TV Vision Ltd Management Discussions

Indian Macroeconomics scenario

(Source: FICCI report on Media & Entertainment dated March 01, 2025)

Indias media & entertainment sector is undergoing a transformative shift, driven by digital adoption, evolving consumer preferences, and innovative business models. Indian M&E sector grew by 3.3% in 2024, it grew by INR 81 billion to reach INR 2.5 trillion (US$ 29.4 billion), 30% above its pre-pandemic levels in 2019.

The M&E sector contributes 0.73% to Indias GDP

Growth slowed down significantly in 2024, to just INR81 billion which was less than half the INR185 billion growth of 2023. New media (comprising digital media and online gaming) grew INR113 billion (12%) and now comprise 41% of the M&E sectors revenues

Outside the home media (comprising filmed entertainment, live events and OOH media) grew at a combined 3%, and now contribute 14% of the total M&E sector

Media and Entertainment Industry:

(Source: FICCI report on Media & Entertainment dated March 2025)

India is a unique market where the M&E sector distinguishes itself through a harmonious fusion of tradition and innovation. Here, technology-enhanced entertainment channels, OTT platforms, AI-powered newsreaders, traditional print media, flagship films, and short-form content not only coexist but thrive together, showcasing the vibrant diversity and dynamic growth of our industry. The Government of Indias thrust on improving digital infrastructure in the country combined with our ambition to be at the forefront of the next big technological thrust in media and entertainment, our sector is primed for a massive transformation.

Key highlights:

Digital media is expected to grow to INR 1.1 trillion by 2027:

It is estimated that the digital segment will be the first M&E segment to cross INR1 trillion in 2026 and will grow to INR 1.1 trillion by 2027, at a 11% CAGR, reflecting the changes in consumption patterns being witnessed due to growth in connected televisions, mobile phones and affordable broadband connectivity.

A billion screens by 2030:

India is expected to have almost a billion active screens by 2030. Of these, around 240 million will be large (TV, laptop, PC), while the remaining will be small (mobile phones, phablets). Pay TV, Free TV, and Connected TV are expected to emerge as significant markets, each comprising between 60 to 80 million homes. The 3:1 ratio in favour of mobile phones will sustain the demand for short videos and social commerce.

Online gaming is expected to reach INR 316 billion by 2027:

The online gaming segment is projected to grow at a CAGR of 10.8% over the next three years, reaching INR316 billion by 2027. The segment will see growth across all its verticals, including esports, fantasy sports, casual gaming, and other games of skill to use INR Revenue growth will be led by mobile-based real-money gaming and casual gaming.

Market Dynamics:

According to FICCI report, The Indian Media and Entertainment sector to grow 7.2% in 2025 to reach INR 2.68 trillion (US$31.6 billion), then grow at a CAGR of 7% to reach INR 3.07 trillion (US$36.1 billion) by 2027.

However, Growth slowed down significantly in 2024, to just INR81 billion which was less than half the INR185 billion growth of 2023, Digital media, live events and OOH media led the growth in 2024.

Except for television, all M&E segments grew in 2023, but the share of core traditional media (television, print, filmed entertainment, live events, out of home, music, radio) stood at 41% of M&E sector revenues, down from 3% or INR 30 Billion.

On the other hand, new media (Digital media, Live Events, OOH, Radio) grew the most, grew at a combined 3%, and now contribute 14% of the total M&E sector.

Television: Linear television revenues fell for the second year in a row, despite viewership remaining largely flat. Advertising revenue fell 6% on the back of a corresponding fall in ad volumes and a 10%+ fall in advertisers on the medium. Subscription revenues fell 3% due to a reduction in six million Pay TV homes as both Free TV and Connected TV homes grew. Connected TVs

(whose revenues are included under digital media) grew to around 30 million, up from 23 million in December 2023

Digital advertising: Digital advertising grew 17% to reach INR 700 billion, constituting 55% of total advertising revenues. This figure includes advertising by SME and long-tail advertisers totalling over INR 258 billion, and advertising earned by e-commerce advertising and social media amounting to INR 147 billion.

Digital subscription: Digital subscription grew 15% to reach INR 102 billion Paid video subscriptions grew by 11 million in 2024 to 111 million, across 47 million households in India. Paid music subscriptions grew from 7 million to 10.5 million as music streaming platforms disincentivized free usage, while news remained sub-scale at just 3.1 million paid subscriptions.

Government Initiatives

(Source: https://www.ey.com/content/dam/ey-unified-site/ey-com/en-in/insights/media-entertainment/documents/ey-a-studio-called-india-v1.pdf)

Government of Indias focus is on creating a conducive environment for the Media & Entertainment (M&E) industry to thrive.

GoI has recognized the pivotal role M&E segment plays in shaping our society, influencing our perspectives, and reflecting our collective efforts. This industry is renowned for its creativity, innovation, cultural richness, and it serves as a beacon for not only our nation, but also for the world. This sector resonates deeply with the diverse tapestry of the Indian life and it transcends boundary and fosters unity amongst diversity for a country as diverse as ours, I & B Secretary stated in press release.

GOI has announced a US$1 billion fund for content creators and the proposed Indian Institute of Creative Technologies in Mumbai is unlocking fresh employment avenues.

In March 2025, the Indian government announced an INR83 billion fund aimed at supporting content creators, enhancing their skills, and facilitating their expansion into global markets.

Many initiatives are being taken by Government of India and the State Governments to promote the Media and Entertainment sector, like Amendments to the Cinematograph Act, Information Technology Intermediary Guidelines, Digital Media Ethics Code (Rules), enhanced FDI limits in cable at DTH sector. A lot of reforms have been brought in the TV Broadcasting sector, like uplinking and downlinking guidelines that ensure Ease of Doing Business and ease of compliance.

Government initiatives such as ‘Digital India, launched in 2015, have laid the groundwork for a digitally empowered society. Building on this foundation, the AVGC (Animation, Visual Effects, Gaming, Comics) Promotion Task Force has recommended the creation of a National AVGCXR Mission to position India as a global hub for immersive and creative content production

The central government approved National Centre of Excellence (NCoE) will position India as a global AVGCXR hub, attracting foreign investments. The 2024 interim budget allocates INR1 trillion for 50- year interest-free loans to foster technological research and innovation.

The government is rolling out 730 new FM channels across 234 cities as part of the Phase III FM Radio Policy. This expansion supports the “vocal for local” initiative and focuses on enhancing local content, particularly in smaller tier-II and III cities.

The Government of Indias Film Policy, along with various initiatives by state governments to promote film shooting, is enhancing ease of filming and catalyzing employment. To meet rising content demand, states like Uttar Pradesh, Punjab, Madhya Pradesh, Assam, Chhattisgarh, Odisha and Bihar are actively developing film cities in collaboration with private players. These initiatives are expected to significantly expand employment opportunities across the film production ecosystem

Such conferences like FICCI FRAMES will make India a world leader in M&E segment and will bring in multiplier effect and promote economic development in our country.

Growth Outlook:

(Source: https://www.ibef.org/industry/media-entertainment-india)

M&E is a unique segment having growth and employment intensity embedded in it, and at the same time it is a sunrise sector from the point of view of disruptions happening in the sector. This sector plays an important role as a multiplier for our economy.

India is currently going through a phase of digital transformation, M&E sector is also witnessing rapid shifts which is happening with the availability of online media content. Accessibility of content over the internet has come with the availability of fairly affordable smartphones and data across every nook and corner of the country. Speaking about digital infrastructure, he informed that India has 90 crore internet users, 60 crore+ smartphones and 4 crore+ connected TVs.

The Indian Media & Entertainment (M&E) sector is set for substantial growth, with a projected 10.2% increase, reaching INR 2.55 trillion (US$ 30.8 billion) by 2024 and a 10% CAGR, hitting INR 3.08 trillion (US$ 37.2 billion) by 2026. Advertising revenue in India is projected to reach INR 330 billion (US$ 3.98 billion) by 2024. The share of traditional media (television, print, filmed entertainment, OOH, music, radio) stood at 57% of the media and entertainment sector revenues in 2023.

The countrys entertainment and media industry is expected to see a growth of 9.7% annually in revenues to reach US$ 73.6 billion by 2027.

The Indian media and entertainment sector posted a robust 19.9% growth in 2022 and crossed the INR 2 trillion (US$ 24 billion) mark in annual revenue for the first time led by a sharp jump in the digital advertising mop-up.

Advertising revenue in India is projected to reach INR 330 billion (US$ 3.98 billion) by 2024.

Company Profile:

TV Vision Limited, a Sri Adhikari Brothers Enterprise, is engaged in the TV Channel Broadcasting business. The Company has completed 18 years of pioneering Indian Media and Entertainment Industry and growing at a rapid rate. The Company has listed its Equity Shares on BSE and National Stock Exchange w.e.f. 15th September, 2016. The Company has been reporting a decent operating and financial performance, despite the challenging market situation.

During the fiscal year as a listed Company, the total consolidated revenue is INR 5324.01 lakhs. EBITDA is INR (1,130.95) Lakh.

The mainstream broadcasting channels are MASTIII, MAIBOLI and DABANGG. The Company remained focused on enhancing business from existing advertisers as well as adding new advertisers to widen the client base. The same was evident from repeat business and higher number of new clients.

MASTIII the flagship channel from the networks bouquet has completed 15 years of broadcasting and continues its successful run as the industry leader with unparalleled consistency in the Bollywood music genre being Indias No.1 Music & Youth Channel. The channel has a universal appeal caters to a variety of music lovers of various age groups becoming the most loved Music channel in India.

MAIBOLI: the numero uno Marathi Music Channel from your Company has completed 10 glorious years of broadcast and has kept viewers spellbound and how! Its dominance over it‘s peers is unparalled and it continues to keep audience‘s charmed. It is known for its excellent on-air packaging & well-coordinated programmed time bands. Maiboli has over a period of time captured the imagination of the Marathi viewing population and has positioned itself as a formidable brand not only amongst viewers but also advertisers.

DABANGG is the Bhojpuri Regional Entertainment Channel has continued to maintain its key position amongst its competitors. The Channel has completely added authentic regional flavor in its programming while focusing on Bhojpuri music & movie content for the Channel.

Dabangg

Opportunities & Strength:

Customer Preference: The immense experience of the promoters in the broadcasting industry has proved to be an added advantage in understanding the taste of audience and telecasting differentiated contents which are based on consumer behavior.

New Channels to be launched: Growth in number of channels especially in niche/regional categories will give the Company new opportunities to expand and create various genres of programming based on demand.

Growing Advertiser Base- Company continuously puts in best possible efforts to grow its audiences and advertiser base to maximize revenues.

Digital Platforms- Companys effort to expand into digital media platforms and new age media contents can lead to future growth.

Government Initiatives: The Government is taking various initiatives that support the M&E industrys growth such as increase in FDI limit from 74 per cent to 100 per cent in cable and DTH satellite platforms, digitizing the cable industry to get more institutional funding, and granting industry status to the film industry.

Challenges and Threats

External Risk:

Competition from other players: Company operates in highly competitive environment across all its business segments that are subject to innovations, changes and varying levels of resources available to each player across segment. Failure to remain ahead of the curve or respond to competition may harm the business.

Differentiated Products: Due to increase in the number of channels the content broadcasted needs to be unique to attract view INR. Also, with a view to produce differentiated content, the production cost also increases.

Low Entry Barriers: Vast plethora of channels is available at viewers disposal which has given rise to increased competition.

Consistency: Consistency of programming quality is essential to maintain targeted revenues.

Availability of advertisement run time: In order to maintain the revenue income, the Company continuously need have maximum advertisement run time, any shift in the same may affect directly to the revenue of the Company.

Growing viewership of digital mediums: The growing viewership of digital medium can lead to drop in television viewership which in turn can negatively affect channel reach and ratings.

Internal risk:

Change in Consumer Preference Risks: The Content carried by the Company on its channels need not appeal the target audience always as the target audience preferences are bound to change. The level of creativity required for the audience targeted varies with the available options to the consumers.

Channel Distribution Risk: The Company distributes its channels in the target market through MSO, DTH, cable operators etc. Any shift in the distribution network could affect the viewership of the channels.

Technological Risks: Advancement of the technology for creation of the content and distribution of channel is necessary with the new technologies being adopted by the competitors.

Regulatory Matters: The business may have a positive or a negative impact on the revenues in future due to changes in the regulatory framework and tax laws as compared to the current scenario.

Management continuously monitors and makes efforts to arrest decline or adverse output on any of these factors.

Consolidated Financials:

Disclosure of Accounting Treatment:

The Financial Statements of the Company for the year ended March 31, 2025 have been prepared in accordance with the Indian Accounting Standards (IND AS) prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other accounting principles generally accepted in India and there is no change in the same.

1. Share Capital:

As on March 31, 2025, the Authorized Share Capital of the Company stood at INR 5,500 lakhs divided into 5,499 lakhs comprising of 549.9 lakhs Equity Shares of INR 10/- each and INR 1.00 lakh comprising of 0.1 lakh Preference Shares of INR 10/- each.

As on March 31, 2025, the Paid-up Share Capital of the Company is INR 3875.45 lakhs divided into INR 387.54 lakhs Equity Shares of INR 10/- each fully paid-up and INR 1.00 lakh comprising of 0.1 lakh 0.01% Non-Convertible Non-Cumulative Redeemable Preference Shares of INR 10/- each fully paid-up.

2. Reserves and Surplus:

The total Reserves and Surplus as on March 31, 2025, amounted to INR (14,852.73) lakhs. The reserves include Capital Reserves of INR 6,987.48 lakhs, Securities Premium Reserve of INR 1,884.30 lakhs, Retained earnings of INR (23,629.26) lakhs and deficit as per the statement of Profit and Loss of INR (95.25) lakhs.

3. Financial Liabilities- Non Current Liabilities

The Financial Non-Current Liabilities as on March 31, 2025 amounted to INR 165.34 lakhs.

4. Financial Liabilities- Current Liabilities

The Financial Current Liabilities as on March 31, 2025 amounted to INR 17,282.25 lakhs.

5. Fixed Assets:

Depreciation of INR 1481.34 lakhs was charged to the statement of Profit and Loss. The Net Block of Tangible Fixed Assets and Intangible Fixed Assets as on March 31, 2025 was INR 6.39 lakhs and INR 2719.61 lakhs respectively.

6. Revenues:

The Company earned total revenues of INR 5324.01 lakhs during the year ended March 31, 2025 as against INR 5836.16 lakhs of the previous year ended March 31, 2024.

Critical accounting policies

The principles of revenue recognition are as under:

Revenue from advertisements is recognised on telecast basis and revenue from sale of program/content rights is recognised when the relevant program/content is delivered.

Segment wise Performance

The Company is operating in single primary business segment i.e. Broadcasting. Accordingly, no segment reporting as per Accounting Standard - 17 has been reported.

Internal Controls and Adequacy of those controls

Adequate systems of internal controls that commensurate with the size of operation and the nature of business of the Company have been implemented. Risks and controls are regularly viewed by senior and responsible officers of the company that assure strict adherence to budgets and effective use of resources. The internal control systems are implemented to safeguard Companys assets from unauthorized use or disposition, to provide constant check on cost structure, to provide financial and accounting controls and implement accounting standards.

Human Resources

Human capital is a very important asset in a media Company. The Company has a professional and healthy work culture built around strong corporate values. It also encourages and supports its employees to upgrade their skills on a continual basis. Over the years, the Company has built up a human resource structure, which has enabled the Company to grow and take up challenges. The Company has a qualified team of professionals.

As on March 31, 2025, the Company had 39 permanent employees on its payroll.

Details of significant changes in key financial ratios:

TV VISION LTD. (Standalone

Ratios	Formula Used	2024-25	2023-24
Debtors Turnover	Turnover Revenue from operations / Average Debtors	1.18	4.28
Inventory Turnover	COGS / Average Inventory Turnover	0.00	0.00
Interest Coverage Ratio	Earnings before Interest and Tax / Interest Expense	(42.64)	(23.07)
Current Ratio	Current Assets / Current Liabilities	0.11	0.14
Debt Equity Ratio	Debt / Equity	(1.04)	(1.36)
Operating Profit Margin (%)	EBITDA / Revenue from operations	(0.21)	(0.10)
Net Profit Margin (%)	PAT without exceptional items / Revenue from operations	(0.50)	(0.41)
Return on net worth (%)	PAT without exceptional items / Total Equity	0.24	0.29

Interest Coverage Ratio: Loss for this financial year has increased which has resulted in the change of the ratio.

Debt Equity Ratio: The negative Other Equity has increased substantially compared to previous year due to losses during current and previous year.

Operating Profit Margin: The loss of the Company has increased as compared to previous year due to which there is a change in ratio.

Return on Net Worth: The return on Networth is negative, due to loss in current year & previous year, however since the numerator and denominator both are negative, the ratio is positive.

Note: Debt Equity Ratios has only long term loan from instructional as a debts.

Cautionary Statement

Statements in the Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations may be “forward-looking statement” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and other incidental factors.