Progressing with the power of credibility
Our operating revenues reported a 14.9% increase from FYRs 2Rs 2.
Special attention is drawn to Outdoor and Event & Activation businesses, which
reported growth in revenue by 46.6% and 99.6% respectively. We reported an operating
profit of Rs 3Rs 27 Crores, despite global economic headwinds coupled with a steep
increase in newsprint prices.
DEAR SHAREHOLDERS,
I extend warm greetings to all of you. Hope you and your families are
safe and in good health.
The power of credibility has never been so apparent. In today's digital
age, where information is accessible anytime and anywhere, evaluating its credibility
becomes even more critical. Credibility and reliability play a pivotal role in empowering
individuals, institutions, and policymakers to make informed decisions and take
appropriate actions to shape the future by promoting transparency, ensuring
accountability, and reinforcing trust.
As India moves ahead on its ambitious journey to become a
‘developed? economy by Rs 2047 and ushers in an equitable future for all, we -
at Jagran - remain committed to playing a pivotal role in shaping perspectives and
creating and preserving value for all our stakeholders.
During the year gone by, when the world was mired in geo-political
strife and elevated cost of living, India has been a beacon of strength and resilience,
becoming the fifth-largest economy. Leaving the pandemic and its aftermath behind, India
has formed a league of its own during the ‘Amrit Kaal?, as it embarks on a Rs
25-year journey to celebrate the centenary of its emergence as a modern, independent, and
democratic nation.
The Media and Entertainment sector heavily relies on discretionary
spending and is vulnerable to uncertainty and volatility in the macroeconomic environment,
which weakens overall demand and industry performance.
I am delighted to share with you that despite the near-term challenges
in the last fiscal, we delivered a resilient performance, with our businesses clocking
stable revenue growth.
Performance for the year under review
Our Company reported satisfactory performance and recorded significant
growth in revenues of almost all business streams, displaying resilience at its core. Our
operating revenues reported a 14.9% increase from FYRs 2Rs 2. Special attention is drawn
to Outdoor and Event & Activation businesses, which reported growth in revenue by
46.6% and 99.6% respectively. We reported an operating profit of Rs 3Rs 27 Crores, despite
global economic headwinds coupled with a steep increase in newsprint prices.
Our print business reported satisfactory revenue growth. Midday, in
particular, witnessed robust revenues, rapidly catching up to its pre-pandemic figures and
even turning an operating profit from a significant operating loss. We maintained our
market share and aim to increase it further in FYRs 24, anticipating a reversal in the
consumption slowdown within the next six months. Profitability for the fiscal suffered on
account of an abnormal increase in newsprint prices. Although print business revenue may
take another year or so to reach pre-pandemic levels, profitability is expected to improve
significantly due to the moderation in exceptionally high newsprint prices and the
normalisation of inflation.
Our radio business also performed satisfactorily, recording strong
growth, although it remains approximately 35% behind pre-pandemic revenue levels. Despite
not fully recovering lost revenue, radio operations turned profitable for the first time
since the outbreak of the pandemic. As radio primarily follows a fixed-cost business model
without requiring significant additional capital deployment for growth, we anticipate that
profits and cash generation will outpace revenue growth. Furthermore, we expect an
improved yield as consumption picks up.
Our digital business reported mid-teen growth in revenue and remains
well ahead of pre-pandemic levels. However, sustaining profit growth commensurate with
revenue growth will require additional time as we continue to invest in strengthening the
business.
I would like to give special mention to our outdoor and event &
activation businesses, which performed exceptionally well and surpassed the revenue and
profit growth reported in the pre-pandemic financial year.
These businesses have been steadily increasing their share in our
overall portfolio. Both these businesses are now self-dependent in meeting increased
working capital requirements due to the scale of operations and potential inorganic
growth. I am confident that they will continue to do so unless a larger investment
opportunity arises.
Focus on value creation
Our dedicated efforts to unlock the value of surplus assets and
preserve capital since the onset of the pandemic have yielded positive results. We have
successfully liquidated several high-value surplus assets, enhancing our net worth. This,
coupled with our augmented liquidity, enabled us to overcome the unique challenges posed
by the pandemic.
Stock prices have remained under pressure in the recent past primarily
because of uncertainty about the performance and profits due to headwinds faced by
businesses in general and the media industry in particular. However, the intrinsic value
of our Company has actually improved which would get captured in stock prices sooner than
later after these uncertainties completely perish in a year or so.
Additionally, I am pleased to announce that in recognition of our
strong performance and commitment to rewarding our shareholders, we had paid an interim
dividend of Rs 4 per share to the shareholders of our Company. This dividend represented
Rs 200% of the paid-up capital of our company in FYRs 23. Furthermore, I am proud to
highlight that we have successfully completed the biggest buyback in our company?s
history, amounting to Rs 345 Crores during the year under review. These initiatives are in
line with our steadfast focus to reward our shareholders and demonstrate our dedication to
maximising value.
ESG commitments
Our commitment to sustainability encompasses three core areas:
Environment, Social, and Governance, in line with the principles set forth by the United
Nations Sustainable Development Goals (SDGs).
In our pursuit of sustainability, we are dedicated to reducing our
environmental impact through proactive green initiatives across all our operational
locations. We understand the importance of preserving our planet for future generations
and strive to implement sustainable practices that contribute to a healthier environment
for future generations. Over the past years, Company has taken several steps towards
energy conservation, judicious usage of water and preservation of natural resources.
Furthermore, we strongly believe in empowering the communities in which
we operate. Through our community development initiatives, we focus on areas such as
education, culture, and healthcare, among others. We aim to make a positive and lasting
impact on the lives of individuals and the overall well-being of the communities we serve.
Our employees play a vital role in driving our shared organisational
objectives. We prioritise nurturing their skills and competencies, as their growth and
development are key to our success. Through our people development practices, we strive to
strengthen the capabilities of our human capital, enabling them to contribute to our
value-accretive growth and drive innovation within our organisation.
In addition, we are committed to upholding the highest standards of
corporate governance. We continue to refine our Corporate Governance System, guided by
ethical principles, transparency, and leadership in the application of the best
international practices. By maintaining a robust governance framework, we ensure
accountability, foster trust among our stakeholders, and safeguard the longterm
sustainability of our business.
By holistically integrating environmental stewardship, social
empowerment, and strong governance practices, we aim to create value for our stakeholders
while contributing to a more sustainable and equitable future.
As we move forward, we remain committed in our commitment to
responsible growth, which forms the core of all our strategies. On behalf of the Board of
Directors, I would like to express our sincere gratitude to all our stakeholders for their
continued support and trust. I would also like to express my deepest gratitude to the
significant contribution of our committed workforce across the country, who despite all
headwinds, selflessly persevered to contribute to our success story.
Warm regards,
| Dr. Mahendra Mohan Gupta, |
| Chairman and Managing Director |