Shemaroo Entertainment Ltd (SHEMAROO) Q4 FY23 Earnings Concall Transcript

Shemaroo Entertainment Ltd (NSE:SHEMAROO) Q4 FY23 Earnings Concall dated May. 10, 2023.

Corporate Participants:

Mr. Anuj Sonpal — Chief Executive Officer

Mr. Amit Haria — Chief Financial Officer

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Arghya Chakravarty — Chief Operating Officer

Analysts:

Rahul Jain — Credence Wealth — Analyst

Mayank Babla — Enam AMC — Analyst

Viraj Mehta — Equirus PMS — Analyst

Anil Desai — Turtle Capital — Analyst

Harshil Solanki — Equitree Capital — Analyst

Rishikesh Oza — RoboCapital — Analyst

Tina — BAM Capital — Analyst

Jiten Parmar — Aurum Capital — Analyst

Nitin Sharma — MCPro Research — Analyst

Dhwanil Desai — Turtle Capital — Analyst

Maan Vardhan Baid — Laurel Advisory Services Private Limited — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to the Q4 FY ’23 Conference Call of Shemaroo Entertainment Limited, hosted by Valorem Advisors. [Operator Instructions] [Operator Instructions]

I now hand the conference over to Mr. Anuj Sonpal, CEO at Valorem Advisors. Thank you, and over to you, Mr. Sonpal. Thank you.

Mr. Anuj Sonpal — Chief Executive Officer

Good afternoon, everyone, and a very warm welcome to you all. My name is Anuj Sonpal from Valorem Advisors. We represent the Investor Relations of Shemaroo Entertainment Limited. On behalf of the company, I would like to thank you all for participating in the company’s earnings call for the fourth quarter and financial year ending 2023. Before we begin, let me mention a short cautionary statement. Some of the statements made in today’s earnings call may be forward-looking in nature.

Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management’s beliefs as well as assumptions made by and information currently available to management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions.

The purpose of today’s earnings call is purely to educate and bring awareness about the company’s fundamental business and financial quarter under review. Now I would like to introduce you to the management participating with us in today’s earnings call and hand it over to them for opening remarks. We have with us Mr. Hiren Gada, CEO; Mr. Arghya Chakravarty, Chief Operating Officer; and Mr. Amit Haria, Chief Financial Officer.

Without any further delay, I request Mr. Amit Haria to start with his opening remarks. Thanks, over to you, sir.

Mr. Amit Haria — Chief Financial Officer

Thank you, Anuj, and good afternoon, everyone, and welcome to our earnings call for the fourth quarter and the financial year ended to 2023. Let me first start by giving some of the key financial highlights, after which our CEO, Mr. Hiren Gada, will give you some of the operational highlights. For Q4 FY ’23 the revenue form operationsl stood at INR165 crores, which would make a growth of around 76% on Y-o-Y basis. EBITDA for the quarter was INR17 crores, which has jump up by around 94% year-on-year basis.

EBITDA margin stood approximately 10% in profit was reported at approximately INR5 crores, which grew by around 137% Y-o-Y basis. For the financial year ended 2023, revenue from operations stood at INR557 crores, representing a growth of around 46% Y-o-Y basis. EBITDA stood at INR47 crores, which was up by around 32% Y-o-Y basis. EBITDA margin stood at approximately 8.5%, while net profit was INR9.5 crores, which grew by 78% Y-o-Y basis.

With regard to new initiatives in Q4, the expenses amounted to INR1 crores while for the year ended, it was INR54 crores. And if you adjust this investment, the adjusted EBITDA form operations in Q4 and Q3 would have been approximately INR18 crores and INR101 crores, respectively. Let me now take you through the Traditional Media and Digital Media division highlights.

Digital Media revenues for the fourth quarter stood at INR53 crores which grew by around 15% Y-o-Y, while for the financial year ended, it was INR224 crores, retracing a growth of around 23% Y-o-Y. Traditional media revenues for the fourth quarter stood at around INR111 crores, which grew by around 16% Y-o-Y, while for the financial year, it stood at — sorry, INR333 crores, witnessing a growth of roughly 67% Y-o-Y.

Now I would request our CEO, Mr. Hiren Gada, to brief you on the operational highlights for the period under review.

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Thank you, Amit, and good afternoon, everyone. In Q4 FY ’23, the company delivered a strong revenue growth, along with positive margins on the back of a moderate increase in ad spend in the industry and also due to a lower base effect compared to the same quarter last year. In line with our strategic shift over the last few years of moving from a pure B2B company towards B2B and B2C. I’m happy to inform you that the contribution of B2C revenues a percentage of total revenue has doubled in FY ’23 versus FY ’22 and now trying to contribute around one-third of the overall revenue.

On the other update, ShemarooMe Gujarati had quite an eventful quarter where we released around 14 new titles with content across movies, web series and plays, including original web series, Goti Soda Season 3, which was well received by the audiences and digital world premier of movies, Hey Kem Chho London [Indecipherable]. The subscription-based platform was also launched in [Indecipherable] in Bahrain as well. Our portfolio of YouTube channel has continued to perform extremely well with Shemaroo Filmi Gaane being 21st most subscribed channels in the world with over 64 million subscribers.

We launched full movie streaming service [Indecipherable] UAE and video box with Javelin Palatin as well. In the Broadcasting segment, both Shemaroo TV and Shemaroo Umang have been consistently among the top five D2H general entertainment channel. Shemaroo GEC channels channels now have a viewership share of over 9% in the overall GDP journal today. Ratings of Shemaroo MarathiBana remained steady during the last quarter. Lastly, we also expanded our UTI portfolio as well with the launch of a new DTH service Telugu Classic movies, TV shows, biographies and songs on Tata Play in April ’23.

In conclusion, considering the external economic scenario, I’m very proud and pleased with our overall performance in this financial year. We started on this journey of strategically changing the business strategy in 2019 and against all odds and against all headwinds that we have faced. Over the last few years, we have overcome many of these challenges without overleveraging our balance sheet and successfully meeting our strategic goals of transforming or being on that part.

And now we are extremely confident now more so than ever that the agility, strength and innovative business model, along with a very strong professional run organization, especially invest talent from the media industry that we have built over the year. We will see the company’s financial performance significantly outperforming in the coming years. However, as a result of external factors such as inflation, looming global recession, dampened consumer demand and slowdown of funding for new edge advertisers. This coupled with continued investment in our B2C initiatives. We are keeping a cautious watch on balancing our growth, as well as profitability acceleration in the coming quarter, as margins could face some pressure.

With that, I open the floor for question-and-answer session.

Questions and Answers:

Operator

Thank you. We will now begin the question-and-answer session. [Operator Instructions] Our first question is from the line of Rahul Jain from Credence Wealth. Please go ahead.

Rahul Jain — Credence Wealth — Analyst

Thanks for the opportunity. Hiren Bhai congratulations for the turnaround and for the healthy numbers. So a couple of questions from my side. One is, sir, with regards to new initiatives in this quarter, it is at the lowest and just about — around INR1 crore. So going ahead and for the full year, the figure stands now at INR54 crores compared to roughly INR67 crores in the previous year. So how do we look at some new initiatives spend going ahead in this current year?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

So we have — we continue to invest in the broadcast venture with more channel launch plan. And Shemaroo — other new initiative that is where the investment is doing — and considering the overall scale that now we have achieved and the way forward on both these businesses, we are budgeting an investment of approximately INR75 crores for the next financial year.

And if you recall last year also, last financial year, I had indicated that a lot of it would be front-ended, and we don’t anticipate in which in a way has played out in a similar rate — of course, we had a slight challenging Q3 due to the external environment of revenue operation. But yes, this year, we expect it to be this much, and I believe that we — the operations are adequately geared to fully fund the investment as we have been doing in the last few years.

Rahul Jain — Credence Wealth — Analyst

Sure. Hiren bhai, am I missing something because generally, what we’ve been doing is every quarter or the last few years, when the new initiative expenses have been intact, and you have been transparently giving the new initiative number. So if I exclude the new initiative in the current quarter, maybe I may be going wrong in trying to do it on a quarterly analyst. But what I find is adjusted for this, the operating margin for the current quarter is just about 10%, 11%. And in fact, for the full year also compared to 25%, 27% margins in last year the operating margins existed for the new initiative comes to around 18%. So how do we look at this, sir?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

See, on margin front, what I — there are two things I would like to put on the margin front. One is that as the TV broadcasting business revenue grows– the margin profile will kind of map more towards broadcaster margin profile, which is a relatively lower margin profile than what we may have had a side of for a more capital-efficient business model. Secondly, yes, the — some of the channel would be probably at a low breakeven or low positive kind of a thing. So therefore, if you add to that, while they are not seeking additional investment, but still the operating leverage on those channels have not yet kicked in.

Rahul Jain — Credence Wealth — Analyst

Okay. So the margins could be higher as we move forward as the operating leverage take in or on the processing business or what could be the basic difference between the business if you can share those margins?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Sorry, I missed the question.

Rahul Jain — Credence Wealth — Analyst

So what we are trying to say that as the broadcasting business revenues go up, you will see an operating leverage and probably in this quarter, there is a higher broadcasting business perspective, which is affecting the margin — adjusted for new initiative bonds?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

So there is — so what you are saying directionally, that’s how it should be, but there are two factors here, which is linked to new investments. So one is new investment in existing channels in terms of new shows being launched. So this I have explained earlier also, that with every usual launch, there is a new higher equilibrium that we kind of try and achieve at the next level. But in the — there is a gestation period between that new shows launched and translation into revenue normally.

So we still will continue launching new shows. In fact, last month also, we have launched one new show on Shemaroo woman called Shivamani. And — and this — so this is one aspect of that, which I — we expect the — because of that. And second is that there will be more channel launches also as we go ahead. But it will be — and what happens again in a new channel launch by the time we start monetization at least three, four months into the launch. So there is an expense, but the relevant cost is not as far the revenue is not yet kicked in.

So these are two cycles. And of course, in the short term, we are seeing the well economic headwind also, which is affecting. And that again, as we had shared last quarter also that the situation is not significantly improved from that. It’s definitely been better than what it was in that Q3 but still where the operational business is versus where the revenue translation is the external environment is definitely impacting that revenue translation. So that also is tempering the margin to that extent.

Rahul Jain — Credence Wealth — Analyst

Sure. And just a question on the balance sheet items with regards to both inventories and receivables. So we had mentioned in the previous quarter con call last quarter 3, our inventory should peak out somewhere around INR700 crores. We have ended this current year with INR735 crores. And we see a bit on the higher side at about INR25 crores. So how do we see this — both these numbers going ahead, sir?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

So while – there are 2 3 ways to look at this. I mean — so inventory days has come down significantly, thanks to the growth in the overall growth in the business that we have achieved. So we almost have the inventory days — so that is that, more importantly, we don’t expect the inventory to go up. In fact, we expect this year the inventory should this is near peak, and we are anticipating a fall in inventory or lowering of inventory going forward in next two, three years.

This is near about the peak. So I maintain what we had shared last year. Receivables also the broadcast business has a 90-day receivable cycle. And that has definitely impacted — so overall, if you see year-to-year, the receivables have actually gone up by INR70 crores for the entire company. But thankfully, it’s the overall growth. So the number of days has actually gone up only marginally from 53 to 60. So it is linked to the growth in turnover.

Rahul Jain — Credence Wealth — Analyst

But do we see the inventory going down aggressively in the next three, four quarters? Are we trying to work on that one basis?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Yes. So we are working on a steady reduction of the inventory. And I expect quarter-on-quarter it is very difficult to say. But if we look at it on an annual basis, I think we should be reasonably lower on the number.

Rahul Jain — Credence Wealth — Analyst

And just a last one, if I could squeeze in. With regards to new channels, you could share some more details in terms of new channel launches in the current year this week Shemaroo Chumbak, which has been launched for kids. So is this — if you could share some more details on this?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Well, if you still you can say in test mode in terms of set signals and distribution and all of that. So we still haven’t had a full-fledged launch of the channel. But yes, we launched a test signal in April. And now we are in the process of launching this channel. And based on how the year goes, we look forward to probably at least one more channel with a bouquet

Rahul Jain — Credence Wealth — Analyst

So one more channel over and above this kids channel in the current year. Is that what you’re saying?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Yes, yes.

Rahul Jain — Credence Wealth — Analyst

Okay. Sure, sir. Thank you so much Hiren. Wish you all the best. Thank you.

Operator

Thank you. Our next question is from the line of Mayank Babla from Enam AMC. Please go ahead.

Mayank Babla — Enam AMC — Analyst

Hi. Thank you for taking my question. Am I audible?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Yes. Can you be a little louder?

Mayank Babla — Enam AMC — Analyst

Is this better?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Yes, it’s better.

Mayank Babla — Enam AMC — Analyst

Sir, my question was around INR75 crores investment you’re seeing in the new initiatives. so how will this be funded? I mean, from internal accruals? Or what is the strategy outlook.

Mr. Amit Haria — Chief Financial Officer

Entirely internal. In fact, if you see over the last four years of this change in the business model, we invested about close to INR175 crores. And out of that — more than 80% of it has been funded through internal accruals. And in fact, this year, we anticipate 100% of that to be invested to be funded from internal accrual.

Mayank Babla — Enam AMC — Analyst

All right. Thanks. And my second question is around the free cash flow. What will be the free cash flow for the current quarter?

Mr. Amit Haria — Chief Financial Officer

For the current quarter?

Mayank Babla — Enam AMC — Analyst

Q4, yes.

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Look, Amit doesn’t have it handy here. I think we can take it offline

Mayank Babla — Enam AMC — Analyst

We can take it offline. Okay sir. That’s it from me. Thank you.

Operator

Thank you. [Operator Instructions] Thank you. Our next question is from the line of Viraj Mehta from Equirus PMS. Please go ahead.

Viraj Mehta — Equirus PMS — Analyst

Hello Hiren Bhai. Congratulations. A couple of questions. You had mentioned that Q4 debt of INR300-odd crores will be peak debt in light of slightly soft environment and the new investments, which are higher than what probably which you had earlier, do you still stand by that that this will be a fee debt and our debt will only go down from here?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

I think we could be probably one quarter here or there to maybe Q1 what we have that may be the feet. But I don’t see now debt going up from these levels. In fact, this year, actually, we have targeted a lowering and repayment of the debt. So we definitely intend to close the financial year with a lowering of the debt.

Viraj Mehta — Equirus PMS — Analyst

So are you sure, what will be that number? Will that be INR30 crore, INR40 crore, INR50 crores or lower?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

We are — well, I mean, it’s very difficult for me to put it, but it should be in the range of what numbers you are saying.

Viraj Mehta — Equirus PMS — Analyst

Right. And I’m just trying to understand the revenue trajectory. We are like at INR165 crore quarterly revenue in a quarter, which is not even our peak quarter. So we did not have a Diwali season something. It is just on back of broadcasting channels ramping up and we’re getting our share basically viewership converting into the share of advertisement in Q4. So would you say that this is — would it be fair to say that this is nonpeak season quarter, which can only grow from here quarter-on-quarter over next four quarters as obviously, we launched new channel over a period of next four quarters?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Yes. Arghya will take the…

Arghya Chakravarty — Chief Operating Officer

Viraj, this is Arghya here. I’ll just take this question. I mean, are you — I mean, just help me clarify, are you saying that this is — I mean, a smaller quarter comparatively on a from this annual quarter basis in…

Viraj Mehta — Equirus PMS — Analyst

So generally, what we have seen is that Shemaroo always has Q3, which is the biggest revenue and Q4 generally is lower than Q3. This year, that has not been the case because, obviously, I think your realization in both Umang and Shemaroo TV has gone up, which has kind of contributed to you doing better. So my point is, is this then a sustainable basis? Is this number and we can only grow from here on quarter on quarter going forward?

Arghya Chakravarty — Chief Operating Officer

So one is, you’re right. I think — and there are two parts to it. I mean, broadcast, yes, I mean, broadcast is ramping up, right? So in Q3, during specific time, Umang has just come up three, four months before that. So it is — so as channel ramp-up, your [Indecipherable] growing up and hence, your ability to monetize and your pricing per GRP that we can get is obviously higher, and hence that is obviously ramping up. So that is one part of it. In this probably this quarter is higher than that.

But also remember that we have a lot of syndicated business also, right? So that syndication business can also be lumpy. It is not unlike what broadcast which is very steady phase — keep growing business seasonality and [Indecipherable]. We have a syndication business, which is our — which is our old B2B business. That has lumpiness in it. So there were also reasonable good deals which happened in this quarter, which is also contributed. And they are not small about.

So while, yes, you are right from the traditional the steady state B2B businesses – this business revenue size will keep growing up on only. You are right? But at a quarter level, it also depends on what kind of syndication will happen because that can either be a peak or it can bring down the overall numbers depending on what quarter a deal is getting signed in because that is not consistent month-on-month seasonal and all that. It depends on when deals get on. So that angle is also

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

I would add one more part to that, Viraj is that given now this overall change in the model, we are — and this is to be tested, we only know probably in FY 2024 more whether it would or not. But we are — we feel that the sharp seasonality that we were probably seeing earlier may come off a little bit and..

Viraj Mehta — Equirus PMS — Analyst

Sure.

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

The normalization of the revenue trending maybe happening more also. But yes, you are right that the B2C part, there is a certain steadiness to that revenue.

Viraj Mehta — Equirus PMS — Analyst

Sure. Thank you so much. And in terms of ShemarooMe, and that’s my last question. You had mentioned that our whole target market has probably around INR20 lakh — INR25 lakh kind of subscription that we want to achieve. Are we on track to — I mean, is — are we seeing that kind of traction with so much new

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Addressable market is what we had — we are for — this is still a journey. And this is the addressable market. We don’t know how much of that would actually convert and

Viraj Mehta — Equirus PMS — Analyst

Absolutely

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

A, Convert and B, how much of that we would be able to capture, but I would say that on overall metrics, ShemarooMe has been on a fairly healthy state of affairs in general. Obviously, due to competitive reasons, we are not in a position still to share more details. But definitely, we’ve taken a pole position in the Gujarati market without a doubt. And we have a very exciting lineup of content coming up over the next three, three months, which I think should help consolidate further the leadership position that we have already made.

Viraj Mehta — Equirus PMS — Analyst

Great. And just one last thing. Are all the three channels on stand-alone basis breakeven or MarathiBana is still not breakeven?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

I would refrain from commenting because it’s ultimately a bouquet or portfolio that you

Mr. Amit Haria — Chief Financial Officer

Virag, I mean in the broadcast is — having been in a larger organization before. So I think — it is always a bouquet, which works. I mean there is not — there is some ups and downs because you are — that’s how you are targeting that some investment in that [Indecipherable] but as a book, we are looking towards making the entire piece profitable. I mean a stand-alone basis and genital be difficult to cover.

Viraj Mehta — Equirus PMS — Analyst

Thank you so much and best of luck.

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Thank you.

Operator

Thank you. Our next question is from the line of Anil Desai from Turtle Capital. Please go ahead.

Anil Desai — Turtle Capital — Analyst

Hi. Good afternoon. The first question is, so if I look at our trajectory on the money spent on new initiatives, I think as somebody was mentioning, it’s INR57 crores this year, we are at INR54 crore. And if I remember earlier conversations, we always indicated that we will invest in new initiatives, but the trajectory will go down. Now this year, we are planning to do INR75 crores.

So has anything changed in terms of whether we are getting more aggressive in terms of new launches than what we earlier — or is that the macroeconomic things because of which the revenue projections that we were thinking earlier for FY 2024 has come down, which one of them has contributed to this larger burn that we are in that cycle?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

So definitely, it is the first one. I mean, we see more opportunities on the broadcast and on ShemarooMe side, and we feel that having created the platform and having gone through the whole initial phase and everything. I think it’s could be fair that we continue to aggressively press the pedal on that because it will ultimately, I think it’s a combination of creating a strategically important pole position in the business, as well as helping create scale.

Anil Desai — Turtle Capital — Analyst

Okay. Okay. So essentially, even by my question was that we — so I think our go also in one of the interviews mentioned that FY 2024 on broadcasting business, we wanted to be profitable. And I assume that, that goal remains barring, of course, the new general concept that we do in FY 2024. So — does it mean that the two new channels plus Shemaroo will all put together contribute to kind of a number?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Yeah. And also see when — as I said earlier also and this last couple of quarters we have discussed also, is that where we stand, we would be breakeven place or whatever. But we will keep ramping up the programming investment on — even on the existing channel. So when we talk of the investment, it includes additional programming for the existing channels plus new channels on TV side. And then, of course, ShemarooMe trajectory. That’s really what this additional investment is all about.

Anil Desai — Turtle Capital — Analyst

Okay. Okay. Got it. The second question is, you mentioned that we have now 9% share in the GEC market, right? So — and in all our conversations the size that we’re talking about this INR8,000 or INR9,000 crores, including MarathiBana. So our life pool share impact is around INR700 crores, INR800 crores, even if you mark down by — doesn’t work that way, yes. Okay. So I wanted to understand how does that work in terms of revenue translation?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Yes. So I think first you know, this is — remember that this is viewership share, okay? Viewership share does not correspond to a straight line conversion into value share. This is — and second this is 9% leadership share is on GEC that does not include Shemaroo MarathiBana and not the Marathi stake. This is a Hindi GEC market. GEC market has both pay and free — so everything put together, we have had a 9% viewership share in the quarter 4, right?

That does not — that will never transfer into 9% value share because the same market, the Pay TV is largely informal where the GRPs are significantly more worth expenses. So what advertisers pay for other than GRPs are far, far higher than what we say for rural and urban places. So hence, it was not a direct conversion from volume to that. What we have quoted 9% is the viewership share, which is the volume

Anil Desai — Turtle Capital — Analyst

Got it. Got it. And so Arghya in terms of — so let’s say, if you want to maintain or increase our market share in terms of our content strategy, — what are we doing to kind of let me from 9% to 11%, 12%? And also tying in it is that my observation is that most of the new launch new show launches have been on the Umang — and Shemaroo, the new launch slate has been relatively lighter. So is there any strategic angle to them or can you compare?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

I think that’s a fair question, yes. Our objective is to keep on increasing our leadership share and in both channels. So let me — so yes, you are right. Our show launches have been largely around Shemaroo Umang, which is a more premium-oriented channel. And that’s where our show launches have been and that in the last — whatever the last three shows that we are talking about, last four shows actually has been all launched on Umang.

Having said that, so two parts to your question. How do we increase viewership share. We keep increasing our original content contribution. The more original content that we see pumping in with the right content with the right consumer insight and reaching out to the right audiences. We hope to introduce also — the viewership share will keep increasing with our increasing slate of original content in both the channels.

And you are right, we have not had too many launches in the Shemaroo TV. But that you will see it gets corrected. I think in the next three to four months, we should see a few launches in Shemaroo TV — Shemaroo TV, as you know, has a slightly different flavor from Shemaroo Umang. It is more a micro com prime channel, which target volumes mostly. And we have not had new launches there, but that is going to get — that is going to address in the coming quarters in the year.

Mr. Amit Haria — Chief Financial Officer

I think said that our first two real [Indecipherable] Shemaroo TV only It was then that we focused on the Umang opportunity because there there is certain audience profile mix that we are targeting.

Operator

Sorry to interrupt. Mr. Dhwanil Desai, may we request that you return to the question queue for follow-up questions as there are several participants waiting for their turn. Thank you. [Operator Instructions]

Our next question is from the line of Harshil Solanki from Equitree Capital. Please go ahead.

Harshil Solanki — Equitree Capital — Analyst

Hello. Good afternoon. Thank you for taking my questions. I had two questions. First is, how many as of original content have we achieved? It was to max out at 4, 4.5 hours. So when are we expecting that to pick out?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Right now, we are at about 3.5 hours.

Mr. Amit Haria — Chief Financial Officer

Correct.

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

So between the two channels. So I think — so Harshil it’s a question of — so one is — when will we have 4.5 hours of original content. I assume the meaning between the two channels or standalone free channel, I don’t know. I think as the year progresses, we should be at least having close to four to 4.5 hours of original content on both the channel put together.

But remember, original shows also mean weakness of the current trend, it is also that it’s not that all the shows will continue for the whole year and we’ll keep ahead, it is also replacement churning keeping the content rationalize. So by the end of the next two to three quarters, we should be at least in the range of 4.5 to five hours of original content between the two channels put together. I am not including Shemaroo MarathiBana here, because that has its own trajectory, own perfect plan.

Harshil Solanki — Equitree Capital — Analyst

Okay, got it. Sir, any specific initiatives we are taking, so that we can increase the monetization of inventory. For example, we can leverage our content and offer it to production houses, or like some of our creditors are growing?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

See monetization of the inventory has multiple aspects Harhsil, one is, obviously, your [Indecipherable] that you sell is a function of the — kind of waiting and the kind of viewership share that you have, which is also…

Mr. Amit Haria — Chief Financial Officer

I want to clarify Harshil. Is this — you are talking of a TV channel inventory or the company’s content inventory?

Harshil Solanki — Equitree Capital — Analyst

Content inventory.

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Oh, I’m sorry, I was commenting on the TV channel inventory.

Mr. Amit Haria — Chief Financial Officer

Okay, yeah. I thought as well.

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

So yeah, so I was talking about TV channel inventory. I mean that also can be maximized through solutions and billing branded content, branded positions. That is one part of it. The other part of it is something, which will be a…

Mr. Amit Haria — Chief Financial Officer

I want to first clarify and it’s make up of the fact that what is the monetization of the inventory and whether it’s happening or not or what. In the last three financial year, which is FY ’21, ’22 and ’23, we have invested about INR175-odd crores in new initiatives, out of which around INR143 crores has been generated or invested out of internal accrual generation. Now this internal accrual is cash flow generated only on its inventory itself, so while we are — while we may not have seen the P&L translation, because of these new initiatives working costed out or recognized as revenue expenses.

But the fact is that this entire investment, the whole new business has been funded — 80% odd funding has come out of the inventory sales monetization. Secondly, we are constantly looking at revenue opportunities from time-to-time, and I’ll just give you two examples here to kind of give you a sense of different directionally how things are playing out. So — we own perpetuate to movie called Disco Dancer. Okay. And right now, there is a live musical live show going on Disco Dancer, which is again licensed by us from or for that purpose.

So that is one example. Second is, say, this movie Jab We Met, so we released Jab We Met rereleased Jab We Met in theaters on the occasion of Valentine’s Day entire with PVR. And it has done exceedingly well for the fact that it’s been a release of 10-year-old movie. So I mean I’m just giving you two references which have happened in this quarter itself. So this is on a continuous basis from time-to-time, we are extremely actively looking at monetizing or in different ways, trying to create revenue opportunities from our inventory.

Harshil Solanki — Equitree Capital — Analyst

Okay. Got it. The next question is how are the aggregates moving up with the increasing viewership share if you can share at least a percentage terms.

Mr. Amit Haria — Chief Financial Officer

I mean, Harshil ad rates are moving in line with the market rate. I would refrain from in what percentage growth and all that. And I think ad rates are a function of two things. One is, obviously, GRPs and our own position in the market. Also, at the same time, it is dependent on the kind of demand in the market, right? At the end of the day, pricing is a function of how demand is the prices.

So while as Hiren said in his opening comments, I mean in this quarter, this quarter four we saw slightly moderate improved trends on the ad market and hence, in terms of demand. And hence, we are able to monetize it better. Going forward, it will all depend on what kind of demand is there in the market. And yes, I mean, as our GRPs, we are steadily increasing our ad rates, but it’s more or less in line with what the market rates are for us we wish for the state.

Operator

Thank you. Sorry to interrupt. Mr. Harshil, may we request that you return to the question queue for follow-up questions, as there are several participants waiting for their turn. Our next question is from the line of Rishikesh Oza from RoboCapital. Please go ahead.

Rishikesh Oza — RoboCapital — Analyst

Hi, sir. Thank you for the opportunity. Sir, my first question is regarding the outlook on the traditional syndication business. So what is the outlook? And can we go back to recovered level of revenues?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

No. So I just want to say that actually this is a conscious decision to actually move away from that or rather, I would say, reduce the dependence on that business on the overall business mix. And therefore, consciously, we have taken capital away from that and invested in to these new initiatives, which have now ramped up. So the syndication business is a more B2B trading kind of business with a pattern? [Technical Issues]

Operator

Sir, the lines of the participant, there is disturbance from the line of the participants, so I have muted the line

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Okay. So yes, I mean — actually, — we constantly are not looking to grow that business back to the earlier level

Operator

The line for the participant has dropped. May I request the management that we’ll move to the next participant. Our next question is from the line of Tina [Phonetic] from BAM Capital. Please go ahead.

Tina — BAM Capital — Analyst

Thanks for this opportunity. So as

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Can you just speak up a little louder?

Tina — BAM Capital — Analyst

Yes, sure. So I will talk into our presentation, and you also mentioned about the ad revenues still being subdued. So I just wanted to understand if I’m not wrong, more circumstance your company have recovered on margins as of quarter four. And they are all positive on continuing or increasing their ad spend today, so why do we still see that the next quarter would be subdued in terms of agreement?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

So it’s not that we are saying subdued we’re cautiously optimisitic.

Tina — BAM Capital — Analyst

Okay

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

It is – see, at the end of the day, remember, FMCG will grow in a large part of the

Tina — BAM Capital — Analyst

Yes, ad supply.

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Added supply but there is also a set of new advertisers who have been advertising very strongly in the past. And instead of all the index and other companies start ups and where else the funding has dried off and hence, there is a bit of a challenge in their advertising revenues

Tina — BAM Capital — Analyst

Sure. Sure.

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

So that is one part of it. And yes, while FMCG companies have posted reasonably good result but one of the — if you look at one of the lines which have been a little bit cautious around that P&L record. So the outlook is there, but at the overall level, the environment is not as buoyant as was expected besides the results being core, but also because a lot of new advertisers have really gone off the advertising scale.

Tina — BAM Capital — Analyst

So just a follow-up on this. How much should split be between advertisement and FMCG like a rough percentage?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

We would be see – we are a [indecipherable] So in our channels, the contribution of FMCG would be far higher but the other players do contribute to a certain percentage of the ad revenue. But we’ll also come at a higher price index. So this is also question of the pricing index. The FMCGs – normally the price index of FMCGs is lower. So while they take a large chunk of the GRC, but they’re indexing on pricing is a little lower – combination of those.

Arghya Chakravarty — Chief Operating Officer

I would add one more part that on the digital media side. On the digital video platforms where we are there, YouTube, Facebook, etc, there, the startup ecosystem is a–

Tina — BAM Capital — Analyst

Yes. The new age–

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

And definitely there has been a significant impact over there.

Tina — BAM Capital — Analyst

Okay. Okay. So, in that sense, you would say that you’ll be more cautious before saying that–

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

The reason for that — is a politic view on the whole thing. It’s not just a TV business on a standalone basis.

Tina — BAM Capital — Analyst

Okay.

Arghya Chakravarty — Chief Operating Officer

We also have a pretty large YouTube and Facebook business

Tina — BAM Capital — Analyst

Yes, correct. And then just one thing on inquiries — like advertisement inquiries, are those back at least — have those improved like inquiries from advertisers?

Arghya Chakravarty — Chief Operating Officer

Inquiries?

Tina — BAM Capital — Analyst

Yes, yes. So, like are advertisers back in the market or even that if that hasn’t happened. Can you expand that quarter two things will be better or something like that?

Arghya Chakravarty — Chief Operating Officer

It will all depend on the overall condition of the economy, how the recession pans out, what have — input. I mean it’s a function of various things. It’s not just one or two issues. I would — there in the market. It’s not that they’re not there, I mean there is advertising in the market, but whether it will be as buoyant and as robust as we want it to be is the question that we are not sure.

Tina — BAM Capital — Analyst

Okay. Thank you so much. Thank you.

Operator

Thank you. Our next question is from the line of Jiten Parmar from Aurum Capital. Please go ahead.

Jiten Parmar — Aurum Capital — Analyst

Yes. I joined the call a bit late. So, I don’t know whether my question has been answered. But just one question, can you tell more about the YouTube channel? And what is the monetization on that? And I mean, if you can break up the revenues, if you give that?

Mr. Amit Haria — Chief Financial Officer

Yes. So, overall YouTube and digital video platform, they contribute to about around 50% to 60% of the digital revenue, Temco is about 10% and the remaining is ShemarooMe and Syndication combined. So that is the breakup for the digital business. And in terms of — as we just shared with the previous question, digital video platforms have definitely seen an impact of the data ecosystem funding winter where many status who have decided to kind of hold their spend, etc or tone down their spend significantly. And that has impacted the CPMs and in the ad rate and fill rates both. So that has been a challenge.

One other fact also we would say that — and we shared in last quarter also, is that there is a slide — I mean, if you look at it, definitely, there is a certain normalization on the post-COVID consumption that has happened. So, of course, it’s all — we are all in a new normal, but we still are — probably, we may see a couple of quarters of — so consumption-wise, it’s actually been stagnant or even degrowing because consumers are obviously going back to business or back to their normal lives, back to old habits or a combination of all of that. So, definitely that, therefore, next couple of quarters, YouTube outlook definitely continues to remain, I would say, effected and not just YouTube, Digital Video Platform as a whole Facebook, YouTube etc.

Jiten Parmar — Aurum Capital — Analyst

Okay, okay. Thanks. That’s all I had. Thank you.

Operator

Thank you. Our next question is from the line of Nitin Sharma from MCPro Research. Please go ahead.

Nitin Sharma — MCPro Research — Analyst

Yeah. Thanks for taking my question. Congrats on a good set of numbers. Two questions, what explains the increase in salaries? Are there any one-offs? Or is the run rate going forward?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Increase in salary was that a question?

Nitin Sharma — MCPro Research — Analyst

Yeah.

Mr. Amit Haria — Chief Financial Officer

Yeah, employee cost.

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Okay. So if you see — I mean, so something that I stated in my opening remarks, that we have — there has been a strong induction of talent, senior talent from the industry and where a huge movement towards professionalization of the entire organization, including Argo [Phonetic] joined us in July. So — and subsequently, there has been a series of new joiners at senior levels and at different levels, rather also. And definitely, that has — that would have an impact on the employee cost.

This is an investment which is — which goes hand-in-hand on the opportunity and business model that we are looking because ultimately, this is we are building a platform for continued growth. And we obviously need great talent to execute that and deliver the number. And that’s really the, I mean, in a different way, it’s taking the organization to the next-level of or multiple next-levels rather.

Nitin Sharma — MCPro Research — Analyst

Understood. And second question is on the Traditional Media, Digital platform. So some breakup of the sub-segment would be helpful to understand the trajectory better, either on the Q4 basis or full year basis. Thanks.

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Traditional Media right now, I’m not in a position to give you a breakup of that. Digital I have given the breakup. But as I have shared in my opening comments also, another way to look at it is that the B2C business that we embarked on is roughly now contributing one-third of the top line of the company in this or rather has contributed one-third in the entire FY 2023.

Operator

Thank you. Maybe request that you return to the question for follow-up questions. As there are several participants waiting for their turn. Thank you. Our next question is from the line of Dhwanil Desai from Turtle Capital. Please go ahead.

Dhwanil Desai — Turtle Capital — Analyst

Sir, my next question is about Digital. I think we’ve done reasonably well on the Digital side. And if you look at the commentary of YouTube and other player segment of everybody has a very taping year and quarter. So can you break it up in terms of growth, if not absolute numbers, which are the areas which have given us this growth? And how do we see that media-wise indication of YouTube, ShemarooMe in FY 2024.

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Oh. You’re saying, in terms of the way forward, so I mean, Okay. While we refrain from giving any forward-looking statement about R1 performance, but I can overall share the outlook. So I agree with you that, YouTube and Facebook, the digital media platform are challenge and growth has — in the recent months, we have seen that growth has been hard to come by, whether it’s in views, whether its in monetization, both. So we expect — we hope that this kind of situation hopefully, this should not last beyond two quarters, but it’s a moving target, and we’ll keep reviewing as we go along.

On other price, we have a ramping up on the — so the opportunities that are coming up are more on syndication trends because a lot of markets are opening up for Indian content. And we have been taking deal across many international territories. So that is one opportunity that we are pursuing. In fact, we have been participating in various international markets and all of that. So that’s one area. And of course, the other area is ShemarooMe, so hopefully, as we — as I shared earlier, we have a strong lineup on the Gujarati front. So we are looking forward for that also to continue on the growth trajectory. Yes. I think broadly, these are the growth drivers on the digital front.

Dhwanil Desai — Turtle Capital — Analyst

Okay. And sir, any — of this kind of a bond, are we going to be breakeven kind of that is the business plan that for FY ’24 or so we could kind of breakeven around that number and profitability will start coming from FY ’25? Is that how we’re looking at

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Definitely, ShemarooMe is not looking…

Dhwanil Desai — Turtle Capital — Analyst

No, I think at the company level, not at.

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Company level?

Dhwanil Desai — Turtle Capital — Analyst

Yes, yes.

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Company level, we are — I mean, even this year we have a positive…

Mr. Amit Haria — Chief Financial Officer

Company level, the overall, Digital?

Dhwanil Desai — Turtle Capital — Analyst

No, no I’m saying at company level. But I said this — we have been around INR3 crores, INR4 crores profit and this quarter was slightly better or much better. In FY ’24 since we are investing more around INR75 crores. Are we targeting similar profitability? Or are we saying that increased scale will give us more revenue, which will offset the INR75 crores of new bond that we will do?

Mr. Amit Haria — Chief Financial Officer

So again, I would like to refrain from overlooking statement. But one overall thing I would like to say is that the major focus actually for us is going to be on cash flow. And generating free cash flow so that we can reduce debt. I think that is going to be a very, very important impact, not going to be. It’s already a very important internal target or KPI that we are or monitorable for us internally. So that is one very important thing.

And as a result of that or overall this thing is the reduction of the inventory, so balance sheet correction in sync with achieving P&L scale, I think, changes the whole picture completely from – I mean, that really is going to be a refocus. So at a higher scale and lower inventory and lower debt, etc, all the ratios and everything changes significantly, and there is a free cash flow generation that we are definitely looking forward to during the year. So that, if you ask me is a more important focus for us

Dhwanil Desai — Turtle Capital — Analyst

Okay. Thank you. Thanks a lot.

Operator

Thank you. Our next question is from the line of Harshil Solanki from Equitree Capital. Please go ahead.

Harshil Solanki — Equitree Capital — Analyst

Hi. Thank you for the follow-up, I have two questions. Sir, on the employee cost, is it maxed out? Or are we still looking to hire more pattern because of process gone up opportunity? And when can we see that are translating into revenues for us — the investment that we are doing in that…

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

So already, we are seeing, I mean, 73% growth or 45% — Harshil are looking – I don’t know what we will see the revenue increase. I mean if you look at this quarter’s numbers, I mean, compared to the market, I mean I’m sure you’re aware of how the media market is performed. We have grown about 7% this quarter on top line. And I’m not saying that all of it is coming because of the new employees, but I think it’s a host of everything put together in which everything has role to play. So I mean, yes, I mean we would ideally like to grow even more — but I think this is a pretty strong revenue output, which is already on the table.

Harshil Solanki — Equitree Capital — Analyst

Okay.

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Having said that, it is the growth that we have achieved is significantly higher than the growth in people cost. So — and to answer your other question, yes, the overall organizational team structure, we definitely book a large part of it should fall in place in the coming months. And so to that extent, the cost definitely would go up to some extent. And the full year, we’ll see the full impact of that because even many of the people that we — that are probably being end of Q4

Arghya Chakravarty — Chief Operating Officer

End of Q3 or [Indecipherable]

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Yes. That is definitely need to be there. But — as I said, as what always said that the growth when the growth on top line has been significantly more than that. And this is a base building for the next several levels scale better…

Arghya Chakravarty — Chief Operating Officer

Yes. And actually, just to add to what Hiren said, I mean we don’t look at employee cost as an expert, which needs to be netted off through revenue growth. I mean this is an investment for the future of the company. So yes, revenue growth are important, but we don’t link it to every cost significantly changing the look and feel of the professional set of the company. So that’s how it is.

Harshil Solanki — Equitree Capital — Analyst

Okay. Thank you. Sir, last question is on the ROE side. When do we see it moving to 17%, 18% because current levels are not even covering the cost of capital. As a promoter, how do you look at this

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

As I said earlier, in my impact, I said it in the opening statement itself that this is — we embarked on this whole business model transformation in 2019. And we’re happy to see that we have inside of all the odds that came in, COVID came in and everything happened, but still within a reasonable time, we have actually been able to execute that and move to the next level.

Now obviously, having reached here the opportunity to double down and scale up on a sustainable basis, it’s significantly strong from here and these investments are now to further cement that opportunity. And I have no doubt that as we go along with the translation on profitability and return ratios etc we will keep improving. And most importantly, as I said shared earlier cash flow which is focus for us this year.

Dhwanil Desai — Turtle Capital — Analyst

Understood. Thanks for that.

Operator

Thank you. Our next question is from the line of Maan Vardhan Baid from Laurel Advisory Services Private Limited. Please go ahead.

Maan Vardhan Baid — Laurel Advisory Services Private Limited — Analyst

Good afternoon, sir. Thank you for the opportunity. Sir, I noticed on some platforms, specifically Spotify that for certain songs they’ve now started showing certain components of the video and I noticed that obviously songs where you hold video rights and the music rights with some other licensee on those, they don’t show that video. So I’m just curious as to, sort of your thoughts on that. Is there an opportunity for Shemaroo?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

So that’s definitely an opportunity. I mean any platform that is showcasing content ends up being an opportunity for us and we explore it from time to time. In fact, we are at any point in time deeply engaged with every — each and every of these platforms to monetize and syndicate our content or license our content to them. So we do have some licensing arrangements with Spotify, but right now it’s more I mean I’m actually I’m not able to position to share specific details, but we definitely have deep engagement with every platform. So.

Mr. Anuj Sonpal — Chief Executive Officer

Including Spotify.

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Including Spotify. Yeah.

Mr. Anuj Sonpal — Chief Executive Officer

Spotify and others. So it is an opportunity and we are at it and we are continuously exploring it. But as you rightly said, any of these are opportunities for us.

Maan Vardhan Baid — Laurel Advisory Services Private Limited — Analyst

Yeah. So just to take this question a little further, I mean, since we hold the video and the music right when the video is getting played. So if that were to come, then will we substitute the person who is just offering music on these platforms?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

I don’t think that would be so. It will depend on what the consumer is doing. If the consumer is probably only listening to the audio, then we don’t have anything over there. But if we seeing the video, then I think it’s more — I don’t think there’s a substitution here. It’s an additional service that will be offered to the consumer and it’s a consumer choice whether he wants to see the video or just.

Mr. Anuj Sonpal — Chief Executive Officer

Some consumers prefer to consume the audio. Some consumers prefer to see the video along with the audio. So it depends on that. I mean, I don’t think it a substitution. I think these are all not fully incremental, but some percentage of it is definitely.

Maan Vardhan Baid — Laurel Advisory Services Private Limited — Analyst

Understood. Understood. Fair enough, sir. Right. Thank you.

Operator

Thank you. Our next question is from the line of Rishikesh Oza from RoboCapital. Please go ahead.

Rishikesh Oza — RoboCapital — Analyst

Hi. Actually disconnected the last previous question. So I heard you for your traditional syndicate business that you’re moving away from the business and couldn’t hear the other part. So would you like to repeat?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

So yes, I’ll here – I mean oyo was simple that this last four years journey that we have done has been overall focus to move the company into B2C business and not B2B and to that extent, this syndicate — the aggregation model that we had was something that we took capital away and invested in the B2C business. And with that B2C business, now we are — not only have we scaled back to where we were, but we have put a solid growth path in place.

And to that extent, the aggregation business will remain relatively low focus for us. It will not be zero focus plus our own existing library licensing anyway, we would be doing but further trading our aggregation, because it’s a lumpy business, has too many third-party dependencies, etc. Now we see the benefit of this B2C business significantly higher. That’s really what I was trying to say.

Rishikesh Oza — RoboCapital — Analyst

Okay. Okay. Sir, my second question is regarding the INR75 crore investment, that we are budgeting for the next year. So just I want to get a sense on how and when will this investment or initiative go down, and when this will finally reflect in our cash flows and our profits?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

If fundamentally, the new initiative where we have been investing continuously over the last few quarters as one is a Broadcast business and one is ShemarooMe, the OTT platform. Now OTT platform is a strategic future-oriented investment, which is still at an industry level in of kind of a buildup phase, and we expect that this will probably a couple of years for it to reach a critical mass of breakeven. And we need to keep investing until that.

Our effort has been to stay as light and low on investments and still build a strong mind share and market share — our revenue market share on that front, which I believe we have done it quite frugally, if you ask me. And on the other major investment is the Broadcast business. Now Broadcast business, investment has two aspects to it. So while fundamentally on a steady-state basis, the Broadcast business breaks even where we are.

But obviously, given the huge market opportunity that Broadcast offers a new scaling opportunity that Broadcast offer, there are two ways in which — two areas in which we would be investing. So one is new channels, which I shared earlier during the call, and second is on existing channels, fresh programming or original programming, adding original programming slate. So these are the two areas in which the investment would happen. So typically, each of these will have a certain cycle of breaking even. And all of these are incremental investments. There are not some renew initiative, new business foray.

Rishikesh Oza — RoboCapital — Analyst

Okay. And sir, regarding is, as you said, last three years, we have invested close to around INR14 crores on the new initiative — can you give…

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Okay. I’m sorry.

Rishikesh Oza — RoboCapital — Analyst

So on INR175 crores can you give a breakup between our OTT and our broadcast business, how much we have invested in both the businesses?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

I am sorry. Really I am not in a position to give you that. But indicating to what I can say is that we can say the broadcast investment was significantly. In fact, overall has been significantly higher and more so in the initial phase because OTT investment has started only about two years back. Competitive and it was on a relatively low scale in the first year. So definitely, a large part of that investment has been in the broadcast business. But I’m not in a position to give you a breakup. And we will also be keeping the burn in our OTT business to control.

Rishikesh Oza — RoboCapital — Analyst

Okay. And sir, my third question is regarding the channel. So for which channels have we achieved the breakeven level?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

I guess you missed the call. The discussion in between so we will not be able to share that at a portfolio level, it’s breaking even, but individual channel level, I cannot share with you.

Rishikesh Oza — RoboCapital — Analyst

Okay. Okay. No problem. Sir, just last question. I just wanted to understand that the broadcasting we are ramping up with and all the investments we have made and we are making more incremental investment what — any sense on what kind of revenue size are we looking down like three, four, five years, what kind of revenue size are we you looking at?

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Rishikesh we will be very difficult to put a revenue side. It’s a question of what percentage of viewership is being we are sailing viewership share. Okay. Right, we’re at 9%, we are looking at options, probe can make it 10 and go forward as well. Revenue is a function of various reasons. It’s obviously the function of your shares.

It is something of the add market. It’s a function of what is the kind of creativity that we can bring around in our selling poses — it’s a lot of things. Issues share of viewership and how can we make the entire fee profitable. I think that is what revenues will be an outcome of various other things and we’ll not be able to put a number — able to put a number to.

Rishikesh Oza — RoboCapital — Analyst

Okay. No, no problem, sir. That’s okay. Thank you very much.

Operator

Thank you. That was the last question of our question-and-answer session for today. I now hand the conference over to Mr. Hiren Gada from Shemaroo Entertainment Limited for closing comments, over to you, sir.

Mr. Hiren Gada — Chief Executive Officer and Whole Time Director

Thank you, everyone, for joining and looking forward to seeing you all in the next quarter. Thank you.

Operator

[Operator Closing Remarks]