Punit Goenka’s Three-pronged Plan For Zee’s Future

During the Q3FY24 earnings call conducted on February 13, Punit Goenka articulated his three-pronged approach for the company’s future, which is part of its intrinsic DNA:

Frugality

-Over the last three decades, Zee has been recognised for its fiscal prudence across the industry, and going forward, there will be a sharper emphasis on frugality, with a crystal clear focus on quality and output

-Across verticals, including technology, content and marketing, they are implementing steps to optimise spends and enhance the return on investments

-A sound recalibration of the OTT cost structure will be an integral part of this process

Optimisation

-The aim is to enhance productivity by implementing a structured resource optimisation drive. This also means enhancing the level of synergies and reducing overlaps between businesses

-On the revenue side, steps will be taken to increase the value delivery to the advertisers; apart from exploring alternate content monetisation avenues. This also includes leveraging the strength and reach of its platforms

Sharp Focus On Quality Content

-To maintain a sharp focus on quality content by streamlining the content creation process for quality output without compromising on the delivery

-Quality over quantity will be the mantra going forward. For example, it may result in the creation of a relatively lesser number of originals if required; but every piece of content created s superior in quality and captivating will be ensured

Other important points mentioned during the call:

1.Reiterating that Zee continues to have strong business fundamentals

2.The company’s intrinsic value remains intact, and Goenka has chalked out a firm and structured plan to bring back margins to industry-beating levels and drive growth for the future

3.Zee is well-equipped for the future with immense capabilities to identify and capture emerging opportunities in an evolving landscape

4.Agility, with a strong entrepreneurial spirit, will make it the best across the industry

5.The three-pronged approach, will elevate and further streamline the existing capabilities in line with their robust growth plans. The results of these structured steps over the next few quarters, will start reflecting in the Company’s performance. 

6.its FY 26 aspiration will be to target 18-20 per cent industry-leading EBITDA margin profile

7.Zee as a company is well-positioned to capitalise on the growth opportunities