D. B. Corp Limited (NSE:DBCORP)
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181.05
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Sep 24, 2026, 1:39 PM IST
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Q3 23/24

Jan 25, 2024

Operator

Ladies and gentlemen, good evening and welcome to D. B. Corp Limited Q3 and nine months FY 2024 earnings conference call. As a reminder, all participant line will be in listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. We have with us today the senior management team of D. B. Corp Limited, Mr. Pawan Agarwal, Deputy Managing Director, Mr. Girish Agarwal, Non-Executive Director, Mr. Lalit Jain, Chief Financial Officer, Mr. Mushtaq Ali, Senior Vice President, Finance and Accounts, and Mr. Prasoon Kumar Pandey, Head of Investor and Media Relations, who will represent D. B. Corp Limited on this call.

The management will be sharing the key operations and financial highlights for the quarter ended December 31, 2023, followed by a question and answer session. Please note that some of the statements made in today's discussion may be forward-looking in nature and may involve risks and uncertainties. Documents relating to company financial performance have already been emailed to you and available on the website of Stock Exchange under the company's Investor section. Trust you have been able to go through the same. I now hand the conference over to Mr. Pawan Agarwal. Thank you, and over to you, sir.

Pawan Agarwal
Deputy Managing Director, D. B. Corp

Thank you very much, and a very good evening to everyone, and thank you for joining the quarter three FY 2024 D. B. Corp earnings conference call. We will begin the call today by highlighting the key financial performance for the quarter ended December 31, 2023, followed by key operational updates. We are very happy to report that over the past 10 quarters, we have consistently delivered strong results, maintaining a trajectory of continuous growth. What is particularly encouraging is that this quarter's year-on-year growth was achieved on a comparatively higher base. Our success can be attributed to several factors, including the sustained growth of advertisement revenue, softening trends in newsprint prices, and well-executed cost control and optimization measures. The sustained growth in both top line and bottom line across all our business segments reaffirms our confidence that happy days are indeed back for the print business.

For quarter three FY 2024, consolidated advertising revenues registered a growth of 18% YoY to INR 4,819 million against INR 4,069 million. EBITDA grew by 102% YoY to INR 2,031 million against INR 1,007 million, sorry. EBITDA margin expanded by impressive 1,400 basis points to 31% from 17% last year. Our average cost for newsprint has reduced from the high of INR 63,500 per metric ton in quarter two FY 2023 to around INR 51,500 per metric ton in Q2 FY 2024. And now to approximately INR 50,000 per metric ton in Q3 FY 2024. And we do expect newsprint purchase prices to remain softer in the next one to two quarters.

Our PAT grew by 157% YoY to INR 1,214 million against INR 483 million. December YTD, our consolidated advertising revenue grew by 16% YoY to INR 13,066 million against INR 11,248 million. Total revenue grew by 13% YoY to INR 18,403 million against INR 16,236 million. EBITDA grew by 86% YoY to INR 5,066 million against INR 2,722 million. PAT grew by 137% YoY to INR 3,030 million against INR 1,281 million. Let me now take you through some of the highlights of our business segments.

Overall, as you all know, it has been a very encouraging quarter and we remain committed to delivering high quality content and engaging experiences, ensuring that our readers continue to find value in their favorite brand, Dainik Bhaskar. For our digital business, Dainik Bhaskar has continued its focus on building the best-in-class ad-free user experience on its digital app while maintaining high quality, insightful, and engaging content for its readers. The omni-channel presence has been very important, and we see our digital presence as a strong supplementary pillar of growth for us. With around 13 million users as of December 2023, we are extending our leadership position and cementing our place as a dominant digital leader with the number one Hindi and Gujarati news apps. Our radio segment has been delivering industry-leading EBITDA margins.

Radio grew 28% YoY to INR 464 million versus INR 362 million, while EBITDA grew by 56% YoY to INR 183 million versus INR 118 million, sorry. With this, I would now request Mr. Girish Agarwal to update us on the operations. Over to you, Girish.

Girish Agarwal
Non-Executive Director, D. B. Corp

Thank you, Pawan, and good evening, everybody, and thank you for joining us on this call. We are pleased to conclude yet another stellar quarter of performance, continuing our streak of consistent growth over the past 10 quarters.

Print media's dominance in the news landscape has been demonstrated with consistent growth in advertising. Dainik Bhaskar's powerful brand equity as India's number one newspaper is reflected in the impressive portfolio of advertisers that continue to repose their trust and increase their advertising spend every quarter. The buoyancy in the tier two and three cities continue to drive strong local economic growth. In our key markets, the auto sector saw further traction with the festive season, the new launches driving further ad spend. Advertisers categories such as education, real estate, jewelry, government, health, BFSI, et cetera, continue to use print as their preferred medium and has given a very good growth in this quarter. Lastly, on the cost front, we have been benefiting from the soft newsprint prices, and this has certainly helped us improving the gross margin.

Our balance sheet is in a very healthy position, with our cash and bank balance at INR 825 crores with zero debt. Our ROCE and our RONW has a healthy 24% and 18% level. Also happy to share that our company has generated free cash flow of INR 337 crores in last nine months. This is all from our side, and now me and my colleague would be more than happy to respond to your queries. Thank you very much.

Operator

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. An operator will take your name and announce your turn in question queue. Participants are requested to only use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pradyumna Choudhary from JM Financial. Please go ahead.

Pradyumna Choudhary
Analyst, JM Financial

Yeah. Hi, sir. Congratulations on a great set of numbers. My first question was regarding the newsprint prices. What has been the average over the last quarter? And right now, where are the prices at present levels? That's the first question.

Girish Agarwal
Non-Executive Director, D. B. Corp

Thank you, Mr. Choudhary. Let me answer this first question of yours. Last year, in the same quarter, we had a newsprint price of roughly around INR 61,000 per ton. This year, quarter three came down to almost INR 50,000 per ton. If I see the quarter two, then in quarter two, we were at some INR 51,500, and this quarter three, we are at INR 50,000. Going forward, it looks like there are strong possibility of this going down by another 2-3%. I am recently told that there is an overseas trade issue happening because of the Red Sea and all that. If that doesn't create any problem, then this price should further go down by 2-3%.

Pradyumna Choudhary
Analyst, JM Financial

Understood. Secondly, on the segment wise advertising revenue, as you mentioned, I think education, real estate, BFSI, health have been seeing good growth. What about other segments like auto, I think was still not up to the levels till last time and government and FMCG. What's your general understanding of these segments as well?

Girish Agarwal
Non-Executive Director, D. B. Corp

Yes, I will answer giving all the details. Fortunately, in this quarter, most of the advertising categories have grown in a double digit. Let me start. Automobile has grown by almost 47%, real estate by almost 20%, jewelry by 26%, government at 36% growth because of the elections in the states. Hospitals and healthcare sector has grown by almost 20%. Banking and finance, thanks to IPOs and all, also have gone up by almost 16%. There are a few categories, those who have maintained their number, like response is one big category for us, which is a classified, obituary and all that. That segment has taken a slight beating by almost 3%-4% there. Education has gone down by 10% because this quarter is not an education quarter. It has gone down, not a very significant number also.

But largely, another category which has taken a nosedive, unfortunately, the very small category for us is the hypermarkets. That has almost gone down by 25%. But rest, all other categories fortunately has shown a very, very remarkable growth.

Pradyumna Choudhary
Analyst, JM Financial

Sir, sorry, I missed out on the FMCG segment.

Girish Agarwal
Non-Executive Director, D. B. Corp

FMCG has grown by almost 20%-25%.

Pradyumna Choudhary
Analyst, JM Financial

All right. Any signs of deacceleration in revenue growth from here, or are we still seeing very, very good demand for advertising right now?

Girish Agarwal
Non-Executive Director, D. B. Corp

Yeah, I think India as a country is in a very positive state and in a positive mood, looking forward to the Lok Sabha election also coming in the month of April, May. On the back of it, I am very confident and very buoyant.

Pradyumna Choudhary
Analyst, JM Financial

All right. Thank you.

Operator

Thank you. The next question is from Riya from Aequitas Investments. Please go ahead.

Riya Mehta
Analyst, Aequitas Investments

Congratulations on a very good set of numbers. My first question is in regards to the current inventory levels of paper. Since we know there's a geopolitical issue, are we increasing our inventory level of paper?

Girish Agarwal
Non-Executive Director, D. B. Corp

No. As you know, almost 70% of our paper is indigenous, newsprint is indigenous. Whatever geopolitical issue happens is only for those 30%. We don't change much. But yes, if we get a huge benefit from a particular mail in India or abroad, then I will be more than happy to order them more stock because then the price will take care of it.

Riya Mehta
Analyst, Aequitas Investments

Sure. What is your current level of circulation?

Girish Agarwal
Non-Executive Director, D. B. Corp

We are almost at 41, 42 lakh copies.

Riya Mehta
Analyst, Aequitas Investments

41, 42 lakh copies. Going forward, since our central election date of April 16th has been already announced. So generally the model code of conduct will be till March. So the major chunk of revenue from central elections should be coming in this quarter?

Girish Agarwal
Non-Executive Director, D. B. Corp

Yes, looks like.

Riya Mehta
Analyst, Aequitas Investments

Okay. That's it from my side. I'll join the queue for further questions.

Girish Agarwal
Non-Executive Director, D. B. Corp

Appreciate it.

Operator

Thank you. Next question is from the line of Amit Doshi from Care PMS. Please go ahead.

Amit Doshi
Co-Founder and Director, Care PMS

Yeah. Congratulations on the great set of numbers. I wanted to know about the ad rates, whether those have gone back to those pre-COVID levels or anything that you can provide info on that.

Girish Agarwal
Non-Executive Director, D. B. Corp

In some categories, we have gone higher than the pre-COVID levels and certain categories we are still at the same levels.

Amit Doshi
Co-Founder and Director, Care PMS

That is only because of the festive season or general rates are also, because December quarter obviously is a heavy quarter for us.

Girish Agarwal
Non-Executive Director, D. B. Corp

It depends on the category to category. Some categories, those who are doing very good, we have tried to take the rate up. Some categories, those who are struggling, like automobile was struggling till last quarter. So we have not ventured out much on the automobile side right now in terms of rate, but other categories, things are moving in the right direction.

Amit Doshi
Co-Founder and Director, Care PMS

Okay. And sir, you mentioned that happy days are back for print. So on our circulation, the growth is around 3-4%. So at industry level also, this print media is generally growing better, and that is why you are commenting such a fashion?

Girish Agarwal
Non-Executive Director, D. B. Corp

So when you say happy days, happy days are the holistic approach. In terms of cost, we are pretty good in last 10 quarters. You see the cost has really come down for the newsprint for the entire industry. If you look at the advertising revenue, there is a growth for us in a strong double digit. I am assuming the same would be for the, if not same, at least single digit for the other players also. And overall, the whole trust factor on newspapers have gone up. And we all are seeing that because of the multiple events happening around, the whole concept of going back to newspaper for the credentials and for the content and knowledge is going up. So I think that makes us in a very happy situation, number one.

Number two, since you raised this question, I also believe this is the right time for all the newspaper organization and especially at D. B. Corp we are doing it. We are investing more in the content because we believe that we all were able to come out of this storm of COVID and all based on the content. Because a person as an individual felt that, no, I need to open up those 24 pages of a newspaper because I believe those 24 pages keep me abreast and give me something which doesn't come to me through social media or even the digital media as such and all. I think because of that, I believe it's our responsibility that we must invest in the content so our reader, our consumer really feels more delighted and that the relationship with him continues for her also.

Amit Doshi
Co-Founder and Director, Care PMS

Okay. Sir, in Canada, about a month or two months back, this judgment came where now Google is supposed to pay to the local news agency. I believe we also have some similar case pending. Anything that you want to share in light of that decision or it's likely to have any sort of impact on our India news agencies case?

Girish Agarwal
Non-Executive Director, D. B. Corp

For sure. So what has happened, the DNPA, which is Digital News Publishers Association, and I think Indian Newspaper Society has both gone to Competition Commission of India and have registered their complaint there and a petition there. And CCI has been going through the whole petition and the issues raised by the industry body. And based on that, I am sure they will also take a very arrived call. Since the matter is sub judice, I may not be able to comment much on that.

Amit Doshi
Co-Founder and Director, Care PMS

Okay. And sir, anything on the app monetization that we have started? Considering that our digital app is doing so well.

Girish Agarwal
Non-Executive Director, D. B. Corp

I think app is doing very well in terms of involvement of the reader. We have got large chunk of people coming in, giving their time to us and all that. We are expanding in all that. I think monetization will happen. I think we all need to have patience on the monetization front.

Amit Doshi
Co-Founder and Director, Care PMS

Okay. Thank you and wish you all the very best.

Girish Agarwal
Non-Executive Director, D. B. Corp

Thank you, sir.

Operator

Thank you. The next question is from the line of Himanshu Upadhyay from o3 PMS. Please go ahead.

Himanshu Upadhyay
Analyst, o3 PMS

Congratulations on good set of numbers.

Girish Agarwal
Non-Executive Director, D. B. Corp

Thank you.

Himanshu Upadhyay
Analyst, o3 PMS

My question would be on circulation. What are we doing to improve our circulation from here on? Which, in the ninth month, this 3.8% circulation which is there. How much would be the volume growth in this? Do you think the existing markets where we are can reach—

Girish Agarwal
Non-Executive Director, D. B. Corp

I think you have raised a very pertinent question, and sorry to interrupt you early. See what has happened, if you notice the history, whenever newspapers wanted to increase their circulation, there are two or three approaches. One is that offer some big attraction on the cover price. Number two, offer some huge trade schemes. Number three, offer some great freebies to the consumers, like the readers. In last three years' time, we as organization have taken a call that we are not going to work on any of these three parameters to increase our circulation, because newspaper prices are anyway was much higher. Even now they are still much cheaper. We've said that we want our reader to come to us 100% on the quality. That's the reason our entire focus is on the quality. We are not offering any cover price reduction.

At the same time, we are not increasing the cover price also. We are not offering any freebies to the trade or any other promotion activity. This is our endeavor, that we want to increase the circulation based on the quality content of the paper. We are very happy to say that in last almost a year, we have not been able to increase copies, but we haven't seen any drastic reduction or any action from the reader side in whatsoever manner. We are very confident that going forward now, looking at the various editorial initiatives done by Dainik Bhaskar, we need to get more readers, either the new one or the takeaway from the competitor.

Himanshu Upadhyay
Analyst, o3 PMS

Any thoughts on entering newer geographies or entering lower in the particular markets? See, some of the customers what we have or who are our potential customers now, they would be already sticking with something different than us, okay? What are we doing that new customers or the customers who are buying something else starts coming to us in the existing geographies, okay? Can you give some thoughts on that? Or let's say, what is going to put a buzz on the street that, okay, I was reading ABC, but I think because of XYZ factors, I think D. B. is a better newspaper, okay? I need to change my habit, okay?

Girish Agarwal
Non-Executive Director, D. B. Corp

Sure. First question answer is that we are not entering into any new geography because we believe we have those 12 states with us, which are very important in India, growing faster. We want to focus on them because we believe we have potential still left in these markets. Second point of yours I think is very valid, that if somebody else is reading something else, he need to feel that why I'm not reading Dainik Bhaskar or Divya Bhaskar or Divya Marathi. I think our editorial team is doing a fantastic job, and I would like to mention here recently the whole of India saw the Ram Mandir opening in Ayodhya. I think the editorial coverage of Dainik Bhaskar Group in last three days' time has been countrywide appreciated. Now these kind of things makes a paper premium.

A reader feel much more happy and satisfied, and that's what becomes a talking point for the other those who are not to start thinking that why aren't I subscribing to Dainik Bhaskar? We need to have more and more such events for us. We need to work harder on these areas so that we are able to convert the readers of competitive newspapers into our readers.

Himanshu Upadhyay
Analyst, o3 PMS

One last thing. I understand you don't want to say on the revenue side, on digital side, but can we say that the expense line has become more stable in that, or we think we need to further increase our investments in that business and whatever higher profitability on the, let's say, newspaper comes will be required to further invest into digital space? Any thoughts on that where is that expense line for digital space?

Girish Agarwal
Non-Executive Director, D. B. Corp

Two things on this particular thing. One is that the expenses line in the digital is on a downtrend. That's very important thing on our evaluation analysis on a daily basis that we are not hesitant to do more investment in digital, but that extra investment need to be giving us more number of viewers coming in, and at the same time, the cost need to go down. Second thing I just wanted to mention to you that you can be 100% reassured on your company that whatever we do, we really are careful about every penny spent on any initiative, whether it's digital, radio or print and all that. So that much confidence I want you to have on us that whatever we are doing on digital is for the good of the company.

Himanshu Upadhyay
Analyst, o3 PMS

Okay. Thank you, and best of luck for the future.

Girish Agarwal
Non-Executive Director, D. B. Corp

Thank you very much.

Operator

Thank you. The next question is from the line of Sakshi Chhabra from Swan Investments. Please go ahead.

Sakshi Chhabra
Analyst, Swan Investments

Yeah. Hello, sir. Congratulations on a great set of numbers. My first question was on your radio business. It is very commendable to see that you have had such a great growth in terms of the ad revenues over there. I just wanted to understand, the other of your competitors have also reported numbers, and they have not been doing as well on the radio business. One has seen a degrowth and one has grown only 10%. What are we doing so differently that we are able to see such strong growth?

Girish Agarwal
Non-Executive Director, D. B. Corp

Actually, the fact that we are in tier two, tier three markets, smaller markets, where the dependence of advertisers on radio is higher, and also the delivery of radio is still better in tier two, tier three markets. That has been the core philosophy and the fundamental. Also our local programming, in the last couple of years, we have not let any RJ go from our networks. All 30 stations are running with radio jocks, local teams. There is a local connect, and that is helping us build the local revenue. Of course, focus on making sure that we do not play advertising only on the networks. We still play a lot of music and jock talk on the networks. That is keeping the whole station very healthy.

Sakshi Chhabra
Analyst, Swan Investments

Okay. My other question was, on your digital side, what would be now the number of downloads of your e-paper?

Girish Agarwal
Non-Executive Director, D. B. Corp

We have a total monthly active user of almost 13 million as in December, but this number keeps moving 13 to 14, 15 at times and all that. These are the guys, those who see the e-paper, they also see the news there on a daily basis, weekly basis, etcetera.

Sakshi Chhabra
Analyst, Swan Investments

No, but what I wanted to understand was that the e-paper is the paid. What I wanted to understand was, what is your paid number of users?

Girish Agarwal
Non-Executive Director, D. B. Corp

Yeah. These guys are the ones, some section of them are paid. Just to remind you, a couple of quarters back, we took the liberty of requesting all of you to allow us not to report the details of the digital being a very competitive environment, and you all were very kind enough to say yes. That's the reason we are not giving you the details of the digital for now.

Sakshi Chhabra
Analyst, Swan Investments

Right. Okay, no problem. On the print business, what is the kind of ad revenue growth that you would be seeing for the next couple of years?

Girish Agarwal
Non-Executive Director, D. B. Corp

As I mentioned a few minutes back that Lok Sabha election is in the month of April and May, and India is in a very positive mode right now. Things are looking very upward. Based on that, we believe that the GDP growth is also strong. Based on that, we believe our growth should continue on the same tradition.

Sakshi Chhabra
Analyst, Swan Investments

One last question was, in the long run, how do you see the newsprint prices in the next maybe one or two years?

Girish Agarwal
Non-Executive Director, D. B. Corp

Frankly speaking, newsprint price is more like a commodity. For me to say how do I see in actual will be difficult. How would I like to see? Certainly going down below INR 40,000, but I don't know about that will be proven right or not. How will it pan out? Really no know.

Sakshi Chhabra
Analyst, Swan Investments

Okay. But what would be the factors that would bring it down to INR 40,000?

Girish Agarwal
Non-Executive Director, D. B. Corp

I am hoping for that. As you mentioned, I would like to see. But frankly speaking, it can never go down to INR 40,000 for two reasons. Number one, the newsprint manufacturers are now also having the ability to switch it over into the packing and writing other paper.

Sakshi Chhabra
Analyst, Swan Investments

Right.

Girish Agarwal
Non-Executive Director, D. B. Corp

Because of that, if it is not viable for them to make money in the newsprint, they will switch over.

Sakshi Chhabra
Analyst, Swan Investments

Okay.

Girish Agarwal
Non-Executive Director, D. B. Corp

We want them to be viable enough, so they continue making newsprint for us.

Sakshi Chhabra
Analyst, Swan Investments

Okay, what is the lowest that it could possibly go to?

Girish Agarwal
Non-Executive Director, D. B. Corp

I guess what the indications are that in the next two quarters, we can see this number going down by 2%-5%, 2%-5% approximately.

Sakshi Chhabra
Analyst, Swan Investments

That would be the base, not more than that.

Girish Agarwal
Non-Executive Director, D. B. Corp

Yeah, 2%-5% next two quarters, and let's see what goes after that.

Sakshi Chhabra
Analyst, Swan Investments

Okay. Thank you so much, and all the best.

Girish Agarwal
Non-Executive Director, D. B. Corp

Thank you.

Operator

Thank you. The next question is from the line of Nish Shah from Stellar AMC. Please go ahead.

Nish Shah
Analyst, Stellar AMC

Hi there. Congratulations for the great set of numbers. My question is regarding the incremental revenue, ad revenue, which we earned in Q3 because of the elections.

Girish Agarwal
Non-Executive Director, D. B. Corp

Hello.

Nish Shah
Analyst, Stellar AMC

Yes, sir.

Girish Agarwal
Non-Executive Director, D. B. Corp

Yeah, you were saying something about the incremental revenue because of elections. Yes, sir?

Nish Shah
Analyst, Stellar AMC

Yes.

Girish Agarwal
Non-Executive Director, D. B. Corp

Hello?

Nish Shah
Analyst, Stellar AMC

Hello. Yes, sir.

Girish Agarwal
Non-Executive Director, D. B. Corp

Yeah, please go ahead. Can you complete your question, please, sir?

Nish Shah
Analyst, Stellar AMC

My question is, what is the incremental ad revenue because of the elections?

Girish Agarwal
Non-Executive Director, D. B. Corp

Okay. As I mentioned to you, the government revenue in this quarter went up by almost 35%.

Nish Shah
Analyst, Stellar AMC

Okay.

Girish Agarwal
Non-Executive Director, D. B. Corp

But other sectors also, automobile went up by 47%, real estate went up by 20%, FMCG went up by 22%, jewelry went up by 26%, health sector went up by 22%. So it's not only the government which has contributed to this entire growth, it is the other sectors also.

Nish Shah
Analyst, Stellar AMC

Okay. Can I get the absolute numbers just of the election spend earnings?

Girish Agarwal
Non-Executive Director, D. B. Corp

We do not give out the absolute number. I am sure you understand the reason.

Nish Shah
Analyst, Stellar AMC

Okay, sir. What are the margins for Q4 we can expect, on the same line or it could be higher or lower basis?

Girish Agarwal
Non-Executive Director, D. B. Corp

This quarter we are at the margin of 31%, and the team is really working hard and the market looks very positive. India's GDP is looking strong. On the back of all this, I think we are very hopeful and positive.

Nish Shah
Analyst, Stellar AMC

Okay, sir. Thank you, sir.

Operator

Thank you. Next question is from line of Riya from Aequitas Investments. Please go ahead.

Riya Mehta
Analyst, Aequitas Investments

Thank you for giving me the follow-up opportunity. What was your current ad-to-edit ratio?

Girish Agarwal
Non-Executive Director, D. B. Corp

See, in the newspaper business, the ad-to-edit ratio generally maintains in a ratio of almost 70-30. But since in a newspaper unlike television and radio, we are not bound by the 24 hours.

If there are more ads, I can always increase number of pages. So for example, in one of the few days, because of certain anniversary issue of any particular edition, we go up to 120 pages. So ad-to-edit ratio doesn't make much of sense or impact in our business. But on an average, it's in the range of, if you see the monthly or annually average, 70-30.

Riya Mehta
Analyst, Aequitas Investments

For our government, what will be the center and state breakup, just as a percentage?

Girish Agarwal
Non-Executive Director, D. B. Corp

Sorry, come again.

Riya Mehta
Analyst, Aequitas Investments

In terms of government advertising, what would be the center and state breakup?

Girish Agarwal
Non-Executive Director, D. B. Corp

I think central government is very minuscule now. Large chunk is from the states because the local tenders, Panchayat.

Riya Mehta
Analyst, Aequitas Investments

Right.

Girish Agarwal
Non-Executive Director, D. B. Corp

Nivida and all that. It is largely the local business.

Riya Mehta
Analyst, Aequitas Investments

Right. Last couple of quarters, we have been seeing a few hiring of people on the upper top management side of it. How are we seeing that side of it? Are we continuing to increase our human resource or how is it?

Girish Agarwal
Non-Executive Director, D. B. Corp

Frankly speaking, whatever large human resources we need to hire, we have done it. But as you understand, more revenue has to grow, more ideas has to be sold to the clients. If you need more team for that, we are open to that, and we keep doing it based on the numbers.

Riya Mehta
Analyst, Aequitas Investments

All right. In digital, I realize that we have done a substantial amount of investments in the last couple of years. Since now we have a cash book of INR 800 crore, what is our capital allocation strategy going forward?

Girish Agarwal
Non-Executive Director, D. B. Corp

So as you know, our capital allocation strategy is very simple. If company needs some money, keep it in the balance sheet, otherwise give out the dividend. That's what we've been doing there. Like this year, we have done INR 5 of the dividend already. Going forward in the last quarter, again, we will announce dividend. We are pretty clear on that. We are not keeping any cash for any investment which may be required in digital.

Riya Mehta
Analyst, Aequitas Investments

Okay, so major part of the investment in digital is already done. Is my understanding right?

Girish Agarwal
Non-Executive Director, D. B. Corp

Absolutely.

Riya Mehta
Analyst, Aequitas Investments

Got it. Just out of curiosity, for the last maybe one and a half year, our subscribers to the total app has been more or less, we've consolidated on a number. So what would be the next growth step to increase it or take it one step ahead?

Girish Agarwal
Non-Executive Director, D. B. Corp

That's what the team is working upon, that how we take this number higher. So they've been experimenting in terms of content and all that. But good thing is that the engagement time has increased from 10 minutes to 11 minutes to 12 minutes and all that. So I think that's a good sign.

Riya Mehta
Analyst, Aequitas Investments

No, I think it's a phenomenal number to have these kind of engagement and the number of MAU. I think congratulations on that. I think that's it. I'm done with the questions. I'm hoping for the best for future.

Operator

Thank you. The next question is from the line of Darshit from RoboC apital. Please go ahead.

Darshit Vora
Analyst, RoboCapital

Hello.

Girish Agarwal
Non-Executive Director, D. B. Corp

Yes, sir.

Darshit Vora
Analyst, RoboCapital

Am I audible?

Girish Agarwal
Non-Executive Director, D. B. Corp

Yes.

Darshit Vora
Analyst, RoboCapital

Yeah. Thanks for taking my questions. So if you remember recently about the license fees issue, what are your thoughts on the notice outlook like? What do you expect? By when will this be taken away and will it be taken away?

Girish Agarwal
Non-Executive Director, D. B. Corp

You mentioned about radio, is that right?

Darshit Vora
Analyst, RoboCapital

Yeah. Radio, yeah.

Girish Agarwal
Non-Executive Director, D. B. Corp

Can you repeat your question? You are saying license fee can be taken away means?

Darshit Vora
Analyst, RoboCapital

The NOTEF, we have this, it is higher of either revenue or NOTEF, right?

Girish Agarwal
Non-Executive Director, D. B. Corp

Yeah.

Darshit Vora
Analyst, RoboCapital

There were rumors that NOTEF was supposed to be taken away. What is your outlook on that? Will it be taken away? If yes, then when do you expect, by when it will be taken away?

Girish Agarwal
Non-Executive Director, D. B. Corp

It is still under discussion. TRAI has made a strong recommendation to MIB to bring our royalties to a fixed percentage of revenue and not the royalty. It is under discussion. We are hopeful that it should be fixed. I do not know what time because cannot comment on how and when MIB takes a decision. TRAI has made a very strong recommendation this time.

Darshit Vora
Analyst, RoboCapital

Okay. Thank you.

Operator

Thank you. The next question is from the line of Pradyumna Choudhary from JM Financial. Please go ahead.

Pradyumna Choudhary
Analyst, JM Financial

Yeah, hi. Thanks for the follow-up. Just delving a bit deeper on the newsprint prices. You spoke about the freight issue which probably certain companies have started speaking about export or import oriented companies. So at least on the newsprint side in Europe, have the prices increased from what was there probably a month back?

Girish Agarwal
Non-Executive Director, D. B. Corp

Yeah.

Pradyumna Choudhary
Analyst, JM Financial

I am talking about today like as high.

Girish Agarwal
Non-Executive Director, D. B. Corp

Yeah. There seems to be some 2%, 3% change in the prices across. Since we have some forward agreements already done for a couple of months. That is the reason we are watching out for the next two quarters to see whether the prices goes down as per our expectation of 2%, 3% in the next quarter, or this freight kind of takes it away.

Pradyumna Choudhary
Analyst, JM Financial

Like 2%, 3% increase in Europe, newsprint prices have happened recently. Is that what you are saying?

Girish Agarwal
Non-Executive Director, D. B. Corp

Yeah.

Pradyumna Choudhary
Analyst, JM Financial

Understood.

Girish Agarwal
Non-Executive Director, D. B. Corp

It depends on the country to country and the company to company.

Pradyumna Choudhary
Analyst, JM Financial

Yes, understood. Secondly, definitely we have achieved great revenue growth on the advertising side. Are we also benefiting a bit from a late festive season? Would you say it is definitely very good numbers, auto 47%, real estate 20. All those are brilliant numbers to have, but do you think some of it was also to do with the late festive season?

Girish Agarwal
Non-Executive Director, D. B. Corp

Yes, you are right. Some of the benefit also came because the entire Diwali this time was slightly later. So that advantage also came to us.

Pradyumna Choudhary
Analyst, JM Financial

Even like FMCG, what would you say that now finally the ad revenue is getting back, or do you think it could be majorly due to this phenomena itself that, because of—

Girish Agarwal
Non-Executive Director, D. B. Corp

Size of FMCG is very small, so it is not something very major to move the needle, I think.

Pradyumna Choudhary
Analyst, JM Financial

Understood. Okay. Thank you.

Operator

Thank you. The next question is from the line of Mohammed Patel from Care PMS. Please go ahead.

Mohammed Patel
Analyst, Care PMS

Yeah, hi. My first question is, can you please share the advertiser mix like government, real estate, FMCG, auto for Q3 and nine months?

Girish Agarwal
Non-Executive Director, D. B. Corp

I have Q3, nine months. You want to know the percentages, correct? The percentage growth?

Mohammed Patel
Analyst, Care PMS

Yes. No, not the percentage growth, the percentage contribution to ad revenues.

Girish Agarwal
Non-Executive Director, D. B. Corp

Okay. Percentage contribution to ad revenue. Just to give you a rough idea, our government contributes to around 20%. The response category contributes around 10%-12%. Education is at a lower side because of the non-season, 5%. Automobile has come up to almost 10%. Real estate is in the realm of again, 8%-10%. And FMCG is sub five. Yeah, these are the main categories.

Mohammed Patel
Analyst, Care PMS

This is for Q3?

Girish Agarwal
Non-Executive Director, D. B. Corp

Yes, Q3.

Mohammed Patel
Analyst, Care PMS

Okay. My second question is, wanted to understand the volume growth of the advertisement versus last year and pre-COVID.

Girish Agarwal
Non-Executive Director, D. B. Corp

Sorry, come again. I couldn't hear that. Can you please repeat?

Mohammed Patel
Analyst, Care PMS

The volume growth of advertisements YoY and versus pre-COVID levels.

Girish Agarwal
Non-Executive Director, D. B. Corp

Okay. We don't have the pre-COVID business number. Maybe I can ask Mr. Prasoon Pandey to connect with you offline and give you the details.

Mohammed Patel
Analyst, Care PMS

Yeah. That is fine. My last question is, we had a circulation growth of 3.5%. What was this number for industry? I wanted to understand how much market share has changed for us.

Girish Agarwal
Non-Executive Director, D. B. Corp

Frankly speaking, you will not be able to understand the market share change because our competitors are not listed. For example, the Gujarat newspaper, who's my competitor, is not a listed company, so we'll have to wait for their number, and that we also don't get from the ROC actually. Similarly, the publications in Rajasthan and Madhya Pradesh are not listed. It's difficult to really judge from the listed numbers.

Mohammed Patel
Analyst, Care PMS

But broadly, what is your sense on us versus the industry?

Girish Agarwal
Non-Executive Director, D. B. Corp

I believe that what is happening in the market of Madhya Pradesh, Rajasthan and Gujarat in last two, three years' time, suddenly our market share has improved. But I think our bigger challenge is now how to get more copies in the sense, whether from the market share or getting the new readers in the system. So I think that has been the challenge without offering any freebies. See, to get circulation increased by offering the trade scheme and getting the cover price down is much easier, but we don't want to do that this time. We want to increase circulation based on the quality of content.

Mohammed Patel
Analyst, Care PMS

Okay. Understood. Thank you.

Girish Agarwal
Non-Executive Director, D. B. Corp

Thank you.

Operator

Thank you. Ladies and gentlemen, due to time constraint, that was the last question of the day. I now hand the conference over to management for closing comments.

Pawan Agarwal
Deputy Managing Director, D. B. Corp

Thank you. Thank you everyone for your participation and time on this earnings call today. I hope we have responded to your queries, and we will always be happy to be of assistance through our Investor Relations department, headed by Mr. Prasoon Kumar Pandey, for all your further queries. Thank you, and have a lovely week.

Girish Agarwal
Non-Executive Director, D. B. Corp

Thank you.

Operator

On the behalf of D. B. Corp Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.