JAGRAN PRAKASHAN LIMITED ANNUAL REPORT 2017-18 Leading RESPONSIBLY. Growing SUSTAINABLY. Contents CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS 02 Strong Fundamentals 26 Business Responsibility Report STANDALONE 04 About Us 35 Directors’ Report 99 Independent Auditor’s Report 06 Key Performance Indicators 62 Report on Corporate 104 Balance Sheet 08 CMD's Communiqué Governance 105 Statement of Profit and Loss Leading Responsibly Through 87 Management Discussion 106 Cash Flow Statement and Analysis 10 Industry Leadership 108 Statement of Changes in Equity 12 Community Initiatives 98 Dividend Distribution Policy 110 Notes 14 Marketing Initiatives 16 Business Division Review 23 Awards and Recognition CONSOLIDATED 24 Corporate Information 171 Independent Auditor’s Report 176 Balance Sheet 177 Statement of Profit and Loss 178 Cash Flow Statement 180 Statement of Changes in Equity 182 Notes 256 Statement of Subsidiaries and Associates HIGHLIGHTS OF BRAND FY 2017-18 UNIVERSE ` 2,304 Crore OPERATING INCOME ` 583 Crore OPERATING PROFIT ` 1,697 Crore ADVERTISING REVENUE STOCK TICKERS ` 433 Crore 532705 JAGRAN CIRCULATION REVENUE BSE CODE NSE CODE Our outreach During FY 2017-18, our flagship brand, Dainik Jagran, across print, radio, topped the Indian Readership digital and other Survey with a total readership platforms is touching of 7 Crore. millions of people. Our Hindi daily, Naidunia, also enhanced its pan-India Despite challenges prominence, emerging among in the operating India’s Top 10 Hindi newspapers. Even in the digital and radio environment, we are space, we achieved significant building momentum scale through enhanced reach. and leveraging We are poised for the next level of growth and leadership. And with opportunities to the continued trust and support consolidate our of our stakeholders, we believe we will yet again achieve all that we existing strong have set out to do. position. At Jagran Prakashan Limited (Jagran), leadership goes hand in hand with responsibility. Our commitment is to continue building our business with vision and strategic clarity to lead responsibly and grow sustainably. CORPORATE OVERVIEW 2 STRONG FUNDAMENTALS Confident strides towards new frontiers 75+ years OF INSPIRING LEADERSHIP 10 PUBLICATIONS 400+ EDITIONS/SUB-EDITIONS OF PRINT PUBLICATIONS 8.4+*Cr READER BASE OF PRINT PUBLICATIONS Dainik Jagran INDIA’S LARGEST* DAILY IN TERMS OF READERSHIP No. 1* PRINT DAILY - DAINIK JAGRAN (HINDI) AND INQUILAB (URDU) JAGRAN PRAKASHAN LIMITED ANNUAL REPORT 2017-18 3 13 STATES PRINT PRESENCE 9 LANGUAGE OPERATIONS ACROSS PRINT AND RADIO 39^ RADIO STATIONS ACROSS 12 STATES AA+ STABLE CRISIL CREDIT RATINGS FOR LONG AND MEDIUM TERM A1+ FOR SHORT TERM No. 1 PORTAL IN OVERALL HINDI NEWS / INFORMATION CATEGORY AND EDUCATION 10 DIGITAL MEDIA PORTALS *IRS 2017 | ^Excluding the recent acquisition of radio station in Kolkata; subject to MIB approval CORPORATE OVERVIEW 4 ABOUT US Building on a legacy of leadership Founded in 1942, the Group’s flagship brand, Dainik Jagran, is the outcome of the VISION foresight and determination of our founder, Just like the morning sun that Late Shri Puran Chandra Gupta. With our dispels darkness and brings deep and wide national footprint and rich warmth to the world, the heritage, we have emerged among India’s vision of Jagran is to transform trusted media brands. lives through enlightening and enriching experiences. We are among India’s largest media conglomerates in India. Our portfolio spans printing and publication of newspapers and magazines, radio, digital, outdoor advertising and promotional marketing/ event management/on-ground activation businesses. FIVE BUSINESS VERTICALS Print Digital Radio Our print publication is We are leading across diverse Our radio business our flagship business with genres of Hindi news and (Radio City) is India’s first and 10 newspapers and magazine education. We are one of India’s leading FM brand. It has been from 38 different printing top digital media platforms in synonymous with the category facilities across 13 states in the country. since its inception in 2001. 5 different languages. Out-Of-Home (OOH) Activation We provide a comprehensive We offer bespoke Below-the-line portfolio of out-of-home (BTL) marketing solutions or marketing solutions to suit experiential marketing solutions customised client requirements. with an integrated approach. JAGRAN PRAKASHAN LIMITED ANNUAL REPORT 2017-18 5 Growing our pan-India prominence Print 1 Jammu & Kashmir 7 Uttar Pradesh 2 Himachal Pradesh 8 Bihar 3 Punjab 9 Jharkhand 1 4 Uttarakhand 10 West Bengal 5 Haryana 11 Madhya Pradesh 6 Delhi 12 Chhatttisgarh 2 13 Mumbai 23 3 24 4 5 8 7 6 3 36 29 7 35 25 34 38 27 39 2 8 28 37 26 9 11 4 9 10 10 6 5 16 12 21 13 12 13 15 14 17 18 19 30 20 22 1 11 31 32 33 Radio 1 Vizag 2 Patna 3 Delhi 4 Ahmedabad 16 Nagpur 28 Kota 5 Surat 17 Nanded Waghala 29 Bikaner 6 Vadodara 18 Pune 30 Hyderabad 7 Hissar 19 Solapur 31 Chennai 8 Karnal 20 Sangli 32 Coimbatore 9 Ranchi 21 Nashik 33 Madurai 10 Jamshedpur 22 Kolhapur 34 Lucknow 11 Bengaluru 23 Jalandhar 35 Agra 12 Jalgaon 24 Patiala 36 Bareilly 13 Akola 25 Jaipur 37 Varanasi 14 Ahmednagar 26 Udaipur 38 Gorakhpur 15 Mumbai 27 Ajmer 39 Kanpur Map not to scale CORPORATE OVERVIEW 6 KEY PERFORMANCE INDICATORS Performing sustainably We reported sustainable performance despite cascading effects of demonetisation and GST implementation. However, in medium to long term, we understand that these measures are expected to formalise the economy and help the industry as well. Operating income (` Crore) Advertising revenue (` Crore) 2,283.0 2,304.0 1,686.6 1,697.2 2,079.2 1,533.8 1,702.7 1,769.8 1,247.1 1,186.1 13-14 14-15 15-16 16-17 17-18 13-14 14-15 15-16 16-17 17-18 8.6% 5-year CAGR 10.0% 5-year CAGR Circulation revenue (` Crore) Operating profit (` Crore) 432.5 432.6 639.6 408.5 390.1 590.5 583.1 358.7 450.6 382.6 13-14 14-15 15-16 16-17 17-18 13-14 14-15 15-16 16-17 17-18 6.5% 5-year CAGR 14.6% 5-year CAGR Profit after tax* (` Crore) Market capitalisation (` Crore) 6,276.7 350.8 349.3 5,382.8 308.0 310.9 5,240.4 4,209.0 226.6 3,368.8 13-14 14-15 15-16 16-17 17-18 13-14 14-15 15-16 16-17 17-18 4.0% 5-year CAGR 11.8% 5-year CAGR *After extraordinary items of `116.30 Crore in FY 2015-16 and `80.31 Crore in FY 2014-15 JAGRAN PRAKASHAN LIMITED ANNUAL REPORT 2017-18 7 Shareholder return (` Crore) ` (Dividend paid + Buyback) 1,124 Crore 404.9 DISTRIBUTED IN THE FORM OF DIVIDEND AND SHARE 302.3 BUYBACK OVER THE LAST FIVE YEARS 164.0 114.7 137.8 13-14 14-15 15-16 16-17 17-18 Note: Dividend paid is as per cash flow statement, buyback included in the year of announcement. Buyback over the last five years FY 2013-14 FY 2016-17 FY 2017-18 Buyback of 50 Lakh equity Buyback of 1.55 Crore equity Buyback of 1.50 Crore equity shares at a price of `95 per shares at a price of `195 per shares at a price of `195 per equity share, amouting to equity share, amouting to equity share, amouting to `47.5 Crore. Completed in `302.25 Crore. Completed in `292.50 Crore. Completed in January 2014. April 2017. July 2018. Revenue break-up of FY 2017-18 (%) ~20% REVENUE CONTRIBUTION OF NEW BUSINESSES (RADIO, DIGITAL, EVENTS AND 65 Dainik Jagran OUTDOOR) 15 Other print 13 Radio 06 Event and outdoor 01 Digital CORPORATE OVERVIEW 8 CMD'S COMMUNIQUÉ Delivering sustained excellence At Jagran, we consider ourselves as a potent vehicle of infotainment, insight and empowerment for all sections of society. We see our leadership through the prism of responsibility and delivery of sustained excellence. DEAR SHAREHOLDERS, Dainik Jagran, enjoys a total digital) performed remarkably The India growth story continues readership of 7 Crore, outshining well and registered industry-best to progress and evolve, thanks other industry peers. Over the growth rates in their respective to certain key reforms aimed at years, we have emerged as a segments. However, our print formalising the economy and dominant player in the media business underperformed in terms attaining its sustainability. and entertainment industry. of revenue and profit for reasons I agree that the past two years have IRS helps us understand consumer beyond our control. been difficult times and witnessed demographics with high level of lower growth; but for the sake of authenticity and accuracy to align Over the years, we have the long-term, short-term pains future strategies accordingly. transformed ourselves from a have to be borne. At Jagran, we print-focussed enterprise to a consider ourselves as a potent PERFORMANCE REVIEW multimedia conglomerate. We have vehicle of infotainment, insight The operating performance across strategically deployed capital in and empowerment for all sections all businesses was satisfactory high-growth and underpenetrated of society. We see our leadership in the prevailing business businesses (radio and digital) to through the prism of responsibility environment. FY 2017-18 further achieve the next phase of growth. and delivery of sustained reinforced the market position We have started seeing the fruits excellence. of Dainik Jagran, which augurs of our long-term value investments well for our future; and will help during the year under review. According to the Indian Readership us capitalise on the significant Survey (IRS) 2017, we have potential when the economy During FY 2017-18, our revenues sustained our undisputed gathers momentum.