Diligent Media Reports Loss in Q1, Appoints New CEO and Senior Management

Diligent Media Corporation Limited , the digital media company behind DNAIndia.com, has reported a net loss of Rs 188.60 lakhs for the quarter ended June 30, compared to a profit of Rs 245.26 lakhs in the same period last year. The company's financial performance has taken a hit, with revenue from operations declining significantly to Rs 78.67 lakhs from Rs 296.30 lakhs year-over-year.

Financial Performance

The company's total income for Q1 stood at Rs 80.80 lakhs, down from Rs 660.61 lakhs in the corresponding quarter of the previous year. The decline in revenue was accompanied by a reduction in total expenses, which decreased to Rs 270.87 lakhs from Rs 416.33 lakhs in the same period.

Management Changes and Appointments

In a series of strategic moves, Diligent Media's Board of Directors has approved several key appointments:

1. New CEO: Mr. Chitresh Sehgal has been appointed as the Chief Executive Officer of the company, effective August 1. Sehgal, a seasoned media professional with over 10 years of experience specializing in web-based news, holds a Bachelor of Arts (Honours) degree in Political Science from Delhi University.

2. Senior Management Elevations:

   • Ms. Kusum Lata, currently serving as Team Lead at DNA Hindi, has been elevated to a Senior Management position.
   • Ms. Srishty Choudhury, the Editor of DNAIndia.com, has also been promoted to a Senior Management role.

3. Board Re-appointment: The Board has recommended the re-appointment of Mr. Ronak Jagdish Jatwala as a Non-Executive, Non-Independent Director, subject to shareholder approval at the upcoming Annual General Meeting on August 26.

Financial Challenges and Ongoing Arbitration

The company continues to face financial challenges, with accumulated losses exceeding its paid-up capital and reserves. However, management maintains that the company has adequate liquidity to meet its obligations, citing higher current assets compared to current liabilities.

An ongoing arbitration matter involves inter-corporate deposits (ICDs) of Rs 17,340.27 lakhs with Veena Investments Private Limited (VIPL). The Board has given in-principle approval to a proposal for setting off the redemption of preference shares worth Rs 43,626.56 lakhs against VIPL's obligation to repay the ICDs, subject to the final outcome of arbitration proceedings.

Future Outlook

Despite the current financial setbacks, Diligent Media's management remains focused on expanding its digital media operations. The company's ability to continue as a going concern is significantly dependent on the successful expansion of these operations and the generation of sufficient cash flows.

As Diligent Media navigates through these challenges, the newly appointed leadership team will play a crucial role in steering the company towards financial stability and growth in the competitive digital media landscape.