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Infomedia Press Ltd.

BSE: 509069 Sector: Services
NSE: INFOMEDIA ISIN Code: INE669A01022
BSE 00:00 | 07 May Infomedia Press Ltd
NSE 05:30 | 01 Jan Infomedia Press Ltd
OPEN 4.32
PREVIOUS CLOSE 4.32
VOLUME 881
52-Week high 4.34
52-Week low 2.81
P/E
Mkt Cap.(Rs cr) 22
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4.32
CLOSE 4.32
VOLUME 881
52-Week high 4.34
52-Week low 2.81
P/E
Mkt Cap.(Rs cr) 22
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Infomedia Press Ltd. (INFOMEDIA) - Chairman Speech

Company chairman speech

ANNUAL REPORT 2000-2001 TATA INFOMEDIA LIMITED CHAIRMAN'S SPEECH Ladies and Gentlemen, I extend a warm welcome to all of you who are attending the 46th Annual General Meeting of your Company. The Annual Report of the Company is already with you and I am confident that this exquisitely produced report has provided you with information about the Company's strategic thrust as well as its working during the year ended March 31,2001.With a challenging environment prevailing for most of the period, it is to the credit of your Company that, for the eleventh year in succession, we were able to report higher profits. Turnover, Profit Before Tax and Profit After Tax were all t record levels. Corporate Income during the year grew by 12% from Rs.106.59 crores to Rs.119.68 crores. Operating profit registered a growth of 13%.The Voluntary Retirement Scheme accounted for Rs.2.38 crores resulting in a profit before tax of Rs.19.53 crores. In spite of a higher tax burden of Rs.8.10 crores and a complete write off of VRS expenses, profit after tax has increased in the current year to Rs.11.43 crores. The return on capital employed also increased from 20.50/o to 22.06%. The Board of Directors are happy to recommend a dividend of 70%, which is a hike of 10% over the previous year. The dividend will absorb an amount of Rs.588.43 lakhs. Gratified by the Company's performance, the Directors have also decided to recommend an issue of Bonus Shares in the ratio of 1 :2. After the capitalization of reserves, the Paid-up Share Capital of the Company will be Rs.11.44 crores. You will recall that the last bonus issue was made in 1997-98 also in the ratio of 1 :2. Shareholders will appreciate that your Company is amongst only a handful of companies which have declared two Bonus Issues in a span of 4 years. During the year under review, the value added products of your Company continued to grow. The Yellow Pages division continued to show healthy growth. During the year, the Company launched its Yellow pages for the cities of Ludhiana and Indore. In the Special Interest Publications division, a new magazine for the automobile industry, Auto Monitor, was launched during the course of the year. You will be glad to know that all our publications are leaders in their respective fields. Direct Edge had another successful year. We look forward to Direct Edge playing an even more important role in the coming years. Both Brightsparks and Touchstone also had a successful year. The Company implemented another Voluntary Retirement Scheme at its manufacturing plant at Prabhadevi. As a measure of financial prudence, the entire expense incurred for this scheme, amounting to Rs.2.38 crores, has been charged off against the profit for the year as mentioned earlier. You must be aware that the Reserve Bank of India issued a notification on February 16,2001 prohibiting FIIs/OCBs/NRIs from purchasing shares of companies engaged in the print media. Your company has strongly protested against this move which considerably weakens the print media in relation to other media where there are no such restrictions. The notification appears all the more retrograde when viewed against the fact that foreign direct investment has been allowed in areas like Defence and Civil Aviation. We understand that the Reserve Bank of India is currently in discussion with the Ministry of Information & Broadcasting and we are hopeful that this decision will be reversed. In the meantime, the Registrar of Newspapers for India has not been registering your Company's new titles until the l&B Ministry issues a suitable clarification. Shareholders may be aware that the print lobby in India is divided on the issue of permitting FDI in the print media. The principal reason advanced for the pursuit of such a restrictive policy is the protection of the country's self interest that could be compromised by the perversion of t'-e minds of readers by foreign investors. I submit that those who put forward this argument hold an unjustifiably poor opinion of the Indian Public and their ability to distinguish right from wrong and to reject subversive coverage. Meanwhile, the principal beneficiaries of the present restrictive practices are a group of media barons. In the current year, your Company has launched its "Yellow Line" service for Mumbai and Delhi. Your Company has also completed test marketing of a Home Guide for Prabhadevi. It hopes to extend this concept to other areas in Mumbai as well as in Delhi. Our Special Interest Publications division will have more launches in the current year after the issue of FII holding is resolved. We expect our Direct Marketing division, Direct Edge, to benefit from the data warehousing project implemented last year. The economic environment in the first half of 2001 has been extremely challenging for most companies in the Indian market and recessionary factors very evident. Advertising has also faced a cut and this has had some impact on your Company's business. Accordingly, for the first three months total income is more or less static at Rs.24.02 crores, W:-51 the profit after tax down by 29%. Our expectations for top line and bottom line growth are centered on an improvement of economic conditions in India in the second half of the financial year. Lastly, l would like to thank all our stake holders including shareholders, customers and employees for their continuing support to the Company, contributing to one more year of success in a difficult year. My special thanks to my colleagues on the Board of your Company who have played an active role as Directors and to the Managing Director under whose stewardship the Company has changed its business profile and performed so well. Thank you. Xerxes Desai Chairman