The Prannoy Roy-promoted NDTV Ltd, along with its subsidiaries NDTV World, NDTV News and NDTV Media, reported a net loss of Rs 47.53 crore on a turnover of Rs 45.94 crore during the nine months ended December 31, 2003, according to the draft Red Herring prospectus filed by the company for its Rs 100 crore initial public offer.
This is in sharp contrast to a consolidated net profit of Rs 9.78 crore on a turnover of Rs 113.89 crore reported by the company for the year ended March 31, 2003. During the year ended March 31, 2002, its net profit stood at Rs 17.11 crore on a turnover of Rs 104.03 crore. Roy was not available for comment.
This is the first financial year when the company is running its own news channels, 24X7 in English and NDTV India in Hindi. Earlier, it only provided content to Star India for the Star News channel.
“In 2003-04, our primary business has changed from production of television software for other broadcasters to broadcasting news through our own television channels. Therefore, our financial performance for periods after 2002-03 may not be comparable with previous years,” the prospectus says.
The consolidated profit and loss account in the prospectus shows that NDTV saw a dip in revenue after going on its own. Against Rs 103.02 crore in 2002-03, its consolidated revenue for the nine months ended December 31, 2003, stood at Rs 36.74 crore.
NDTV alone reported a net loss of Rs 47.37 crore on a total income of Rs 37.13 crore during April-December 2003.
The prospectus also says that NDTV is planning to merge two of its subsidiaries, NDTV World and NDTV News, with itself.
The company filed an amalgamation scheme with the Delhi High Court for merging NDTV World with itself on September 31, 2004. The proposal was approved by the shareholders and creditors of both the companies on December 6, 2003.