0.3%	1.8%

Global Outlook

The global economy is expected to sustain its resilience in 2024. The Reserve Bank of Indias Monetary Policy Committee (MPC) projects global growth to remain steady in 2024. The IMF forecasts a global growth of 3.2% in both 2024 and 2025. The global economic outlook for 2024 will be impacted by higher interest rates, carrying the risk of a resurgence in inflation due to persistent core inflation and shifts in the anticipated monetary stance. The withdrawal of fiscal support amid high debt levels weighing on economic activity, and low underlying productivity growth, contribute to economic uncertainties. Furthermore, the prolonged Russia-Ukraine conflict has the potential to dampen the overall economic outlook of the European Union. The escalation of the conflict in the Middle East has raised uncertainty as disruptions in the Red Sea route are pushing up logistics costs. Heightened geopolitical unrest could elevate energy and commodity prices, raise the risks of supply disruptions and pose downside risks to the global economy. However, with faster disinflation and steady growth, the possibility of a severe economic downturn has diminished, and risks to global economic expansion are broadly balanced.

Global headline inflation is expected to decrease to 5.9% in 2024 and 4.5% in 2025. Positive factors contributing to the outlook include the stronger-than-expected economic performance of the US and several large emerging markets and developing economies, economic stimulus in China, the resilience of Europe, easing of supply chain bottlenecks, and faster disinflation.

Following rapid expansion in 2023, the Asia-Pacific

(APAC) region is expected to be the fastest-growing region in the world economy in 2024, driven by robust domestic demand in East Asia and India.

(Source: IMF Economic Outlook, April 2024; EIA; RBI Monetary Policy Committee; S&P Global; Economic Times)

Indian Economic Overview

The Indian economy is shining as a beacon of hope and emerged as a top performer in FY 2023-24 despite the global economic slowdown, higher inflation, elevated interest rates and setbacks in the export market. It is the fifth-largest economy in the world and is poised to retain its position as the worlds fastest-growing major economy. As per the Second Advance Estimates of National Income, 2023-24, Indias real GDP is expected to grow by 7.6% in FY 2023- 24 as against 7.0% in FY 2022-23, driven by robust domestic demand, moderate inflation, a stable interest rate environment, and strong investment activity. An accelerated pace of economic reforms and increased capital expenditure facilitated construction activities and created extensive employment opportunities across the country. Moreover, Indias 2023 G20 presidency has demonstrated Indias capability to cater to global needs and provided a platform to address global concerns.

Growth of the Indian Economy

	FY 2021-22	FY 2022-23	FY 2023-24 (E)
Real GDP	9.1	7.0	7.6
growth (%)

(E- Estimates)

(Source: Ministry of Statistics & Programme Implementation)

As per the Second Advance Estimates of National Income, 2023-24, a double-digit growth rate of 10.7% in the Construction sector and an 8.5% growth rate in the Manufacturing sector have contributed to the GDP growth in FY 2023-24. Furthermore, Indias Index of Industrial Production (IIP) recorded a growth of 5.9% during April-February in FY 2023-24, an increase from 5.6% in the corresponding period of the previous year. The Electricity sector recorded a growth of 6.9%. The Mining and Manufacturing sectors also recorded a higher growth of 8.2% and 5.4% respectively during the same period.

Gross Direct Tax collections (provisional) for FY 2023-24 stood at 23.37 lakh crores registering an 18.48% Y-o-Y growth. Net collections amounted to 19.58 lakh crore, compared to 16.64 lakh crores in FY 2022-23, representing an increase of 17.70%.

(Source: Ministry of Finance)

The growth in gross value added (GVA) at Basic (2011-12) Prices is pegged at 6.9% in FY 2023-24 as against 6.7% in FY 2022-23. The Real GDP or GDP at Constant (2011-12) Prices in FY 2023-24 is estimated to reach 172.90 lakh crore, compared to the GDP of 160.71 lakh crores in FY 2022-23. Furthermore, Indias per capita disposable income is expected to reach 2.14 lakh in FY 2023-24, achieving remarkable growth of 8.0%. Rising levels of disposable income have led to an upswing in household consumption in both urban and rural areas, thereby stimulating demand across various sectors.

Despite a subdued external environment, Indias merchandise trade deficit improved by 9.33% to USD

240.17 billion compared to USD 264.90 billion in the previous fiscal year. Total merchandise exports declined by 3.10% to USD 437.06 billion in FY 2023-24 compared to USD 451.07 billion in FY 2022-23. Electronic Goods, Drugs & Pharmaceuticals, Engineering Goods, Iron Ore, Cotton Yarn/Fabric/made-ups, Handloom products, etc. and Ceramic products & glassware were major contributors to export growth.

(Source: Ministry of Commerce & Industry)

A positive trend is observed in CPI inflation, which has been on a downward trajectory and eased to 4.85% in March 2024. According to the Reserve Bank of India (RBI), CPI inflation is estimated at 5.4% for FY 2023-24. The RBI maintains the policy repo rate at 6.50% and stays prepared to implement effective measures to reach the 4% inflation target while supporting economic growth. Indias world-class digital public infrastructure (DPI) and expanded internet access bolstered the adoption of technology nationwide, supporting sustainable development goals. Furthermore, the BharatNet initiative, which aims to bridge the digital divide and strengthen Indias digital prowess has been providing access to broadband connectivity to rural regions. So far, 2,10,190 Gram Panchayats are connected through the BharatNet project. Additionally, 9,24,693 Fibre-To-The-Home (FTTH) connections are commissioned and 1,04,675 Wi-Fi hotspots are installed as of March 18, 2024 to ensure last-mile connectivity. The rapid adoption of 5G services is enabling the next phase of growth and transformation in Indias digital landscape, aligning with the governments vision to transform the country into a digitally-empowered society and knowledge-based economy.

A conducive domestic policy environment will continue to improve the business environment, promote industrial activity, accelerate manufacturing, create economies of scale, and make India an integral part of the global value chain. ‘Make in India has made significant achievements and is now focussing on 27 sectors under ‘Make in India 2.0 to make India a manufacturing hub. India has reported meteoric improvement in Ease of Doing Business and ranked 63^rd among 190 countries. As part of the Reducing Compliance Burden exercise, over 3,600 compliances have been decriminalised and more than 41,000 compliances have been reduced to promote Ease of Doing Business and increase competitiveness. Government initiatives aimed at reforming the Foreign Direct Investment (FDI) policy, permitted 100% FDI in most sectors through the automatic route.

Indian Economic Outlook

Indias economic outlook remains positive as it reaps the benefits of demographic dividend, physical and digital infrastructure enhancements, increased capital expenditure and the governments proactive policy measures such as Production Linked Incentive (PLI) Schemes. According to the IMF, the Indian economy is expected to advance steadily at 6.8% in 2024 and 6.5% in 2025. However, the RBIs forecast is more optimistic, projecting a higher GDP growth of 7.0% for FY 2024-25. As per the Reserve Bank of Indias forecast, CPI inflation is expected to decline to 4.5% in FY 2024-25. However, volatile food prices hinder the trajectory of disinflation and obscure the inflation forecast.

Indias economic outlook faces potential risks stemming from headwinds from geopolitical tensions, volatility in international financial markets, and geoeconomic fragmentation. Domestically, weather shocks have the potential to rekindle inflation and trigger further food export restrictions. However, the Indian economy has withstood recent geopolitical upheavals and is well-positioned to navigate forthcoming uncertainties. Its advantageous geopolitical position will help it capitalise on supply chain diversification and reshoring, increase its global competitiveness and boost exports. India is striving to achieve sustainability goals through decarbonisation and leveraging growing investment and trade opportunities through enhanced technology transformation and improved governance to ensure inclusive development.

(Source: Ministry of Statistics & Programme Implementation; Ministry of Finance; IMF World Economic Outlook, April 2024; Reserve Bank of India; RBI Monetary Policy Committee; Ministry of Commerce & Industry)

Interim Budget FY 2024-25

The Interim Budget 2024-25 sets the foundation for the vision of a Viksit Bharat (Developed India) by 2047. It outlines a multi-pronged economic management strategy, including infrastructure development, digital public infrastructure, taxation reforms and proactive inflation management. The government continued with its robust spending on capital expenditure, which grew by 11.1% to 11.1 lakh crores for FY 2024-25. The primary focus has been on enhancing the countrys infrastructure. The implementation of economic railway corridor programmes under the PM GatiShakti scheme is anticipated to bolster connectivity and logistical capabilities. Furthermore, the budget places a strong emphasis on sustainable development, aligning with the target of achieving net zero emissions by 2030. A substantial sum of 8,500 crores has been earmarked for the development of solar power grid infrastructure. At the heart of the energy drive in the Interim Budget lies the Pradhan Mantri Suryodaya Yojana (PMSY), aimed at installing rooftop solar power systems in one crore households. This initiative will enable these households to obtain up to 300 units of free electricity each month. These measures will foster the development of a robust ecosystem for renewable energy, marking a significant stride towards sustainable and inclusive growth.

(Source: Ministry of Finance)

Industry Overview

Global advertising sector overview

The global advertising market size reached USD 647.3 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 4.6% during the year 2024-32, reaching a market size of USD 978.5 billion by 2032. The main types of advertising agencies are TV, print, radio, outdoor, and others. Global advertising expenditure is estimated to increase by 4.4% in 2023 and is projected to accelerate by 6.9% in 2024 and 4.8% in 2025, reaching nearly USD 1 trillion in advertising spending by 2025. North America is expected to continue to provide the biggest contribution to advertising growth between 2023 and 2025 with advertising expenditure growing USD 53 billion, representing 41% of total advertising spend during the period. Growth in Asia-Pacific is expected to remain strong with a 4.9% increase. Advertising growth in Western Europe is forecasted to grow by 3.5%, and Latin American ad spend is forecast to grow by 4.5%, indicating sustained growth.

(Source: imarcgroup.com; zenithmedia.com)

Indian advertising sector overview

The Indian advertising market size is estimated to be

1,135 billion in 2023, reflecting a y-o-y growth of 7%. It is projected to further grow by 10% to reach 1,252 billion in 2024. However, the growth in the advertising sector lagged the growth of the Indian GDP. The deceleration of Indias nominal GDP growth to 9% in 2023, following two years of double-digit increases, had an impact on advertising, which only grew by 7%.

Digital advertising has exceeded traditional methods and is poised to drive sectoral growth going forward. Factors such as the expansion of 5G, increasing per capita income among Indians, and the expanding base of SME advertisers are fuelling expenditures on digital ads. However, trends in traditional print, radio, and cinema advertising also suggest robust growth in the foreseeable future. Advertising is anticipated to maintain a robust

CAGR of 9%, with digital media expanding at 14% and traditional media at 5% by 2026.

(Source:FICCI,EYReport-ReinventIndiasmedia&entertainment sector is innovating for the future March 2024)

Growth drivers:

Increase in Indias per capita income from USD 2,564 in 2024 to ~USD 3,000 by 2025, and reduction of income inequalities due to direct subsidy transfers, employment guarantee schemes, and investment in infrastructure are key factors driving the growth of the advertising sector Growth in rural regions, the burgeoning middle-class and evolving consumer aspirations will boost consumption and propel the growth of the advertising sector The growing SME advertiser base will increasingly spend on advertising in pursuit of Indias USD 5 trillion GDP ambition

Indian television advertising sector overview

Television advertising sector revenue is estimated to grow from 297 billion in 2023 to 330 billion in 2026, growing at a CAGR of 3.6%. However, television advertising experienced a 6.5% decline from 2022, due to a slowdown in spending by gaming and Direct-to-Customer (D2C) brands, affecting revenues for premium properties. The Hindi Speaking Market (HSM) also showed signs of weakness, leading to a 3% decline in overall ad volume. Subscription revenue witnessed growth after three consecutive years of decline, driven by price adjustments, despite a decrease of two million pay-TV households. Linear viewership expanded by 2% compared to 2022, while the number of smart TVs connected to the internet reached ~19 to 20 million weekly, up from ~10 million in 2022.

In 2024, television advertising, particularly in news TV, is anticipated to experience a resurgence due to the occurrence of general elections, which historically stimulate advertising expenditure. Additionally, the robust performance of regional channels, where advertising rates remain steady due to sustained demand for local language content, will contribute to the growth. Moreover, increased investments in sports, fuelled by a revival in funding for D2C brands following the general elections, are expected to bolster advertising revenues. Furthermore, brand extensions by large Indian corporations and the launch of international brands will further drive demand for television advertising, as India progresses towards achieving a position among the top three economies globally.

Risk factors impacting the growth of the Indian advertising sector encompass the absence of a new driver sector to offset the decline in advertising revenue from sectors like gaming and crypto. Additionally, the ongoing proliferation of free digital platforms like YouTube poses a threat, especially if recent entertainment content and films become available on these platforms. Moreover, the escalating usage of social media and short video platforms further exacerbates the challenges faced by the sector.

(Source: FICCI, EY Report-Reinvent Indias media & entertainment sector is innovating for the future March 2024)

Indian media and entertainment sector overview

The Indian Media and Entertainment (M&E) sector continued its upward trend, growing at 8.1% to reach 2.32 trillion in 2023. Despite being 21% higher than its pre-pandemic levels, television, print, and radio remained below their 2019 levels. Although television maintained its status as the largest segment, digital media is expected to surpass it in 2024. The M&E sector is projected to grow at 10.2%, reaching 2.55 trillion by 2024, and further maintain a CAGR of 10%, reaching 3.08 trillion by 2026.

Except for television, all segments within the M&E industry experienced growth in 2023. The increase of

173 billion marked a slowdown compared to the growth of 371 billion observed in 2022, primarily attributed to challenges in advertising during the first half of the year. New media platforms such as digital and online gaming saw the most substantial growth, accounting for 122 billion of the total growth. Consequently, their contribution to the M&E sector increased from 20% in 2019 to 38% in 2023. Meanwhile, the share of traditional media (including television, print, filmed entertainment, live events, out-of-home advertising, music, and radio) decreased to 57% of M&E sector revenues in 2023, down from 76% in 2019. Experiential segments, encompassing activities outside the home and interactive platforms sustained robust growth throughout 2023. Consequently, online gaming, filmed entertainment, live events, and out-of-home media segments collectively grew by 18%, contributing 48% to the total growth.

The Indian M&E sector will grow at a CAGR of 10% and add 763 billion in three years. New media will contribute 61% of this growth, followed by animation and VFX (9%) and television (9%). Considering that video, audio, text and experiences are accessible across almost all segments, the M&E sector is redefining itself across these four verticals: Video – TV, video OTT, short video, social; Experiential – Online gaming, cinemas, events, OOH; Textual – print, online news; and Audio – radio, music, audio OTT.

Video remained the highest-earning segment in 2023, given its simplicity and ease of consumption. Although experiential revenues were affected by the pandemic in 2020 and 2021, they have since recovered, with their share expected to continue expanding in tandem with the growth of Indias per capita income. While the decline in print circulation may have led to a permanent loss for text mediums, they are projected to maintain relative stability in terms of advertising and subscription growth, albeit at a slower pace compared to other media. Furthermore, revenue models for audio platforms remain largely supported by digital advertising.

(Source:FICCI,EYReport-ReinventIndiasmedia&entertainment sector is innovating for the future March 2024)

Indian digital media sector overview

India recorded 1.19 billion telecom subscriptions, reflecting a stable digital infrastructure landscape. Although 5G proliferated, with 130 million subscriptions, 4G continues to dominate the market. Connected TV saw a 50% growth as internet penetration continues to rise. The broadband market is also expanding with subscriptions numbers recording 904 million. The proliferation of smartphone users has inevitably led to an increase in average usage time. Despite a high volume of app downloads reaching 26.4 billion, India has not fully leveraged this potential, with users spending half of their time on social media apps. Video viewership progressed, while content platforms are increasingly focussing on localisation, particularly in popular genres such as drama, action and thrillers. Enhanced digital engagement led to different patterns in content consumption and advertising. In 2023, digital advertising spending surged by 15%, primarily driven by search and social media platforms. By 2026, the digital segment is projected to expand to 955 billion, representing a CAGR of 13.5%.

Digital advertising is poised to grow at a CAGR of 13.5%, reaching 842 billion, buoyed by enhanced governance measures. Within this, SME and long-tail advertising, encompassed in the aforementioned figure, are projected to increase from 208 billion in 2023 to 304 billion by 2026. E-commerce advertising is expected to demonstrate the fastest growth, reaching 150 billion by 2026, while advertising on entertainment and sports on OTT platforms is forecasted to range between 80 -

90 billion. However, news OTT and music ad revenues are anticipated to face challenges unless they cultivate a loyal, app-based audience. Subscription revenues are estimated to grow at a CAGR of 13%, reaching 114 billion in 2026, influenced by the emphasis on ad-supported platforms. The number of paid video subscriptions is projected to rise to 138 million across 65 million households by 2026. Additionally, music subscriptions are expected to double to ~15 million by 2026, with a shift in content mix towards tentpole properties and low-cost content.

(Source:FICCI,EYReport-ReinventIndiasmedia&entertainment sector is innovating for the future March 2024)

Budgetary allocations

The governments emphasis on infrastructure development with an 11.1% increase in capital expenditure to 11.1 lakh crores and an allocation of 80,671 crores for Pradhan Mantri Awas Yojana (PMAY) in the Interim Budget 2024-25, will not only expand the housing and other real estate segments but also facilitate the development of modern infrastructure, including digital infrastructure. This initiative will create new opportunities for the media and entertainment sector.

The governments focus on Yuva and Mahila, along with going deeper into the country through the aspirational district programme, Udaan, etc. has the potential to boost the M&E sector and generate employment within it. The proposal of a corpus of 1 lakh crores 50-year interest-free loan will boost private investment in sunrise technologies and create unprecedentedopportunitiesforinnovationand employment in the M&E sector. This initiative will encourage the industry to leverage Deep Tech such as AI to catalyse growth.

With the economy expected to grow at a solid pace of 6.5-7% next fiscal year, advertising spending is anticipated to rise across industries.

SWOT analysis

Strengths

Thriving media and entertainment industry in India due to vast customer reach The growing middle class with increased disposable income and higher spending power Rising consumption of media and entertainment due to ubiquitous connectivity in India Technological innovations reshaping the Indian M&E sector, revolutionising content creation, distribution, and consumption methods Low production costs and high revenues ensure a healthy return on investment (ROI) for the sector

Weaknesses

The media and entertainment sector in India is fragmented Lack of cohesive production and distribution infrastructure Inadequate efforts to increase media penetration in lower socio-economic classes

Opportunities

Increasing interest of global investors in the industry Rapid deregulation in the industry Growthinviewershipandadvertisingexpenditure Rapid adoption of 5G services and the continued expansion of wired broadband in India

Artificial Intelligence (AI) revolutionising the

M&E industry, influencing every aspect from content creation to the consumer experience

Population growth, improved electrification and increased broadband connectivity in rural areas

Threats

Piracy and violation of intellectual property rights and cyber security threats Lack of quality content Uncertainty about success in the market The dynamic M&E industry is sensitive to shifts in consumer preferences Continuous need for technology upgradation to meet changing market requirements

Company Overview

Established in 1988, New Delhi Television Limited ("NDTV"), is a pioneering news television and digital journalism company in India. It is a subsidiary of AMG Media Networks Limited, an Adani Group company.

Media and entertainment business

The Companys channels, including NDTV 24x7 (English),

NDTV India (Hindi), and NDTV Profit (Business) uphold the highest standards of journalism through innovative programming and unwavering integrity. Combining insight and innovation, the channels focus on delivering credible, true, and fast news to the global Indian community. NDTV 24x7 is the sole English News Channel from India broadcasted in the UK, USA, Canada, South Africa, Middle East, Australia, New Zealand, Mauritius and the majority of the SAARC countries, ensuring outreach to the Indian Diaspora worldwide. NDTV has launched new regional channels viz. ‘NDTV Madhya Pradesh & Chhattisgarh and ‘NDTV Rajasthan and has also re-launched its business channel ‘NDTV Profit during the financial year 2023-

Additionally, NDTV Marathi is launched on May 1, 2024. NDTV has further expanded its global footprint with the introduction of the NDTV World page that caters to the global audience.

Outlook

The prospects of NDTV seem promising, fuelled by strategic initiatives and investments tailored to the evolving media landscape. The focus on digital-first content and a robust digital strategy primes NDTV to leverage the increasing trend of digital consumption. With projections indicating growth in Unique Viewers (UVs) to 311 million by 2028, NDTV is poised for an expanded digital audience base. The Companys international expansion further solidifies its commitment to catering to a global audience. Recognitions through awards underscore the quality of NDTVs content and its unwavering commitment to journalistic excellence. Technological advancements provide NDTV with an edge to swiftly adapt to changing consumer preferences and emerging media trends.

Strategic initiatives such as hiring prominent figures, global content creation, and enhancing on-screen presence position NDTV as a market leader. The steadfast emphasis on perception, credibility, and trust cements NDTVs reputation in the industry. Its ambitious targets for market rankings within specific timeframes demonstrate a clear strategy for impactful market penetration and reporting excellence. Marketing efforts aimed at enhancing on-screen aesthetics and brand image contribute to immediate visibility and recognition. NDTVs adaptive approach to business, including portfolio expansion, digital innovation, and talent acquisition, ensures readiness to navigate future industry dynamics seamlessly.

Key Strengths

Technological Prowess: NDTVs strength lies in its ability to directly engage with viewers through television and digital content. Advanced digital analytics offer real-time feedback on viewer preferences, influencing content selection. Ongoing innovation by both technical and editorial teams enhances competitiveness. Strategic Investments: NDTV strategically invests in digital equipment to enhance capacity and workflow efficiency, supported by long-term contracts. Investments in equipment compatible with 4G and 5G networks future-proof the Companys operations.

Digital Infrastructure: Leveraging Amazon Web

. Services enables scalable virtual servers and storage solutions. Utilisation of Akamai and other CDN services ensures rapid access to multimedia content across various locations. The integration of AWS with CDN services enhances scalability, flexibility, and overall performance.

Future-Readiness: AI technologies hold the potential to assist journalists in various tasks such as writing articles, transcribing interviews, and detecting misinformation. NDTV is exploring the potential of AI and machine learning applications in collaboration with news media.

Brands and Segments

Other than its flagship channels NDTV 24x7 and NDTV India in English and Hindi, NDTV runs vibrant and fast-growing digital platforms for its consumers through www.ndtv.com and www.ndtv.in in English and Hindi, respectively. NDTV has further expanded its global footprint with the introduction of the NDTV World page that caters to the global audience. NDTV digital experienced robust growth in traffic with total site visits for NDTV Group and page views increased by 32% each. NDTVs YouTube channels in English and Hindi have a combined subscriber base of 32.25 million.

NDTV has launched new regional channels viz.‘NDTV Madhya Pradesh & Chhattisgarh and ‘NDTV Rajasthan and has also re-launched its business channel ‘NDTV

Profit during the financial year 2023-24. NDTV Marathi was also launched on May 1, 2024. Additionally, there are special interest verticals on digital platforms in the areas of Business, Technology, Food, Movies, Sports, Health, and Lifestyle for the Company.

In order to expand its offering and bring new audiences to its platforms, the Company will continue to invest in offering Business News TV and expand in regional languages to leverage the strength of the brand and business acumen.

NDTV Convergence Limited ("Convergence")

During the year, the Groups digital arm, NDTV

Convergence declared a Net Profit of 15 million. The total income from operations of the Company decreased by 22.11% to 1,578.29 million as compared to the total income of 2,026.35 million during the previous year. Convergence, on account of its credibility in the digital news space was chosen to be part of the Google News Initiative to build a trust index to drive and support responsible content creation that can be trusted by users, which was rolled out in June 2023. NDTV has also partnered with Single Id technology provider Enigmatic Smile to launch a one-of-a-kind NDTV Big Bonus property,

Indias first ever card-linked-offer App. NDTV has been acknowledged and given accolades as their founding user-facing partner in India.

On social media, NDTVs following remains premium. NDTV is the most-popular news handle on X with 21.9 million followers in India. NDTV channels on YouTube have nearly 32.25 million subscribers. NDTV YouTube channel is the highest subscribed English news channel in India. NDTV is also the most-followed English news account on Instagram in India with 4.26 million followers. Targeting a new younger demographic, NDTVs channels on Snapchat are driving high engagement with nearly half a million follower base. NDTV video views across online platforms have crossed 4.6 billion views in FY 2023-24.

Brand Equity, Awards and Recognitions

NDTV is one the most respected media brands in the country with a rich legacy and standing, as reflected in numerous awards won over these years. NDTV again proved its excellence in journalism with the Reuters Institute at Oxford University reporting that it is the countrys most-watched TV channel and most-popular news site. For a news organisation, the best result lies in being trusted. The Company, as ever is grateful for its audiences loyalty.

Awards won by NDTV and its journalists: ENBA Awards (2023)

NDTV was recognised with 43 awards in the 16^th edition of the Exchange4media News Broadcasting Awards (ENBA), including NDTV 24x7 winning in the News Channel of the Year-English - TV category.

NT Awards

NDTV bagged numerous awards at the NT Awards 2023 i.e. ‘Rewarding Excellence in Indian News Television.

Special Project Awards

Ms. Ambika Singh Kahma won the Red Ink Award honouring excellence in Indian journalism (category - environment) for the Sundarbans documentary and ASSOCHAMs diversity and inclusion excellence award.

Special campaigns and events

Dettol-NDTV Banega Swasth India Campaign – Season 10 (10 years of collaboration)

The campaign introduced the theme ‘One World Hygiene - Fostering global unity for a healthier tomorrow in its milestone 10^th year.

NDTV–Usha International Kushalta Ke Kadam – Season 8

The campaign empowers rural women, encouraging entrepreneurship through sewing. With over 33,000 Silai schools in 20,751 villages, this initiative has trained more than 12 lakh women since 2011.

Kailash Satyarthi & NDTV Justice for Every Child – Season 2

NDTV, in collaboration with Kailash Satyarthi Childrens Foundation, launched a pan-India campaign aiming to create a Child Marriage Free India, targeting a reduction in child marriages to 10% by 2025.

Samarth by Hyundai in Partnership with NDTV

This initiative seeks to promote inclusivity and enhance the quality of life for people with disabilities.

USHA Clothes with a Conscience – Season 2

The campaign promotes sustainable fashion by tracking donated clothes, showcasing recycling/upcycling innovations, and exploring traditional weaving.

NDTV Indian of the Year Awards 2023-24

This Award honoured visionaries, political leaders, sports figures, and entertainers who strengthen society and contribute to Brand India, under the theme "India – A Transformative Power."

NDTV Yuva Conclave

NDTV Yuva Conclave brought together the biggest youth disruptors from politics, cinema, music and comedy in India.

Distribution

After the implementation of NTO 1.0 and NTO 2.0, NDTV has also implemented NTO 3.0 in FY 2023-24. The Company has also aligned its channel pricing, packages and package pricing as per the new guidelines circulated by TRAI. The Linear Pay TV Universe continues to shrink and has seen a decline of 6%. DD Free DISH continues to grow in the FTA Market and has now 45 million subscribers. On the other end of the spectrum, Connected TV continued its growth during the FY 2023-24 and is expected to be at 25 million, growing to almost 40 million by FY 2024- 25.

Highlights of Distribution:

1. NDTV is available online on new platforms in India: Runn TV, Xiaomi TV+, LG India Platform, Jio TV and Jio TV +.

2. NDTV India is now available on Dish Network and LLC/Sling TV in the US reaching out to 2.2 million homes.

3. NDTV 24X7 is the most widely distributed Indian news network in foreign markets, including the UK, US and UAE.

4. NDTV has launched new regional channels viz. ‘NDTV Madhya Pradesh & Chhattisgarh, ‘NDTV Rajasthan and NDTV Marathi. The channels are available across all major cable and DTH platforms.

5. NDTV re-launched its business channel ‘NDTV

Profit in the FY 2023-24.

6. NDTV launched digital platforms for new regional channels and introduced the ‘NDTV World Edition page catering to a discerning global audiences.

Human Resources

NDTV recognises the pivotal role of its workforce as the source of its competitive advantage. The Company values its employees and acknowledges their diverse experiences across various sectors and industries, as well as their specialised technological knowledge and expertise. NDTVs HR philosophy is firmly grounded in a commitment to innovation and progress, constantly challenging traditional norms to maintain its competitiveness in the industry. The Company consistently makes employee-centric decisions that prioritise the professional and personal aspirations of its workforce. NDTV promotes a healthy work-life balance, fosters a sense of pride and belonging among its employees, and supports their growth and development. The NDTV Human Resources effort this year ensured:

1. The health and safety of every employee;

2. Medical attention and supervision for all employees;

3. Maintaining world-class practices including highly specialised deep cleaning of all studios and office spaces;

4. Creche facility at the office with trained attendants.

On March 31, 2024, there were 671 employees on the rolls of the Company.

Risk Management and Mitigation

The Board diligently employs risk management processes, reinforced by internal controls, to ensure that the Company achieves its strategic objectives and remains safeguarded against unforeseen circumstances. At NDTV, the focus is on becoming a sustainable business entity by acknowledging potential risks and establishing robust risk management policies. The effectiveness of the Companys strategy directly correlates with its ability to withstand unforeseen incidents. Consistency is a key aspect of the risk management approach, prioritising long-term business sustainability over short-term profitability in the corporate strategy. This ensures a clear understanding of feasible and non-feasible actions within the operational framework of the Company, involving all stakeholders.

The Company confirms that there is an extensive risk management framework in place including policy, procedures and evaluation methods to help the Company review organisational risks. The thoroughness of the process has improved corporate sustainability. Hence, risk management plays an important part of corporate management in the distant future.

Areas of special attention for Risk Mitigation

1. Cor e IT operations The two– primary services provided are email and Intranet applications: a. NDTV email is hosted and run on the cloud via Microsoft and there is no risk of outage other than those covered under standard SLA by Microsoft. b. NDTV intranet servers are regularly and on schedule backed up at Veeam backup solution on LTO tapes & HOT DR disaster recovery has been implemented to mitigate any possible risk associated with physical servers on-premises.

2. Broadcast television – Entire operations are managed and run in-house, inclusive of Studio, PCR and Transmission.

In order to mitigate any risk of outage of TV channels following is the plan for business continuity: a. Teleport: The entire equipment chain is built in a manner that 1:1 redundancy is ensured, which means there is one chain for use and another entire equipment chain for backup. It also provides backup for teleport. Furthermore, the Company has multiple levels of power backup. Two DG sets of 1.5 MW & 0.750 MW serve as main and backup to each other in case of any electricity failures in supply. Then the next level of backup in case these DG sets also fail, is in the form of UPS that can provide support up to 1 hour for safe power to all Studio/PCR equipment. This UPS again has main and backup in terms of battery bank. In addition, NDTV has tied up with Indo-Teleport as Disaster Recovery Site (a backup site that has the licence and facility to carry out the transmission of NDTV Channels) which could be brought up within short notice of 6–12 hours in case of any natural calamity such as earthquake, flood or fire where NDTVs facilities cannot provide back-up for transmission. Recorded programmes can be played on the channel till the entire setup resumes and the processes for this are in place. b. Studio/PCR: The Company operates five fully functional studios in Delhi, each serving a specific channel: NDTV 24x7, NDTV India,

NDTV MPCG, and NDTV Rajasthan. Additionally, the fifth studio, equipped with a PCR

facility, functions as a backup for any of the channels when necessary. This studio is also utilised for recording large-scale events and audience-based shows due to its extensive size. The Company also has three functional studios in Mumbai, each serving a specific channel: NDTV Profit and NDTV Marathi. Additionally, the third studio, equipped with a PCR facility, functions as a backup for any of the channels when necessary.

In the event of a failure at the physical location, recorded shows can be seamlessly played out while the studio and PCR facility are rebuilt from scratch at a predetermined location. The Company has trained its editorial, production, and technology teams to efficiently handle this process within a 24-48 hour timeframe. To facilitate this, the Company has identified several alternative locations, including those where telethons have been conducted in the past. These locations have already served as successful backup sites during the COVID period.

3. Digital arm of the Company – Both the content management system and the user-facing websites are hosted on Amazon AWS cloud, which mitigates the risk of non-availability of the site. Further Akamais CDN services are used to handle any huge traffic surges, ensuring uninterrupted access to the Companys digital platforms.

Financial Overview

Analysis of the Profit and Loss Statement

Revenue: Revenue from operations reported a increase of 3.8% to 228.96 crores in the financial year 2023-24 from 220.65 crores in the financial year 2022-23.

Other Income of the Company reported a 51% increase and accounted for a 11% share of the Companys revenues, reflecting the Companys dependence on its core business operations.

Expenses: Total expenses increased by 21.9% to 270.16 crores in the financial year 2023- 24 from 221.65 crores in the financial year 2022-23. Production expenses and cost of services, accounting for a 27% share of the Companys revenues, increased by 13% from 54.94 crores in the financial year 2022-23 to 62.17 crores in the financial year 2023-24. Employee benefit expenses, accounting for a 29% share of the Companys total expenses, increased by 20.4% from 64.28 crores in the financial year 2022-23 to 77.42 crores in the financial year 2023-24.

Analysis of the Balance Sheet

Sources of funds - The capital employed by the Company was 388.52 crores as on March 31, 2024, as against

383.90 crores as on March 31, 2023.

The net worth of the Company was 360.53 crores as on March 31, 2024, as against 373.67 crores as on March 31, 2023, due to reduction of profit for the year. The Companys equity share capital, comprising 6,44,71,267 equity shares of 4/- each, remained unchanged during the year under review.

Long-term debt of the Company was 103.11 crores as on March 31, 2024. The debt-equity ratio of the Company stood at 32% in the financial year 2023-24 compared 4% in the financial year 2022-23.

Finance costs of the Company increased by 78.1% from

6.46 crores in the financial year 2022-23 to 11.50 crores in the financial year 2023-24. The Companys debt service coverage ratio stood at (3.56) times at the close of the financial year 2023-24 as against 3.59 times at the close of the FY 2022-23.

Applications of funds - Fixed assets (gross) of the Company was 58.24 crores as on March 31, 2024, as against 53.76 crores as on March 31, 2023. Depreciation on tangible assets was 5.0 crores in the FY 2023-24 as against 4.56 crores in the FY 2022-23 during the year under review.

Investments - Non-current investments of the Company were 347.52 crores as on March 31, 2024, as against

332.20 crores as on March 31, 2023.

Working capital management - Current assets of the Company were 168.99 crores as on March 31, 2024, as against 112.96 crores as on March 31, 2023. The Current and Quick ratios of the Company stood at 73% and 67% respectively at the close of the financial year 2023-24 compared to 56% and 52%, respectively at the close of the financial year 2022-23.

Trade receivables were 109.83 crores as on March 31, 2024, as against 65.27 crores as on March 31, 2023. All receivables were secured and considered good. The Company contained its debtors turnover ratio at

2.58 times in financial year 2023-24 compared to 3.24 times in the financial year 2022-23.

Cash and bank balances of the Company were 12.88 crores as on March 31, 2024, as against 16.69 crores as on March 31, 2023.

Margins- The EBIDTA margin of the Company decreased by 1515 basis points from 19% in the financial year 2022-23 to 3.5% in the financial year 2023-24 while the net profit margin of the Company decreased by 1832 basis points.

Key Ratios:

Particulars	FY 2023-24	FY 2022-23
EBITDA/Turnover (%)	3.4%	19%
Debt-equity ratio	32%	4%
Return on equity (%)	(3)%	8%
Book value per share ()	56	58
Earnings per share ()	(1.90)	4.44
Debtors turnover ratio	2.58 times	3.24 times
Current ratio (%)	73%	56%
Net profit margin (%)	(5)%	13%

Internal control systems and their adequacy

The Company has a strong internal audit system in place, which is regularly monitored and updated to safeguard assets, comply with regulations, and promptly address any issues. The Audit Committee diligently reviews internal audit reports, takes corrective action as required, and maintains open communication with both statutory and internal auditors to ensure the effectiveness of internal control systems. This robust internal audit framework ensures that the Company operates with integrity, transparency, and accountability while mitigating risks and safeguarding the interests of stakeholders.

Cautionary Statement

This section may contain certain statements describing the Companys objectives, projections, expectations and estimations which may be ‘forward-looking statements within the meaning of applicable securities laws and regulations. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised by the Company. Actual results could differ materially from those expressed in the statement or implied due to the influence of external factors that are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments.