ZEE posts Q4 net profit at Rs191.83 crore

Zee Entertainment Enterprises consolidated net profit stood at Rs191.83 crore for the fourth quarter ended 31 March 2011

Media company Zee Entertainment Enterprises (ZEEL) today said its consolidated net profit stood at Rs191.83 crore for the fourth quarter ended 31 March 2011.

The numbers include the consolidating financial data of Taj TV, the firm said in a filing to the Bombay Stock Exchange.

Post the merger of ETC Networks with ZEEL, the entire education business undertaking of ZEEL was demerged into a new listed company, Zee Learn, and hence the numbers are not comparable, the filing said.

It had a consolidated net profit of Rs128.8 crore during the same period last fiscal.

Consolidated revenue stood at Rs797.97 crore for the quarter under review compared to Rs649.29 crore in the corresponding period previous year.
For the year ended 31 March 2011, consolidated net profit stood at Rs623.69 crore, compared to Rs616 crore in the previous fiscal, the filing said.
The consolidated revenue stood at Rs3,011.41 crore (Rs2,199.78 crore).

"In a year which recorded a resurgence of advertising revenues on television, we have yet again outperformed the industry," the ZEEL managing director and chief executive officer, Punit Goenka said in the filing.

"We ended FY11 on a good note, gaining viewership share across several genres, combined with improved revenue share, better operating margin and increased cash flow," he added.

Advertising revenues of the company stood at Rs479.7 crore, while subscription revenues were Rs310.7 crore for the quarter ended 31 March 2011, the filing said.

Subscription revenue from the domestic DTH stood at Rs98.4 crore during the quarter, an increase of 44.1%, it said.

"With our subscription revenues growing at a healthy pace, our overall revenues have recorded a 23% growth over the fourth quarter of last year. For FY11, our revenues grew 37%, despite increased losses in the sports business," Mr Goenka said.

During the fourth quarter, the company's sports business stood at Rs142.4 crore, while the operating losses were Rs15.2 crore.

Meanwhile, the company shareholders have approved the buyback of equity shares through open market operations, at a price of not more than Rs126 per share.

On Tuesday, ZEE ended 8.34% up at Rs135.05 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.16% to 19,121.83.


ONGC’s mockery of investor services; it has not compensated investors yet for delay in 2004 share issue

The largest government company had promised redressal of complaints from investors, during the sale of 10% equity seven years ago. It also said it would pay interest if investors did not receive refund orders within 15 days of the issue closing. But the company has not done so, and it is now on the verge of a follow-on issue

The largest public sector company by market capitalisation in our country is Oil & Natural Gas Corporation (ONGC). It is also the highest profit-making corporate in our country with international operations. It is one of the four publish sector units that have been awarded the "Maharatna" status by the government of India.

In March 2004, the company came out with an offer for sale of 10% of its equity to the Indian public, amounting to over Rs10,500 crore, which was a huge success. It received unprecedented response from retail investors and the issue was oversubscribed several times-a record at the time. This resulted in the company and its registrars not being able to make the allotment of shares and issue of refund orders within the time stipulated in the offer document. This gave rise to a large number of complaints from investors.

The offer document contained this undertaking by the selling shareholder and the company: "…that the complaints received in respect of this offer shall be attended to by the selling shareholder expeditiously and satisfactorily. The selling shareholder has authorised the Company Secretary and Compliance Officer and the Registrar to the offer, to redress all complaints, if any, of the investors participating in this offer."

The offer document further stated that the selling shareholder shall pay interest at the rate of 15% per annum on the excess bid amount received, if refund orders were not despatched within 15 working days from the bid/offer closing date. But when investors demanded interest for the period of delay, the company was in a strange predicament, because, the funds realised from the offer for sale had been credited to the Consolidated Fund of India, as it was due to the Central government. The company did not receive any amount from this issue. Due to this unexpected situation, the company appears to have not been able to sort out this matter for the last seven years.

According to Stock Exchange requirements, all listed companies are required (under clause 41 of the listing agreement) to disclose every quarter-when publishing the quarterly results-the number of investor complaints pending at the beginning of the quarter, the complaints received and disposed off during the period,  and the complaints that remain unresolved  at the end of the quarter. In compliance with this requirement, the company has been meticulously mentioning these details only in respect of normal investor complaints with regard to transfer of shares, dividend payments, etc. However, during the last 28 quarters, the company has been honest enough to make the following statement after these mandatory details about the complaints outstanding at the end of quarter.

The notes read: " These exclude investors' complaints regarding the offer for sale up to 10% of equity shares of the Company made by the Government of India in March 2004, which are being attended to by the Registrars to the issue appointed by the Government of India."  The moot question is, if the company has not been able to resolve the complaints for the last seven years, how can an investor expect to get his/her complaint resolved at any time in the future?

ONGC has now announced that it will be coming out with a follow-on public offer (FPO) of shares  shortly. Will the Securities and Exchange Board of India (SEBI) allow the company to come out with the FPO without fully resolving the outstanding investor complaints pending for such a long time? SEBI should ensure that all the pending complaints are resolved, before allowing the company to divest stake.

SEBI should also ensure that the company and the registrars suo moto identify all those cases where refund orders have been sent after a delay and all those investors should be properly compensated with interest not only for the delayed period, but be paid compound interest. (Interest on interest should be paid to serve as a deterrent against repetition of such instances in future.) Those responsible for this state of affairs should be pulled up, and the aggrieved investors should be compensated on the lines of the disgorgement by SEBI in the IPO scam, recently.

Can we expect SEBI to act swiftly to protect not only the interest of the investors, but also the dignity and honour of the highest office in the country, in whose name the public issue of shares was made?

(The author is former managing director and CEO of a mutual fund. He writes for Moneylife under the pen name 'Gurpur'.)



nagesh kini

6 years ago

A classic case of corporate mis-governance, which is routinely practiced by the private sector.
A Navratna PSU, with a reputation, to guard simply cannot get away by passing on the buck to the Registrars nor does any disclosure serve the purpose. The SEBI must necessarily pull up ONGC and ensure that they pay the interest.

Aditya Birla Group acquires Domsjö Fabriker, Swedish speciality pulp manufacturer

Aditya Birla Group has acquired Domsjö Fabriker, a leading Swedish speciality pulp and bio-refinery company, through its global companies Thai Rayon Public Company (Thailand) and Indo Bharat Rayon (Indonesia), for $340 million from a Swedish consortium

Aditya Birla Group has announced the acquisition of Domsjö Fabriker, a leading Swedish speciality pulp and bio-refinery company, through its global companies Thai Rayon Public Company Ltd (Thailand) and Indo Bharat Rayon (Indonesia), for a sum of $340 million from a Swedish consortium.

KK Maheshwari, business head, pulp & fibre, Aditya Birla Group, said, "This acquisition is in line with our strategy of having a substantive part of our speciality pulp for our consumption through our captive source. With Domsjö Fabriker, we are closer to this goal."  

"As a large quality manufacturer of speciality pulp, Domsjö's has a synergistic fit with us. There is a great opportunity to further grow the company. Domsjö has an extensive investment programme for capacity expansion from its current 210,000 tons to 255,000 tons per annum by 2012. We are fully committed to Domsjö's growth.  Going forward, our intent is to expand the innovation and research and development efforts at Domsjö as part of our global R&D efforts, added Mr Maheshwari.

Speciality pulp produced by Domsjö, finds primary use in the textile segment (viscose staple fibre and viscose filament yarn). Around 25% of the production is used in premium applications, such as binding agents for medical products, particularly pharmaceutical tablets and in casings (wraps) for the food industry.


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