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Tag: NCLT

  • UFO Moviez posts Rs 6.52 crore Q1 profit as box office bounces back

    UFO Moviez posts Rs 6.52 crore Q1 profit as box office bounces back

    MUMBAI: Lights, camera, profit UFO Moviez has kicked off the fiscal year on a blockbuster note, posting a consolidated net profit of Rs 652 lakh for Q1FY26, marking a sharp turnaround from a loss of Rs 414 lakh in the same quarter last year. The homegrown digital cinema distribution major reported a 16 per cent rise in consolidated revenue at Rs 10,903 lakh, up from Rs 9,451 lakh in Q1FY25. EBITDA also saw a healthy jump to Rs 1,929 lakh from Rs 658 lakh a year ago.

    Standalone profit came in at Rs 365 lakh versus a loss of Rs 267 lakh in the previous year’s comparable quarter. Notably, this improvement comes despite a 7 per cent drop in standalone net sales compared to the same quarter last year.

    The boost in profitability was helped by a sharp reduction in impairment provisions down to zero from Rs 365 lakh last year as well as higher other income and steady cost control across verticals.

    Employee costs for the quarter stood at Rs 2,111 lakh (up from Rs 2,191 lakh last year), while ad revenue share expenses held steady at Rs 1,848 lakh. Equipment and lamp purchases jumped significantly to Rs 2,252 lakh, signalling investment in expanding or upgrading the network.

    UFO’s Q1 earnings per share stood at Rs 1.68, compared to a loss per share of Rs 1.07 last year.

    The company had earlier received NCLT approval for the amalgamation of its two wholly owned subsidiaries Scrabble Digital Limited and UFO Software Technologies Pvt Ltd effective April 1, 2024. As a result, the Q1FY25 numbers have been restated to reflect this merger.

    The board meeting to approve the results concluded at 3:50 p.m. on July 31, 2025.

    With the film exhibition and cinema tech segments bouncing back post-pandemic, UFO Moviez appears set for a sequel of steady growth.

     

  • Dialling into decline RCom posts heavy losses amid ongoing insolvency

    Dialling into decline RCom posts heavy losses amid ongoing insolvency

    MUMBAI: The lines are anything but clear at Reliance Communications (RCom), which dialled in a staggering consolidated loss of Rs 8,125 crore for the financial year ended 31 March 2025. With the telecom player still navigating the turbulent waters of insolvency, its latest audited results tell a tale of debt, deferred dreams, and deepening losses.

    Under the shadow of ongoing corporate insolvency proceedings since 2019, RCom’s affairs remain under the management of resolution professional Anish Niranjan Nanavaty. In a disclosure to stock exchanges, the company reported a loss of Rs 162 crore from continuing operations and an even steeper Rs 7,963 crore loss from discontinued operations, which include legacy telecom assets like spectrum, towers, and fibre assets still listed at 2018 valuations and now held for sale.

    Operating income slumped to Rs 278 crore for the year, against expenses of Rs 440 crore. The auditors, however, weren’t convinced everything adds up.

    The audit report issued by Pathak H.D. & Associates LLP is riddled with red flags from non-provisioning of interest on borrowings and foreign exchange fluctuations, to unauthorised asset sales and unresolved willful default allegations. “Had the interest and foreign exchange variation been provided,” the auditors note, “the reported loss would have been higher by Rs 5,110 crore, and the net worth lower by Rs 37,573 crore.”

    What’s more, RCom continues to default on statutory dues and has not implemented Ind AS 116 for lease accounting,  a miss that auditors flagged yet again.

    Even as a resolution plan remains pending before the NCLT and the Supreme Court battles over spectrum liabilities drag on, RCom maintains it has prepared its books on a ‘going concern’ basis. A claim auditors aren’t entirely buying, given the sustained erosion in net worth, which now stands at negative Rs 69,204 crore.

    Amidst it all, resolution efforts have hit pause. Applications to migrate telecom licences remain stuck in litigation. Multiple petitions before the NCLT, TDSAT, and the Supreme Court including the AGR dues dispute continue to cloud the future of RCom and its affiliates.”

    As India’s telecom landscape moves ahead with 5G and AI-driven innovations, RCom remains tethered to unresolved past dues and legal quicksand. Whether it can ring in a revival or continue to be stuck in voicemail remains a question only the courts and creditors can answer.

  • Sapphire Media wins BIG 92.7 FM; gets favourable order from NCLAT

    Sapphire Media wins BIG 92.7 FM; gets favourable order from NCLAT

    MUMBAI: It’s a big – actually Big 92.7 FM –  win for Haryana-outdoor firm and Indian Daily TV channel  owner Sapphire Media. It has got a favorable order from the National Company Law Appellate Tribunal (NCLAT) for it to acquire the Reliance Broadcast Network run radio network Big FM 92.7.

    The principal bench of the NCLAT, Delhi on Monday dismissed the plea filed by Radio Mirchi, Orange FM and others against the NCLT judgement which approved the resolution plan of Sapphire Media for Big 92.7 FM.

    The NCLAT Bench comprising chairperson  justice Ashok Bhushan and (technical) member Barun Mitra in its order today said that “in view of the foregoing discussions and conclusions, we do not find any ground to interfere in the order of NCLT dated 06.05.2024 impugned in the above appeals. In result, all the appeals are dismissed.”

    Earlier, the NCLT bench comprising technical member Madhu Sinha and judicial member Reeta Kohli had approved the resolution plan submitted by Sapphire Media in its order dated 6 May  2024. As per the plan, Sapphire Media would  pay Rs 261 crore to secured and operational creditors against the total claims of Rs 947.5 crore.

    The resolution professional subsequently filed an application with NCLT Mumbai seeking approval of Sapphire Media’s resolution plan.

    Big FM 92.7 FM , owned by Reliance Broadcast Network, has been going through the insolvency process since February 2023.. It is the country’s largest radio network with 58 stations and a reach of over 1,200 towns and 50,000+ villages will reinforce Sapphire Media’s aggressive expansions plans in the media space.

    Sapphire Media is promoted by Aditya Vashistha and Kaithal-based businessman Sahil Mangla. Sapphire media runs a national Hindi news channel in name of India Daily and is one of the biggest outdoor advertising companies in India.

  • Reliance-Disney Star India merger to see closure within a couple of months

    Reliance-Disney Star India merger to see closure within a couple of months

    Mumbai: Reliance Industries Limited (RIL) is on track to finalise its merger with Disney’s India operations by the third quarter of FY25  – a move anticipated to significantly bolster its media presence. (Q3 FY 2025 ends on 31 December 2024, which means the merger has got just about two months, if not earlier, to achieve closure). This announcement follows RIL’s  Q2 FY 2025  financial results, showcasing a resilient performance across its diversified business segments.

    On 28 September, the ministry of information & broadcasting (MIB) granted approval to RIL for the transfer of channels from Viacom18 to Disney Star India, paving the way for the $8.5 billion merger with Disney. The merger of Viacom18 and Star India has already been given the green signal from the Competition Commission of India (CCI- subject to certain voluntary conditions), and the National Company Law Tribunal (NCLT) has also given it the thumbs up. “The companies are now securing additional required approvals, with the transaction expected to close in Q3 FY25,”  Reliance Industries announced in its quarterly earnings report on 14 October 2024.

    In a statement, Reliance chairman & managing director, Mukesh D. Ambani expressed optimism about the merger’s potential impact: “This merger will create a powerful platform for delivering exceptional content and experiences to our customers.” He highlighted the strategic alignment between Reliance’s digital services and Disney’s rich content library as a catalyst for growth.

    “Viacom18’s integration with Disney’s assets is expected to create a formidable entertainment platform, offering a diversified content library and reaching millions of viewers across the country,” a company spokesperson stated. “The strategic alignment of media assets will enhance our ability to deliver premium content and attract more subscribers.”

     

  • Reliance-Viacom18-Disney merger gets NCLT nod too

    Reliance-Viacom18-Disney merger gets NCLT nod too

    MUMBAI: Even as media watchers await the detailed order of the Competition Commission of India, (CCI) another hurdle has been cleared by Reliance Industries relating to the merger of Viacom18 and Disney Star India – that of the National Company Law Tribunal (NCLT).

    It was on Friday that the NCLT gave it the green signal. Judicial member Kishore Vemulapalli and technical member Anu Jagmohan Singh gave the thumbs up to what will become India’s leading media conglomerate valued at over Rs 70,000 crore.

    Reliance owns a clutch of channels including the Colors and Sports 18 brands through its offshoot Viacom18 as well as the OTT platform JioCinema. It is seeking to merge these into Star India creating a giant merged combined entity.

    The NCLT has directed the companies to get ministry of information and broadcasting approval before resorting to any such transfer of channels. 

    Additionally, it has directed the firms to file the NCLT order and the approved scheme with  the registrar of companies within 30 days as well as approach the superintendent of stamps for stamp duty adjudication, if applicable, within 60 days.

  • Zee Entertainment, Culver Max Entertainment & Bangla Entertainment smoke peace pipe

    Zee Entertainment, Culver Max Entertainment & Bangla Entertainment smoke peace pipe

    Mumbai: It looked like it would be a never ending slugfest between Zee and Sony with each going to court against the other. But now that time has passed and the tempers have cooled, Zee  Culver Max Entertainment Pvt Ltd (CMEPL) operating as Sony Pictures Networks India (SPNI), together with its group company Bangla Entertainment Pvt Ltd (BEPL), have decided to call of their quarrels. The companies have arrived at a comprehensive non-cash settlement, amicably resolving all disputes related to the merger cooperation agreement and the composite scheme of arrangement.

    As part of the settlement, the firms have mutually agreed to withdraw all respective claims against each other, in the ongoing arbitration at the Singapore International Arbitration Centre, and all related legal proceedings initiated in the National Company Law Tribunal (NCLT) and other forums. The companies will also withdraw the respective composite schemes of arrangement from the NCLT and inform the relevant regulatory authorities.

    Under the terms of the settlement, none of the parties will have any outstanding or continuing obligations or liabilities to the other. The settlement stems from a mutual understanding between the companies to independently pursue future growth opportunities with a renewed purpose and focus on the evolving media and entertainment landscape, signifying the definitive conclusion of all disputes.

    For media observers, this is an agreement which is coming as a breath of fresh air. 

  • NCLT approves resolution plan of Sapphire Media Ltd for Big 92.7 FM

    NCLT approves resolution plan of Sapphire Media Ltd for Big 92.7 FM

    Mumbai: The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the resolution plan of Sapphire Media Ltd for the iconic radio network Big 92.7 FM, owned by Reliance Broadcast Network Ltd.

    The NCLT Bench comprising technical member Madhu Sinha and judicial member Reeta Kohli approved the resolution plan submitted by Sapphire Media Ltd in its order dated 6 May.

    “The interlocutory application is allowed. The Resolution Plan submitted by Sapphire Media Ltd is hereby approved. It shall become effective from this date and shall form part of this order,” the bench said in its order.

    Big FM, owned by Reliance Broadcast Network Ltd, has been going through the insolvency process since Feb 2023. The Corporate Insolvency Resolution Process (CIRP) was initiated under the Insolvency and Bankruptcy Code of 2016 and Rohit Mehra was appointed as the resolution professional.

    A committee of creditors of Big FM was also appointed, which approved Sapphire Media Limited’s resolution plan on November 11, 2023, with a voting share of 88.97% under the provisions of the Insolvency and Bankruptcy Code.

    The resolution professional subsequently filed an application with NCLT Mumbai seeking approval of Sapphire Media Limited’s resolution plan. As per the plan, Sapphire Media Ltd will pay Rs. 261 crores to secured and operational creditors as against the total claims of Rs. 947.5 crore.

    The NCLT order also directed the monitoring committee to supervise the implementation of the resolution plan and file the status of its implementation before it from time to time.

    The acquisition by Sapphire Media Ltd is expected to inject fresh energy into Big FM. As the country’s largest radio network with 58 stations and a reach of over 1,200 towns and 50,000 villages, the brand will reinforce Sapphire Media Limited’s pan-India presence.

  • Sony likely to call off merger – a low probability event for now

    Sony likely to call off merger – a low probability event for now

    Mumbai: According to media reports, Sony is expected to call of USD 10bn merger with Zee due to a standoff over whether Zee’s CEO Punit Goenka would lead the merged entity.

    Sony plans to file the termination notice before a 20 Jan 2024, extended deadline for closing the deal, saying some of the conditions necessary for the merger had not been met.

    Discussions are still ongoing between the two sides and a resolution can still emerge before the deadline.

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    We don’t foresee any negative impact of above so far. As per our checks, deal conversations continue and will most likely go ahead without Goenka as CEO; we expect a final clarity on the extension of the deal by third of week of January’24, which is almost a month ahead of the 20 Dec’2023 agreement cut off date. Conversations continue to happen for both parties, however no final outcome has been reached yet on terms of the deal.

    We continue to believe that the deal is equally important for both entities with competitive intensity growing due to Disney/RIL talks gaining traction.

    Maintain our view the likelihood of the deal going through remains high, Zee had made a statement on 20 Dec, 2023 on entering fair negotiations with Sony, which indicates that they too are very much in favour of the deal going through.

    We will await more updates and any official statement from both parties, in case of change in stance. We don’t foresee Sony agreeing on Mr Punit becoming CEO, due to the ongoing investigation against him. However, there is a very small chance of Goenka putting the deal at risk due to him wanting to become CEO, even if term sheet and deal condition mentions that Zee has moved up 50 per cent over the last one year, despite a muted financial performance , largely on the back of valuation multiple re-rating due to the merger with Sony Corp; any potential risk of the merger getting called off by Sony will have a significant negative impact on valuations.

    Post the change in deal terms/ potential name of a new CEO for the merged Co, shareholder, Board, ROC (Registrar of Companies) and MIB (Ministry of Information and Broadcasting) approval may be needed which may only take a few weeks; our legal experts indicate that a fresh NCLT/CCI approval will not be needed for change in CEO of the merged co; further, as per our assessment – the NCLT/CCI  approval isn’t time bound, which means any potential extension has no negative impact on the merger.

    The credit of this article is attributed to Elara Capital SVP Karan Taurani. 

  • MNC media juggernaut arrives

    MNC media juggernaut arrives

    Mumbai: The National Company Law Tribunal’s (NCLT) approval for the Zee Entertainment -Sony merger without conditions offers further respite for Z valuation, which has been muted for the past two years (the stock has not given any absolute returns). The company will now move to Registrar of Companies to file for the merged entity once the final NCLT order is released; in the interim, we await the outcome of the SEBI and SAT cases against the Goenka family, the promoter, which may not have any adverse impact on the merger, as Punit Goenka has already stepped down from the Board; in a worst case scenario, the Board and shareholders will appoint a new CEO in case SAT order is against Punit Goenka. Post the regulatory approvals, Z will be delisted, and the merged company will be relisted as Sony-Zee wherein 100 shares of Z will enable shareholders to get 85 shares of the merged entity (~2-3 months process). We do not expect any change in the deal contours despite the long delay, as NCLT has approved the scheme. Further, Sony will get a majority shareholding of 50.8 per cent in the merged entity whereas the Goenka family’s stake will move up to 3.99 per cent, which includes the non-compete fee. We do not expect any impact from creditors filing a case against the NCLAT order.

    Moat remains for the merged company

    Z-Sony commands an ad market share of 24 per cent as on CY22, below the other large peer, Star-Disney, which is at 33 per cent; formation of a large entity on the broadcasting side would lead to cost and revenue synergy, which would offset the negative impact of lower growth rates (India TV ad revenue CAGR has been flat over FY20-23).

    Valuation: reiterate Buy with a higher TP of Rs 340

    We expect better execution in terms of strategic initiatives, due to global expertise and better CG (corporate governance) initiatives , which should propel higher cashflow. We do not expect Z-Sony valuation moving to 32- 33x fwd. P/E (peak valuation multiple in FY18). This is because India’s media landscape has changed with 1) TV broadcasting growth rates converging, and 2) digital business offering limited opportunity for monetization & scale due to disruption; however, we expect the negative impact to be offset by: 1) the merged company, and 2) an MNC-backed firm, which would lead to P/E at a 40 per cent discount vs peak (32x one-year forward). We introduce FY26E for the merged entity and value the core broadcasting business at 20x (from 17x) one-year forward P/E (potential exit of Disney from linear TV may enable Z-Sony to gain market share). We rollover to 24 Sept (since synergies will take some time to kick in) SOTPbased TP of Rs 340 from Rs 300 (after factoring in higher sports losses), with a cash infusion from Sony, synergy and valuing the OTT business 4x one yr. fwd. EV/Sales; our PAT estimate incorporates potential OTT losses.

    The credit of this article goes to Elara Capital SVP Karan Taurani.

  • NxtDigital receives NCLT sanction to the scheme of arrangement with Hinduja Global Solutions

    NxtDigital receives NCLT sanction to the scheme of arrangement with Hinduja Global Solutions

    Mumbai: On Friday, the National Company Law Tribunal (NCLT) gave its final approval and sanction to the scheme of arrangement between NxtDigital (NDL) and Hinduja Global Solutions (HGSL).

    The media & communication business undertaking, including the assets and liabilities as well as the subsidiaries, is transferred to HGSL in accordance with the scheme.

    Amar Chintopanth, a full-time director and the company’s chief financial officer, will remain in that position. The new NDL will concentrate on the next stage of its reorganisation after the scheme takes effect, taking the necessary regulatory and other pre-emptive steps.

    The final order of the NCLT was recorded during a board of directors meeting that was held for the company. Additionally, the board has set 23 November 2022 (the close of business) as the record date for the list of shareholders who will be qualified to receive shares issued by HGSL under the scheme of arrangement.

    All NDL shareholders who held equity shares in the company as of 23 November 2022, at the close of business, will receive an allocation of equity shares in HGSL equal to 20 equity shares fully paid up in HGSL for every 63 equity shares fully paid up in NDL.

    More significantly, all NDL shareholders as of the record date will be qualified to take part in any corporate actions that HGSL chooses to take, including dividends (interim and final), buybacks, and other actions, if any, after the record date.