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    Hindustan Media

    HMVL
    Media, Entertainment & Publication·20 May 2025
    Management Summary

    Hindustan Media Ventures Limited delivered a strong Q4 and FY25, marked by robust consolidated revenue growth and significant profitability improvements, with Q4 PAT up 88% and FY25 PAT turning positive. The Print business saw substantial margin expansion driven by cost efficiencies and yield management, offsetting flat ad revenues and declining circulation. Digital and Radio segments also posted strong top-line growth, though Radio's margins remained soft and Digital continued to incur reduced losses as it scales.

    Highlights

    6
    • Consolidated Q4 Revenue grew 12% and Full Year Revenue grew 7%.

    • Consolidated Q4 PAT grew 88% from INR 30 crores to INR 57 crores, with Full Year PAT turning positive at INR 20 crores.

    • Consolidated Full Year EBITDA grew 58%, reflecting strong operational performance.

    • Print segment Full Year EBITDA grew 67% to INR 121 crores, with approximately 400 basis points of margin expansion, driven by newsprint savings and yield improvement.

    • Digital segment Q4 revenue grew 35% to INR 58 crores and Full Year revenue grew 38% to INR 212 crores, with segment losses reduced from INR 114 crores to INR 102 crores for the full year.

    • The company maintained a strong net cash position in excess of INR 1,000 crores as of March 31, 2025.

    Concerns

    4
    • Print ad revenues were flat to marginally declining across both the quarter and the full year.

    • English Print circulation revenue declined 27% in Q4 and 14% for the full year, while Hindi Print circulation revenue declined 7% in Q4 and 9% annually.

    • Radio segment margins remained soft despite significant revenue growth, due to higher costs associated with 'on-ground' events.

    • The Digital segment continues to incur losses, although they have been reduced, as the company invests for future growth.

    What Changed1

    vs Q1 FY26

    Risks discussed2 → 4 (+2)
    Key financials

    Metrics

    6

    Periods

    2

    Headline

    4
    • FY Revenue Growth
      7.0%
    • FY PAT
      ₹20 Cr
    • FY EBITDA Growth
      58.0%
    • Net Cash Position
      ₹1,000 Cr

    Q4

    2
    • Revenue Growth
      12%
    • PAT
      ₹57 Cr
      YoY+88%

    Segment breakdown

    Q4 RevenueQ4 Revenue GrowthFY RevenueFY Revenue Growth
    Print
    Radio₹82 Cr72%₹204 Cr30%
    Digital₹58 Cr35%₹212 Cr38%
    Heatmap· 4 shared metrics

    Capital allocation

    2
    high confidence
    CategoryHeadline
    M&A

    Electric Mobility Company

    acquisition · announced

    Liquidity

    Cash ₹1,000 crores

    Net cash position in excess of INR 1,000 crores on the books as of 31st March.

    Guidance & targets

    3
    CategoryTargetPriority
    Profitability
    Digital Business (OTTplay) Break-even
    Break-even
    Medium
    Profitability
    Radio Business Break-even
    Break-even or positive
    Medium
    Efficiency
    Digital Business Efficiency
    Efficient
    Medium

    Digital Business (OTTplay) Break-even

    by the end of this year
    CurrentLosses reduced from INR 114 cr to INR 102 cr (FY25)
    TargetBreak-even

    Why it matters

    This is a key target for the digital segment's profitability and a crucial indicator of the success of the company's digital transformation efforts.

    hopefully by the end of this year, we should be in a break-even situation.

    How to verify

    key_financials.segment_breakdown[name='Digital'].metrics[label='FY Losses']

    Risks & concerns

    4
    RiskSeverity

    Softness in Print Ad Revenues

    Ad revenues for the Print segment were flat to marginally declining across the quarter and year, indicating ongoing challenges in the traditional advertising market.Management acknowledged

    medium

    Declining Print Circulation Revenues

    English Print circulation revenue declined 27% in Q4 and 14% for the full year, while Hindi Print circulation revenue declined 7% in Q4 and 9% annually, reflecting a shift away from physical newspaper consumption.Management acknowledged

    medium

    Continued Margin Pressure in Radio Segment

    Despite significant revenue growth, the Radio segment's margins remained soft due to higher costs associated with 'on-ground' events, which have different cost structures than core FCT revenue.Management acknowledged

    medium

    Ongoing Losses in Digital Business

    The Digital segment, while showing strong revenue growth and reduced losses (from INR 114 cr to INR 102 cr for FY25), continues to operate at a loss as the company invests to build and scale new businesses like OTTplay.Management acknowledged

    medium

    Q&A highlights

    8

    “So, we don't, give specific guidance on it, but broadly, as you can see, we have been, growing on a q-o-q basis, and the losses have also, reduced, from what we had reported last year. We expect to keep up the momentum on the growth side, given that, it's still a very nascent business from that perspective and hopefully by the end of this year, we should be in a break-even situation. But it depends, if we scale fast enough, we may invest more on the business as well. So, difficult to predict, but we would be looking to continue the growth momentum.”

    Analyst pressed for a specific break-even timeline for the loss-making digital segment, and management provided a conditional target for the current fiscal year while emphasizing efficiency improvements.

    asked by Mohit Kumra

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Consolidated Performance Driven by Profitability

    Hindustan Media Ventures Limited delivered a robust Q4 and full FY25, with consolidated revenue growing 12% in Q4 and 7% for the full year. Profitability saw significant improvement, with Q4 PAT increasing 88% from INR 30 crores to INR 57 crores, and FY25 PAT turning positive at INR 20 crores. The company also reported a 58% growth in full-year EBITDA and maintained a strong net cash position exceeding INR 1,000 crores as of March 31, 2025.

    02

    Print Business Profitability Boosted by Cost and Yield Management

    Despite muted advertising and declining circulation revenues, the Print segment demonstrated strong profitability. Q4 EBITDA stood at INR 61 crores, contributing to a full-year EBITDA of INR 121 crores, a 67% increase year-over-year, with approximately 400 basis points of margin expansion. This improvement was primarily attributed to significant savings from softer newsprint prices and conscious efforts in advertising yield improvement, which allowed for better pricing even as print volumes declined.

    03

    Digital Segment Shows Strong Revenue Traction with Reduced Losses

    The Digital business, spearheaded by OTTplay and Shine, continued its strong growth trajectory, with Q4 revenue increasing 35% to INR 58 crores and full-year revenue growing 38% to INR 212 crores. Importantly, segment losses for the full year were reduced from INR 114 crores to INR 102 crores, indicating improved cost control. Management expressed optimism about reaching a break-even situation for the digital business by the end of the current financial year, contingent on continued scaling.

    04

    Radio Segment Revenue Growth Amidst Margin Pressure

    The Radio segment experienced significant top-line growth, with Q4 revenue up 72% to INR 82 crores and full-year revenue increasing 30% to INR 204 crores. However, margins for the segment remained soft. This was attributed to higher costs associated with 'on-ground' events, which have different cost structures compared to core Fixed Commercial Time (FCT) revenue. The company aims to bring the Radio business back to break-even or positive sooner, focusing on non-FCT initiatives for future growth.

    05

    Strategic Ad-for-Equity Investments and Treasury Gains

    The company clarified its investment in an electric mobility company was an Ad-for-Equity (AFE) investment, meaning no cash was deployed, highlighting a strategy to participate in new growth areas without direct cash outflow. Additionally, the increase in other income was largely driven by treasury gains, as the company was strategically positioned to benefit from 'favourable yield movement in line of rate actions,' contributing significantly to non-operating income.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.