Mumbai: Sambhaav Media Limited (SML) unveiled its Q2 FY25 financial results, revealing a mixed bag of growth and challenges. For the quarter ending 30 September 2024, the company recorded a standalone revenue of Rs 965.78 lakhs, marking a marginal increase of three per cent from Rs 940.78 lakhs in Q2 FY24. Consolidated revenue also rose to Rs 1,068.02 lakhs, showcasing a five per cent uptick from the prior year.

However, profitability took a hit. Standalone net profit slumped to Rs 26.20 lakhs, a stark decline from Rs 35.25 lakhs in the same period last year. The consolidated loss widened, with the bottom line falling into the red at Rs -20.27 lakhs compared to a profit of Rs 14.75 lakhs in Q2 FY24.

The media and allied business contributed Rs 776.81 lakhs to total revenue, supported by a seven per cent increase in advertising contracts. Technology and allied services added Rs 188.97 lakhs, displaying resilience despite global headwinds. The combined revenue from operations for the half-year stood at Rs 1,752.51 lakhs, up 6 per cent year-over-year, signalling stable demand for the company’s offerings.

Total expenses for the quarter escalated by eight per cent, reaching Rs 979.77 lakhs on a standalone basis. Employee benefits saw a notable increase, rising by 12 per cent to Rs 88.23 lakhs, reflecting investments in talent retention. Broadcasting expenses grew by 9 per cent, primarily driven by higher content acquisition costs.

Depreciation expenses rose slightly, while finance costs declined by four per cent, suggesting effective debt management. Despite these efforts, the operating profit margin narrowed significantly due to increased provisions for taxation and other operating expenses.

SML faced higher tax provisions during Q2, which included deferred tax adjustments amounting to Rs 12.59 lakhs. Additionally, an exceptional loss of Rs 6.00 lakhs from discontinued operations impacted the consolidated bottom line. This stemmed from the strategic exit from GSRTC's public entertainment contract, finalised last year, to optimise operational focus.

The company continues to invest in technological innovation and content diversity, which are crucial for long-term growth. While profitability remains a concern, management expressed confidence in navigating these challenges through strategic cost management and revenue diversification.

Key priorities for the coming quarters include addressing tax liabilities and optimising operational efficiency. As of 30 September 2024, the company’s consolidated net worth stood at Rs 8,553.14 lakhs, indicating a solid financial foundation to weather temporary setbacks.