On standalone i.e. the news business, NDTV reported 8% dip in sales at Rs 81.84 crore with loss at operating level at Rs 6.7 crore against profit of Rs 17.68 crore in the corresponding quarter previous year. The loss at net level was at Rs 17.48 crore against profit of Rs 7.06 crore in the corresponding quarter previous year.

The Board of Directors at their meeting held on October 1, 2008 had approved the Scheme of Arrangement ('the Scheme') for de-merger of the News businesses of the Company. Accordingly, the Company will be split into two groups of companies: one group of companies will carry out 'News and other businesses' and the other group of companies will carry out 'Entertainment and specified allied businesses'. This de-merger will be carried out pursuant to Section 391 to 394 read with sections 78, 100 to 103 of the Companies Act, 1956. After the de-merger, for every one share currently held in the Company, a shareholder will hold one share in the holding company whose subsidiaries will carry out the 'News and other businesses' and one share in the holding company whose subsidiaries will carry out the 'Entertainment and specified allied businesses'. The Appointed Date for the Scheme has been specified as April 1, 2009. The Scheme is subject to the approval of the High Court Of Delhi and other requisite approvals. During the quarter, the Company has received confirmations of "No Objection" from the Stock Exchanges on the Scheme. The Company is in process of filing the Scheme with the High Court of Delhi.

During the quarter and nine months ended December 31, 2008, the Company has allotted 58,560 shares and 131,625 shares respectively pursuant to the exercise of stock option by certain employees under the ESOP scheme. Further the Company has granted 3750 options during the quarter ended December 31,2008.

For the quarter ended December 2008, NDTV reported 27% growth in operating income at Rs 129.35 crore. The loss at operating level increased 584% at Rs 101.37 crore against Rs 14.83 crore in the corresponding quarter previous year on the back of increased production expenses and marketing expenses on account of new channels launched. As a % of sales, production expenses was 59.1% up from 23.7% in corresponding quarter previous year, staff costs was up 300bps at 45.1%, marketing & promotions expenses was up at 44.8% against 23.8% in corresponding quarter previous year and other expenditure increased 450bps at 29.4% whereas.

The other income decreased 73% at Rs 1.73 crore, interest cost increased 73% at Rs 15.05 crore and depreciation charge increased 32% at Rs 8.12 crore, resulting at loss on PBT level at Rs 122.81 crore against loss of Rs 23.22 crore in the corresponding quarter previous year. Tax provision including current tax, deferred tax & FBT decreased 58% at Rs 2.53 crore. Loss at PAT level was up 329% at Rs 125.34 crore. The share of profit of Associates was Rs 3.46 crore against loss of Rs 2.06 crore and minority interest stood at Rs 1.08 crore. This resultant net loss stood at Rs 120.80 crore up 277%.

For the nine months ended December 2008, NDTV reported 51% growth in operating income at Rs 369.03 crore. There was loss at operating level at Rs 309.50 crore against loss of Rs 44.76 crore in the corresponding period previous year on the back of costs of new channels. As a % of sales, production expenses increased to 58.7% up from 23.6% in the corresponding period previous year, staff costs was down 320bps at 46.8%, marketing & promotions expenses was up at 46.9% from 21.1% in corresponding period previous year and other expenditure was up at 31.5% against 23.6% in corresponding period previous year.

The other income decreased 14% at Rs 13.59 crore. The interest cost increased 130% at Rs 38.16 crore and depreciation charge increased 39% at Rs 22.65 crore, resulting at loss on PBT before EO level at Rs 356.72 crore up 477%. EO for the period was on account of profit on stake sale in subsidiary for Rs 642.53 crore. PBT after EO was Rs 285.81 crore against loss of Rs 61.87 crore in the corresponding period previous year. Tax provision including current tax, deferred tax & FBT was down 15% at Rs 5.41 crore. PAT was Rs 280.40 crore against loss of Rs 68.21 crore in the corresponding period previous year. The share of profit of Associates was Rs 3.46 crore and minority interest stood at Rs 2.83 crore. This resultant net profit stood at Rs 286.47 crore against loss of Rs 286.69 crore in the corresponding period previous year. Reported Net Profit on write off of prior period tax of Rs 22 lakh stood at Rs 286.47 crore against loss of Rs 72.04 crore in corresponding period previous year.

Shareholding Pattern

As at December 31, 2008, total foreign investors hold 23.79% (23.75% at end of sequential quarter), Promoters hold 63.17% (63.23% at end of sequential quarter), MFs/FIs & Banks hold 5.24% (5.61% at end of sequential quarter), and others hold 7.81% (7.4% at end of sequential quarter).

Valuation

The company's shares are trading on the bourses at Rs 82.65.