Financials

Budget 2008: IBF wants no customs duty on STBs

Published

18 years ago

February 20, 2008

NEW DELHI: The Indian Broadcasting Foundation, the largest body of television channels in the country, has urged the Finance Ministry to exempt CVD, cess charges and additional duty on set-top boxes (STBs) for the next 10 years.

Digital cable TV would get a boost if STB prices fell, IBF said.

In a pre-budget memorandum presented to the Revenue Secretary and other senior officials in the Ministry recently, the IBF has also demanded that the concessions given to the IT industry should be extended to broadcasting, particularly in view of the convergence of technologies.

For example, as of now, customs duty, CVD, and cess for broadcast equipment put together is 36.64 per cent whereas it is only 21.32 per cent for computers and 4 per cent for cell phones.

The Foundation says that it is the most heavily and unfairly taxed Industry.

Apart from service tax, states impose very high, even up to 35 to 40 per cent entertainment tax as also sales tax, stamp duty etc.

The base of the fringe benefit tax for the broadcasting industry has been kept at 20 per cent whereas the base for six industries including computer software industry is only 5 per cent.

The IBF says that the total service tax at 12.36 per cent on the total television media advertising revenue of Rs 74 billion works out to Rs 9.15 billion. Of this, the service tax liability of Doordarshan is Rs 1.01 billion and that of other channels is Rs 8.14 billion.

Of the total ad revenue, the share of Doordarshan is Rs 8.18 billion and private channels is Rs 65.82 billion.

The customs duty should be zero to make STBs affordable to consumers and no excise duty to encourage indigenous production of STBs.

The government should exempt the broadcasting industry from service tax as in the case of print media, the IBF says.

The government had in March 2005 granted exemption to the service providers (small cable operators) whose aggregate value of taxable service for a financial year does not exceed Rs 400,000. There was need for a clarification that the exemption granted is only in respect of service tax payable on services provided and does not extend to service tax charged on services procured by cable operators. Cable operators, thus, are liable to pay service tax charged by broadcasters and multi-system operators (MSOs).

In this regard, the service tax authorities may be asked to launch periodic campaigns to ensure that all last mile cable operators are registered and display their registration certificates prominently.

In view of the fact that broadcasting is included in Entry No. 31 and is being treated as a “Service” under Entry No. 92 C of List I of Seventh Schedule of the Constitution, the state and union territory governments may be directed not to levy entertainment tax, sales tax, etc. on the broadcasting industry inclusive of distribution services.

There was need to expand the definition of Industrial Undertaking under Section 72A of the Income Tax Act, 1961 to include Electronic Media, that is, TV Broadcasting.

In order to enable cable operators invest in infrastructure for achieving time bound digitalisation, a “National Fund” may be created to provide soft loans etc.

Television industry is the electronic version of the print media providing information, entertainment and education to the citizens of India. Though service tax is levied on Broadcasting media, print media is not attracting service tax even though it enjoys a larger share of advertising revenue.

According to the IBF, The total estimated advertisement revenue for 2006-07 was Rs 164 billion of which 55 per cent was generated by the print media (Rs 90 billion) and 45 per cent by TV channels (Rs 74 billion).

The Ad spend to GDP ratio for India is one of the lowest at 0.34 per cent. It is 1.3 per cent for USA, 1.0 per cent for Australia and even neighbouring countries in South East Asia like Malaysia, South Korea, Singapore etc enjoy a high ratio of 0.8 per cent to 1 per cent.

Without government’s support like service tax holiday on advertisement revenue, the potential cannot be exploited to the desired extent. Service tax pulls down consumption and hence economic growth. Lower consumption means lower overall tax revenues.

As a result of the service tax, even the public service broadcaster Prasar Bharati will have to increasingly depend on Government grants while private TV channels (particularly news channels) will have a hard fight to survive, the IBF points out.

At the outset, the IBF points out that there are 122 million Television homes in India and more than 71 million homes are connected to Cable & Satellite TV and these are increasing rapidly.

The industry produces approximately 6,00,000 hours of original programming annually for more than 300 TV Channels making it one of the biggest in the world.

There are over 56 million viewers of Indian television programming in neighbouring countries and overseas, creating a positive international image of India unlike any other media.

Related Topics:Budget 2008 customs duty IBF STBs

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Brands

Page Industries posts steady Q3 growth, declares Rs 125 interim dividend

Published

4 weeks ago

February 5, 2026

indiantelevision.com Team

MUMBAI: It’s time to brief the markets: Page Industries is showing that even when regulations tighten, it can still keep its footing in the innerwear business. The Bengaluru-based apparel major has reported its financials for the quarter ended 31 December 2025, delivering a performance that remains steady and well put together.

The company’s top line showed plenty of elasticity this quarter. Revenue from operations stretched to Rs 1,38,675.71 lakhs, a healthy jump from the Rs 1,29,085.82 lakhs reported in the preceding quarter. Compared to the same period last year, which stood at Rs 1,31,305.10 lakhs, it’s clear the brand’s grip on the market isn’t loosening. Total income for the quarter, including other finance gains, reached a comfortable Rs 1,39,919.03 lakhs.

However, it wasn’t all smooth silk. The Government of India’s new unified Labour Codes, covering everything from wages to social security, officially kicked in on 21 November 2025. This regulatory shift forced Page Industries to account for a one-time “exceptional item” cost of Rs 3,500.42 lakhs to cover incremental employee benefits and related obligations. Despite this Rs 35-crore legislative snag, the underlying business remained robust. Profit before tax stood at Rs 25,625.35 lakhs after the exceptional hit, and without that one-off cost, the figure would have been a more muscular Rs 29,125.77 lakhs. Net profit for the quarter came in at Rs 18,953.64 lakhs.

Total expenses rose to Rs 1,10,793.26 lakhs, driven largely by raw material consumption of Rs 30,162.65 lakhs and employee benefits of Rs 23,310.66 lakhs. Even so, the company’s operational strength ensured the bottom line remained firmly stitched together.

For shareholders, the news is particularly “fitting.” The Board has declared a third interim dividend for 2025-26 of Rs 125 per equity share. The record date has been set for 11 February 2026, with the payment scheduled on or before 6 March 2026. This follows two previous interim dividends of Rs 150 and Rs 125 declared earlier in the financial year, reinforcing the company’s commitment to sharing the spoils of its success.

Looking at the nine-month stretch ending December 2025, Page Industries has amassed total income of Rs 4,04,090.59 lakhs, with total comprehensive income of Rs 58,231.49 lakhs. While the basic earnings per share for the quarter dipped slightly to Rs 169.93, compared to Rs 183.48 in the same quarter last year, the year-to-date EPS remains a solid Rs 524.57.

Auditors at S.R. Batliboi & Associates LLP have given the results a “limited review” thumbs up, reporting no material misstatements. It seems that, as far as Page Industries is concerned, the business remains as well-constructed as its famous Jockey briefs.

Brands

Hitachi Energy plugs into profit as revenues surge in Q3 FY26

Published

4 weeks ago

February 5, 2026

indiantelevision.com Team

MUMBAI: Power flows may ebb and surge, but Hitachi Energy India Limited clearly had the current on its side in the December quarter. The energy and power technology major reported a sharp jump in profitability for Q3 FY26, riding strong revenue growth and improved operating margins, even as fresh order inflows moderated from last year’s highs.

For the quarter ended December 31, 2025, Hitachi Energy India posted revenue from operations of Rs 2,168 crore, up 29.6 percent year on year from Rs 1,672 crore in Q3 FY25 and 13.2 percent sequentially from Rs 1,915 crore in Q2 FY26. Including other income, total income for the quarter stood at Rs 2,168 crore, reflecting sustained execution momentum across projects and services.

Profitability surged far faster than topline growth. Profit before tax, before exceptional items, more than doubled to Rs 402 crore, compared with Rs 184 crore a year earlier. After accounting for an exceptional charge of Rs 54 crore linked to the impact of new labour codes, profit before tax came in at Rs 348 crore, still up nearly 89 percent year on year. Net profit for the quarter rose 90.3 percent to Rs 261 crore, compared with Rs 137 crore in the same period last year, even as it remained largely flat sequentially.

Margins told an equally strong story. PBT margin expanded to 16.0 percent in Q3 FY26 from 11.0 percent a year earlier, while profit after tax margin improved to 12.1 percent from 8.2 percent. Operating EBITDA jumped 100.4 percent year on year to Rs 338 crore, with margins expanding to 15.6 percent, signalling tighter cost control and operating leverage.

On a nine-month basis, revenue for the period ended December 31, 2025 rose to Rs 5,604 crore, up from Rs 4,520 crore in the corresponding period last year. Profit before tax for the nine months surged to Rs 878 crore, more than three times the Rs 270 crore reported a year earlier, while net profit climbed to Rs 657 crore, compared with Rs 200 crore in the previous period.

The only soft patch came on the order book. New orders in Q3 FY26 stood at Rs 2,478 crore, sharply lower than Rs 11,594 crore in Q3 FY25, when the company had benefited from a large one-off order win. Excluding that outsized contract, management noted that orders actually grew 73.7 percent year on year, underlining steady underlying demand. Sequentially, orders rose 11.7 percent from Rs 2,217 crore in Q2 FY26. For the nine months, total orders edged up to Rs 16,034 crore, broadly in line with Rs 15,983 crore a year earlier.

With revenues accelerating, margins widening and execution staying on track, Hitachi Energy India’s Q3 numbers suggest that while headline order comparisons may flicker, the business is firmly switched on when it comes to profits.

Brands

Tata Motors posts Q3 loss as JLR cyber incident hits results

Published

4 weeks ago

February 5, 2026

indiantelevision.com Team

MUMBAI: Tata Motors Passenger Vehicles Limited (TMPVL) had a quarter of two very different moods. Back home, the showrooms were busy, the order books thick, and the festive glow lingered. Overseas, however, a cyber incident at Jaguar Land Rover pulled the plug on profits and dragged the group into the red.

For the third quarter of FY2026, Tata Motors posted a consolidated net loss of Rs 3,483 crore. A year ago, it had reported a profit of Rs 5,485 crore. Revenue also slipped sharply, down 25.8 per cent year on year to Rs 70,108 crore. Earnings before interest and tax fell into negative territory, with margins dropping to minus 4.7 per cent.

Strip away exceptional items and the picture still looked bruised. Profit before tax stood at a loss of Rs 3,136 crore, while earnings per share from continuing operations came in at minus Rs 9.47.

For the nine months to December, the company reported a net loss of Rs 7,255 crore from continuing operations, with revenue down 14 per cent year on year to Rs 2.3 lakh crore. Free cash flow for the quarter was also negative at Rs 17,900 crore.

Most of the damage came from Jaguar Land Rover. The luxury carmaker saw revenue plunge 39.4 per cent year on year to £4.5 billion. Ebit margins slid to minus 6.8 per cent, and profit before tax before exceptional items stood at a loss of £310 million.

The reasons were a perfect storm: a cyber incident that disrupted production, the wind-down of legacy Jaguar models, a weakening China market, and tariff pressures in the United States. The result was a free cash outflow of £1.5 billion for the quarter and net debt rising to £3.3 billion.

Still, the company has held on to its guidance, expecting Ebit margins of 0 to 2 per cent for the full year.

Back home, the domestic passenger vehicle business offered a more cheerful read. Revenue rose 24 per cent year on year to Rs 15,317 crore. Profit before tax before exceptional items stood at Rs 302 crore, while market share climbed to 13.8 per cent, securing the number two spot.

The company’s electric vehicle play also stayed strong, with a commanding 43.6 per cent share of the EV market and cumulative sales crossing the 2.5 lakh mark. The domestic unit ended the quarter with a net cash position of Rs 5,100 crore.

It was also a record quarter on the ground. Tata clocked its highest-ever quarterly wholesales at 171,000 units, up 22 per cent year on year, while retail sales crossed the 200,000 mark for the first time. The Nexon led the charge as the country’s best-selling model for the quarter, supported by the Punch and the newly introduced Sierra.
The quarter carried Rs 1,597 crore worth of exceptional losses. These included Rs 800 crore tied to the JLR cyber incident, Rs 400 crore linked to the new labour code, and another Rs 400 crore in stamp duty charges.

Yet on the restructuring front, the company booked a windfall. The demerger of the commercial vehicles business delivered an exceptional gain of Rs 82,616 crore. That helped push the nine-month net profit, including these gains, to Rs 76,767 crore.

Chief financial officer Dhiman Gupta called the quarter “challenging as anticipated” due to the cyber incident at JLR, while highlighting the domestic business’ revenue growth and margin improvement quarter on quarter. He added that performance is expected to improve significantly in the fourth quarter as JLR recovers.

JLR chief executive PB Balaji said production returned to normal by mid-November after the shutdown triggered by the cyber incident, and the company is now focused on rebuilding momentum.

Meanwhile, TMPVL managing director and CEO Shailesh Chandra pointed to record wholesales and strong festive demand as key drivers of the domestic business.

As of December 31, 2025, the group’s net debt stood at Rs 39,400 crore, with a debt-equity ratio of 0.61 times. Net worth was reported at Rs 1.07 lakh crore.

In short, Tata’s quarter read like a tale of two garages: one humming with orders and electric optimism, the other grappling with a digital breakdown. If the cyber clouds lift and the domestic engine keeps firing, the next quarter could look far less bumpy.