Mumbai: Raj Television Network Limited, a longstanding player in the regional media landscape, reported its unaudited financial results for Q2 FY2025. The results reveal a downward trend in profitability and rising operational expenses, challenging the company’s financial stability. Despite a 53 per cent revenue boost to Rs 359.3 million from Rs 234.5 million in the prior year, this increase did not translate into profitability. The high costs, notably a 77 per cent surge in cost of revenue to Rs 293 million, outpaced revenue growth, resulting in a net loss of Rs 168 million for the quarter, a stark contrast to a modest profit of Rs 217,000 in Q2 FY2024.
Operating expenses surged by 35 per cent year-over-year, driven by escalating costs in core functions. Employee benefits decreased marginally by 6 per cent, reflecting cost-control efforts, yet operational expenses remained high. Finance costs increased by over 60 per cent, reaching Rs 10.3 million, which, combined with increased borrowing, amplified the financial strain.
Balance sheet liabilities reflect rising pressures; current liabilities rose by nearly 39 per cent, with trade payables ballooning from Rs 60.5 million to Rs 145.4 million, signalling cash flow challenges. Current assets, meanwhile, were relatively static, highlighting potential liquidity constraints. Cash and cash equivalents diminished significantly to Rs 3.3 million, a steep decline from Rs 26.7 million at the beginning of the fiscal year.
Raj Television’s pivot to higher revenue has yet to offset its expenditure growth, underscoring the need for strategic intervention to address profitability and cash flow. Going forward, Raj TV faces a critical need for fiscal recalibration to stabilise and reduce rising debt.
Financial highlights for Raj Television Network’s Q2 FY2025 performance:
1. Revenue Growth: Revenue rose by 53 per cent to Rs 359.3 million, up from Rs 234.5 million in Q2 FY2024.
2. Net Profit : The company reported a net loss of Rs 168 million, compared to a modest profit of Rs 217,000 in the same quarter last year.
3. Operational Expenses : Total expenses surged by 35 per cent year-over-year
4. Cost of Revenue : Cost of revenue rose sharply by 77 per cent, reaching Rs 293 million.
5. Employee Benefits : Employee costs decreased by 6 per cent year-over-year.
6. Finance Costs: Finance expenses increased over 60 per cent, totaling Rs 10.3 million, exacerbated by increased borrowing.
7. Trade Payables: Current liabilities, including trade payables, jumped 39 per cent, rising from Rs 60.5 million to Rs 145.4 million.
8. Cash Flow: Cash and cash equivalents dropped significantly to Rs 3.3 million, down from Rs 26.7 million at the fiscal year's start.
