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NXTDIGITAL ENDS FY22 ON A PROFITABLE NOTE; POSTS GROWTH IN REVENUE AND EBIDTA
§ Consolidated revenue and EBIDTA for fiscal 2022 grows by 14.3% and 10.4% respectively. Company posts positive PAT of Rs 1.91 crores against a loss of Rs (13.90) crores in the previous fiscal.
§ Revenue and EBIDTA includes contribution from the “Real Estate” segment.
§ The Media & Entertainment segment recorded an EBIDTA of Rs 56.53 crores for the Q4 of the fiscal against Rs 52.92 crores in the immediately preceding quarter.
§ Company’s broadband subsidiary crosses the 1 million customer mark – propelling it into the top 4 private Internet Service Providers in India. Adds 200,000+ customers in Q4.
§ Digital television business maintains its growth, bucking the industry-wide trend during the pandemic year; riding on the roll-out of its award-winning NXTHUBs launched across India.
§ NXTDIGITAL successfully rolls out its new digital product – offering up to 650 TV services + broadband, with speeds up to 1,000Mbps + up to 300,000 hours of OTT content from leading international and regional platforms.
§ Board of Directors recommend a 40% dividend of Rs 4 per equity share of face value of Rs 10 each, acknowledging the unstinting support of the shareholders through a challenging year.
NXTDIGITAL Ltd., the media vertical of the global Hinduja Group announced its results for FY22 at its Board meeting today. The company is India’s premier integrated digital platforms company, with a presence in digital television over cable, satellite (through India’s only Headend-In-The-Sky or HITS service), broadband, content syndication and teleshopping.
On a consolidated basis, the company recorded a revenue of Rs 1,152.19 crores for the year ending March 31, 2022, as against a revenue of Rs 1,008.45 crores for the previous year, registering a growth of 14.3%. For the same period, on a consolidated basis, the company clocked Earnings before Interest, Depreciation, and Taxes (EBIDTA) of Rs 256.22 crores as against Rs 232.08 crores for the previous year registering a growth of 10.4%. The Revenue and EBIDTA for the year include Rs 69.30 crores and Rs 43.88 crores respectively arising out of the “Real Estate” segment of the Company.
The consolidated Profit After Tax (PAT) for the year ending March 31, 2022, is Rs 1.91 crores as against a loss of Rs (13.90) crores in the previous year.
During the quarter ended March 31, 2022, the Company posted a consolidated revenue of Rs 344.55 crores as against 277.97 crores in the corresponding quarter of the previous year and Rs 264.21 crores in the immediately preceding quarter. The Company clocked an EBIDTA of Rs 100.41 crores for the quarter as against Rs 67.54 crores in the corresponding quarter of the previous year and Rs 52.92 crores in the immediately preceding quarter. The Revenue and EBIDTA for the quarter include Rs 69.30 crores and Rs 43.88 crores respectively arising out of the “Real Estate” segment of the Company.
The Media & Entertainment segment recorded an EBIDTA of Rs 56.53 crores for the quarter against Rs 52.92 crores in the immediately preceding quarter.
The Consolidated PAT for the quarter ending March 31, 2022 stood at Rs 84.46 crores as against Rs 13.92 crores in the corresponding quarter of the previous year and loss of Rs (26.57) crores in the immediately preceding quarter. The PAT for the quarter is inclusive of the profit from the “Real Estate” segment of the Company.
Dividend
Acknowledging the unstinted support of the shareholders, the Board of Directors of the Company at their meeting held on 18th May 2022, have recommended a 40% dividend i.e. a dividend of Rs 4 per equity share of face value of Rs 10 each, subject to shareholder’s approval.
Growth Drivers in FY22
NXTDIGITAL has continued to remain focused on its mission of a complete digital transformation, which has been accelerated over the last fiscal across all its divisions. Some of the initiatives that have contributed to the growth and the emergence of NXTDIGITAL as a significant player in the media and communications industry in India include:
§ Focus on driving broadband penetration not only organically across the existing footprint but also through a unique strategic alliance partner model that has helped the company scale the 1 million customer mark.
§ Achieving a first by launching its “combo” product to address changing consumer preferences, a solution that offers up to 650 TV services + broadband, with speeds up to 1,000Mbps + up to 300,000 hours of OTT content from leading international and reginal platforms.
§ Expanding its national footprint through its award winning and future-ready NXTHUBs – each with the capability to offer digital TV, broadband, OTT and other emerging services. This has helped the company maintain its growth in digital video subscribers.
Says Vynsley Fernandes, Manging Director and CEO at NXTDIGITAL “We have remained singularly focused on the changing consumer preferences, in no small measure impacted by the lockdown periods; and have accelerated our digital transformation in line with the same. Our performance across all segments of our business reflect that mission. Offering a “combo” of digital television, broadband and OTT is now our norm, rather than the exception; whilst we will continue to expand our footprint through the launch of more NXTHUBs”.
Update on the Demerger of Digital, Media & Communications Business Undertaking of the Company into Hinduja Global Solutions Limited
The Board of Directors of the Company, at their meeting held on February 17, 2022, had, inter-alia, accorded approval to the Demerger of Digital, Media & Communications Business Undertaking along with the investments in its subsidiaries of the Company vide a Draft Scheme of Arrangement between NXTDIGITAL Limited (the "Demerged Company” or “NDL") and Hinduja Global Solutions Limited (the "Resulting Company” or “HGS”) and their respective shareholders. The said Scheme/Demerger is subject to necessary approvals of statutory/regulatory authorities and approval of shareholders. The Company has made application to the BSE Limited (BSE) and National Stock Exchange of India Limited (NSE) on February 25, 2022 and February 26, 2022 respectively for seeking their No Objection on the Scheme of Arrangement under Regulation 37 of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 for proposed Scheme of Arrangement. The clearance is awaited.
Update on the merger of Hinduja Leyland Finance Limited with the Company
The Board of Directors of the Company, at their meeting held on March 16, 2022, had, inter-alia, accorded in-principle approval on the Scheme of Arrangement i.e. Merger of Hinduja Leyland Finance Limited with the Company. The said Scheme/Merger is subject to necessary approvals of statutory/regulatory authorities and approval of shareholders. The necessary process on this is on.