Financials

FICCI submits its wishlist to Fin Min for M&E sector

Published

18 years ago

February 26, 2008

NEW DELHI: National industry body Ficci has demanded that the government must give several tax exemptions and holidays to let the animation, gaming and VFX industries, which is growing faster than the overall entertainment industry, realise its full potential.

Ficci has demanded in the budget for 2008, the government must give a 10-year tax holiday, removal of service and sales taxes on the software used for production for 10 years, exemption of import duty on hardware for 10 years, and other facilitating measures.

Interestingly, it says also that as there is no Indian channel with 24 X 7 indigenous animation content, 10 per cent of the time on entertainment channels must be reserved for such content. This will give local content and talent a major boost.

The memorandum from Ficci says that though the animation, gaming and VFX industry is growing in leaps and bounds, the full potential is yet to be tapped, despite the projection that the industry would grow hugely by next year.

Ficci estimates show that the animation industry today stands at Rs 13 billion and is expected to grow to Rs 43 billion by year 2009, with a CAGR of 35 per cent.

Similarly, the gaming industry is expected to grow from Rs 360 million to Rs 13.50 billion by 2009, with a CAGR of 78 per cent.

“The growth rate in these sectors are much higher than overall media & entertainment sector, which is expected to grow at a rate of 19 per cent,” says Ficci. The industry could be a major export revenue earner as well as provide massive employment.

Ficci says that after Information Technology, the biggest export earners for India are Animation, Gaming and VFX, but the overall business model existing at present, which is a low-end BPO approach, is stunting its growth.

The Ficci document stresses: “Exports in this vertical can be looked in two ways: one, a purely outsourcing model in which production houses provide services to overseas studios. This is low-end work in the value chain with more of a BPO approach.

“The other is revenues earned from exporting the finished product (the intellectual property developed in India for domestic / foreign markets) to global audiences.

“Both the models have tremendous potential for foreign exchange earning for India. But it is better in the long term if we move up the value chain and have indigenous content with both domestic and foreign appeal.”

Ficci estimates that in the next five years, India would require more than 30,000 trained animators and gaming professionals.

“If this industry is nurtured properly, it can meet the government‘s objective of employment generation, and the latter should aid in the setting up of centres of excellence on the lines of IITs and IIMs for the animation and gaming industry,” says Ficci.

Ficci feels that the other direct impact of aiding these industries would be building Brand India better, by engaging the country‘s massive talent pool in creating content for Indian as well as global audiences by transferring India‘s 5,000-year-old time- tested legends into the new media.

“Animation could be another way of creating “Brand India” among NRIs / PIOs and other global audiences. Currently when India is increasingly garnering attention in the world arena, it is the right time to reach outwards through this medium,” Ficci says.

Ficci points out to models of Korea, China, Singapore, etc., which enjoyed their respective government support, so much so that 40 per cent of the animated content in the US is Japanese.

“The reason for such a pattern is that countries like Japan and Canada have developed very strong domestic markets, and once a domestic market gets enough consumable content, the same can be routed for exports,” says the memorandum.

Ficci reminds that the Korean government sees animation as the most competitive industry for the 21st century, and has provided massive tax reliefs.

“(Korean) application guidelines specify that companies whose projects have been accepted by a Korean broadcaster can apply for up to 40 per cent of their production budget,” Ficci says, demonstrating the massive support system there.

So far as the animation industry is concerned, Ficci says that it is now covered under Software Technology Parks of India.

The problem, says Ficci, is that this holds good for a BPO nature of work where outsourcing is the main module and most of the studios which are getting benefited from STPI have to make sure of an export commitment of more than 85 per cent.

“As a result many Indian studios wanting to produce original content based intellectual property and use art and talent from India to produce animation stories do not get any such benefits,” explains the memorandum.

Creating original content in India attracts custom duty and also the freshly levied sales tax (VAT) on off the shelf software (12.2 per cent, which might increase further) and further also the income tax component.

“This is leading to more and more studios working on foreign content and a severe lack of animated Indian stories in our domestic television schedules,” laments Ficci.

Hence Ficci‘s key proposals for the animation, gaming and VFX industries are

Tax holiday for 10 (ten) years, so that cost of creating intellectual property (original content) comes down drastically and the industry becomes viable
Removal of Service Tax
Removal of Sales Tax on the Software used for Animation, Gaming & VFX production for a period of 10 years
Exemption of Import duty on hardware for a period of 10 years
Market Development Assistance for overseas business promotion
10 per cent mandatory local content on the networks to began with

“Finally, we feel there is negligible revenue accruing to the exchequer currently as no new Indian IP is getting created. If a tax holiday is given, revenue will flow into the exchequer funds in a couple of years as the industry will gain impetus and encouragement to grow. In this regard the IT sector can be looked at as a role model,” says the Ficci memorandum.

Related Topics:animation Ficci gaming VFX

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Brands

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

Published

1 month 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

1 month 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

1 month 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.