News broadcaster NDTV has beaten market expectations by posting a consolidated net profit of Rs 27.8 crore in the fourth quarter of the financial year ended March 31. This is notable as the company had posted a net loss of Rs 41.3 crore in the corresponding quarter of the previous financial year.
It has also seen a 35.3 per cent jump in its income from operations at Rs 186.6 crore, compared to an income of Rs 138 crore in the year-ago period. Operating profits also jumped to Rs 42 crore for the quarter, compared to Rs 8 crore in the previous year.
However, the company has not yet managed to curtail its expenses, which were up 13.2 per cent at Rs 161 crore during the quarter, compared to Rs 142 crore in the previous year. According to analysts tracking the company, while NDTV’s overall distribution cost has come down marginally, its employee cost at 22 per cent of its revenues (Rs 41.4 crore) is very high.
Vikram Chandra, group CEO of NDTV, told Business Standard, “We have taken a lot of efficiency measures to make our company more cost-effective. We have also opened up new revenue streams such as online, which have helped us in turning around the business. Finally, industry-wide factors like digitisation have been a help."
On the employee cost, Chandra said that the company has kept a control on the cost in the last 2-3 years and the employee cost is under control. The company runs news channels (NDTV 24X7, NDTV India, and NDTV Profit), lifestyle business (NDTV Good Times), digital and consultancy businesses.
It has posted a net profit of Rs 1.91 crore for FY13, compared to a net loss of Rs 87.38 crore in the previous fiscal. Income for the full financial year went up to Rs 526.81 crore, compared to Rs 483.37 in FY12. NDTV’s shares closed at Rs 75.15, up 3.51 per cent on the BSE on Thursday, after touching an intraday high of Rs 77.30. (बीएस)
