DB Corp’s IPO that debuted in the first week of January 2010 was cause for much cheer. The group has seen a good year in 2009 amid the slowdown effects. In conversation with exchange4media, Sanjeev Kotnala, VP, Bhaskar Group, speaks about the Group’s achievements and the road ahead.
On the Group’s performance in the year gone by, Kotnala said, “The calendar year 2009 has been good for the company. We witnessed top-line as well as bottomline growth. Our circulation and readership is also growing. The cost efficiency measures taken by the company during the slowdown have started providing benefits, reflected in the impressive growth in bottom line.” He added, “Our top-line has shown an impressive growth CAGR (Compound Annual Growth Rate) of 18 per cent in the last four years. Going forward, we expect to maintain the momentum.”
Looking back at the Group’s performance in last 14 years, Kotnala said that as per the past track record, the Groups had grown from one state in 1995 to 11 states in 2008. The year 2008 also witnessed the launch of 10 new editions under different titles of the Group. “We are consolidating existing markets as well as the new markets that we had entered in year 2008,” Kotnala added.
When asked about the impact of the slowdown, Kotnala noted, “The slowdown was a correction in business terms. Effectiveness of media and every business investments were re-evaluated and hence, the companies that had their ears to the ground and the end consumer benefits in sight were the least affected. In Bhaskar’s case, with non-metros like Tier II and Tier III being less affected than the over-stretched saturated metro markets, the impact was delayed and minimised.”
On the after-effects of the slowdown, he commented, “Now, the industry is of the view that it has moved beyond the positive sentiments to some real money flowing into the market. Yes, there definitely is a change, but I don't think that the industry can yet say that it’s business as usual.”
On future plans and strategy of the Bhaskar Group, Kotnala said, “The Bhaskar Group has always held that we are in a constant process of evaluation of opportunities, and the Group will move wherever there are scalable sustainable opportunities.”
“The Indian economy has overcome the initial setbacks and the media industry is reflecting impressive growth for all media players,” concluded Kotnala.
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