U.S. Markets open in 1 hr 53 mins

Edited Transcript of DBCORP.NSE earnings conference call or presentation 17-Oct-19 6:00am GMT

Q2 2020 DB Corp Ltd Earnings Call

Bhopal Oct 22, 2019 (Thomson StreetEvents) -- Edited Transcript of DB Corp Ltd earnings conference call or presentation Thursday, October 17, 2019 at 6:00:00am GMT

TEXT version of Transcript

================================================================================

Corporate Participants

================================================================================

* Pawan Agarwal

D. B. Corp Limited - Deputy MD & Executive Non-Independent Director

================================================================================

Conference Call Participants

================================================================================

* Abneesh Roy

Edelweiss Securities Ltd., Research Division - SVP

* Anuj Sehgal;Manas Capital;Founder and Portfolio Manager

* Ayaz Motiwala;Nivalis Partners Ltd.;Senior Fund Manager

* Gaurav Agrawal;Bowhead Investment Advisors Pvt. Ltd.;Analyst

* Keyur Shah;Emkay Global Financial Services Ltd.;Executive

* Sarvesh Gupta

Maximal Capital - Founder

* Saurabh Shroff;QRC Investment Advisors LLP;Partner

* Vaibhav Badjatya

Honesty and Integrity Investment - Founder

* Vikram Ramalingam

Maybank Kim Eng Holdings Limited, Research Division - Research Analyst

* Yogesh Kirve

Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst

* Hina Agarwal;Strategic Growth Advisors

================================================================================

Presentation

--------------------------------------------------------------------------------

Operator [1]

--------------------------------------------------------------------------------

Ladies and gentlemen, good day, and welcome to DB Corporation Limited Q2 FY '20 Earnings Conference Call. (Operator Instructions)

I now hand the conference over to Ms. Hina Agarwal. Thank you, and over to you, Ms. Hina.

--------------------------------------------------------------------------------

Hina Agarwal;Strategic Growth Advisors, [2]

--------------------------------------------------------------------------------

Thank you, and good morning to everyone. We welcome you to the H1 and Q2 FY '20 conference call of DB Corp Limited. We have with us today, the senior management team of DB Corp Limited. Mr. Pawan Agarwal, Deputy Managing Director; Mr. Girish Agarwaal, Nonexecutive Director; Mr. Mushtaq Ali, Vice President, Finance and Accounts; Mr. Lalit Jain, CGM Finance and Accounts; and Mr. Prasoon Kumar Pandey, Head Investor and Media Relation will represent DB Corp Limited on the call.

We will be sharing the key operating and financial highlights for the quarter ended 30th September 2019, followed by a question-and-answer session.

Before we begin, I would like to state that some of the statement made in today's discussion may be forward looking in nature and may involve risks and uncertainties. Document relating to the company's financial performance have already been e-mailed to you.

Now I invite Mr. Agarwal to share his outlook on DB Corp's performance for this quarter.

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [3]

--------------------------------------------------------------------------------

Thank you, Hina, and good morning to everyone. Let me begin the call by highlighting the key financial performance for the quarter ended September 2019, followed by key developments in the business and various growth strategies implemented by the company to maintain and strengthen the leadership position across markets.

Beginning with our latest Bihar performance. As per the latest published ABC, January-June 2019 results, Dainik Bhaskar became the formidable #2 player of overall Bihar and the largest market of Patna with over 6 lakhs copies in circulation in the state. There is icing on the cake as Hansa Research has already established and accepted Dainik Bhaskar as #2 newspaper of Bihar in their last leadership report. Moreover, the gap between #1 newspaper and us is mere 16%, which is a formidable achievement in such a short span of time of 8 to 10 months of entire Bihar launch.

Further, Dainik Bhaskar continues to be the largest circulated newspaper of India with leadership position in Madhya Pradesh, Chhattisgarh, Rajasthan, top 6 cities of Gujarat, Haryana, Chandigarh, Punjab, 4 major urban cities, and have maintained close #2 formidable position in other markets.

Coming to our financial performance during Q2 FY '20. The company reported advertising revenues of INR 3,670 million and circulation revenues of INR 1,286 million.

The total consolidated revenues stood at INR 5,336 million. EBITDA for the quarter stood at INR 1,006 million accounting to an EBITDA margin of 19%. The reported PAT stood at INR 756 million with PAT margin of 14%, after considering the ForEx loss of INR 27 million. The PAT is arrived at after-tax provision working with revised tax rate as per newly announced corporate tax rate guidelines.

We are happy to share that along with the success of our ongoing circulation expansion drive, some of the recent initiatives taken in the areas of editorial and product enrichment are also yielding favorable results. Our recent focus on extending our editorial philosophy of being Reader-Centric, that is Kendra Mein Pathak to Knowledge and Ideation approach, which is, Har Zaroori Khabar Mein Hoga Aapke Kaam Ka Knowledge has helped in establishing a deeper connect with our audiences and the recent survey results by credible industry associations like IRS and ABC validate the same. As per latest IRS survey, we maintained our position as the largest newspaper group of urban India, and we are also the highest growing Indian language newspaper groups of India for the second quarter in a row. We have improved our leadership position in Chandigarh, top 4 cities of Punjab, and Haryana and strengthening our lead in Jaipur. In Gujarat, we are now a clear #2 player of top 6 cities of Gujarat.

DBCL radio business continues to maintain leadership position in all significant markets. Radio advertising revenue for the quarter stood at INR 316 million, EBITDA stood at INR 69 million with an EBITDA margin of 22%. PAT stood at INR 50 million with a margin of 16%.

Lastly, on the business environment in India, the market conditions are challenging led by economic slowdown and tapered consumer spending, which has had an impact on the overall industry. However, our prudent, yet aggressive approach, helps us to not only maintain leadership in existing markets, but also increase penetration in newer markets. Additionally, our overall cost control measures, softening of newsprint prices and synergies between business segments has aided in delivering improved results.

My colleagues and I will now be happy to respond to your questions. We look forward to continuing our interactions. And please contact our Investor Relations Department headed by Mr. Prasoon Pandey for any requests and queries.

================================================================================

Questions and Answers

--------------------------------------------------------------------------------

Operator [1]

--------------------------------------------------------------------------------

(Operator Instructions) The first question is from the line of Abneesh Roy from Edel (sic) [Edelweiss.]

--------------------------------------------------------------------------------

Abneesh Roy, Edelweiss Securities Ltd., Research Division - SVP [2]

--------------------------------------------------------------------------------

My first question is 8% dip in the advertising for the print. Do you see state-wise any difference among say Gujarat, MP, Rajasthan, Bihar, Jharkhand? Is there any difference or [everyone] is broadly in that minus 6 to minus 9 kind of number?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [3]

--------------------------------------------------------------------------------

So I would say a couple of states have shown better results, for example, Madhya Pradesh and Bihar, and part of Rajasthan has shown better results, their dip is not that sharp, but other states have shown a slightly higher decline.

But if I can answer your question based on the segment, that will give you more color actually. So for example, if you see the category of government, which contributed last year 20% to our overall revenue in this quarter, that particular category of government has degrown by 18%, from INR 756 million it is down to INR 616 million. So that is one category, which has really taken a beating. And happy to respond that other category like education, there is a single-digit growth.

Our automobile, though we all were worried about automobile, but our decline in automobile is hardly 4%. In our category of lifestyle, we have actually grown by almost 10%. So other categories have shown a much smaller decline compared to government. And I think that's the reason why the impact in most of the state is largely -- is the same because government advertising across India has taken a beating.

--------------------------------------------------------------------------------

Abneesh Roy, Edelweiss Securities Ltd., Research Division - SVP [4]

--------------------------------------------------------------------------------

And this government advertising sharp dip, is it always seen that post-general elections it slows down. And within your states, again, is there any divergence here? Or across the states it's 18% kind of a dip?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [5]

--------------------------------------------------------------------------------

So this large impact is from the national government because national government advertising is much, much lower; state-wise, it's [entirely] still better.

--------------------------------------------------------------------------------

Abneesh Roy, Edelweiss Securities Ltd., Research Division - SVP [6]

--------------------------------------------------------------------------------

And sir, second is actual reported results. They saw 8% ad spend increase. So how has FMCG done for you?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [7]

--------------------------------------------------------------------------------

FMCG for us decline-wise is in a very low single digit.

--------------------------------------------------------------------------------

Abneesh Roy, Edelweiss Securities Ltd., Research Division - SVP [8]

--------------------------------------------------------------------------------

So are you losing share? And print, is it losing share, is that a concern? I know your market share is either expanding or at the same level in most markets, but is print losing, again, share because FMCG, if bellwether is spending 8% higher, industry decline seems a bit difficult to understand?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [9]

--------------------------------------------------------------------------------

Yes, I think that is only happening particularly with FMCG category, but in other categories that may not be the situation actually.

--------------------------------------------------------------------------------

Abneesh Roy, Edelweiss Securities Ltd., Research Division - SVP [10]

--------------------------------------------------------------------------------

And sir, next question is on custom duty, which has increased in the budget. So what's the situation on that? Have you been able to take any measure, which is allowing you to [work on that] and the industry?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [11]

--------------------------------------------------------------------------------

The newspaper industry through our various associations through Indian language newspaper,

INS, et cetera, have taken up the matter with finance ministry and other ministries and they have given us a very positive response. And we are hopeful that we will get some respite very soon.

--------------------------------------------------------------------------------

Abneesh Roy, Edelweiss Securities Ltd., Research Division - SVP [12]

--------------------------------------------------------------------------------

But until now you haven't done any kind of a increase in cover price or cutting down on the newsprint consumption, you haven't done that right?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [13]

--------------------------------------------------------------------------------

So we have taken a small increase in the cover price in Madhya Pradesh edition of around INR 8 per month. So from INR 126 overall monthly cost, we have gone up to INR 134 cost only in Madhya Pradesh. In rest of the market we have not taken any cost increase so far.

--------------------------------------------------------------------------------

Abneesh Roy, Edelweiss Securities Ltd., Research Division - SVP [14]

--------------------------------------------------------------------------------

And sir, the next question is on recovery in advertising. So liquidity, we are seeing signs of improvement. Rainfall, monsoon has been good, yes, floods were there initially. So are you expecting recovery in Q4, or it will be more in FY '21 when recovery will start in advertising for you?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [15]

--------------------------------------------------------------------------------

Our debtors are -- okay, the ratio is same largely. So there is no major change. Sorry, you're talking about the recovery of the advertising market coming in?

--------------------------------------------------------------------------------

Abneesh Roy, Edelweiss Securities Ltd., Research Division - SVP [16]

--------------------------------------------------------------------------------

Yes, yes, advertising growth.

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [17]

--------------------------------------------------------------------------------

Okay. I misunderstood you, how's the recovery of the debtors. So recovery of the market, I would say, we are seeing in certain segments, like the month of October, so far, this is a festival month, so we are doing, okay, but not too great to be very honest. So I think recovery is happening, but overall, I really can't call it a growth model back.

--------------------------------------------------------------------------------

Abneesh Roy, Edelweiss Securities Ltd., Research Division - SVP [18]

--------------------------------------------------------------------------------

No, but Q4 you expect or difficult to predict as of now?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [19]

--------------------------------------------------------------------------------

As of now we are looking at Q3 month-on-month. So let's see how we close the October, and then we look at November and December.

--------------------------------------------------------------------------------

Abneesh Roy, Edelweiss Securities Ltd., Research Division - SVP [20]

--------------------------------------------------------------------------------

And sir, last question, when advertising is dipping 8% and your radio advertising has dipped even more, so if you could discuss that part. But my question is, in terms of circulation, is it the right time to expand in some of your market, you said the expansion of circulation continues. Because we always see print companies cut down on circulation when advertising dip happens or advertising growth doesn't happen. So shouldn't you reverse your strategy? Or are you betting on a recovery in advertising, that's why it doesn't make sense to reverse the circulation expansion?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [21]

--------------------------------------------------------------------------------

So 2 things very clearly, advertising dip, we strongly believe it's a temporary phenomenon, it's going to come back soon. That's one. Second thing, circulation growth. As an organization, we don't believe to stop the circulation growth or wherever we can get the market. Unfortunately, in this quarter, because of huge -- heavy monsoon in our markets, we lost couple -- a few thousand copies because in Madhya Pradesh, there were markets where we were not able to reach for almost weeks, including Bihar, some part of Gujarat and all that. So that copy has totally got disrupted. We are hoping that, that will come back in the month of October-November, we'll be able to resolve those copies. And I believe we should -- see, one is that, we are looking at 10% growth, that is not the number what we are looking at. We are looking at 2%, 3% circulation growth year-on-year, that must continue.

--------------------------------------------------------------------------------

Abneesh Roy, Edelweiss Securities Ltd., Research Division - SVP [22]

--------------------------------------------------------------------------------

And sir, radio 16% dip. What was the reason?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [23]

--------------------------------------------------------------------------------

So radio, the commercial business degrew by about 3%. And the government actually degrew by about 50 -- by over 50%, and while the commercial degrew by 55% -- 53%, we've seen the overall market actually going down in terms of the total second by about 24%, while we only degrew by 15% as in overall market. So we improved our market share during this period in the overall segment.

--------------------------------------------------------------------------------

Abneesh Roy, Edelweiss Securities Ltd., Research Division - SVP [24]

--------------------------------------------------------------------------------

Any particular segment which has impacted more in radio because that's a very sharp...

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [25]

--------------------------------------------------------------------------------

So government was one, which was the largest impact. And real estate was of almost a flattish growth and there were segments which grew, so automobile had a double-digit growth, FMCG had a double-digit growth. So various segments had a double-digit to a single-digit growth and government was the biggest dip.

--------------------------------------------------------------------------------

Abneesh Roy, Edelweiss Securities Ltd., Research Division - SVP [26]

--------------------------------------------------------------------------------

And how much is government as a percentage of radio and as a percentage of print for you?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [27]

--------------------------------------------------------------------------------

So DAVP, about 10% to 15%.

--------------------------------------------------------------------------------

Abneesh Roy, Edelweiss Securities Ltd., Research Division - SVP [28]

--------------------------------------------------------------------------------

For both?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [29]

--------------------------------------------------------------------------------

Yes, DAVP, about 10% to 15% of the total business.

--------------------------------------------------------------------------------

Abneesh Roy, Edelweiss Securities Ltd., Research Division - SVP [30]

--------------------------------------------------------------------------------

That's for the radio?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [31]

--------------------------------------------------------------------------------

If I include state government, about 15% to 20% including state government.

--------------------------------------------------------------------------------

Abneesh Roy, Edelweiss Securities Ltd., Research Division - SVP [32]

--------------------------------------------------------------------------------

And print?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [33]

--------------------------------------------------------------------------------

In print, our total contribution of government last quarter was 20% and this quarter it has come down to 18%.

--------------------------------------------------------------------------------

Operator [34]

--------------------------------------------------------------------------------

(Operator Instructions) Next question is from the line of Yogesh Kirve from B&K Securities.

--------------------------------------------------------------------------------

Yogesh Kirve, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [35]

--------------------------------------------------------------------------------

Sir, continuing on the ad revenues. Sir, based on the how festive season has fared so far, that we are getting behind. So do we have a comfort at least the Y-o-Y decline in the ad revenue should stop in third quarter or the things are more challenging later?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [36]

--------------------------------------------------------------------------------

As of now October is doing okay. So there is a -- like a very small single-digit growth happening. So on the back of it, we believe that this quarter we may not see a decline.

--------------------------------------------------------------------------------

Yogesh Kirve, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [37]

--------------------------------------------------------------------------------

Right. Sir, second question regarding the receivables. So if you see the revenues are down by about 8% on Y-o-Y basis, whereas the receivables have been flat. Now this is despite the government contribution only coming down on Y-o-Y basis. So can you throw some light on this?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [38]

--------------------------------------------------------------------------------

So what is happening, commercial recovery is intact. So commercial recovery there is no issue. Only the government recovery is a issue. So I think that is the reason why you're looking at that number.

--------------------------------------------------------------------------------

Yogesh Kirve, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [39]

--------------------------------------------------------------------------------

Sir, but on Y-o-Y basis the government revenues have only declined. So given that at least there should have been some decline in the receivables, but it has actually -- in fact a marginal increase has been there.

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [40]

--------------------------------------------------------------------------------

Yes. So we've been able to recover our commercial advertising well on time, and government number, as you know, it generally gets delayed a bit. So that impact has been nullified by the commercial, in terms of recovery.

--------------------------------------------------------------------------------

Yogesh Kirve, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [41]

--------------------------------------------------------------------------------

Okay. Sir, finally, sir, newsprint, I mean, where do we see that heading? I think in this quarter there has been a small decline on quarter-on-quarter basis. So going ahead the newsprint prices should be flat or there is some more decline, which could happen?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [42]

--------------------------------------------------------------------------------

So let me give you the detailed number on the newsprint. In this quarter, our average price in Indian rupees is INR 39.50. While if you look at the quarter 1 of this year, it was INR 40.50; while the Q4 of the last year, it was INR 44.50. And the way we look at like that, maybe in the next quarter, which is Q3, there may be a INR 1 saving further coming in the newsprint.

So newsprint is clearly indicated to be under on the coming down trend. Also what has happened, the newsprint demand is declining in North America, Europe and Asian countries, and also in China. In China also, the newsprint prices have gone down. So because of that, we believe that the international prices for the newsprint will be on the downward trend only. And because of that, the Indian newsprint manufacturer also adjusts the pricing accordingly.

--------------------------------------------------------------------------------

Yogesh Kirve, Batlivala & Karani Securities India Pvt. Ltd., Research Division - Research Analyst [43]

--------------------------------------------------------------------------------

Okay. And sir, finally, could you also state what was the circulation number for the quarter?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [44]

--------------------------------------------------------------------------------

Well we were in this quarter at 55.66 lakh copies, and if I compare it with the -- in the Q1, last quarter, there has been a decline of only 15,000. So from the Q1 to Q2, there has been a 15,000 decline, as I mentioned, largely because of the monsoon, because in a lot of areas in Madhya Pradesh, Bihar and Gujarat, we were not able to supply copy for weeks together.

--------------------------------------------------------------------------------

Operator [45]

--------------------------------------------------------------------------------

(Operator Instructions) Next question is from the line of Vikram Ramalingam from Maybank.

--------------------------------------------------------------------------------

Vikram Ramalingam, Maybank Kim Eng Holdings Limited, Research Division - Research Analyst [46]

--------------------------------------------------------------------------------

Sir, my question is on the...

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [47]

--------------------------------------------------------------------------------

Can you be a bit louder?

--------------------------------------------------------------------------------

Operator [48]

--------------------------------------------------------------------------------

Sorry to cut you out, Mr. Vikram. Can you please speak a bit louder?

--------------------------------------------------------------------------------

Vikram Ramalingam, Maybank Kim Eng Holdings Limited, Research Division - Research Analyst [49]

--------------------------------------------------------------------------------

I wanted to ask about the pledge shares. Sir, now it is around 25%, the promoter group share, of the total capital. Can you give me some more color as to what are the plans for them?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [50]

--------------------------------------------------------------------------------

Sure. As you know, 2 years back, almost 50%-plus of promoters holding was pledge, and today it has come down to around 23%, 24%. So there has been almost a 50% decline in the pledge. And going forward, our target is that we should bring this down to a single-digit number in next 12 to 18 months' time.

And in the absolute number, I -- just to give you a color on the absolute number, we were in the 3 digit -- 4-digit number in terms of money, which is now outstanding -- principal outstanding, which has now come down to a 3 digit, lower 3-digit number. So I think it's a matter of just 12 to 14 months, we'll be able to bring it down to practically 0.

--------------------------------------------------------------------------------

Vikram Ramalingam, Maybank Kim Eng Holdings Limited, Research Division - Research Analyst [51]

--------------------------------------------------------------------------------

Okay. Sir, my next question is on the cost optimization. In 1Q, it was very evident, whereas in 2Q, again it has increased. Any specific expense that you would like to highlight?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [52]

--------------------------------------------------------------------------------

So what is happening, we are working on -- very diligently on the cost base all through. Whether it's in bringing in more automation in the system and processes, in every area wherever we believe there is a possibility of reducing the cost, we're working on it. But at the same time, I would like to emphasize that the cost optimization doesn't mean cost -- cutting any corners because we strongly believe that we need to ensure a great product to our reader and also unparalleled reach to our advertiser, and we stand committed to all of them for that. Like this year, we believe that in '19-'20, we should be able to bring down the overall operating cost by almost INR 40 crores versus last year.

--------------------------------------------------------------------------------

Vikram Ramalingam, Maybank Kim Eng Holdings Limited, Research Division - Research Analyst [53]

--------------------------------------------------------------------------------

Okay. Sir, my final question is on the tax. So usually, we are around 33%, 34% tax rate. Now where do we see for the current year?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [54]

--------------------------------------------------------------------------------

So I believe the total tax benefit of almost INR 34 crores has taken in Q2 FY '20 as well as H1 of FY '20, and further going forward there will be some more benefit coming on to this.

--------------------------------------------------------------------------------

Vikram Ramalingam, Maybank Kim Eng Holdings Limited, Research Division - Research Analyst [55]

--------------------------------------------------------------------------------

Sir, but as a percentage for the year, you think where should -- where will we be landing?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [56]

--------------------------------------------------------------------------------

24-point-something -- 25%.

--------------------------------------------------------------------------------

Operator [57]

--------------------------------------------------------------------------------

Next question is from the line of Keyur Shah from Emkay Global.

--------------------------------------------------------------------------------

Keyur Shah;Emkay Global Financial Services Ltd.;Executive, [58]

--------------------------------------------------------------------------------

Sir, my question is your print business degrew by 10%, almost 11% and your print EBITDA it grew by around 9%. So like, can you elaborate on that?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [59]

--------------------------------------------------------------------------------

Can you be a bit louder, please?

--------------------------------------------------------------------------------

Keyur Shah;Emkay Global Financial Services Ltd.;Executive, [60]

--------------------------------------------------------------------------------

Can you hear me now?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [61]

--------------------------------------------------------------------------------

Yes, better.

--------------------------------------------------------------------------------

Keyur Shah;Emkay Global Financial Services Ltd.;Executive, [62]

--------------------------------------------------------------------------------

Yes. So your print business, the revenue grew by -- degrew by almost 11%, however, the print EBITDA it grew by 10% -- or 9%. So like, can you elaborate on it?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [63]

--------------------------------------------------------------------------------

As you know, our top line went down by almost 9% in console and at the same time my cost came down by almost 11%. So we were able to -- 12%. So we were able to match up the entire decline of the top line through our cost, and even take a further benefit on that.

--------------------------------------------------------------------------------

Operator [64]

--------------------------------------------------------------------------------

(Operator Instructions) Next question is from the line of Sarvesh Gupta from Maximal Capital.

--------------------------------------------------------------------------------

Sarvesh Gupta, Maximal Capital - Founder [65]

--------------------------------------------------------------------------------

Sir, this cost for newsprint, which was INR 39.5 for us this quarter, if the import duty was not there, what it had been?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [66]

--------------------------------------------------------------------------------

Would have reduced by another INR 0.50.

--------------------------------------------------------------------------------

Sarvesh Gupta, Maximal Capital - Founder [67]

--------------------------------------------------------------------------------

Only INR 0.50, sir? Because the import duty was 10%, right?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [68]

--------------------------------------------------------------------------------

See we have old stock also lying with us without custom duty. So if I have to take an average of the new stock with the custom duty and the old stock without the custom duty, the impact on the imported newsprint is around INR 1.25. And imported and Indian mix put together is around INR 0.50 per kg.

--------------------------------------------------------------------------------

Sarvesh Gupta, Maximal Capital - Founder [69]

--------------------------------------------------------------------------------

Okay. So what are -- what is the cost at which you're importing without the import duty right now, the fresh stock?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [70]

--------------------------------------------------------------------------------

The current spot prices are in the range of USD 400 to USD 425 per ton.

--------------------------------------------------------------------------------

Sarvesh Gupta, Maximal Capital - Founder [71]

--------------------------------------------------------------------------------

So around INR 30 is your cost for importing?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [72]

--------------------------------------------------------------------------------

Yes, around. Plus there are charges. This is the clearing charges INR 5,000 and all that.

--------------------------------------------------------------------------------

Sarvesh Gupta, Maximal Capital - Founder [73]

--------------------------------------------------------------------------------

So INR 35, INR 36, and then adding 10%. So if -- so current is also being imported at similar prices or maybe INR 1 lower?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [74]

--------------------------------------------------------------------------------

Sorry?

--------------------------------------------------------------------------------

Sarvesh Gupta, Maximal Capital - Founder [75]

--------------------------------------------------------------------------------

The current stock is being also imported at maybe INR 1 lower to INR 39.5?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [76]

--------------------------------------------------------------------------------

Yes, yes, yes.

--------------------------------------------------------------------------------

Sarvesh Gupta, Maximal Capital - Founder [77]

--------------------------------------------------------------------------------

Okay. So that will become your recurring kind of a cost going forward?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [78]

--------------------------------------------------------------------------------

Yes. It'll further hopefully go down also.

--------------------------------------------------------------------------------

Sarvesh Gupta, Maximal Capital - Founder [79]

--------------------------------------------------------------------------------

Okay. Okay. And secondly, sir, because the environment is so tough, so are you also seeing any inorganic opportunities or closures of certain newspaper competitors in your geography?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [80]

--------------------------------------------------------------------------------

Frankly speaking, no inorganic opportunity has come to us so far. In fact that also brings us to our next point that what the company is doing with the cash. So we have decided that whatever cash is lying with the company, since we don't envisage any such M&A happening or any major CapEx is required by the company in going forward. So we believe that the entire money available in the books will be mostly used for dividend. And as you know that our dividend payout ratio historically has been in the range of [50%] and we intend to take it to a higher level.

--------------------------------------------------------------------------------

Sarvesh Gupta, Maximal Capital - Founder [81]

--------------------------------------------------------------------------------

That is fine, but are there other opportunities like increase in market share because of closure or -- of certain competitors in the geography being...

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [82]

--------------------------------------------------------------------------------

That anyway we are doing. In every market whatever copies we are able to gain, we are working on that.

--------------------------------------------------------------------------------

Sarvesh Gupta, Maximal Capital - Founder [83]

--------------------------------------------------------------------------------

Okay. But has there been, for example, in this H1, have you seen any competitor closing down the shop because of the pressures in profitability or anything like that?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [84]

--------------------------------------------------------------------------------

Not yet.

--------------------------------------------------------------------------------

Sarvesh Gupta, Maximal Capital - Founder [85]

--------------------------------------------------------------------------------

Okay. Okay. And sir, finally, so on the advertisement revenue, while you said that we are seeing a small single-digit growth in October. Any guidance of how things can shape up for the full year?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [86]

--------------------------------------------------------------------------------

See, this October, when we speak to a lot of advertisers, people are looking a bit positive. They are hoping that this momentum of growth which has come to all of them, or arrest of the decline of the sales for them, if that continues for next 1 or 2 more months, then I think we are in good shape going forward.

--------------------------------------------------------------------------------

Operator [87]

--------------------------------------------------------------------------------

(Operator Instructions) Next question is from the line of Gaurav Agrawal from Bowhead Investments.

--------------------------------------------------------------------------------

Gaurav Agrawal;Bowhead Investment Advisors Pvt. Ltd.;Analyst, [88]

--------------------------------------------------------------------------------

Sir, you know there are many apps like let's say Dailyhunt, which is in the business of aggregating the local news and giving it to their users. And they are making money by way of advertising. So do we have plans to do something similar in our digital now? Sir, have we studied their business model and does it make sense for us to aggregate the local news from other newspapers and bundle it and give it to our users?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [89]

--------------------------------------------------------------------------------

As you are already aware about, that we are working very extensively on our digital platform for Dainik Bhaskar, Divya Bhaskar, Divya Marathi. Recently, we have announced the appointment of a new CEO for the digital -- the wing of ours also. And company is really putting all efforts for -- so that we get the positive response -- result from our readers, great experience for the readers on our digital platform. We do not intend to do any aggregation platform as of now. First, we want to focus on our own platform.

--------------------------------------------------------------------------------

Operator [90]

--------------------------------------------------------------------------------

Next question is from the line of [Dhiren Shah] from PhillipCapital Private Limited.

--------------------------------------------------------------------------------

Unidentified Analyst, [91]

--------------------------------------------------------------------------------

Sir, my question is regarding, sir, if I see your EBITDA for Q2 versus Q1, there has been drastic fall, sir. So what is the reason for that?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [92]

--------------------------------------------------------------------------------

See, quarter 1 number, because of the education season, is always higher, similarly Q3 is always higher. If you see the historical number of our company, the Q1 and Q3 are loaded quarters.

--------------------------------------------------------------------------------

Unidentified Analyst, [93]

--------------------------------------------------------------------------------

Okay, Q1 and Q3. So where do you see this EBITDA for the full year, sir?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [94]

--------------------------------------------------------------------------------

Sorry, I can't -- can you be a bit louder, please?

--------------------------------------------------------------------------------

Unidentified Analyst, [95]

--------------------------------------------------------------------------------

Sir, where do you see this EBITDA margin settling out for the full year?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [96]

--------------------------------------------------------------------------------

Yes. As of now, the 2 quarters number are known to you. We are working towards it, that we should be able to improve on them depending on the market conditions.

--------------------------------------------------------------------------------

Unidentified Analyst, [97]

--------------------------------------------------------------------------------

And sir, lastly, what is the newsprint average price for FY '19?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [98]

--------------------------------------------------------------------------------

FY '19 average price was in the range of almost INR 44.

--------------------------------------------------------------------------------

Unidentified Analyst, [99]

--------------------------------------------------------------------------------

So [INR 43.6] -- INR 44. And this, from INR 39.5, you're expecting it to further go down in next...

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [100]

--------------------------------------------------------------------------------

Rupee in Q3.

--------------------------------------------------------------------------------

Unidentified Analyst, [101]

--------------------------------------------------------------------------------

By rupee in Q3. So INR 38.5?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [102]

--------------------------------------------------------------------------------

Yes.

--------------------------------------------------------------------------------

Operator [103]

--------------------------------------------------------------------------------

(Operator Instructions) The next question is from the line of Vaibhav Badjatya from HNI Investment.

--------------------------------------------------------------------------------

Vaibhav Badjatya, Honesty and Integrity Investment - Founder [104]

--------------------------------------------------------------------------------

Sir, earlier you have indicated that you will be distributing a higher portion of the earnings, dividend payout ratio is expected to go up. Any broad number that you have in mind? Or as of now there is no particular number that you have kept in mind?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [105]

--------------------------------------------------------------------------------

See DB Corp firmly believes in rewarding our stakeholders, and dividend is one of the way for the same. And our historical payout ratio, as you know, has been in the range of 50%. And if you want to state our intent, that we want to take it to a higher level for simple reason because the company doesn't need any major CapEx in any of our markets. That's the reason, whatever is the cash available in the books, we will use it largely for the dividend payout.

--------------------------------------------------------------------------------

Operator [106]

--------------------------------------------------------------------------------

Next question is from the line of Anuj Sehgal from Manas Capital Services Private Limited.

--------------------------------------------------------------------------------

Anuj Sehgal;Manas Capital;Founder and Portfolio Manager, [107]

--------------------------------------------------------------------------------

I just wanted to ask, you mentioned you hired a new CEO for the digital business. Can you elaborate what are the expectations on the digital business and what would be the key performance criteria for the new CEO? And what do you expect to achieve, let's say, in the next 3 to 4 years?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [108]

--------------------------------------------------------------------------------

So what I can disclose you as of now is that we are working very strongly on the users' experience. We have reduced our focus on the advertising and that's the reason we have removed certain clutter of advertising on the app, if you see my app on there. Our focus is that, that when anybody who comes to my app or my website, he should get the world-class experience in terms of product design as well as the content over there. We don't want to cut any corners there. And that's the reason the new team has been brought in and they've been given a clear mandate, clear brief that how they need to go ahead. I would be able to disclose more information with you in the -- going forward, give me 2, 3 quarters to come back with you some more positive concrete results.

--------------------------------------------------------------------------------

Operator [109]

--------------------------------------------------------------------------------

Next question is from the line of Saurabh Shroff from QRC Investment Advisors.

--------------------------------------------------------------------------------

Saurabh Shroff;QRC Investment Advisors LLP;Partner, [110]

--------------------------------------------------------------------------------

Actually I had a similar question to the one previously asked. If I can just add, how much do you envisage your investment being over the next 3 or 4 years on this digital side? And maybe if you could talk a bit broadly about what kind of a model do you think works in India in terms of a digital strategy?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [111]

--------------------------------------------------------------------------------

There are 2 things. First of all, the investment. To be very honest, we realize that the investment required for the digital business is really nothing major. It is most -- largely about some couple of million dollars overall put together, but what is more required is to understand the requirement of readers, understand what kind of user experience you want to give it to them.

Why any particular app, for example, my app, why my app should be considered slightly lower with any of the best app in the world. Why we want to say, no, we want to be slightly better than of at par with somebody, XYZ. No, I want to say my app, whether it's a news app or whether it's a XY app, which you use for any other purpose, that quality-wise, product design-wise, tech-wise, we should be the best in the world. So that is the focus happening on that. And for that, believe me, you don't need huge money, it's just couple of million dollars to be invested.

--------------------------------------------------------------------------------

Saurabh Shroff;QRC Investment Advisors LLP;Partner, [112]

--------------------------------------------------------------------------------

Understood. Okay. And you -- you're thinking of digital as being sort of complementing your print business. And this is -- I'm just trying to get a sense on how quickly do you think the transformation is happening because obviously on one side print is still growing slowly, but clearly the faster growth seems to be happening on the digital side or at least that is what our understanding is. So just any color or light that you can throw on that?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [113]

--------------------------------------------------------------------------------

So what we believe that our readers, those who are reading the newspaper in the morning, they're also spending some time on our app during the day. And also because app gives me advantage that I can go beyond the geography of my physical publications. So I can operate in all India as well as the Indian diaspora living in U.S. and U.K. so that's the target area.

--------------------------------------------------------------------------------

Operator [114]

--------------------------------------------------------------------------------

Next question is from the line of Ayaz Motiwala from Nivalis Partners.

--------------------------------------------------------------------------------

Ayaz Motiwala;Nivalis Partners Ltd.;Senior Fund Manager, [115]

--------------------------------------------------------------------------------

I just wanted to get clarity if you could just give an complete overview on the newsprint prices? There was a couple of questions raised, and I don't think I've got the correct fact. So if you could clarify on your current imported cost, your cost which were historically carried in '19, and what you're kind of carrying cost now with the import duty, et cetera?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [116]

--------------------------------------------------------------------------------

Okay. Let me give you the overall picture. I'll go quarter-wise. So if you see the Q2 of last year, the price was India and imported mix put together was INR 44.50, which went down to -- which went up by INR 1 in Q3 of last year, went down in Q4 to INR 44.50 again, but in Q1 of this year, the number came down from INR 44.50 straightaway to INR 40.50. So there was almost 10% reduction. From INR 40.50 of Q1, the number has come down to INR 39.50 in Q2. And we are expecting the INR 39.50 to further go down by INR 1 at INR 38.50 in Q3.

As of now the spot price for the imported newsprint is in the range of around $400 to $425, plus the 10% custom. On the custom, government is being very kind to all of us by accepting our representation and all that, and we hope that they will give us some positive respite in the whole thing.

So if that happens then the further going forward the newsprint prices will further see a decline. And I also want to mention that the newsprint demand in North America, Europe, in Asian countries and China, in all the region the newsprint prices, newsprint demand is on decline, and therefore, the newsprint prices are also coming down.

--------------------------------------------------------------------------------

Ayaz Motiwala;Nivalis Partners Ltd.;Senior Fund Manager, [117]

--------------------------------------------------------------------------------

Sure. If I just may follow up, sir, the $400, even $450 with 10% duty on a landed cost basis would be closer to INR 31, INR 32 a kg...

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [118]

--------------------------------------------------------------------------------

No, there is the handling charges also in that. Yes, print charges and all that.

--------------------------------------------------------------------------------

Ayaz Motiwala;Nivalis Partners Ltd.;Senior Fund Manager, [119]

--------------------------------------------------------------------------------

So what would your landed be in the factory for an imported mix at this -- even the higher end of $450 today be, about INR 33, INR 34?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [120]

--------------------------------------------------------------------------------

INR 37, yes.

--------------------------------------------------------------------------------

Ayaz Motiwala;Nivalis Partners Ltd.;Senior Fund Manager, [121]

--------------------------------------------------------------------------------

Okay. So you don't have a significant advantage on skewing that mix because you've been taking about 15%, 20% imported and rest as domestic sourcing?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [122]

--------------------------------------------------------------------------------

Yes, why because accordingly domestic also comes down to almost 34, 33, 32 and all that.

--------------------------------------------------------------------------------

Ayaz Motiwala;Nivalis Partners Ltd.;Senior Fund Manager, [123]

--------------------------------------------------------------------------------

Right. Okay. One quick question on the business, sir. This quarter has been a tough quarter. There has been a 9%, 10% decline in the print advertising revenues for the company. In terms of the relative data that you have, in terms of other digital or TV or in cinema or radio as alternative media for media planners, how is -- how are those type of mediums doing in relation to press, and in particular for you?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [124]

--------------------------------------------------------------------------------

See it depends on the category to category. For example, let's take a category of government. In print, the radio -- the government category contributes say, 18%, 20%. There has been decline of 18% in the government business. While in radio, within our radio, and I'm sure it will hold good for other radio companies also, the revenue decline in government is almost 50%. Now frankly speaking, on television, in the GC, the government business is not that high. While in -- maybe in the news business of television, the government business would be higher. So it depends on which business has what kind of contribution coming from various categories and how those categories are behaving.

--------------------------------------------------------------------------------

Ayaz Motiwala;Nivalis Partners Ltd.;Senior Fund Manager, [125]

--------------------------------------------------------------------------------

Right. So one final question, sir. The long-term trend of press having lost market share and having stabilized somewhere. Is that trend intact or media planners are chipping away some money from newspapers on over time and trying to put it in other forms of...

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [126]

--------------------------------------------------------------------------------

For perspective in automobile, which is considered to be a huge declining category in terms of sales, we all heard the news about -- read the news about automobile category is going down sales and all that. In spite of all that, my automobile category business went down by only 5%. Real estate category, my decline is only 2%. In lifestyle categories, I have grown up by almost 10%. So I really can't say that people are chipping away the business from print to the other medium.

--------------------------------------------------------------------------------

Ayaz Motiwala;Nivalis Partners Ltd.;Senior Fund Manager, [127]

--------------------------------------------------------------------------------

Right. And the question on dividend, sir, you said businesses don't need a lot of CapEx, so it will just -- do you have enough price capacity in both markets in Bihar and Maharashtra, everything is covered?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [128]

--------------------------------------------------------------------------------

Yes, very much. Because in last 3 years' time we did decent amount of CapEx in Rajasthan, Gujarat, Bihar and all that, and these markets are capable enough to at least take up 10% circulation growth with the existing infrastructure what they have.

--------------------------------------------------------------------------------

Ayaz Motiwala;Nivalis Partners Ltd.;Senior Fund Manager, [129]

--------------------------------------------------------------------------------

Right. And sir, the stock has come off after your last buyback. Would you revisit buyback apart from dividend which you've already articulated that you'll raise the payout?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [130]

--------------------------------------------------------------------------------

We will put it up to Board, and Board will have to decide for on that.

--------------------------------------------------------------------------------

Operator [131]

--------------------------------------------------------------------------------

(Operator Instructions) Next question is from the line of Vaibhav Badjatya from HNI Investments.

--------------------------------------------------------------------------------

Vaibhav Badjatya, Honesty and Integrity Investment - Founder [132]

--------------------------------------------------------------------------------

Just wanted to understand the drivers of the government business, both at a state level and the center level. So if I understand correctly, last year there was a hike also in the DAVP rates. And in spite of that this contraction has come, so effectively the volumes would have been down drastically. I mean, it is -- it can be northward of 30% or so, and that's the volume decline.

So -- but excluding the last year impact because of the elections and all, from a longer-term perspective, what are the major categories within government for which the government use the print advertising?

And secondly, how the allocation within the government works as to what money they need to spend on advertising and within that how much should go to print, who takes care of these issues and how this decision is made? If you can just throw light on these that would be helpful for us.

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [133]

--------------------------------------------------------------------------------

One thing to explain that the state government advertising decline is in a single digit, but the central government, which is DAVP and PSU advertising, that decline is much, much sharper. That is the reason in spite of the 25% rate growth what we got from DAVP in the month of January this year, the decline is there.

Now within the government, there is a policy framework structure, but which is not very explicit to say X percent go on print or radio and all that. No explicit policy of government that what kind of money will flow into what. Based on their requirement on various times, government keeps taking decision of releasing the advertising in the newspaper.

--------------------------------------------------------------------------------

Vaibhav Badjatya, Honesty and Integrity Investment - Founder [134]

--------------------------------------------------------------------------------

Right. And in terms of the items on which they spend, whether it's [related] to the government equipment, whether it's related to -- what kind of -- what are the specific items for you to advertise?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [135]

--------------------------------------------------------------------------------

5% of government revenue comes as a display ad because most -- from the central government, because most of their tender advertising has already shifted to the digital platform 2, 3 years back. 55% of their advertising is a display ad where they announce these schemes of government. They talk about the good things done by government in various schemes or any other launches -- any scheme launched by government or such kind of things.

--------------------------------------------------------------------------------

Operator [136]

--------------------------------------------------------------------------------

Next question is from the line of [Dhiren Shah] from PhillipCapital.

--------------------------------------------------------------------------------

Unidentified Analyst, [137]

--------------------------------------------------------------------------------

Sir, what was the circulation copy last year, same time?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [138]

--------------------------------------------------------------------------------

We were at 56.85 lakh copies last year in this quarter, and this quarter we are at 55.66 lakh copies.

--------------------------------------------------------------------------------

Unidentified Analyst, [139]

--------------------------------------------------------------------------------

And sir, what was the number for full year FY '19?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [140]

--------------------------------------------------------------------------------

FY '19 total number was 56.79.

--------------------------------------------------------------------------------

Unidentified Analyst, [141]

--------------------------------------------------------------------------------

56.79 for the FY '19?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [142]

--------------------------------------------------------------------------------

Yes, sir.

--------------------------------------------------------------------------------

Unidentified Analyst, [143]

--------------------------------------------------------------------------------

And sir, today, there is a consultation paper from the TRAI, so they're looking for auctioning a new FM -- FM radio channels in 283 cities, so are we looking at any of these opportunities?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [144]

--------------------------------------------------------------------------------

Evaluate based on the merit, sir, and based on the potential in the market.

--------------------------------------------------------------------------------

Unidentified Analyst, [145]

--------------------------------------------------------------------------------

Okay, so are we looking at this?

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [146]

--------------------------------------------------------------------------------

We will certainly -- listen, the paper has just come out, we will get into that and see whether it makes business sense or not.

--------------------------------------------------------------------------------

Operator [147]

--------------------------------------------------------------------------------

As there are no further questions, I will now hand the conference to Mr. Pawan Agarwal for closing comments.

--------------------------------------------------------------------------------

Pawan Agarwal, D. B. Corp Limited - Deputy MD & Executive Non-Independent Director [148]

--------------------------------------------------------------------------------

Thank you all for your participation and time on this earnings call. I hope that we have responded to your queries adequately today. We'll be happy to be of assistance through our Investor Relations Department headed by Mr. Prasoon Pandey for any further inquiries. Thank you, and have a nice day.

--------------------------------------------------------------------------------

Operator [149]

--------------------------------------------------------------------------------

Thank you very much. On behalf of DB Corporation Limited, that conclude this conference. Thank you for joining us. You may now disconnect your lines. Thank you.