1. Summary Information
|
Country |
|
||
|
Company Name |
HT
MEDIA LIMITED |
Principal Name 1 |
Mr. K. K. Birla |
|
Status |
Good |
Principal Name 2 |
Ms. Shobhana Bhartia |
|
Registration # |
55-117874 |
||
|
Street Address |
18-20 Kasturba Gandhi Marg, Hindustan Times House, |
||
|
Established Date |
03.12.2002 |
SIC Code |
-- |
|
Telephone# |
91-11-66561234/ 66561651/ 66561608/23361234 |
Business Style 1 |
The company is engaged in Media business |
|
Fax # |
91-11-23738887/23704600/ 66561206/66561270 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Printing / Publication of Newspapers |
|
|
# of employees |
3143 |
Product Name 2 |
Printing / Publication of Periodicals |
|
Paid up capital |
Rs. 470,042,000/- |
Product Name 3 |
Radio and television broadcasting and related services |
|
Shareholders |
Promoter and Promoter Group-68.83% Public
Shareholding-31.16% |
Banking |
State
Bank of |
|
Public Limited Corp. |
YES |
Business Period |
9 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
A (60) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Holding Company : |
-- |
Hindustan Times Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
4,922,834,000 |
Current Liabilities |
5,650,666,000 |
|
Inventories |
943,751,000 |
Long-term Liabilities |
1,775,025,000 |
|
Fixed Assets |
5,636,806,000 |
Other Liabilities |
491,544,000 |
|
Deferred Assets |
0 |
Total Liabilities |
7,917,235,000 |
|
Invest& other Assets |
6,502,455,000 |
Retained Earnings |
9,618,569,000 |
|
|
|
Net Worth |
10,088,611,000 |
|
Total Assets |
18,005,846,000 |
Total Liab. & Equity |
18,005,846,000 |
|
Total Assets (Previous Year) |
18,373,358,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
12,631,120,000 |
Net Profit |
1,247,666,000 |
|
Sales(Previous yr) |
13,230,368,000 |
Net Profit(Prev.yr) |
852,305,000 |
MIRA INFORM REPORT
|
Report Date : |
14.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
HT MEDIA LIMITED |
|
|
|
|
Registered Office : |
18-20 Kasturba Gandhi Marg, Hindustan Times House, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
03.12.2002 |
|
|
|
|
Com. Reg. No.: |
55-117874 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L22121DL2002PLC117874 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELH03846D |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the stock exchange. |
|
|
|
|
Line of Business : |
The company is engaged in Media business |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
|
|
|
|
|
Maximum Credit Limit : |
USD 400000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company and the publisher of the news paper Hindustan Times. The financials and the company appear good. Trade relations are fair. Business is active. The company can be considered good for normal business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com while quoting report number, name
and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
18-20 Kasturba Gandhi Marg, Hindustan Times House, |
|
Tel. No.: |
91-11-66561234/ 66561651/ 66561608/23361234 |
|
Fax No.: |
91-11-23738887/23704600/ 66561206/66561270 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office: |
|
|
Board No: |
91-124-3954700 |
|
|
|
|
Factory 1 : |
C-4, UPSIDC, Sikandra, Agra-282002, |
|
|
|
|
Factory 2 : |
345/4, Bhatarhalli, Old |
|
|
|
|
Factory 3 : |
Lower |
|
|
|
|
Factory 4 : |
F-14, Industrial Area, Govindpura, Bhopal-462023, |
|
|
|
|
Factory 5 : |
Dhanbad Bhela Tand Dhaiya, P.O. – ISM, Dhanbad-826004, |
|
|
|
|
Factory 6 : |
Greater Noida Plot No. 08, Udyog Vihar, Grater Noida, Gautam Budh Nagar-201306, |
|
|
|
|
Factory 7 : |
Jallandhar B-21A, Focal Point Extension, Jallandhar-144004, |
|
|
|
|
Factory 8 : |
sNH-33, Kumjum Tola Mango, Jamshedpur-831001, |
|
|
|
|
Factory 9 : |
D-9, Site-3, Panki Industrial Area, Kanpur-208022, |
|
|
|
|
Factory 10 : |
Kolkata |
|
|
|
|
Factory 11 : |
Pocket – II, Vibhuti Khand, Gomti Nagar, Lucknow-226010, |
|
|
|
|
Factory 12 : |
Mohali C-164/165, Phase VIII B, Industrial Focal Point, Mohali-160059, |
|
|
|
|
Factory 13 : |
Mumbai Plot No. 6, TTC MIDC Industrial Area, Dighe, |
|
|
|
|
Factory 14 : |
Musaffarpur ( Franchisee
Location) N.H. No. 28, Sadalpur, Near Sudha Dairy, Muzaffurpur-8413108, |
|
|
|
|
Factory 15 : |
Noida B-02, Sector -63, Noida-201307, |
|
|
|
|
Factory 16 : |
Budh Marg, Patna-800001, |
|
|
|
|
Factory 17 : |
7, Kokar Industrial Area, Ranchi-834001, |
|
|
|
|
Factory 18 : |
|
|
|
|
|
Branch 1: |
C - 164 and 165,
Phase VIII – B Industrial Focal Point, Mohali Chandigarh, ( |
|
Tel. No.: |
5050600 /617/647 |
|
Fax No.: |
5050606 |
|
|
|
|
Branch 2 : |
|
|
Tel. No.: |
2207402 - 06 |
|
Fax No.: |
2207411 / 410 |
|
|
|
|
Branch 3 : |
|
|
Tel. No.: |
5223123 / 118 |
|
Fax No.: |
5223110 |
|
|
|
|
Branch 4 : |
Ashok Marg, |
|
Tel. No.: |
2205722 /2205717(Dir.) 2205702/703,202(Extn.) |
|
Fax No.: |
2205716 |
DIRECTORS
As On 31.03.2010
|
Name : |
Mr. K. K. Birla |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Ms. Shobhana Bhartia |
|
Designation : |
Vice Chairperson and Editorial Director |
|
|
|
|
Name : |
Mr. Y. C. Deveshwar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. N. Memani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Roger Greville |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N. K. Singh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ajay Relan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Priyavrat Bhartia |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. Shamit Bhartia |
|
Designation : |
Whole Time Director |
KEY EXECUTIVES
|
Name : |
Mr. Rajiv Verma |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
V. K Charoria |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Dinesh Mittal |
|
Designation : |
Vice President and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
19 |
- |
|
|
161,754,490 |
68.83 |
|
|
161,754,509 |
68.83 |
|
|
|
|
|
|
22,581 |
0.01 |
|
|
22,581 |
0.01 |
|
Total shareholding of Promoter and Promoter Group (A) |
161,777,090 |
68.84 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
31,194,353 |
13.27 |
|
|
804,937 |
0.34 |
|
|
28,826,385 |
12.27 |
|
|
60,825,675 |
25.88 |
|
|
|
|
|
|
6,720,670 |
2.86 |
|
|
|
|
|
|
2,665,778 |
1.13 |
|
|
2,786,920 |
1.19 |
|
|
244,902 |
0.10 |
|
|
219,570 |
0.09 |
|
|
1,667 |
- |
|
|
23,665 |
0.01 |
|
|
12,418,270 |
5.28 |
|
Total Public shareholding (B) |
73,243,945 |
31.16 |
|
Total (A)+(B) |
235,021,035 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
235,021,035 |
- |
BUSINESS DETAILS
|
Line of Business : |
The company is engaged in Media business |
||||||||
|
|
|
||||||||
|
Products: |
|
PRODUCTION STATUS (As On 31.03.2010)
|
Installed Capacity |
838000 |
|
|
|
|
Actual Production |
|
|
(Copies) |
893.936 |
|
(Pages) |
26891.507 |
GENERAL INFORMATION
|
No. of Employees : |
3143 (approximately) |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batiboi and Company Chartered Accountant |
|
|
|
|
Holding Company: |
|
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Fellow Subsidiaries : |
|
|
|
|
|
Group Companies |
|
|
|
|
|
Join Venture: |
|
|
|
|
|
|
|
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
362500000 |
Equity Shares |
Rs. 2/- each |
Rs. 725.000 Millions |
|
|
Total |
|
Rs.
725.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
235021035 |
Equity Shares |
Rs. 2/- each |
Rs. 470.042 Millions |
Note
Of the above
i) 161,754,490 equity shares of Rs. 2/- each (Previous year 160,985,260 equity shares of Rs. 2/- each) are held by The Hindustan Times Limited, the Holding Company.
ii) 149,772,595 equity shares of Rs. 2/- each (Previous year 149,772,595 equity shares of Rs. 2/- each) were allotted as fully paid-up for consideration other than cash.
iii) 769,230 equity shares of Rs. 2/- each, pending for allotment in the previous year, were allotted as fully paid up for consideration other than cash during the year to The Hindustan Times Limited, the Holding Company
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
470.042 |
470.042 |
468.503 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
9618.569 |
8546.107 |
8688.806 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
10088.611 |
9016.149 |
9157.309 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1775.025 |
3698.652 |
2137.563 |
|
|
2] Unsecured
Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
1775.025 |
3698.652 |
2137.563 |
|
|
DEFERRED TAX
LIABILITIES |
491.544 |
455.204 |
391.837 |
|
|
|
|
|
|
|
|
TOTAL |
12355.180 |
13170.005 |
11686.709 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5636.806 |
5594.153 |
4152.327 |
|
|
Capital work-in-progress |
195.304 |
1779.421 |
467.986 |
|
|
|
|
|
|
|
|
INVESTMENT |
6307.151 |
4055.866 |
4567.696 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
943.751 |
1744.855 |
1136.743 |
|
|
Sundry Debtors |
1851.033 |
2349.601 |
1978.225 |
|
|
Cash & Bank Balances |
661.222 |
602.537 |
696.442 |
|
|
Other Current Assets |
35.873 |
148.840 |
217.442 |
|
|
Loans & Advances |
2374.706 |
2098.085 |
1110.452 |
|
Total Current Assets |
5866.585 |
6943.918 |
5139.558 |
|
|
Less : CURRENT LIABILITIES
& PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2138.549 |
1966.231 |
|
|
|
Other Current Liabilities |
3267.050 |
3075.649 |
2414.304 |
|
|
Provisions |
245.067 |
161.473 |
226.554 |
|
Total Current Liabilities |
5650.666 |
5203.353 |
2640.858 |
|
|
Net Current Assets |
215.919 |
1740.565 |
2498.700 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
12355.180 |
13170.005 |
11686.709 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
12631.120 |
13230.368 |
11862.327 |
|
|
|
Other Income |
360.040 |
347.349 |
406.857 |
|
|
|
TOTAL (A) |
12991.160 |
13577.717 |
12269.184 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw materials |
4103.201 |
5401.964 |
4558.231 |
|
|
|
Personnel Expenses |
2081.763 |
2035.844 |
1755.818 |
|
|
|
Operating and Other Expenses |
3757.593 |
3940.670 |
3315.352 |
|
|
|
Increase or Decrease in stock |
(4.924) |
(0.994) |
3.479 |
|
|
|
Exceptional Items |
358.700 |
188.151 |
0.000 |
|
|
|
TOTAL (B) |
10296.333 |
11565.635 |
9632.880 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2694.827 |
2012.082 |
2636.304 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
257.315 |
316.880 |
177.331 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2437.512 |
1695.202 |
2458.973 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
637.921 |
550.116 |
446.661 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1799.591 |
1145.086 |
2012.312 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
551.925 |
292.781 |
566.807 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
1247.666 |
852.305 |
1445.505 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3232.927 |
2513.111 |
|
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
95.000 |
50.000 |
NA |
|
|
|
Proposed Dividend (on equity shares) |
84.608 |
70.506 |
|
|
|
|
Tax on Proposed Dividend |
14.052 |
11.983 |
|
|
|
BALANCE CARRIED
TO THE B/S |
4286.933 |
3232.927 |
|
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1834.027 |
3832.657 |
29219.523 |
|
|
|
Stores & Spares |
45.427 |
89.460 |
139.179 |
|
|
|
Capital Goods |
67.212 |
936.170 |
98.175 |
|
|
TOTAL IMPORTS |
1946.666 |
4858.287 |
29456.877 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
5.31 |
3.64 |
6.17 |
|
|
|
- Diluted |
5.31 |
3.64 |
NA |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
2760.400 |
2984.100 |
3269.100 |
|
Total Expenditure |
2181.400 |
2240.200 |
2433.200 |
|
PBIDT (Excl OI) |
579.000 |
743.900 |
835.900 |
|
Other Income |
56.500 |
46.900 |
54.200 |
|
Operating Profit |
635.500 |
790.800 |
890.100 |
|
Interest |
38.000 |
45.000 |
40.400 |
|
Exceptional Items |
00 |
0.000 |
00 |
|
PBDT |
597.500 |
745.800 |
849.700 |
|
Depreciation |
140.500 |
139.800 |
141.600 |
|
Profit Before Tax |
457.000 |
606.000 |
708.100 |
|
Tax |
140.300 |
153.500 |
(154.000) |
|
Profit After Tax |
316.700 |
452.500 |
862.100 |
|
Net Profit |
316.700 |
452.500 |
862.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
9.60 |
6.27 |
11.78 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
14.25 |
8.65 |
16.96 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
15.64 |
7.99 |
21.66 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18 |
0.12 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.74 |
0.98 |
0.52 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.04 |
1.33 |
1.95 |
LOCAL AGENCY FURTHER INFORMATION
History
Subject, promoted by Hindustan Times Limited (a leading Newspaper publishing company) was incorporated on 03.12.2002. At present Hindustan Times Limited (HTL) holds 68.73% of shares of HT Media Limited and with this the company is the subsidiary of the Hindustan Times Limited.
Subject acquired the media business of HTL, through a slump sale on a going
concern basis. Pursuant to two business purchase agreements, both dated August
15, 2003, the media business comprising of the entire printing and publishing
undertakings of HTL in all locations except at
The printing undertaking of HTL at
During the year, the Company entered the capital market with an Initial Public
Offering (IPO) (through book building route) of a fresh issue of 46,40,000
Equity Shares of Rs.10/- each and an Offer for Sale of 23,55,000 Equity Shares
of Rs.10/- each by HPC (Mauritius) Limited, for cash at a price of Rs.530/- per
Equity Share, aggregating to Rs. 3707.350 Millions.
The Times of India Group and HT Media Limited have signed a memorandum of
understanding (MoU) (Subject to Board approval) 03.10.2006 to establish a 50:50
Joint venture. The joint venture will function as a standalone business and has
been established to publish a new and vibrant newspaper in
NATURE OF
OPERATIONS:
The Company publishes ‘Hindustan Times’, an English daily, and ‘Mint’, a Business paper daily except on Sunday’. The Company is also engaged into the business of providing entertainment, radio broadcast and all other related activities through its Radio Stations operating under brand name ‘Fever 104’ in cities of Delhi, Mumbai, Kolkata and Bangalore.
Till November 2009, the Company was also engaged in
publishing ‘
The Company derives revenue primarily from the sale of the above mentioned publications, advertisements published therein, by undertaking printing jobs and airtime advertisements aired at the aforesaid radio stations. The Company also derives revenue from the internet business, by displaying advertisements on its websites ‘hindustantimes.com’ and ‘livemint.com’.
FINANCIAL RESULTS:
During the year, the Hindi Business undertaking of the Company,
comprising of "Hindustan" including "Ravivasriya
Hindustan", Hindi daily newspaper; "Nandan" and
"Kadambini", Hindi Magazines and internet portals of the respective
publications, including all assets, liabilities and employees pertaining to the
said Hindi Business situated in premises located in the states of Bihar,
Punjab, Haryana, Jharkhand, Delhi, Rajasthan, Uttar
Pradesh and Uttarakhand and in particular, the printing facilities
(including franchisee printing facilities) situated thereat; was transferred to
a subsidiary company viz. Hindustan Media Ventures Limited ("HMVL")
with effect from 01.12.2009 at book value as on 30.11.2009 by way of a
"slump sale" and on a "going concern" basis.
Further, HMVL is considering an IPO aggregating up to Rs.3000.000
Millions through a book building process in accordance with the Securities and
Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2009. Accordingly, the Draft Red Herring Prospectus has been filed
with the Securities and Exchange Board of India on 05.03.2010.
Company
Performance and Future Outlook
A detailed analysis and insight into the financial performance and
operations of the Company for the year and future outlook, is appearing in the
Management Discussion and Analysis, which forms part of the Annual Report.
MANAGEMENT
DISCUSSION AND ANALYSIS
ECONOMIC OVERVIEW
This fiscal year witnessed recovery of global economies from one of the
greatest depressions in the history, which started in last fiscal year and
trickled down to impact the overall Indian economy. More and more countries are
seeing a trend of positive quarterly growth in gross domestic product (GDP),
along with a notable recovery in international trade and global industrial
production. World Economic Outlook, released in April 2010 by International
Monetary Fund estimated the world output to rise by about 4.25% in 2010,
following a half per cent contraction in 2009. However, the pace of the
recovery is varied depending on the state of the economy. Advanced economies
like US and
Indian Economy
Having arrested the impact of the global downturn successfully in the
previous year, Indian economy continued on the path of consolidation. Indian
economy posted faster recovery than most of the major developed and emerging
economies. The recovery was fueled primarily by Government's stimulus and
easing out of liquidity scenario in the first half, and rise in private demand
and coinciding acceleration in industrial output in the second half of FY 10.
The deficient monsoon led to considerable pressure on the farm output and the
same was reflected in food inflation touching record high in FY 10. Consolidating
faster,
INDIAN MEDIA INDUSTRY
Indian media industry witnessed another testing year in FY 10.
With single digit growth in advertising revenue, the industry required
to focus on cost optimisation and product innovation in order to stay afloat in
the testing times. Newer content formats and audience engagement initiatives
translated in more choices for the customers and helped the industry as
a whole to evolve. The intensity of impact varied from one format to
another. Films, Radio and Outdoor registered a negative growth. Print
showed a flat trend, Music grew moderately, Television recorded good
growth and next-gen mediums like Internet, Gaming and Animation gave
reasons to cheer for the industry. Industry showed consistent signs of
recovery in the second half of the 2010. Amidst the uncertain economic
environment and prevalent low sentiments, the Indian advertising industry
managed to sustain its media spends level. Indian advertising industry
de-grew by 0.4% to reach Rs. 220300.000 millions in 2009 from Rs.
221200.000 millions in 2008. While the effective advertising rates were
on the decline, the advertisers count expanded with print and television
adding 7% and 11% new advertisers. Regional media gained a larger
share of advertising volumes.
Media spend in
Print Media
Despite sluggish advertising sentiments, the Indian print media managed
a marginal growth in 2009 on the count of improved circulation revenues.
Leading the advertising revenues were resilient sectors of education, social
and political messaging, personal accessories, healthcare and
telecom.Advertising from services, real estate, tourism, BFSI and retail saw a
dip. Though advertising spend in automobile sector remained flat, it gained
visible momentum in the second half of 2009.
Radio
Like other sectors in media, private FM radio sector too was adversely
affected. The effect of slowdown was severe in metro markets as compared to
non-metro markets leading to drop in advertising rates and volumes. Non-metro
markets, however, continued to receive higher demands from local advertisers.
Current fiscal year witnessed marked improvements in volume of advertising
across markets, however the ad-rates continued to remain depressed. Also, as
this medium is most cost effective as compared to other mediums, many new
advertisers tried this medium during the economic slowdown, leading to
expansion in the advertisers base. Most of the players in the radio sector
continued to make losses. While some of the larger networks expect to break
even, cost structure continues to be a concern in this industry. Overall, the
radio industry registered a revenue contraction of around 7% in 2009, however,
industry improved during the course of the year and returned to modest growth
in the last quarter of 2009. With the impact of slow down easing fast, radio
industry is expected to post robust growth at a CAGR of around 16% over next
five years.
Online
Internet advertising was the only sector to witness double-digit growth
in 2009, registering 25% growth in revenue, albeit on a small base. It is
expected that this sector would grow at a robust CAGR of around 30% in the next
five years.
OPERATIONAL REVIEW
While FY 10 proved to be a testing time for Indian media industry, HT Media
undertook a holistic approach to its entire business - implementing strategic
decisions that it believes are visionary and will unlock value for stakeholders
in future. The Company went ahead with the on-going and planned investments
towards reach expansion and capability building, while remaining focussed on
optimizing operational synergies through resource optimization and
re-structuring. It continued to engage all the stakeholders like readers,
listeners, advertisers and business partners. As a result, HT Media delivered
strong financial results. Expanding
Reach: HT Media substantially expanded its reach across all its business
verticals. As per the latest Indian Readership Survey ‘IRS Q1 2010’, released
in May 2010, Hindustan Times became the fastest growing English newspaper,
while consolidating its leadership position as the second largest read English
newspaper in
The aggressive expansion of Hindustan continued in FY 10 with
commissioning of a new printing press at
Enhancing engagement: In order to pursue
its longterm strategy of growth, HT Media continued to make investments in the
year of downturn. The Company re-launched Hindustan Times in July 2009
entailing re-structuring of its content and design, making it more insightful,
and giving it a more vibrant and refreshing look. This initiative was intended
to attract the interest of young readers and keeping pace with the changing
news consumption patterns. The initiative has been very well received by the
readers as demonstrated by the recent Indian Readership Survey results. This
also got reflected in Hindustan Times being voted as amongst the top 25
buzziest brands in the annual survey carried out by 'afaqs!', the wellknown
brand reporting portal and being adjudged as No.2 print media brand, in the
Pitch Media BrandOmeter study carried out by Pitch magazine.
Mint added more pages on money matters and personal finance in addition
to new editorial features, exclusive content from Harvard Business Review and
rolled out special issues on occasions such as the general election and the
annual budget, the New Year and Mint's third anniversary. During FY 10, it
firmly consolidated its position as
Improving ad-share: HT Media's advertising volumes across various
newspapers grew more than the industry average in the key markets.
Defying trends in Radio: In the year of
negative growth for the radio industry, Fever 104 emerged as the fastest growing
FM station in all operating markets. Its volume grew by about 78% as compared
to the industry volume growth of 31%. While the industry witnessed a decline of
7% in revenues, HT Media's radio business grew its revenue by 52% and also
turned profitable at EBITDA level. This has been primarily on account of
focussed footprint in four metro cities, unique programming format, robust
revenue growth with focus on local advertisers and cost control measures. In
addition, the business continues to consolidate its position across markets as
the listenership continues to grow.
Adding new domains: HT Media continued
to diversify its business and explore new revenue opportunities
through successful launch of:
- Mobile
marketing and advertising services through HT Mobile Solutions Limited,
the 65:35 joint venture incorporated in FY 09 between HT Digital, a HT
Media's subsidiary company and Velti Plc., a global leader in mobile
marketing and advertising services. During the year, HT Mobile Solutions
has initiated successful advertising campaigns and plans to tap the
world's one of the fastest growing mobile market.
- Commercial
printing services through HT Burda Media Limited, the 51:49 joint venture
between Subject and Burda Druck, GmbH, second largest media group of
Online in line: The internet
business continued to gain traction. Shine.com, the placement portal, (through
subsidiary company Firefly e-Ventures Limited) has crossed 4.000 millions
registered candidates. This is a reflection of the confidence shown in the
site's unique
Fixed
Assets
·
·
Building
·
Improvement to Leasehold Premises
·
Plant and Machinery
·
Furniture and Fittings
·
Vehicles
·
Website Development
·
Software Licenses
·
License Fees
·
Software for radio business
·
Music contents
UNAUDITED STANDALONE FINANCIALS RESULT FOR YEAR QUARTER ENDED
31.12.2010
(Rs. In Millions)
|
Particulars |
Three Months Ended 31.12.2010 |
Nine months ended 31.12.2010 |
|
|
Unaudited |
Unaudited |
|
a) Net Sales/ Income from Operations |
3248.300 |
8822.800 |
|
b) Other Operating Income |
20.800 |
199.300 |
|
Total
Income |
3269.100 |
9022.100 |
|
Expenditure |
|
|
|
a) (Increase)/ Decrease in stock in trade and work in
progress |
(0.100) |
(1.800) |
|
b) Consumption of Raw Material |
964.800 |
2600.400 |
|
c) Employee Cost |
520.500 |
1568.600 |
|
d) Advertising and Sales Promotion |
282.900 |
738.800 |
|
e) Depreciation/ Amortisation |
141.600 |
421.900 |
|
f) Other Expenses |
665.100 |
1948.800 |
|
g) Total |
2574.800 |
7276.700 |
|
Profit from Operations before Other Incomes, Interest and
Exceptional Items |
694.300 |
1745.400 |
|
Other Income |
54.200 |
149.100 |
|
Profit Before Interest, Depreciation/ Amortisation and
Exceptional Item (EBITDA) |
890.100 |
2316.400 |
|
Interest (Including Finance Charge) |
40.400 |
123.400 |
|
Profit After Interest but before Exceptional Item |
708.100 |
1771.100 |
|
Exceptional item |
-- |
-- |
|
Profit form Ordinary Activities before Tax |
708.100 |
1771.100 |
|
Tax
Expenses |
(154.00) |
139.800 |
|
Net Profit from Ordinary Activities after tax |
862.100 |
1631.300 |
|
Extraordinary Item (Net Tax Expenses) |
- |
- |
|
Net Profit for the Period |
862.100 |
1631.300 |
|
Paid-up Equity Share Capital |
470.000 |
470.000 |
|
Reserves excluding Revaluation Reserve |
|
|
|
Basic and Diluted Earning per share (in Rs.) (not
annualised) |
3.67 |
6.94 |
|
Public
Shareholding |
|
|
|
Number of Shares |
73243945 |
73243945 |
|
Percentage of shareholders |
31.16% |
31.16% |
|
Promoters
and Promoter Group Shareholding |
|
|
|
a) Pledge / Encumberd |
|
|
|
Number of Shares |
Nil |
Nil |
|
Percentage of Shares (As a % of the total shareholding of
Promoter and promoter group) |
Nil |
Nil |
|
Percentage of shares (As a % of total Share Capital of the
company) |
Nil |
Nil |
|
b) Non Encumbered |
|
|
|
Number of Shares |
161777090 |
161777090 |
|
Percentage of Shares (As a % of the total shareholding of
Promoter and promoter goup_ |
100% |
100% |
|
Percentage of shares (As a % of total Share Capital of the
company) |
68.84% |
68.84% |
Notes:
- The Un-audited standalone financial results for the quarter ended 31.12.2010, have been reviewed by the Audit Committee end have been approved by the Board of Directors at the meeting held on 15.01.2011.
- In terms of the shareholders’ approval Wa 293(E)(e) of the Companies Act, 1956 and pursuant to the resolution passed at the Board meeting held on 16.11.2009, the Company has sold its Hindi business undertaking with effect from 01.12.2009 on slump sale and going concern basis to 1-lindustan Media Ventures limited (HMVL) then a 99.27% subsidiary of the Company Accordingly, the results (including Segment Information) of quarter ended 31.12.2010 ere not comparable with the results of quarter coded 31.12.2009.
- With effect front current year, the provision for impairment related to “Partnership for Growth’ business has been considered as part of operating expenses. Accordingly Impairment provision amounting to Rs. Nil for quarters ended on 31.12.2010 and 31.12.2009; Rs. 44.000 millions for nine months period aided 31.12.2010; Ro 40.000 millions for nine months period ended 31.12.2009 and Rs. 55.000 millions for financial year ended 31.03.2010 has been reclassified from exceptional items to operating expenses.
- Provision for Tax includes Current Tax Expense recognised on MAT, Deferred Tax Charge/(Cmdlt) and MAT Credit Entitlement
- During the Quarter, the Company has made the following investment in subsidiaries:
a) HI Digital Media Holdings Limited Rs. 275.000 millions in Compulsorily Convertible Debentures
b) HT Burda Media Limited Rs. 117.300 millions as advance against allotment of Equity Shares
c) Firefly a-Ventures Rs 150.000 millions as Inter Corporate Deposit.
- Employee Stock Option detail of the company for the quarter ended 31.12.2010 are as below:
- No options were exercised and granted, 307,462 number of options vested end no options forfeited oaring the quarter under sire HTML Employee Stock Option Scheme 2009.
- Details of number of Investor complaints/queries for the quarter ended on December 31, 2010: Pending at the beginning - Nil; Received - 13; Disposed off- 13; Pending at the end - NU.
- a) A Scheme of Arrangement and Restructuring u/a 391-394 reed with Sections 100-104 of the Companies Act 1956, between Firefly c-Ventures Limited (Firefly) ,a Subsidiary Company end the Company (the Scheme) has been approved by Committee of Board of Directors of HTML at the meeting held on 05.12.2010, subject to sanction by the Hon’ble Delta High Court. The Schema proposed to be effective from 01.01.2011, provides for inter-alia, demerger of Job Portal Undertaking of Firefly and transfer and vesting thereof Into the Company. The Hon’ble High Court has directed to convene meetings of Equity Shareholders, Secured Creditors and Unsecured Creditors of the Company/firefly on Wednesday, 02.02.2011 for approval of the Schema.
b) In the current quarter, effect of above Scheme has been considered in computing the effective anneal tax rate of the Company as per principles of Accounting
Standard - 25 “Interim Financial Reporting” by adjusting the available tax losses of the demerged business [Job Portal undertaking of Firefly). Accordingly, tax expanse In tine Financial Results of the Company for the current quarter and nine month period ended 31.12.2010 is tower by Rs. 409.100 millions resulting into credit In tax expenses for the current quarter.
9. Previous quarter/periods figure have been regrouped/rearranged where necessary to conform to this quarter’s/period’s classification.
10. The CEO and CFO certificate in respect of the above results in term of Clause 41 of the Listing Agreement has been placed before the Board of Directors.
SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In
Millions)
|
Particulars |
Three Months Ended 31.12.2010 |
Nine months ended 31.12.2010 |
|
|
Unaudited |
Unaudited |
|
1.
Segment Revenue |
|
|
|
a) Printing and Publishing of Newspaper and Periodical |
3087.100 |
8436.900 |
|
b) Radio Broadcast |
179.600 |
443.800 |
|
c) Unallocated |
2.400 |
141.400 |
|
Total |
3269.100 |
9022.100 |
|
Less: Inter Segment Revenue |
-- |
-- |
|
Net
Sales / Income form Operations |
3269.100 |
9022.100 |
|
2. Segment Result Profit/ (Loss) Before tax and interest
from each segment |
|
|
|
a) Printing and Publishing of Newspaper and Periodical |
687.700 |
1700.400 |
|
b) Radio Broadcast |
30.300 |
22.600 |
|
Total |
718.000 |
1723.000 |
|
Less: Other Unallocated Items |
23.700 |
(22.400) |
|
Interest (Including Finance Charges) |
40.400 |
123.400 |
|
Exceptional Item (Net) |
-- |
-- |
|
Add: Income from Investments (Including Interest Income) |
54.200 |
149.100 |
|
Profit
Before Taxation |
708.100 |
1771.100 |
|
3. Capital Employed (Segment Assets- Segment Liabilities) |
|
|
|
a) Printing and Publishing of Newspaper and Periodical |
3619.400 |
3619.400 |
|
b) Radio Broadcast |
781.600 |
781.600 |
|
c) Unallocated |
7261.200 |
72161.200 |
|
Total
|
11662.200 |
11662.200 |
Notes:
1. Segment information of quarter ended 31.12.2010 are not
comparable with the results of quarter ended 31.12.2009 in view of note 2 of
the unaudited standalone financial results.
AS PER WEBSITE
Profile:
Subject found its beginning in 1924 when its flagship
newspaper, Hindustan Times was inaugurated by Mahatma Gandhi. HT Media (BSE,
NSE) has today grown to become one of
Produced by an editorial team known for its quality, innovation
and integrity, Hindustan Times (English) and
To cater to the large readership base, HT Media operates 19
printing facilities across
In addition to Hindustan Times and
Subject, through its subsidiary HT Music and Entertainment
Company Limited, has made its foray into electronic media. Diversifying its ambit
of operations, the company in a consulting partnership with Virgin Radio, has
launched the FM radio channel - Fever 104. Currently available in
Internet businesses of HT Media, incorporated under Firefly
e-ventures, operate leading web portals Hindustantimes.com and livemint.com in
the general and business news categories respectively.which has received high
appreciation from customers and industry for its innovative design and
usability crossed 2.2 Millions registrations. Desimartini.com – a social
networking sites was also launched recently.
Subject reported FY 2010 total annual revenue grew by 5% to reach Rs. 14540.000 millions. The circulation revenue posted a robust growth of 19% on account of improved cover price realisation and increased circulation. The advertisement revenue recorded a modest growth of 1%. Reflecting an increased acceptance amongst advertisers, the advertising volumes increased by 17%. Radio vertical outscored others by posting a healthy revenue growth of 52%, taking its revenue to Rs. 430.000 milllions. Riding on the improved ad volumes and realisations, the Radio business turned EBITDA positive in the fourth quarter of FY 10.
PRESS RELEASES
15.03.2011
Hindustan Times has once again come out the undisputed
leader in
In Q4, HT extended its market leadership to the NCR, where it garnered 21.87 lakh daily readers and 32.54 lakh total readers. Media planners who decide on advertisement spending allocations consider such data critical.
Nandini Dias, CEO of media agency Lodestar UM, said: "Ranking in the market for newspapers is important for media planning since we evaluate our plans from a reach perspective." She said higher reach meant higher impact in spending on local or localised brands.
HT has increased its NCR average issue readership by over 50,000 and its total readership by 66,000 over Q3.
Also, it has a strong lead among the more educated and
affluent readers of
For the last nine decades, Hindustan Times has been the
paper of choice for the people of
In Mumbai, where the newspaper is a relatively recent entrant, HT has consolidated its position as the second largest broadsheet newspaper. While HT has grown by 4% to 6.13 lakh daily readers (AIR), both The Times of India and DNA have declined in the Mumbai market. This is seen as a reaffirmation of the strong reader-focused journalism that has led to HT’s consistent growth since its launch in 2005. In fact, it is the only daily to have grown in nine out of the last 10 rounds of IRS results.
In
At an all-India level, HT continues to grow and now has 35.92 lakh daily readers. Dias pointed out: "If the readership increases, the cost per thousand for the advertiser goes down."
Mint, the business paper from the HT Media group, with 1.99 lakh readers, has further consolidated its number two position by growing readership and is more than 50,000 ahead of its nearest competitor
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government official
or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.48 |
|
|
1 |
Rs.72.36 |
|
Euro |
1 |
Rs.64.42 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.