{"id":123578,"date":"2021-06-12T11:29:13","date_gmt":"2021-06-12T15:29:13","guid":{"rendered":"https:\/\/44.250.171.167\/?p=123578"},"modified":"2021-07-14T12:04:50","modified_gmt":"2021-07-14T16:04:50","slug":"sun-tv-network-limited-suntv-q4-2021-earnings-concall-transcript","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/sun-tv-network-limited-suntv-q4-2021-earnings-concall-transcript\/","title":{"rendered":"Sun TV Network Limited (SUNTV) Q4 2021 Earnings Concall Transcript"},"content":{"rendered":"

Sun TV Network Limited (SUNTV) Q4 2021 earnings concall dated Jun. 11, 2021<\/span><\/strong><\/p>\n

Corporate Participants:<\/h2>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

V.C. Unnikrishnan<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

R. Mahesh Kumar<\/strong> \u2014 Managing Director<\/em><\/p>\n

Analysts:<\/h2>\n

Ankur Periwal<\/strong> \u2014 Axis Capital Limited \u2014 Analyst<\/em><\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

Neeraj Save<\/strong> \u2014 Sun Life Financial Services, LLP \u2014 Analyst<\/em><\/p>\n

Venkatesh Subramanian<\/strong> \u2014 LogicTree \u2014 Analyst<\/em><\/p>\n

Mohit Kumra<\/strong> \u2014 Kumra Investment Company \u2014 Analyst<\/em><\/p>\n

Kunal Vora<\/strong> \u2014 BNP Paribas \u2014 Analyst<\/em><\/p>\n

Dixit Doshi<\/strong> \u2014 Whitestone Financial Advisors \u2014 Analyst<\/em><\/p>\n

Yogesh Kirve<\/strong> \u2014 B&K Securities \u2014 Analyst<\/em><\/p>\n

Jaykumar Doshi<\/strong> \u2014 Kotak \u2014 Analyst<\/em><\/p>\n

Arun Prasath<\/strong> \u2014 Spark Capital \u2014 Analyst<\/em><\/p>\n

Presentation:<\/h2>\n

Operator<\/strong><\/p>\n

Ladies and gentlemen, good day and welcome to the Sun TV Q4 FY \u201921 Results Conference Call hosted by Axis Capital Limited. [Operator Instructions] Please note that this conference is being recorded.<\/p>\n

I now hand the conference over to Mr. Ankur Periwal from Axis Capital Limited. Thank you. And over to you, sir.<\/p>\n

Ankur Periwal<\/strong> \u2014 Axis Capital Limited \u2014 Analyst<\/em><\/p>\n

Yeah. Thank you, Ayesha. And good evening, friends and welcome to Sun TV Network Limited\u2019s Q4 and FY \u201921 earnings call. As usual, from the management side, we have with us Mr. R. Mahesh Kumar, Managing Director; Mr. S.L. Narayanan, Group CFO; and Mr. V.C. Unnikrishnan, CFO.<\/p>\n

S.L., would you like to add any opening remarks or should we directly jump into the Q&A?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Yeah. I will take just a few minutes because a very important development has happened during the quarter, which is the Vivad se Vishwas scheme, which we have arrived. So I just need a couple of minutes to put that in perspective, because it will preempt a lot of questions. Because that would be of interest to every analyst on the call. So let\u2019s start?<\/p>\n

Ankur Periwal<\/strong> \u2014 Axis Capital Limited \u2014 Analyst<\/em><\/p>\n

Yeah, S.L. Please go ahead.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Yeah. Good evening, ladies and gentlemen. Many of you are aware about the expensing policy of Sun TV with respect to satellite broadcast rights. We have always charged off the entire amount in full in the books in the year in which it has had. And that is consistent with the policy that\u2019s been adopted without tax filings as well. And we\u2019ve had some issues in the past where the tax department had treated these rights as long-lived assets and disputed our claim for full deduction. And it had gone into litigation. And consistently we\u2019ve been winning at the Appellate Authority, whereby our claim of 100% tax reduction has been upheld. But because the department had gone on appeal to a higher Appellate Authority, we\u2019ve been disclosing this as a contingent liability.<\/p>\n

The Vivad se Vishwas scheme provided an opportunity for us to settle this and get rid of all the uncertainties and the potential risks of interest in case it goes against us at subsequent appellate stages. So we decided to settle this with the department. So we got rid of almost INR951 crores of contingent liabilities by paying the differential. And as a result of which, we\u2019ve been able to create deferred tax assets of almost INR400 crores. The net \u2014 the total amount paid was INR250 crores, which is for the last three assessment years where it is\u2026<\/p>\n

V.C. Unnikrishnan<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

From 2003-\u201904 to \u201919-\u201920.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Yeah, okay. So, the net impact is about INR38 crores of writeback in provisions for taxation. And that has been taken in the quarterly accounts. So that\u2019s the only point I just want to mention before we get into the call.<\/p>\n

Now we can start the Q&A.<\/p>\n

Questions and Answers:<\/h2>\n

Thank you very much. [Operator Instructions] Thank you. The first question is from the line of Jiten Doshi from Enam Asset Management. Please go ahead.<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

Yeah. Good evening, S.L. and team. Congratulations on a good result in a very challenging environment. I think you\u2019ll have navigated the environment very well. There was no mention of any further dividends in your press release. So, what was the total dividend that you all paid out for the year?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

We paid out 100% [Phonetic] last year.<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

So, have you all changed the dividend policy?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Today, the Board has not made any fresh announcements. That is possible during the \u2014 current fiscal, they should take a call on.<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

You mean, for the last year, the dividend paid out is only INR5?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Yes, sir.<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

Okay. Any reason why there is a sudden change in the dividend distribution policy of the company?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

It depends \u2014 actually we are living through some very tough times. And there is also some rumors of a third wave \u2014 potential third wave. So, we just were grappling these issues. I mean, I know you are a great watery for liberal distribution, which we have done in the past. But in the last 12 months, we have seen some extreme volatility in business sentiment. We thought by March, everything was over. Because from December to March, we saw a fairly good uptick in the traction for ad revenues. But then suddenly towards the end of the quarter and the beginning of the June quarter, we saw all kinds of volatility arising out of the second wave. So, primarily because of that, we just want to make sure that the company is in very safe ground. We just want to make sure that we\u2019re getting out of the difficult situation and a firm trajectory is established, whereby we can see some degree of visibility that\u2026<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

So what is your cash balance today, S.L.?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

About INR3,800 crores.<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

And what are your gross total expenditure of the year \u2014 last year?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

INR1,071 crores, sir.<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

Sorry?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

INR1,071 crores.<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

INR1,071 crores is your gross total expenditure and INR3,800 crores is your cash. So, are you suggesting that even if the business to shut for three months, we will need so much of cash?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

No. I mean, you have a point, Jiten. But also the last year has been an exceptional year because we haven\u2019t\u2026<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

I understand. For all departments in India, it has been a very, very exceptional and challenging period. In fact, for some, they\u2019ve also declared losses, etc. So you\u2019re absolutely correct, that it\u2019s a very, very exceptional period. But why this inconsistency?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

The thing is, we are also \u2014 as you know, we have some major projects which are work-in-progress. We have two films which are work-in-progress, both with mega stars. And we have\u2026<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

What would those projects cost about? INR1,000 crores each or\u2026?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

I think, the eight movies together will be costing close to INR1,200 crores.<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

So that would be \u2014 you have INR3,000 and odd crores, it\u2019s a 13% payout ratio, which has never happened in the history of this company. Are we trying to also supplement this with the buyback of shares. That would be the only way we can actually distribute free cash. Because I remember in the last call, you all clearly mentioned that the ROE is impacted. And because of the impact of the ROE, you would like to distribute cash \u2014 ROI, ROE, etc, because of that. But somehow I think all the numbers are not adding, S.L. You have INR1,700 crores of expenses, assume there is pure revenue.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

[Speech Overlap] I myself am a very strong watery of improving ROE.<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

Yeah. But then how come \u2014 we were all completely taken aback, because INR1,700 crores expenditure in the year. If everybody of you don\u2019t produce a single movie, don\u2019t get one rupee in advertising, people stop paying you for your channels and there is no subscription revenue, no advertising revenue, no nothing that happens to you that will take care of INR1,700 crores. Another two movies you optimistically produce is another INR1,000 crores, they could have easily been a distribution of INR700 crores, INR800 crores. Unless you feel the \u2014 next three years, there is no \u2014 going to be no revenue in the company, and for the next three years, there is going to be a continuous pandemic and people are going to be shutting their operations or something of that sort. But does this now translate into rewarding shareholders through a buyback?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Certainly that is something that is there. In fact I will be \u2014 unfortunately we cannot speak at this point in time, because these are \u2014 I mean, on a conference call, I certainly don\u2019t have the authority to say anything, because it\u2019s a Board decision. But certainly\u2026<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

Why a 13% payout? I mean, this has come as a very rude shock. And in fact, all companies in India have stepped up their payouts. I can give several examples. I can \u2014 I know with a limited period of time, I don\u2019t want to get into another \u2014 I have list of 30 companies that have increased their payouts, because people are looking at the future with jubilancy.<\/span> And even if the third wave comes, it will come for two months. And in that two months, you assume zero advertising and zero \u2014 currently is there some subscription revenue expected in quarter one?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Yeah, yeah. Subscription revenues will come in.<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

Okay. And is advertising you\u2019re expecting zero in April\/May\/June quarter? If you can guide us, I mean in quarter one, are you expecting a decline of 95% or so in the advertisement revenues or so?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Not at all. Not at all.<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

So then, what is keeping it back? I mean, there should be some explanation to shareholders. I think this has come as a very, very, very rude shock. And every time, you\u2019re trying to be so unpredictable. And that is the reason the value is getting destroyed. The PE is getting destroyed continuously. I don\u2019t know why there is no understanding of shareholder value creation for last 10 years. And since the pandemic is very dangerous, have you cut the commissions of the Senior Management \u2014 the promoters or have they taken the a regular commission?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

No, it remains constant in the last six years \u2014 five years of so.<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

No, no. But since there is a pandemic, are you cutting the commissions to zero? Because the pandemic is there, are you cutting the commissions to zero?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

As of what we see in the announced results, the number which is there about four year back \u2014 four or five years back. The same number remains.<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

I appreciate, but five years back there was no pandemic. Last year, there was a pandemic. Since you cut the dividend on last year\u2019s profit, have you cut the commissions also? That\u2019s my question.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

That\u2019s what I told you, sir. We\u2019ve retained [Phonetic] the same numbers as in the last four years.<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

But last year was a \u2014 then why is the dividend not been at the last year\u2019s level?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

I think, Macquarie [Phonetic] has given an explanation. So we\u2019ll get back to the Board and keep them posted of the concerns which you have raised.<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

It\u2019s very disturbing. You see \u2014 I don\u2019t know, sometimes why are we kind of torturing shareholders with unfortunate kind of a situation. If shareholders are not getting a dividend, then why should the promoters get a commission at the same rate? That\u2019s a question that needs to be answered either at Board level or at your level. You are representing the company today. So if the company\u2019s shareholders have actually seen this sort of a situation, then how come the promoters take away all the commissions and we only get INR5 dividend? And suddenly the payout ratio becomes 13%. We need a serious explanation and that cannot be avoided. That cannot be avoided right now that we don\u2019t have a response. I think it\u2019s a serious issue. It\u2019s a challenge that \u2014 and I represent all the shareholders today, hundreds of thousands of shareholders in your company. And why this kind of unpredictability?<\/p>\n

So, in case you are expecting zero revenue, I can understand. But nobody in this country is expecting zero revenue, including IndiGo Airlines, whose call I attended. They are \u2014 and now it\u2019s a corporate governance issue, because even IndiGo Airlines \u2014 and I spoke to IndiGo Airlines, Indian Hotels, East India Hotels, all of these people are not predicting zero revenue for the year. I mean, they are in the worst impacted industries in India; airlines, hotels, organized malls, malls are not saying they\u2019ll be shut down.<\/p>\n

We just spoke to PVR. PVR is saying, revenues could there for the year, they are not expecting complete close down. They are in same industry as you, media, entertainment, exhibition of movies. So \u2014 and if you see the future so badly, then why produce any movies? Why produce movies of INR1,000 crores \u2014 two movies, blockbuster movies. If there is no future, there is not going to be any \u2014 if there is not going to be broadcasting of the movies, there is not going to be any exhibition of the movies, multiplexes are never going to open because of the next wave, why produce the movies? So, something the message that is coming is very, very controversial that one side promoter takes the commission, dividend is cut, cash is INR3,800 crores, business is as usual, two movies are being produced, but multiplexes will run. So what is the message? I mean, can you explain to us because it\u2019s very serious. We are very, very disturbed. We have always reposed our faith. And it\u2019s a serious issue of corporate governance. So can we have an answer for that, please?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Yeah. Jiten, just\u2026<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

Please, I think this requires some sort of an explanation. It cannot be just rubbed off on the side.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Certainly, we are not looking at a doomsday scenario. We will continue to\u2026<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

Last call, you were so confident. You spoke positively.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Yeah. See, we will continue to be positive on the business. There\u2019s no way that you can misinterpret the lack of a dividend to a doomsday scenario. This is not an [Speech Overlap].<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

That\u2019s your explanation. But there is a COVID wave \u2014 third wave, so hence you have cut the dividend because of third wave. You yourself have stated it right now.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

No. Jithin, it\u2019s not so cut and right. I mean, there is some \u2014 I mean, this is a Board\u2019s prerogative. The Board has decided to cut some [Phonetic] money at this point in time, nobody is saying that we are not going to pay dividend or not going to do any buyback.<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

What sort of Board is this? In the Board, are they working in interest of minority shareholders or what? Because at the end of the day, if you have INR3,800 crores, was the Board aware of the cash balances when they took this call?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Of course. We present the entire portfolio. We analyzed everything. There is absolutely nothing that is held back, everybody knows what we are making even on the portfolio. [Speech Overlap]<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

Then why should the promoters take the same commission? You please explain. Is the Board working for minority or working for promoter?<\/span><\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Please \u2014 please remember that there are some superstar companies which have lost money in all the bloody data asset. We haven\u2019t written off INR1 in the treasury and Unni and I are very proud about this.<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

We are also very proud of you. There is no question about that. We are not blaming your treasury management. We are proud of you. And I would like to say in front of this call, congratulations for that. But why deprive shareholders with the inconsistent policy? That\u2019s what my question is, not about your capabilities. We are proud of you.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Jiten bhai, we are not depriving the shareholders. Unfortunately I can\u2019t give a forward-looking statement on a conference call like this. It has to come from the Board. The Board is equally aware of the fact that our return on equity is the pits now, it used to be almost 30% a decade ago. It has now come to 21% or something, we don\u2019t like it either. But I don\u2019t think we\u2019ve seen a pandemic of the kind that we\u2019ve seen in the last year or so. I mean, if anything the management deserves praise, because in a pandemic year, we\u2019ve actually increased PAT. We\u2019ve derisked the balance sheet. We\u2019ve used the [Speech Overlap].<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

We are proud of you. I give your example to Corporate India that Sun TV is one of the most fantastically-managed companies. Mr. Narayanan, proud of you, I give your example on cost cutting, on the way you have accumulated cash and way you\u2019ve managed working capital. I give your example to every company in Corporate India. We are proud of you and Mr. Unni and all of you, Mr. Mahesh and everybody. So, there is \u2014 please don\u2019t mistake me. I take great pride in my association with you. But this is a very serious issue, because it is something that cannot be taken very lightly. I\u2019m sorry, but this is very disturbing to the mind. And this is something that \u2014 like a joke.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Let me assure you. Till March 31, 2020, you\u2019ve seen our distribution ratio. It\u2019s only in 2021, it has come down. That is because we\u2019ve seen a once-in-a-lifetime black swan event. And again, I\u2019m saying that I don\u2019t want to put out a forward-looking statement on a conference call. First of all, I don\u2019t even have the authority to say, yes, we are going to do this. But the Board has extremely seized of this issue and they know that cutting down distribution is seen as an act of bad governance by any corporate Board. We are fully aware of the misgivings that you have. So please trust us. We will carry back this message. And let me assure you that our intent is not to deny minority shareholders of their rewards. I think every shareholder\u2019s interests are best served when we have a rising top-line and a rising bottom line and run a company which is free or any kind of shenanigans or any kinds of landmines in the balance sheet. So\u2026<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

So, are we proposing in the current year that because of the pandemic, basically are we proposing or giving a commitment right now that promoters will not take a \u2014 management will not take the commission of INR175 crores in such a year? Because that line is remaining very normal, whether it\u2019s a pandemic, it\u2019s a non-pandemic, it\u2019s a higher profit, a lower profit?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

There is a contract which is sacro-signed [Phonetic]. Mr. Maran and Mrs. Maran work on that contract. And that\u2019s absolutely as for the statute and the law of the land. And if anything, they have actually forgone additional compensation by voluntarily limiting it to the levels at which it was operating in 2017. So I don\u2019t think we need to get into the legality or the correctness of that arrangement. Suffice it to say that we have all \u2014 doing an honest day\u2019s work. And whatever compensation that\u2019s due as per contract, let us get those compensation.<\/p>\n

But that said, the point that you\u2019re raising on the distribution of cash, I completely agree with your \u2014 I mean, if I was a minority shareholder, I\u2019d say exactly what you just said. We will carry this feedback. And trust me, it is not our intent to keep the cash. In fact, there is a problem for us managing this kind of liquidity because rates are coming down. We are not able to generate these returns. [Speech Overlap]<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

Then how do you justify a 13% payout? Something should have been mentioned in the press release. How do you justify? Because everybody is very disturbed. We are custodians of people\u2019s money, just as you are custodians of our money and have done a great job in managing the treasury and we are very proud of you. That\u2019s just \u2014 it\u2019s something that you really, please, need to take back to management and Board, it is my request to you with folded hands in a humble manner. Please look into this issue and please revert in the coming quarter with something as an explanation or put out a note on why this has happened and what you need to do for shareholders. I\u2019ll be very, very happy to hear back from all of you.<\/p>\n

And I wish you, once again, many congratulations on a very strong performance to Mahesh, to you, to Unni, to all of you at the Sun TV team and to Mr. Maran also. But please do take care of what has been mentioned on a very serious note.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Certainly, sir. Thank you.<\/p>\n

Jiten Doshi<\/strong> \u2014 Enam Asset Management \u2014 Analyst<\/em><\/p>\n

Right. Thank you very much.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. [Operator Instructions] The next question is from the line of Neeraj Save [Phonetic] from Sun Life Financial Services, LLP. Please go ahead.<\/p>\n

Neeraj Save<\/strong> \u2014 Sun Life Financial Services, LLP \u2014 Analyst<\/em><\/p>\n

Yeah. Good afternoon, sir. Thanks for providing the opportunity. I wanted to understand. Sir, first of all, I second the view expressed by the analyst on the call, the investor who said that despite great growth in profit, we don\u2019t find any corresponding increase in dividend. So, I second that and I would suggest you to take that matter. Probably you may call and declare interim dividend if your management agrees. So that\u2019s the first part. Second part, we see a major \u2014 hello?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Yeah. Go ahead, please. Yeah, please go ahead. We have been hearing you.<\/p>\n

Neeraj Save<\/strong> \u2014 Sun Life Financial Services, LLP \u2014 Analyst<\/em><\/p>\n

Second part is, while you see a decline in depreciation and amortization expenditure, so standalone it was INR232 crores, Q3 FY \u201920, INR2,168 crores, and it got increased to INR76 crores, but INR232 crores to INR76 crores, so what resulted in such INR140 crores drop into depreciation charge, if you can explain?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

We didn\u2019t have too many new movies to report. Last year there was no incremental movies coming because of COVID. Even though advances have been paid, no movies got released. So the number movies which got released during 2020-\u201921 were less. And consequently, conversion into a satellite right also are really limited. So all possibly should happen in the second half of this year.<\/p>\n

Neeraj Save<\/strong> \u2014 Sun Life Financial Services, LLP \u2014 Analyst<\/em><\/p>\n

[Speech Overlap] limited new content acquisitions, so limited depreciation and amortization expenditures, right?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Correct. You are right.<\/p>\n

Neeraj Save<\/strong> \u2014 Sun Life Financial Services, LLP \u2014 Analyst<\/em><\/p>\n

Yeah. The second point is on the finance cost. While we have INR3,000 crore kind of treasury and cash book, we find the finance cost of around INR17 crore per annum or like \u2014 and this is a INR21 crore for full year. So why there was kind of almost like, so if I say INR11 crore for every quarter and all of a sudden, I find INR17 crores jump in Q4. So what was the reason for this [Speech Overlap]?<\/p>\n

V.C. Unnikrishnan<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

This is the interest from the tax provisions that we were carrying as part of the settlement.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Yeah. About INR15.76 crores is the interest provided during the March quarter in respect of the financial years \u201917-\u201918 to \u201919-\u201920.<\/p>\n

Neeraj Save<\/strong> \u2014 Sun Life Financial Services, LLP \u2014 Analyst<\/em><\/p>\n

Okay. So that is the interest, not on the normal business operations. Thanks.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Yeah.<\/p>\n

V.C. Unnikrishnan<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

Sir, it\u2019s a one-time one-off exceptional interest.<\/p>\n

Neeraj Save<\/strong> \u2014 Sun Life Financial Services, LLP \u2014 Analyst<\/em><\/p>\n

Okay. Fair enough. So that is also explained. Just requesting you what the opinion was given by first investor and analyst, please carry and consider this matter seriously because it empowers minority investors\u2019 right significantly. And wish you all the best.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Certainly. Thank you very much.<\/p>\n

Neeraj Save<\/strong> \u2014 Sun Life Financial Services, LLP \u2014 Analyst<\/em><\/p>\n

And thanks for giving me the opportunity.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Thank you for the point. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. The next question is from the line of Venkatesh Subramanian from LogicTree. Please go ahead.<\/p>\n

Venkatesh Subramanian<\/strong> \u2014 LogicTree \u2014 Analyst<\/em><\/p>\n

Thank you for the good results, sir. It\u2019s the same question. It\u2019s a continuation of that. While we understand that these things cannot be shared on a con call or on a public \u2014 this thing, but this is a absolutely recorded public call which will be also be put up as a transcript as well [Technical Issues] if there is any shareholder value creation this thing. It actually makes us wonder if there is cash in the books, sir?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Sorry?<\/p>\n

Venkatesh Subramanian<\/strong> \u2014 LogicTree \u2014 Analyst<\/em><\/p>\n

We would like to know why \u2014 how this would be communicated from the Board or I think this team is authorized by the Board to make certain kind of statements until the Board ratifies it. So, is there a block in not telling us how you intend to create shareholder value and what could be the timeline for it?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

No, no. Actually this is \u2014 I mean, I think, severe exception to the insinuation that you\u2019re suspecting if there\u2019s any cash in the balance sheet. I think that\u2019s going a bit too far. Let\u2019s not get into that kind of street-level dialogue. So there is a Board\u2026<\/p>\n

Venkatesh Subramanian<\/strong> \u2014 LogicTree \u2014 Analyst<\/em><\/p>\n

What street-level dialogue, sir, basically? Because this is street-level for sure because we are also talking about shareholding \u2014 we\u2019ve been constantly guided that there is no value creation and then we don\u2019t, so it is a big question to ask.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

The thing is nothing is carved in stone. The Board has decided today that we will conserve cash for the time-being. It\u2019s not like we are not going to \u2014 I mean, company which doesn\u2019t have cash wouldn\u2019t settle the vast income tax dues and then come out with a new financial statement this year, which will get rid of INR900 crores of contingent liability.<\/p>\n

V.C. Unnikrishnan<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

Yeah, yeah. And this\u2026<\/p>\n

Venkatesh Subramanian<\/strong> \u2014 LogicTree \u2014 Analyst<\/em><\/p>\n

Good morning, sir. On that issues, I think we are authorized by the Board to talk about potential actions going forward, right, sir. Can you give us some [Speech Overlap]<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

I don\u2019t think \u2014 I don\u2019t think any one of us here can speak out of turn. Whatever decision is taken will be communicated with proper authorization, proper resolutions passed in the Board. We just don\u2019t want the second guess the Board. At this point in time, we should stay to the decisions that have been taken a few hours ago. And if\u2026<\/p>\n

Venkatesh Subramanian<\/strong> \u2014 LogicTree \u2014 Analyst<\/em><\/p>\n

Has there been things\u2026<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Yeah, it\u2019s not like \u2014 this is the same company that paid out INR1,200 crores in FY \u201920 when we decided that we need to get rid of excess liquidity. So I don\u2019t think anybody can fault us for not paying out liberal dividend. It\u2019s just that starting March of 2020 to now, we\u2019ve been through all kinds of volatility in the business environment.<\/p>\n

V.C. Unnikrishnan<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

We\u2019ve seen a drop of 65% ad revenue in the first quarter, which is now \u2014 for the full year is down only to 25%. So every business has gone through same. So we need to take care of that. And just by not declaring a dividend does not mean that the way \u2014 I mean you can make statements like what you have said.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

I mean, at the end of the day, Deloitte Haskins & Sells are certifying it\u2019s not some hole in the wall, it\u2019s subject to all kinds of rigorous auditing standards. And certainly we don\u2019t like the insinuation that it\u2019s been due to wonder if there\u2019s any cash in the balance sheet.<\/p>\n

Venkatesh Subramanian<\/strong> \u2014 LogicTree \u2014 Analyst<\/em><\/p>\n

But these kind of things happens because you\u2019ve certainly been guiding for a very long time and suddenly say, so people express themselves.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

The thing is, we will be guiding a lot of things based on certain expectations. At the end of December quarter and at the start of the March quarter, we were seeing a certain bullishness and that\u2019s been completely put paid because of the second wave.<\/p>\n

Venkatesh Subramanian<\/strong> \u2014 LogicTree \u2014 Analyst<\/em><\/p>\n

Yeah.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

So that\u2019s the reason why we said, let\u2019s not rush into anything in a hurry. And let\u2019s just take stock, because it\u2019s very easy to take a knee-jerk decision.<\/p>\n

Venkatesh Subramanian<\/strong> \u2014 LogicTree \u2014 Analyst<\/em><\/p>\n

This is what a matter of interest. I think it\u2019s an insinuation. I\u2019ll use another word for you.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

No. Things are not going to fall if we delay this by a quarter. And that\u2019s a decision that the [Indecipherable] we have to respect the decision taken by the collective consensus of the Board.<\/p>\n

Venkatesh Subramanian<\/strong> \u2014 LogicTree \u2014 Analyst<\/em><\/p>\n

That is a good guidance, sir. Because what we are talking about here is, if you\u2019re going to say something, you could say that this word appropriately consider a buyback or a dividend at a later point of time, whatever. You could say that, but the question is\u2026<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

In fact we tested that out. In fact, we have actually looked at those kind of possibilities. We can\u2019t put out anything which is speculative or which is bordering on a conjecture on a forward-looking statement. So\u2026<\/p>\n

V.C. Unnikrishnan<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

We will communicate to the Board.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

We are well aware of the fact that our net worth is approaching some INR7,000 crores and our PAT is at about INR1,500 crores. We are well aware of the implications of this. And we are also equally aware of the fact that there are dwindling opportunities for risk-free investing. I mean, we used to get 6.5%, 7%, now it is down to 5%, 5.5%. So it is going to become a challenge to even manage this kind of portfolio with the credit quality becoming scarce and the interest costs trending lower. So we\u2019d rather pay it off to the shareholders and they can decide what to do with that money. And so, all those classical corporate finance theory is completely appreciative of all the logic. But please have belief in us. I mean, we ourselves don\u2019t like the kind of bloated stockholder equity that we have and we will take an appropriate decision. And once the Board has approved, we will come back to you and tell you what it is.<\/p>\n

Venkatesh Subramanian<\/strong> \u2014 LogicTree \u2014 Analyst<\/em><\/p>\n

Fine. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. [Operator Instructions] The next question is from the line of Ankur Periwal. Please go ahead.<\/p>\n

Ankur Periwal<\/strong> \u2014 Axis Capital Limited \u2014 Analyst<\/em><\/p>\n

Yeah. Hi, sir. Thank you. So, first question, on the overall market share for us, especially both in Tamil and Telugu, I recollect Mr. Mahesh do \u2014 had mentioned earlier that PRE taking the primetime slots as well as the new content being there. So just your thought there, while I appreciate probably given the structure that we are in the COVID-led impact on the content side, probably you can also touch on any challenges that you are facing if at all on the content creation side and how do you look that space going ahead?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Yeah. So basically on the content, if you look at from a relative share point of view, we are actually improved couple of percentage points in terms of the relative share of the viewership in Tamil. And like we had mentioned in the past, more specific to the primetime fiction slots, in the last three quarters, we have improved by close to 4 to 5 percentage points from 37% viewership share to 42% viewership share in April. So though we had a lot of challenges in terms of the original content, but I think once things opened up, we had a couple of launches and we also sort of rejigged FPC, which is yielding us very good result. So we are hopeful that we will further strengthen our position in the primetime in Sun TV in fiction.<\/p>\n

In the other markets, like what we had mentioned in the past, we had lined up some big ticket launches, especially on the non-fiction, with some really big names, some superstars in the respective markets. But because of the pandemic, we are not able to \u2014 but we are all ready to launch, but it is waiting for the market to open up. So, in the next one or two months, we have lined up some huge launches in Telugu and also in Malayalam. But we are trending very well in Tamil. And even in Kannada market, our overall fiction share has gone up by 36% as compared to what we were in the last two, three quarters. So, I think we are in the right track once the market opens up, our focus is on the two markets to gain share.<\/p>\n

Ankur Periwal<\/strong> \u2014 Axis Capital Limited \u2014 Analyst<\/em><\/p>\n

Sure, sir. That\u2019s helpful. And from a availability of fresh content perspective, given there will be restrictions in terms of overall production side, how are we placed here versus the rest of the industry?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

It differs from market to market, like there are some markets still the shoots are affirmative, so we are going ahead with that. But the only thing is, we can\u2019t do big ticket through. Till outdoor shoots are restricted, we just need to do shoots in-house or in indoor facilitation. So that\u2019s the reason why we\u2019re not able to launch big ticket shoots. But if you take Tamil as a market, still I think regarding one or two slots, I think in all the other shows, I think we are still continuing to provide original content.<\/p>\n

V.C. Unnikrishnan<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

Maybe we\u2019re just waiting for the next couple of weeks, three to four weeks, to get clarity across all the markets. So, I think then I think we will have a better understanding of the whole thing.<\/p>\n

Ankur Periwal<\/strong> \u2014 Axis Capital Limited \u2014 Analyst<\/em><\/p>\n

Sure, sir. And just one clarification. I think Unni sir, we had mentioned earlier on the movie side wherein we were planning some five movies in financial year \u201922. But earlier in the comments, you did mention around INR10 billion to INR12 billion sort of capex on the movie side, but so if you can help some clarification there?<\/p>\n

V.C. Unnikrishnan<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

Four movies are under production as shooting has started and in multiple stages, one movie is almost nearing completion. The couple of movies have gone through about 30% to 40%. The third movie is \u2014 fourth movie just about started. The remaining [Indecipherable], what we have signed up and lined up, but I think because of the delay in the first four movies being completed and also the present situation of shooting schedules being limited at various points in time. We need to take it up. Hopefully I think in the second half of this year, we should be starting that.<\/p>\n

Ankur Periwal<\/strong> \u2014 Axis Capital Limited \u2014 Analyst<\/em><\/p>\n

Sure. So, the aggregate spend which you highlighted at around INR1,000 crores or INR1,200 crores, that is not only for this year, that is maybe this year plus next year?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

No. I think, it\u2019s too big. It could move on to the next year as well, because of the \u2014 need to push some of the commencement of shootings to the next fiscal.<\/p>\n

Ankur Periwal<\/strong> \u2014 Axis Capital Limited \u2014 Analyst<\/em><\/p>\n

Sure. And for this fiscal also, this will be more back-ended, subject to how the pandemic plays out?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Exactly, exactly. Because again, one is completing the shooting, second is theatrical opening, that\u2019s also a concern. So we have to ensure that there is sufficient gap between these two movies coming in so that \u2014 so we have to know on that. Because June has been \u2014 theaters are not filling until the \u2014 at least end of June, we don\u2019t expect the theaters to come out. So even if the movies are ready, we\u2019ll have to look at between the second and the third quarter.<\/p>\n

Ankur Periwal<\/strong> \u2014 Axis Capital Limited \u2014 Analyst<\/em><\/p>\n

Sure. That\u2019s helpful. And sir, lastly, on the advertisement side, any comments how the market is looking like? Jan\/Feb have been relatively better for us, but then again March onwards the pandemic impact. How are the local regional retailers behaving there? And your comments there. Thanks.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

So, Q4, I think we saw some good traction, like I think we had very good bounce back with their business as compared to the first two quarters. In fact our utilization has jumped sharply during this Jan\/Feb\/March. And we were \u2014 actually were hopeful that maybe the fourth quarter of this year also will be more or less in par with the previous financial year, which was \u201919-\u201920. But I think unfortunately because of the second wave, there has been an impact. I would say, to a limited extent, it is not as bad as what it was last year. But I think we just have to wait and see because I think whether if the overall wave comes down, I think we could see some good traction in Q2<\/p>\n

Ankur Periwal<\/strong> \u2014 Axis Capital Limited \u2014 Analyst<\/em><\/p>\n

Great, sir. That\u2019s it from my side. I\u2019ll get back into the queue. Ayesha, you can take up the other question please.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. The next question is from the line of Mohit Kumra from Kumra Investment Company. Please go ahead.<\/p>\n

Mohit Kumra<\/strong> \u2014 Kumra Investment Company \u2014 Analyst<\/em><\/p>\n

Yeah, hi. Good evening, sir. I wanted a little more color on this whole tax issue. You said that you had INR950 crores of tax pending, which you settled for INR250 crores, right?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Yeah. That\u2019s because, see, as the years go by, even the department\u2019s confidential it would be completed. So it\u2019s only the last few years thing which will impact. So that\u2019s why just the payment of INR250 crores was required to complete this.<\/p>\n

Mohit Kumra<\/strong> \u2014 Kumra Investment Company \u2014 Analyst<\/em><\/p>\n

And now, there\u2019s deferred tax assets of INR338 crores on your balance sheet now, right?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Yeah. This has created a deferred tax asset of about INR400 crores.<\/p>\n

V.C. Unnikrishnan<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

INR411 crores.<\/p>\n

Mohit Kumra<\/strong> \u2014 Kumra Investment Company \u2014 Analyst<\/em><\/p>\n

How INR400 crores is INR338 crores?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

INR411.95 crore is deferred tax asset created as a result of opting to the scheme.<\/p>\n

Mohit Kumra<\/strong> \u2014 Kumra Investment Company \u2014 Analyst<\/em><\/p>\n

And you pay an average of INR1,500 crores in taxes every year?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Sorry? Can you be a bit louder?<\/p>\n

Mohit Kumra<\/strong> \u2014 Kumra Investment Company \u2014 Analyst<\/em><\/p>\n

You pay an average of INR1,500 crores in taxes, right, roundabout-ish?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

No, no, no, no. I think, our average tax will be around INR500-odd-crores.<\/p>\n

Mohit Kumra<\/strong> \u2014 Kumra Investment Company \u2014 Analyst<\/em><\/p>\n

Half yearly?<\/p>\n

V.C. Unnikrishnan<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

Yearly.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Yearly.<\/p>\n

Mohit Kumra<\/strong> \u2014 Kumra Investment Company \u2014 Analyst<\/em><\/p>\n

Okay. I\u2019m so sorry, I\u2019m so sorry. Yeah, INR500-odd crores. So this \u2014 so you have a whole year\u2019s worth of taxes as assets now?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

You are not audible my friend.<\/p>\n

Mohit Kumra<\/strong> \u2014 Kumra Investment Company \u2014 Analyst<\/em><\/p>\n

Hello?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Can you be a bit louder?<\/p>\n

Mohit Kumra<\/strong> \u2014 Kumra Investment Company \u2014 Analyst<\/em><\/p>\n

Can you hear me?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Yeah, this is much better.<\/p>\n

Mohit Kumra<\/strong> \u2014 Kumra Investment Company \u2014 Analyst<\/em><\/p>\n

Hello?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Yes. Again, we are not able to hear you. I think earlier it was fine. I think\u2026<\/p>\n

Mohit Kumra<\/strong> \u2014 Kumra Investment Company \u2014 Analyst<\/em><\/p>\n

Okay. So I just wanted to understand that now you have a whole year\u2019s worth of tax assets on your balance sheet now?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Sorry, we didn\u2019t follow. We couldn\u2019t understand.<\/p>\n

V.C. Unnikrishnan<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

He is asking whether we have a full year of INR411 crores of deferred tax credit is equivalent to one full year of income tax outgo for the company?<\/p>\n

Mohit Kumra<\/strong> \u2014 Kumra Investment Company \u2014 Analyst<\/em><\/p>\n

Exactly.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Yeah. Correct.<\/p>\n

V.C. Unnikrishnan<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

But it will accrue to us over a period of time. It did not go and happen immediately in the next financial year. This was the benefit which would accrue over a period of time as and when we start claiming depreciation on the movie asset.<\/p>\n

Mohit Kumra<\/strong> \u2014 Kumra Investment Company \u2014 Analyst<\/em><\/p>\n

Okay, okay. And how long should this take? This is what I want to understand.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Sir, depends on the number of movies we buy, right.<\/p>\n

V.C. Unnikrishnan<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

It is on a WDD methodology prescribed by the income tax, which is a 25% ever year. So, the cumulative dissociation is around INR1,600 crores, so every year 25% of that is eligible for the tax benefit.<\/p>\n

Mohit Kumra<\/strong> \u2014 Kumra Investment Company \u2014 Analyst<\/em><\/p>\n

Okay, okay, okay. Thank you so much. Thank you so much.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Thanks.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. The next question is from the line of Kunal Vora from BNP Paribas. Please go ahead.<\/p>\n

Kunal Vora<\/strong> \u2014 BNP Paribas \u2014 Analyst<\/em><\/p>\n

Yeah. Thanks for the opportunity. First one on content, you are looking to significantly ramp up the content investment investing in non-fiction show, OTT Originals, movies, so what can we expect in FY \u201922? And if you can share some thoughts on how we should be looking at ex-IPL margins?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Kunal, I really wish I had a crystal ball. At this point in time, we are looking at too many moving parts. Some places, we are still struggling to shoot, like Kerala and all had an extremely rigorous lockdown. And in some parts of Telangana, there were some issues. And we thought we were able to get all the approvals and we started something on shoots for the movies. And again, that got into a bit of \u2014 and so, I think Mahesh can give you a better color there.<\/p>\n

R. Mahesh Kumar<\/strong> \u2014 Managing Director<\/em><\/p>\n

Yeah. Like I mentioned in couple of minutes back, I think we have lined up some really big ticket shows, which we were supposed to launch during the Q1. But because of the lockdown, it got postponed. But otherwise, it is not that they\u2019re going to restart the whole thing. We are almost ready, we have finalized the star, we have signed contracts with them, commercials are frozen, production houses are in place. Only thing is, if the overall, the COVID situation improves, if market opens up, I think we should have a very quick turnaround time in terms of launching the shows, which will help us and facilitate us to improve the overall positioning in the market.<\/p>\n

And on the back office also, we have lined up at least six to eight fiction shows, which will ride on this big ticket non-fiction shows. So, everything is sort of ready, it is not at a drawing board stage, it is all finalized. Just the only thing is, the market has to open up. So we\u2019re just waiting for that to happen. But specifically if you ask me in terms of the cost, I would say, in terms of the component cost, it could be more or less slightly marginally higher than what we had spent in \u201919-\u201920, considering all the big ticket launches. So this year could be an exception, because literally majority of the last financial year has gone in lockdown. So there has been not much of shoots happening, there are a lot of repeat of content which has happened. But that could not be the reference of benchmark. I think if you take \u201919-\u201920 as a year, there could be definitely increase in the content spend as compared to what it was in \u201919-\u201920.<\/p>\n

Kunal Vora<\/strong> \u2014 BNP Paribas \u2014 Analyst<\/em><\/p>\n

Sure. That\u2019s helpful. On OTT originals, when do we start seeing some spending? Like you were talking about INR150 crore, INR200 crore amount for quite some time, but we haven\u2019t seen really any large spending so far. So can we expect something in FY \u201922?<\/p>\n

R. Mahesh Kumar<\/strong> \u2014 Managing Director<\/em><\/p>\n

I think we should be able to answer this with greater clarity by next quarter call, because I don\u2019t think at this point in time, we are able to get anything going because of so many dislocations. Because the first priority is to get rid of the backlog in the movie, which incidentally will also boost our content library on the OTT. Because we\u2019re seeing that every time we put a new movie on Sun NXT, it drives up subscriptions immediately. So, at the current stage, our \u2014 all our focus is on movies, but we will certainly \u2014 we are in dialogue with a lot of potential producers for web series originals, but I don\u2019t think we\u2019re going to start anything before second quarter of this year.<\/p>\n

Kunal Vora<\/strong> \u2014 BNP Paribas \u2014 Analyst<\/em><\/p>\n

Okay. Okay. And any numbers you can provide for Sun NXT revenue, cost, customer base, active users, anything which you can provide on Sun NXT?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Sure. I think in terms of the, what do you call, MAUs, we are seeing some very good growth over a period of time. So I don\u2019t want to give you the exact number. But we can say that it has grown by at least 40%, 50% over the last six months. And we\u2019ve also tried at least three small-time movie releases which we have actually premiered first in Sun NXT and then only on television without safety reason. That has been pretty much very good success for us. So that\u2019s the model which probably we might also recreate over a period of time. So, otherwise like what we are seeing in the other broadcasting group, we are anyway having some big ticket movies which are likely to come. So these are two things which probably we might do at least in the foreseeable future. But in terms of the overall downloads, we are seeing some good traction in Sun NXT.<\/p>\n

Kunal Vora<\/strong> \u2014 BNP Paribas \u2014 Analyst<\/em><\/p>\n

Okay. Just a feedback. The other listed broadcaster does provide a few numbers, so it will be good if you can also start providing at least make some numbers, but anyway. And lastly\u2026<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Kunal \u2014 Kunal, this is \u2014 I mean, we have agonized over this internally. See, at this point in time, if we put granular details for Sun NXT, because since Sun NXT largely uses the contents which is expensed in the linear broadcast business, we will be showing some outrageously high margins which we don\u2019t want to do now. Because cost of sales is practically negligible, barring the small time movies that we had produced especially for OTT. So, let\u2019s get to a stage where we are actually creating web series originals which can then provide a set of credible, because at this point in time Sun NXT is basically riding on the content which has been created by Sun TV. And it\u2019s basically using recycled content with almost zero cost of sale. So we don\u2019t want to start reporting on that basis at this point in time. Let\u2019s start investing into OTT and then we will start providing these numbers.<\/p>\n

Kunal Vora<\/strong> \u2014 BNP Paribas \u2014 Analyst<\/em><\/p>\n

Lastly, the revenue break-up and depreciation and amortization, like last question from my side.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Yeah. Advertisement is INR315 crores, broadcast revenue is INR2 crores, international revenue stream INR36 crores, pay channel revenue is INR210 crores, DTH is INR218 crores, others is INR1 crore. In terms of depreciation, amortization, depreciation was INR28 crores and amortization was around INR49 crores.<\/p>\n

Kunal Vora<\/strong> \u2014 BNP Paribas \u2014 Analyst<\/em><\/p>\n

Great. That\u2019s it from my side. Thank you, sir.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. The next question is from the line of Dixit Doshi from Whitestone Financial Advisors. Please go ahead.<\/p>\n

Dixit Doshi<\/strong> \u2014 Whitestone Financial Advisors \u2014 Analyst<\/em><\/p>\n

Yeah. Just a couple of questions. Firstly, in terms of ad revenue, so obviously there is some hit in the Q1, but how do you see the \u2014 expect the full year FY \u201922? I mean, can we reach the level of FY \u201920 in FY \u201922?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

So it all depends on, see, like I said, basically I think we were trending very well, that was reflected in the numbers in Q4. We are hopeful that this year more or less we will be in par with \u201919-\u201920, but I think this second wave has hit us. We really don\u2019t know how long this is going to last and whether there is going to be a third wave. We have no idea, so we just don\u2019t want to guide. But the way things look like as of now, I think our endeavor is currently to reach the levels of \u201919-\u201920.<\/p>\n

Dixit Doshi<\/strong> \u2014 Whitestone Financial Advisors \u2014 Analyst<\/em><\/p>\n

Okay. And just one last thing. You just provided the Q4 revenue breakup. Can you give us the same breakup for the full-year FY \u201921?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Let\u2019s do [Indecipherable]. I will give it in a minute. Maybe the next question can come in.<\/p>\n

V.C. Unnikrishnan<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

I\u2019ll just come back.<\/p>\n

Dixit Doshi<\/strong> \u2014 Whitestone Financial Advisors \u2014 Analyst<\/em><\/p>\n

Yeah, yeah. Thanks.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. The next question is from the line of Yogesh from B&K Securities. Please go ahead. Yogesh, your line is in talk mode. Please go ahead.<\/p>\n

Yogesh Kirve<\/strong> \u2014 B&K Securities \u2014 Analyst<\/em><\/p>\n

Yeah. Thanks a lot for the opportunity. Sir, if we have seen the south market, Tamil and Telugu, we have seen several movie releases and quite a few of them did well as well, something like Master, Vakeel Saab, Uppena, Robert, Krack, Jathi Ratnalu, all these kind of movies, above more than INR40 crores, INR50 crores collections. And if I look at who have bought the digital rights, and we see a lot of Amazon Prime Video, Netflix and some others. So why we are not seeing Sun NXT acquiring rights more aggressively? So there was a paucity of the content investment opportunities during last year, but these were the opportunities which were there in the market.<\/p>\n

And also, we said that whenever we show new movie, there has been a corresponding increase in the views or viewership or the subscriptions. So, while we are not aggressive on acquiring the movie rights, I understand some of them we are producing ourselves, but even from the other producers. So that\u2019s my question.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Yeah. See, it\u2019s perhaps not the wisest thing to bid outrageous sums of money because we know some of our competitors who bought rights exclusively for a streaming release have actually burnt their fingers. I don\u2019t want to name names, but it\u2019s very easy to get into a bidding game and have what\u2019s called the winner\u2019s curse. We just don\u2019t want to do that. Because at the end of the day, if I can use my existing content and still deliver reasonable results and in a pandemic year actually almost reached the same profits as they have been in FY \u201920. I think we\u2019ve done a decent job instead of just filtering away resources on opportunities which are suboptimal.<\/p>\n

I think it\u2019s best to get into these things when state of normalcy return and in the meantime do some cherry-picking on really like what Mr. Mahesh said on some of these big banners, some of the really innovative shows that we\u2019ve been able to get through, association with some very reputed international producers. So those are the kind of opportunities which we are working on under the radar. And once those are done and we\u2019ve launched, the whole industry is going to sit up and take notice. We have prided on our ability to stay away from this very wasteful bidding games. Even in the past, some of the blockbuster banners, we have walked away when we found that the asking price was too much. Because at the end of the day, every content investment has to answer certain basic financial criteria. It\u2019s very easy to put some outrageous sums of money and win the bidding for satellite rights and streaming rights. But at the end of the day, if it doesn\u2019t make any meaningful financial return, it\u2019s money down the drain. So \u2014 and in a time like this, it is better to be safe than sorry.<\/p>\n

And since we already have a treasure trove of content which we have reused, which is why even though our amortization numbers have fallen, we still grown our ad revenues by 8%, 9%, which is not a bad thing at all. And our subscription revenues in this year also grown by about 11%. So, the focus is on conserving money, making sure that you\u2019re on a tight balance sheet and put some decent returns on invested capital. And there\u2019s always the time to go into an aggressive mode and acquire a lot of these assets when time get back to normal, where there is also plentiful supply of new content.<\/p>\n

Yogesh Kirve<\/strong> \u2014 B&K Securities \u2014 Analyst<\/em><\/p>\n

And sir, just a thought on this, I understand where you\u2019re coming from. And maybe in the hindsight, we can \u2014 we might decide in terms of this investment [Indecipherable] not generating enough returns, but don\u2019t see this kind of content investment as an insurance that we don\u2019t see it any ground for a player who\u2019s trying to make inroads into the market. So actually from a tactical perspective, maybe you could step up the investment just to reach that provision. So we are very strong operator in the television business, so we have to replicate similar\u2026<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Actually, what \u2014 this is something which we run into very often. A few years back, I mean, again I won\u2019t want to name names, a very reputed banner was available and we walked away from it. And rival bought it and after buying that asset, for the next several months, they didn\u2019t show up in the market at all, because they wasted all their amount on a blockbuster banner. And once you wasted all your resources, the entire budget on one or two top-three [Phonetic] banners, the market then becomes wide open for others to come and take advantage of the lack of interest. So it\u2019s a very smart game that needs to be played with a lot of care. And I think we\u2019ve done a decent job in terms of identifying which one to go after and which one to leave.<\/p>\n

R. Mahesh Kumar<\/strong> \u2014 Managing Director<\/em><\/p>\n

Just to add to what SL is saying, it\u2019s not that we have not picked up some big titles, like for example in Telugu we have this Ala Vaikunthapurramuloo, which is a super-duper hit. But I am saying that like what SL said, I think we know what is right value. We just don\u2019t want to get into a bidding game and increase the benchmark prices, which will ultimately hit us very badly. So, I think we will \u2014 we just stay away from that. But I think if you look at the big titles of the south, I think it\u2019s 90% of the titles are with us for satellite. And whenever we find the right value for digital, we also take digital rights. It\u2019s not that we are not in the game, we are in the game but we know what is the price, but we know that some of the other guys are paying some outrageous money for which there is no value to it.<\/p>\n

Yogesh Kirve<\/strong> \u2014 B&K Securities \u2014 Analyst<\/em><\/p>\n

Okay. Fair enough, I\u2019ll leave it at that. My second question is regarding your subscription revenue. So we have grown by about 10%, I guess, for the full year. So what\u2019s the outlook on FY \u201922-\u201923? Any ballpark or any sort of indicated number could be useful.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

We should continue with the double-digit growth. That business is doing good because we get to see the traction in a group company which is associated with the Sun Group. So going by the numbers that we are seeing in terms of their own acquisition plans for set-top boxes, I can say with some confidence that we\u2019ll continue to grow at double-digit.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. We would request the current participant to please come back in the question queue for any follow-up question.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

One second. I think somebody wanted the breakup the revenues for the full year. I just run through it. Advertisement revenue is INR994 crores, broadcast revenue is about INR4 crores, international was INR140 crores, pay channel revenue is INR831 crores, DTH is INR891 crores, IPL is INR255 crores and others about INR2 crores.<\/p>\n

Operator<\/strong><\/p>\n

The next question is from the line of Jaykumar Doshi from Kotak. Please go ahead.<\/p>\n

Jaykumar Doshi<\/strong> \u2014 Kotak \u2014 Analyst<\/em><\/p>\n

Hi. Thanks for the opportunity. Just couple of quick questions. First one is, should this INR1,200 crores that you\u2019ve talked about in terms of \u2014 that will be movie production, right? So what will be the additional \u2014 what will be the capex that you think will need for the current year for satellite rights \u2014 procurement of satellite rights for regional movies?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Jay, you\u2019re not really audible man, slightly louder.<\/p>\n

Jaykumar Doshi<\/strong> \u2014 Kotak \u2014 Analyst<\/em><\/p>\n

Okay. Let me repeat. What is your budget for procurement of satellite rights of movies for FY \u201922?<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

I think, given the present trend, possibly it should be in the range of around INR200 crore to INR250 crores.<\/p>\n

Jaykumar Doshi<\/strong> \u2014 Kotak \u2014 Analyst<\/em><\/p>\n

Understood. So this INR200 crore to INR250 crores and [Speech Overlap]<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

First quarter has been a dampener. We do not know how quickly the theatres will restart in the second quarter. So hopefully majority should \u2014 I mean, assuming there is no other third wave or a major impact to the third wave, second half should be better. So we\u2019re looking at a lower number of around INR200 crores to INR250 crores for the full fiscal.<\/p>\n

Jaykumar Doshi<\/strong> \u2014 Kotak \u2014 Analyst<\/em><\/p>\n

Correct. And the big budget shows that Mahesh was referring to earlier, can you give us some color in terms of \u2014 our understanding is that a regular production cost for a regular Tamil show \u2014 fiction show maybe about INR2.5 lakh per episode. So, the shows that you were looking forward to which you think will help the viewership, what is the extent of sort of investments that you\u2019re likely to make in terms of \u2014 will it be 50% higher production costs than your regular shows? Will it be similar costs or 2 times, some color in terms of what will be quantum of it?<\/p>\n

R. Mahesh Kumar<\/strong> \u2014 Managing Director<\/em><\/p>\n

This is not actually the fiction show. We are looking at some international format non-fiction shows. So, I think fiction, we have \u2014 even if you want to really up the quality and give some really fantastic products, I think maybe there could be a 30%, 40% increase in the cost. But this impact on non-fiction shows, which are basically having some limited number of sort of episodes, this could be 40 to 50 episodes, that\u2019s where I think we have contemplated and we have planned. So that will be approximately in one market, it could be around INR20 crores, INR25 crores is a total investment which will spread over three to four months.<\/p>\n

Jaykumar Doshi<\/strong> \u2014 Kotak \u2014 Analyst<\/em><\/p>\n

And this \u2014 one show you spent INR25 crores over a four-month period?<\/p>\n

R. Mahesh Kumar<\/strong> \u2014 Managing Director<\/em><\/p>\n

Yes.<\/p>\n

Jaykumar Doshi<\/strong> \u2014 Kotak \u2014 Analyst<\/em><\/p>\n

And how many such shows have you planned?<\/p>\n

R. Mahesh Kumar<\/strong> \u2014 Managing Director<\/em><\/p>\n

No, we are in the process of launching something in Telugu market and one show in Malayalam market.<\/p>\n

Jaykumar Doshi<\/strong> \u2014 Kotak \u2014 Analyst<\/em><\/p>\n

And nothing in the Tamil market?<\/p>\n

R. Mahesh Kumar<\/strong> \u2014 Managing Director<\/em><\/p>\n

Tamil, I think we are pretty much tracking well on the fiction. Like I said, I think we\u2019ve improved our overall market share in the primetime, actually because we have done some complete research and we have already taken some steps to improve quality and also the overall narrative of the storytelling. So, I think we are on the right track now. So, primetime viewership share has improved from 37% to 42%. Our endeavor is always to somehow come close to 50%. So we have a plan in place. And I think we are tracking pretty much well on Tamil. So it doesn\u2019t need some really big ticket investments by [Speech Overlap].<\/p>\n

Jaykumar Doshi<\/strong> \u2014 Kotak \u2014 Analyst<\/em><\/p>\n

I understand. I appreciate that, Mahesh. But I feel it\u2019s about time that you have a show that kind of is in bracket as Big Boss Tamil. I don\u2019t think, on the non-fiction side, your current sort of slate has that kind of content which creates.<\/p>\n

R. Mahesh Kumar<\/strong> \u2014 Managing Director<\/em><\/p>\n

Yeah, I know. So I think we have done, we have been compensating, we have done a lot of research on this, like we have also taken reference of how channels have turned around in other markets. So that\u2019s why I think I don\u2019t want to give too much of details now. But I think what we are doing now for Tamil, we\u2019re pretty confident that I think that will give us improvement or definitely it will sustain and grow further. So, I understand where that\u2019s coming but there is before more market-to-market and it is not necessary that Sun TV should launch a Big Boss because the profiling of audience is very different for Sun. So, I think you will see some improvements happening in the viewership of Sun over the next couple of quarters.<\/p>\n

Jaykumar Doshi<\/strong> \u2014 Kotak \u2014 Analyst<\/em><\/p>\n

Right. So to summarize, there are two big shows one in Telugu, one in Malayalam which will probably invest INR20 crores to INR25 crores per show for a limited time non-friction show. And in addition, there will be some more fiction shows because overall number you talked about some six or seven shows, right, that\u2026<\/p>\n

R. Mahesh Kumar<\/strong> \u2014 Managing Director<\/em><\/p>\n

Yeah, yeah, yeah. So that is where [Speech Overlap].<\/p>\n

Jaykumar Doshi<\/strong> \u2014 Kotak \u2014 Analyst<\/em><\/p>\n

It will be like the replacement of existing friction shows with some new shows? Is that right way to think about?<\/p>\n

R. Mahesh Kumar<\/strong> \u2014 Managing Director<\/em><\/p>\n

Yeah.<\/p>\n

Jaykumar Doshi<\/strong> \u2014 Kotak \u2014 Analyst<\/em><\/p>\n

Okay. And on subscription, domestic subscription revenue, did I hear it correctly that the guidance for FY \u201922 is double-digit growth? Are you guiding for a double-digit growth because there is some uncertainty around NTO 2, so just wanted to make sure if I heard it correctly?<\/p>\n

R. Mahesh Kumar<\/strong> \u2014 Managing Director<\/em><\/p>\n

No, no, I think we should still grow because we see enough visibility on that side.<\/p>\n

Jaykumar Doshi<\/strong> \u2014 Kotak \u2014 Analyst<\/em><\/p>\n

Okay. Double-digit growth, right?<\/p>\n

R. Mahesh Kumar<\/strong> \u2014 Managing Director<\/em><\/p>\n

Yeah, yeah.<\/p>\n

Jaykumar Doshi<\/strong> \u2014 Kotak \u2014 Analyst<\/em><\/p>\n

Okay. Thank you so much. Good luck.<\/p>\n

R. Mahesh Kumar<\/strong> \u2014 Managing Director<\/em><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. The next question is from the line of Arun Prasath from Spark Capital. Please go ahead.<\/p>\n

Arun Prasath<\/strong> \u2014 Spark Capital \u2014 Analyst<\/em><\/p>\n

Thank you. Sir, my question is on the recent event that happened at Sun Direct. I know it\u2019s not a direct subsidiary, but there is some increase in the base pack most of the Tamil Value packs of the Sun Direct. So any views how this \u2014 any possibility that some kind of an ARPU improvement for Sun TV out of this event?<\/p>\n

R. Mahesh Kumar<\/strong> \u2014 Managing Director<\/em><\/p>\n

No, no, no. That is independent. That\u2019s a normal growth in the overall ARPU, which Sun Direct is stating that it\u2019s got no impact because we are all governed by the regulatory framework. So we just cannot randomly increase price. So, Sun Direct is saying, as per the MRP which Sun TV is eligible to charge.<\/p>\n

Arun Prasath<\/strong> \u2014 Spark Capital \u2014 Analyst<\/em><\/p>\n

Right. So, as a follow-up to that, is there any low-hanging fruit still left in the distribution side? And it can keep \u2014 you said there is a \u2014 20% is the possible growth in the subscription, but what is the driver for that? You said, of course ARPU is, as you said, driven mostly by regulatory constraints. But from where this 20% is about to come or what is going to drive this, sir? If you can throw some light on it, it will be helpful?<\/p>\n

R. Mahesh Kumar<\/strong> \u2014 Managing Director<\/em><\/p>\n

I think the growth primarily is driven by the growth of the overall conversion from analog to digital in Tamil Nadu market. We have been, I think, talking for quite some time. And like what SL side, I think we have seen some very decent growth in the DTH numbers in the south. So, I think these are the two drivers in our view.<\/p>\n

Arun Prasath<\/strong> \u2014 Spark Capital \u2014 Analyst<\/em><\/p>\n

Okay. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. That was the last question. I would now like to hand the conference over to the management for closing comments.<\/p>\n

S.L. Narayanan<\/strong> \u2014 Group Chief Financial Officer<\/em><\/p>\n

Okay. Thanks to everybody for dialing in. We remain committed to enhancing shareholder value and we count on your support. Thank you.<\/p>\n

R. Mahesh Kumar<\/strong> \u2014 Managing Director<\/em><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

[Operator Closing Remarks]<\/p>\n","protected":false},"excerpt":{"rendered":"

Sun TV Network Limited (SUNTV) Q4 2021 earnings concall dated Jun. 11, 2021 Corporate Participants: S.L. Narayanan \u2014 Group Chief Financial Officer V.C. Unnikrishnan \u2014 Chief Financial Officer R. Mahesh Kumar \u2014 Managing Director Analysts: Ankur Periwal \u2014 Axis Capital Limited \u2014 Analyst Jiten Doshi \u2014 Enam Asset Management \u2014 Analyst Neeraj Save \u2014 Sun Life Financial Services, LLP \u2014 Analyst Venkatesh Subramanian \u2014 LogicTree \u2014 Analyst Mohit Kumra \u2014 Kumra […]<\/p>\n","protected":false},"author":8,"featured_media":49402,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6349,5749],"tags":[8219,6407,6406],"class_list":["post-123578","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-transcripts","category-entertainment-stocks","tag-leisure-entertainment","tag-most-read","tag-most-viewed-transcripts"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/EarningsTranscript.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":125427,"url":"https:\/\/alphastreet.com\/india\/sun-tv-network-limited-suntv-q2-2022-earnings-call-transcript\/","url_meta":{"origin":123578,"position":0},"title":"Sun TV Network Limited (SUNTV) Q2 2022 Earnings Call Transcript","author":"Staff Correspondent","date":"November 10, 2021","format":false,"excerpt":"Sun TV Network Limited (NSE: SUNTV) Q2 2022 earnings call dated Nov. 08, 2021 Corporate Participants: S.L. Narayanan -- Group Chief Financial Officer V.C. Unnikrishnan\u00a0--\u00a0Chief Financial Officer R. 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