TAKING FORWARD A LEGACY OF VALUE CREATION
Over the years, we adeptly navigated different economic cycles,
industry challenges, and market dynamics, emerging stronger with each hurdle. Our solid
financial health and prudent management practices remain instrumental behind our constant
pursuit of value creation.
Dear Stakeholders,
I am pleased to share with you the progress and achievements of Jagran
Prakashan Limited for FY24.
Notwithstanding the challenges presented by the global macro- economic
environment, India maintained its position as a significant economic and geopolitical
power. This resilience is reflected in the upward momentum of Indian economy, which grew
by 7.6% in FY24, according to the Reserve Bank of India (RBI), solidifying its status as
the fastest-growing major economy globally.
This impressive growth is supported by the sustained strengthening of
macro-economic fundamentals. The policy decisions of the Government, including a
substantial increase in capital expenditure, are expected to drive sustainable increase in
consumption through employment generation and improvement in per capita income. These
measures are laying a robust foundation for long-term economic resilience, fuelling
India's transformation at an accelerated pace.
Our enduring success and market leadership are firmly rooted in three
core pillars: stability, consistency, and trust.
Stability lies at the core of our brand identity. Over the years, we
adeptly navigated different economic cycles, industry challenges, and market dynamics,
emerging stronger with each hurdle. Our solid financial health and prudent management
practices remain instrumental behind our constant pursuit of value creation. Through
sustained investment in infrastructure, technology, and talent, we upgraded our mettle to
effectively adapt to the evolving media landscape. This focused approach ensures our
long-term sustainability and resilience, positioning us as a reliable and enduring entity
in the industry.
Consistency is integral to our credibility. We remained firm in
delivering high-quality content that informs, educates, and engages our readers,
listeners, and audiences.
Our brands are synonymous with excellence, upholding the highest
standards of integrity, accuracy, and impact. By consistently maintaining the quality of
our content and providing reliable news, information, and engaging entertainment, we have
garnered the trust of millions across India. This commitment to excellence also extends to
our advertising solutions, where we consistently deliver value and tangible outcomes for
our clients.
Trust is the hallmark of our brand. We recognise that trust is built
over time, with each interaction playing a vital role in the process of earning and
maintaining trust with our audience. We are deeply committed to upholding the trust our
readers bestow upon us; and we do so by prioritising transparency, ethics, and
accountability in all our operations. This commitment to trustworthiness and integrity is
what sets us apart and keeps us at the forefront of the industry.
In my view, the real challenge being currently faced by our Company is
that of absence of a managing director since October 01, 2023 and the ongoing inter-se
disputes amongst the Members of the Promoter/Promoter Group of our Company. However, our
Company's business operations continued to run normally. The outcome of the disputes
is uncertain at present, and the way forward will be determined only after the resolution
of disputes and/or final decision in the ongoing legal proceedings.
I hope and trust that the disputes will be amicably resolved in the
interest of our Company and all its stakeholders, and our Company will be back on track to
realise its fullest potential.
Sustaining our performance
I am pleased to share that FY24 marked a year of stable growth for us.
Our diversified portfolio and strategic initiatives enabled us to capitalise on the
country's growth momentum effectively. During this period, our operating revenues grew by
4.2%, while our operating profit saw an increase of 12.6% on a year-on-year basis.
We are continuously refining our internal processes, placing a strong
emphasis on leveraging technology and economies of scale to achieve efficiencies. We aim
to stay ahead in the market by improving the quality of our offerings and increasing the
agility of our organisation. Our ongoing focus on cost optimisation is set to effectively
fund operating expenses and mitigate inflationary pressures, ensuring the maintenance of
operating profit margins in the long run.
We stay true to our philosophy of consistently rewarding our
shareholders and enhance our collective prosperity. In line with this commitment, the
Board has recommended a final dividend of '5 per share (250%), marking an increase from '4
per share (200%) distributed in the previous year.
Our robust financial position is further emphasised by a gross cash
balance of '1,134 Crore and a net cash balance of '955 Crore at the group level. This
strong cash reserve is indicative of our prudent financial management and affords us the
flexibility to capitalise on growth opportunities to maintain our value creation
trajectory.
In terms of print segment, we are pleased to report strong growth in
operating profit, supported by lower newsprint prices, reduced material costs, increased
contributions from Government advertisements, and our ongoing efforts in stringent cost
control. Dainik Jagran maintains its leadership position. Our flagship brands, Dainik
Jagran, Inext, and Punjabi Jagran, have all experienced significant growth in ad revenue,
primarily owing to an increase in Government advertising. Additionally, the stability of
our circulation further underlines our resilience and enduring appeal in the market.
In the digital realm, we achieved remarkable milestones, securing our
position among the top 10 in India and the top 20 globally in the news/information
category. Strategic collaborations with major tech giants such as Google, Meta, JIO, and
Amazon significantly boosted our content discovery, distribution, and syndication
capabilities, enabling us to scale new heights. With a steady focus on investing in
cutting- edge technology, we are poised to harness the vast untapped potential in the
digital domain, reaffirming our leadership in the ever-evolving digital landscape.
Our radio division demonstrated outstanding performance, holding the
second-highest client count share in the industry, standing at 40% in FY24. Notably, 39%
of our total clients on the radio platform chose to advertise on Radio City, marking a
significant milestone. Moreover, we generated 24% of our revenue from a variety of
offerings, including proactive proposals, digital initiatives, sponsorships, and special
events. This diversified revenue stream reflects our ability to adapt and innovate in
response to market demands.
In our out-of-home (OOH) and activation divisions, our endeavours were
characterised by significant strategic shifts. In the OOH sector, our primary goal was to
increase the share of revenue from asset- based business, known for its greater
profitability and stability. Similarly, in activation, we focused on maximising pure
activation revenue, while reducing lower fixed margins businesses, thereby enhancing
overall profitability.
Upping our sustainability quotient
We accentuate every facet of our business operations with a strong
commitment to integrating environmental, social, and governance (ESG) considerations,
aiming to unlock greater value for all stakeholders. As a model corporate citizen, we are
dedicated to playing a positive role and making a meaningful impact in society.
Sustainability is ingrained in our foundational ethos and woven into
the fabric of our value chain. From sustainable sourcing of raw materials to the
implementation of waste recycling and reuse practices, as well as adopting sustainable
transportation measures, we actively practice our commitment to sustainability in every
aspect of our business.
Our constant focus on nurturing human capital is pivotal in ensuring
that they remain the cornerstone of our value-accretive growth.
With a diverse team bringing varied expertise, experiences, and
perspectives, we stay dedicated to foster an environment of equal opportunity and inspire
innovation at every turn.
Guided by our 'Saat Sarokaar' principles, we are driven to make a
meaningful impact through community interventions. Our initiatives are dedicated to
alleviating poverty, fostering a healthy society, advancing education, empowering women,
conserving the environment, preserving water resources, and population management.
We uphold best-in-class corporate governance practices and continuously
enhance our systems by seamlessly integrating ESG priorities into our operational
framework.
Closing notes
As we conclude yet another satisfactory year, I take this opportunity
to reflect on the resilience and growth of the Indian economy. It instils in me the
confidence that both the media industry, at large, and Jagran, in particular, will benefit
from the thriving business ecosystem present in the country, while continuing on a
trajectory of long-term sustainable growth.
As we embark on another promising year, I am optimistic about our
ability to leverage emerging opportunities and prioritise our strategic objectives to
foster growth.
On behalf of the Board of Directors and our entire team, I extend
heartfelt gratitude to all our invaluable stakeholders - customers, listeners, readers,
employees, partners and banks - for their unwavering trust and firm support. With your
enduring encouragement, we are well-placed to sustain our growth momentum and soar to even
greater heights in the journey ahead.
Warm regards,
Dr. Mahendra Mohan Gupta
Non-Executive Chairman