Rating Rationale
June 06, 2025 | Mumbai
Bennett Coleman and Company Limited
Rating reaffirmed at 'Crisil AAA/Stable'
 
Rating Action
Total Bank Loan Facilities RatedRs.4600 Crore
Long Term RatingCrisil AAA/Stable (Reaffirmed)
Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings.
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities

Detailed Rationale

Crisil Ratings has reaffirmed its ‘Crisil AAA/Stable’ rating on the long-term bank facilities of Bennett Coleman and Company Ltd (BCCL).

 

The rating continues to reflect the strong market position of BCCL as India's largest media group with presence across diverse media and entertainment platforms, and its robust financial risk profile.

 

These strengths are partially offset by susceptibility to volatility in newsprint prices and to economic cycles, sizeable exposure to subsidiaries and group companies in the gestation phase, and large investment in the brand capital business (BCB).

Analytical Approach

Crisil Ratings has combined the business and financial risk profiles of BCCL and its subsidiaries Times Internet Ltd, Entertainment Network (India) Ltd, and Times Innovative Media Ltd. This is because these entities have strong managerial and financial linkages as well as operational synergies.

 

Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation.

Key Rating Drivers & Detailed Description

Strengths:

  • Strong market position of flagship publications and presence across the media and entertainment businesses: BCCL’s flagship publication, The Times of India (ToI), is the market leader in English dailies in terms of circulation as well as readership, with a leading position in northern and western India. BCCL’s business daily, The Economic Times (ET), is the largest circulated publication in its category and among the top five circulated English dailies in India. Strong market position should help BCCL improve its operating performance in line with the economy.

 

While newspaper publishing is the largest business segment for BCCL, the company has diversified into other media and entertainment businesses over the years. It has presence in radio broadcasting through subsidiary Entertainment Network (India) Ltd ('Crisil AA+/Stable/Crisil A1+'), and several television channels. Its internet properties are operated through a wholly owned subsidiary, Times Internet Ltd.
 

  • Robust financial risk profile: The financial risk profile is supported by strong networth of over Rs 14,000 crore vis-à-vis nil debt and liquidity of ~Rs 4,800 crore as on December 31, 2024. BCCL has made sizeable investments in digital ventures and BCB. The healthy investment portfolio — spanning real estate, well-established corporates and new-age businesses — provides strong financial flexibility.

 

Weaknesses:

  • Volatile operating margin due to economic cycles and reliance on import of newsprint: A substantial proportion of the operating income comes from ad revenue, which has a strong linkage to economic activity. Recessionary cycles and uncertain market conditions slow down spending, constraining ad revenue for newspapers, as was seen during the pandemic.

 

Besides, as newsprint accounts for 20-25% of the operating cost and BCCL imports ~80% of its newsprint requirement, its operating margin is susceptible to volatility in newsprint prices and foreign exchange rates. The margin is expected to remain rangebound on the expectation that newsprint prices, which have come down from record highs in fiscal 2023, will remain rangebound.

 

Movement of newsprint prices, sustenance of recovery in ad revenue and the impact on the company’s operating profitability will remain monitorable over the medium term.

 

  • Sizeable investment in BCB/strategic investments and subsidiaries/group companies in gestation phase: Sizeable investment of over Rs 3,691 crore (as on March 31, 2024) in BCB and strategic investments exposes BCCL to market risk, as a large portion of BCB comprises investment in equity and debt of listed as well as unlisted companies and in immovable property.

 

Exposure to subsidiaries, associates and joint ventures was ~Rs 6,000 crore as on March 31, 2024. Though these entities are strategically important to the business risk profile in the rapidly evolving media space, they will yield subdued returns over the medium term. Furthermore, some of them are still in the investment phase. That said, with some of the subsidiaries turning profitable and no large investment planned, support from BCCL to these subsidiaries is expected to remain moderate over the medium term.

Liquidity: Superior

Liquidity is driven by cash and equivalent of Rs ~4,800 crore as on December 31, 2024. Cash accrual is expected over Rs 600 crore per fiscal over the medium term. Fund-based bank limit of Rs 365 crore remains unutilised.

Outlook: Stable

Crisil Ratings believes BCCL will maintain its strong market position and robust financial risk profile over the medium term.

Rating sensitivity factors

Downward factors:

  • Slower-than-expected recovery in ad revenue or elevated newsprint prices leading operating margin below 8% on a sustained basis
  • Weakening of the financial risk profile due to large, debt-funded capital expenditure, investment, acquisitions or funding support to group companies, or significant erosion in the investment portfolio

About the Company

Incorporated in 1913, BCCL is the flagship company of the Times group, the largest media conglomerate in India. The company, along with its group companies, has diversified into various media and entertainment businesses, spanning print, television, radio, music, out of home advertising, and the internet. Newspaper publishing is its largest business segment.

 

The Times group's business strengths emanate from the robust brand image of its key daily publications: ToI and ET in English, Navbharat Times in Hindi, Maharashtra Times in Marathi, Vijay Karnataka in Kannada, and Ei Samay in Bengali. The group also publishes magazines (Filmfare and Femina). It has presence in radio broadcasting under the Radio Mirchi brand through its subsidiary, Entertainment Network (India) Ltd, in which the promoter group holds a 71.15% equity stake.

 

The Times group has presence in television through Zoom TV (general entertainment channel), Times Now and Mirror Now (English news channels), ET Now (business news channel), Romedy Now, Movies Now, Movies Now Plus (movie channels), Times Now Navbharat and ET Swadesh.

 

The internet properties of the group are operated through a wholly owned subsidiary, Times Internet Ltd.

Key financial indicators – BCCL (Standalone)

Particulars

Unit

2024

2023

Operating income

Rs crore

5,898

5,677

Profit after tax (PAT)

Rs crore

1050

148

PAT margin

%

18

3

Adjusted debt/adjusted networth

Times

-

-

Interest coverage

Times

44

23

Any other information: Not applicable

Note on complexity levels of the rated instrument:
Crisil Ratings` complexity levels are assigned to various types of financial instruments and are included (where applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.

Crisil Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.

For more details on the Crisil Ratings` complexity levels please visit www.crisilratings.com. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)

ISIN Name Of Instrument Date Of Allotment Coupon Rate (%) Maturity Date Issue Size (Rs. Crore) Complexity Levels Rating Outstanding with Outlook
NA Cash Credit& NA NA NA 985.00 NA Crisil AAA/Stable
NA Proposed Cash Credit Limit& NA NA NA 3615.00 NA Crisil AAA/Stable

 & - Interchangeable with bank guarantee, letter of credit, working capital loan, and buyer’s credit.

Annexure – List of entities consolidated

Names of entities consolidated

Extent of consolidation

Rationale for consolidation

Times Internet Ltd

100%

Common business and financial linkage

Entertainment Network (India) Ltd

100%

Common business and financial linkage

Times Innovative Media Ltd

100%

Common business and financial linkage
Annexure - Rating History for last 3 Years
  Current 2025 (History) 2024  2023  2022  Start of 2022
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT 4600.0 Crisil AAA/Stable   -- 24-06-24 Crisil AAA/Stable 28-02-23 Crisil AAA/Stable 01-03-22 Crisil AAA/Stable Crisil AAA/Stable
      --   -- 17-05-24 Crisil AAA/Stable   --   -- --
Non Convertible Debentures LT   --   --   --   -- 01-03-22 Withdrawn Crisil AAA/Stable
All amounts are in Rs.Cr.
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Name of Lender Rating
Cash Credit& 125 Kotak Mahindra Bank Limited Crisil AAA/Stable
Cash Credit& 125 The Hongkong and Shanghai Banking Corporation Limited Crisil AAA/Stable
Cash Credit& 485 HDFC Bank Limited Crisil AAA/Stable
Cash Credit& 250 Axis Bank Limited Crisil AAA/Stable
Proposed Cash Credit Limit& 3615 Not Applicable Crisil AAA/Stable
& - Interchangeable with bank guarantee, letter of credit, working capital loan, and buyer’s credit.
Criteria Details
Links to related criteria
Basics of Ratings (including default recognition, assessing information adequacy)
Criteria for consolidation
Criteria for manufacturing, trading and corporate services sector (including approach for financial ratios)

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