NDTV’s e-commerce business (Indianroots.in) has reported revenues of Rs 3.5 crore for the quarter ended March 31, 2014, up 40% from Rs 2.31 crore in the previous quarter and Rs 52 lakh in the quarter before.
The company hasn’t disclosed the profit or loss of the segment for the quarter. In the previous quarter, it had reported Rs 5.38 crore loss before tax. However, remember that these are still early days for the business, having launched in July last year. NDTV mentions that it has spent an incubation cost of Rs 25 crore on the venture and is currently in talks to raise capital through private placement.
The company board has also mandated NDTV management to explore increasing the stock value for the shareholder through various means including restructuring or private placement in the company’s digital arm NDTV Convergence and/or other subsidiaries.
The company has reported a significant increase in its losses to Rs 31.39 crore for the quarter, up from Rs 10.43 crore loss in the previous quarter. It had posted Rs 27.81 crore profit in the same quarter last year.
The total operational revenue was at Rs 124.1 crore for the quarter, down from Rs 127.4 crore in the previous quarter and Rs 186.6 crore in the same quarter last year. The company however mentions that the current quarter numbers include a one-time write-off of Rs 14 crore.
For the year ended March 31, 2014, NDTV reported operational revenues of Rs 460.1 crore and a net loss of Rs 81.2 crore. In comparison, it had posted revenues of Rs 526.8 crore and a net profit of Rs 1.9 crore in the previous year. The total consolidated revenue was at Rs 496 crore. The company informed that the significant incubation cost for NDTV’s e-commerce venture and NDTV Prime contributed to the annual losses.
It also mentioned this was an investment year for NDTV with an aim to turn around loss making verticals and incubate new growth businesses.