This Presentation focuses on the Impact of Covid on Selected Sectors of Economy.

1. IMPACT OF COVID ON SECTORS OF INDIAN
STOCK MARKET
BY NIKITA TILOOMALANI
MBA (BANKING & FINANCE)
AMITY UNIVERSITY, MUMBAI

2. MEDIAAND ENTERTAINMENT SECTOR
 As per the FICCI report, the Indian Media and Entertainment (M&E) sector reached Rs 1.82 trillion (US$25.7
billion) in 2019 (a growth of 9% over 2018). Further, as per the report, the Media & Entertainment sector in
India is expected to cross Rs 2.4 trillion (US$34 billion) by 2022, at a CAGR of 10%. However, these
projections were pre Covid-19 impact. Now a study by CRISIL expects that the Indian Media & Entertainment
Industry’s revenue will reduce by 16% or Rs 25,000 crore to Rs 1.3 lakh crore in the current financial year.
 The Events and Experiential Management Association (EEMA) survey suggests that over 50% of the media
companies have lost 90% of their business since March 2020; over 63% of the companies have suffered a
revenue loss of up to Rs. 1 crore with several companies envisaging retrenchment of about 50% of their
workforce.

3.  The state governments of various states announced a complete lockdown of public places like theatres on March
15, 2020, followed by the social distancing advisory issued by the Ministry of Health and Family Welfare on
March 16, 2020 (Advisory on Social Distancing). These state and central government measures led to not only
the shutdown of theatres countrywide but also an indefinite halt in production of several films, television (TV)
series, web-series, advertisements, and cancellation or indefinite postponement of all live events like the 13th
edition of the Indian Premier League (IPL).
 With the extension of the lockdowns (even with some relaxations from the Government), production activities
and live events remain suspended, and cinema halls and theatres continue to be closed. Reportedly, viewership
across several digital entertainment platforms in India has increased by almost 20%.
 However, despite viewership on television channels and digital platforms increasing, monetization and revenue
earnings of these mediums are seeing a downward curve, as revenues in the media and entertainment sector
depend on advertising spends from other industries.
 The Indian Broadcasting Foundation claimed that advertisement bookings had gone down by almost 50%, owing
to various factors including cancellation of huge events like the IPL, repeat content on television, and a
slowdown in other industries. But, subscription-based revenues could improve throughout time, as people get
more and more familiar with consuming content reception and seek a great sort of content. However, the
availability of new content could prove to be the main factor in retaining and increasing the subscriber base for
subscription-based platforms.
 On the opposite hand, continuity of business for little to mid-sized media and production houses have also been
severely affected and has had an immediate impact on the sustenance of daily wage earners like chain artists,
cameraman, spot boys, light boys, and other contractors engaged in the entertainment business.
 Similarly, the newspaper industry is also reportedly among the worst affected in India, with decreasing revenues
from both advertising and circulation, given the nationwide lockdown; and is estimated to have affected lakhs of
workers engaged in the news industry.

4. Impact on Box Office
With theatre releases postponed, shooting on hold, and cinema halls closed, absolutely nothing is certain. Even when
theatres open, social distancing norms and weakened livelihoods are likely to stop people from thronging to observe
movies. With large-budgeted films competing for release dates, smaller productions may lose out. Production houses,
keen on anticipated revenues, will need to put future projects on hold.
Impact OTT Platforms
OTT media services appear to be a glimmer of hope. There has been increased usage of these platforms over the last
few months. Many users, who have not experienced OTT services before, are opening themselves up and exploring
them. Of course, like television, platforms must cope with the content they have already got. However, among other
things, this trend has emphasized the permanence of digitization. Therefore, it is likely that advertisers turn their
focus even more to the Internet.
During this lockdown, the industry has skilled a harrowing experience. Respite, if any, was found online. Recovery
will be slow, but those in the industry should not be discouraged. After all, it had been often art and media that
provided relief and support to the whole world.

5. GRAPH – MEDIA & ENTERTAINMENT SECTOR

6. COMPANYANALYSIS
 ZEE ENTERTAINMENT ENTERPRISES LIMITED
Zee Entertainment Enterprises Ltd., incorporated in the year 1982, is a Large Cap company (having a market cap of
Rs. 18023.87 Crore) operating in Media & Entertainment sector. Zee Entertainment Enterprises Ltd. key
Products/Revenue Segments include Income From Advertisement which contributed Rs. 4409.10 Crore to Sales
Value (61.07 % of Total Sales), Subscription Income which contributed Rs. 2394.10 Crore to Sales Value (33.16 % of
Total Sales), Television Content which contributed Rs. 316.50 Crore to Sales Value (4.38 % of Total Sales),
Transmission Revenue which contributed Rs. 39.60 Crore to Sales Value (0.54 % of Total Sales), Commission which
contributed Rs. 33.50 Crore to Sales Value (0.46 % of Total Sales) and Other Operating Revenue which contributed
Rs. 26.20 Crore to Sales Value (0.36 % of Total Sales) for the year ending 31-Mar-2020. For the quarter ended 30-06-
2020, the company has reported a consolidated sale of Rs. 1312.03 Crore, down - 32.75 % from last quarter Sales of
Rs. 1951.08 Crore and down - 34.66 % from last year same quarter Sales of Rs. 2008.12 Crore Company has
reported net profit after tax of Rs. 29.24 Crore in latest quarter. As on 30-09-2020, the company has a total of
960,504,475 shares outstanding.

7.  PVR LIMITED
PVR Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs. 6031.51 Crore)
operating in Media & Entertainment sector. PVR Ltd. key Products/Revenue Segments include Income From Films
which contributed Rs. 1726.10 Crore to Sales Value (52.55 % of Total Sales), Beverages & Food which contributed
Rs. 945.79 Crore to Sales Value (28.79 % of Total Sales), Income From Advertisement which contributed Rs. 375.65
Crore to Sales Value (11.43 % of Total Sales), Fees & Other Charges which contributed Rs. 208.28 Crore to Sales
Value (6.34 % of Total Sales), Other Operating Revenue which contributed Rs. 18.75 Crore to Sales Value (0.57 % of
Total Sales) and Income from Films Production & Distribution which contributed Rs. 9.79 Crore to Sales Value (0.29
% of Total Sales) for the year ending 31-Mar-2020. For the quarter ended 30-06-2020, the company has reported a
consolidated sale of Rs. 12.70 Crore, down - 98.03 % from last quarter Sales of Rs. 645.13 Crore and down - 98.56
% from last year same quarter Sales of Rs. 880.39 Crore Company has reported net profit after tax of Rs. 225.58
Crore in latest quarter. As on 09-10-2020, the company has a total of 55,173,017 shares outstanding.

8.  INOX LEISURE LIMITED
Inox Leisure Ltd., incorporated in the year 1999, is a Mid Cap company (having a market cap of Rs. 2712.36 Crore)
operating in Media & Entertainment sector. Inox Leisure Ltd. key Products/Revenue Segments include Income from
Films which contributed Rs. 1389.94 Crore to Sales Value (73.25 % of Total Sales), Beverages & Food which
contributed Rs. 497.19 Crore to Sales Value (26.20 % of Total Sales) and Other Operating Revenue which
contributed Rs. 10.31 Crore to Sales Value (0.54 % of Total Sales) for the year ending 31-Mar-2020. For the quarter
ended 30-06-2020, the company has reported a consolidated sale of Rs. 25 Crore, down – 99.93 % from last quarter
Sales of Rs. 371.58 Crore and down - 99.95 % from last year same quarter Sales of Rs. 493.01 Crore Company has
reported net profit after tax of Rs. 73.64 Crore in latest quarter. As on 30-09-2020, the company has a total of
102,857,754 shares outstanding.

9. PHARMACEUTICALS SECTOR
 The Indian Pharma Sector is the third-largest in the world. It manufactures almost 60 percent of the vaccines
used globally, including important ones, like those against diphtheria, tetanus, and pertussis required by the
World Health Organization (WHO). Furthermore, the country meets 90 percent of the worldwide demand for the
vaccine against measles.
 Millions across the planet use generic drugs produced by Indian drug manufacturers. Only 250 factories within
the country are approved by the US Food and Drug Administration (FDA) also because of the UK Medicine and
Healthcare Products regulatory authority (MHRA). These manufacture drugs for overseas markets, including the
US and the UK.

10.  India's active pharmaceutical ingredient (API) industry is said to get $6 billion in revenues by the top of 2020.
Currently, generic drugs are playing a significant role within the fight against COVID–19. India has been
meeting quite 20 percent of the planet and almost 50 percent of the US drug requirements. The Indian pharma
sector is a crucial component of the worldwide healthcare infrastructure and is instrumental in saving many lives
per annum. However, like all other sectors, it too has been suffering from COVID–19 that has caused various
changes.
 The COVID–19 pandemic has disrupted supply chains across the planet. Every sector, including pharma, is
affected by supply chains coming to a grinding halt. The pharmaceutical companies face disruptions due to
extended factory closures in China. China, where many factories have temporarily shuttered due to coronavirus
fears, accounts for a majority of raw ingredients used to manufacture finished drugs. According to the latest data
compiled by India’s drug regulatory authority, 57 APIs of crucial antibiotics, vitamins, and hormones or steroids
could go out of stock in case of a prolonged lockdown in China. The outbreak of COVID-19 causes potential
disruptions to supply or shortages of critical medical products also.
 With the movement of individuals and goods restricted amid lockdowns, manufacturers of generic drugs are
unable to launch products or conduct clinical trials. As a result, timelines for drug filings have gotten stretched.
Furthermore, cash flows from new drug launches have either been exhausted or delayed. Indian drug
manufacturers face other challenges also. An Indian pharmaceutical facility can sell drugs within the US only
after it gets inspected and approved by the U.S. Food and Drug Administration (FDA). With the ban on
international travel, inspection is out of the question, rendering it impossible for Indian drug companies to sell
within the US and other overseas markets. The pandemic has also forced drug manufacturers, both contract and
captive, to delay their plans for brand spanking new product launches.
 With China losing credibility on account of not disclosing information on the virus or the severity of the
outbreak on time and thereby contributing to its development into an epidemic, government leaders and
businesses are watching other alternative low-cost nations to source supplies. India could directly enjoy this. The
country features a robust pharma sector with proven expertise in drug manufacturing and treatment.

11.  Although India depends on China to satisfy its bulk drug requirement, steps taken by the Indian government to
incentivize the assembly of Active Pharmaceutical Ingredient (APIs) and Key Starting Materials (KSMs) under
the 'Make in India' program will help in reducing this dependence. The promotion of bulk drug parks under this
initiative would help India become self-sufficient in drug manufacturing, from Key Starting Materials (KSMs) to
generic formulations.
GRAPH – PHARMACEUTICAL SECTOR

12. COMPANY ANALYSIS
 CIPLA LIMITED
Cipla Ltd., incorporated in the year 1935, is a Large Cap company (having a market cap of Rs. 62108.14 Crore)
operating in Pharmaceuticals sector. Cipla Ltd. key Products/Revenue Segments include Pharmaceuticals which
contributed Rs. 12220.22 Crore to Sales Value (96.53 % of Total Sales), Export Incentives which contributed Rs.
249.96 Crore to Sales Value (1.97 % of Total Sales), Other Operating Revenue which contributed Rs. 103.40 Crore to
Sales Value (0.81 % of Total Sales), Royalty Income which contributed Rs. 56.02 Crore to Sales Value (0.44 % of
Total Sales) and Scrap which contributed Rs. 29.55 Crore to Sales Value (0.23 % of Total Sales) for the year ending
31-Mar-2020. For the quarter ended 30-06-2020, the company has reported a consolidated sale of Rs. 4276.89 Crore,
down - 0.57 % from last quarter Sales of Rs. 4301.60 Crore and up 9.82 % from last year same quarter Sales of Rs.
3894.46 Crore Company has reported net profit after tax of Rs. 571.43 Crore in latest quarter. As on 30-09-2020, the
company has a total of 806,337,456 shares outstanding.

13.  BIOCON LIMITED
Biocon Ltd., incorporated in the year 1978, is a Large Cap company (having a market cap of Rs. 49632.00 Crore)
operating in Pharmaceuticals sector. Biocon Ltd. key Products/Revenue Segments include Bio Pharmaceuticals
which contributed Rs. 1811.70 Crore to Sales Value (91.11 % of Total Sales), Other Operating Revenue which
contributed Rs. 157.50 Crore to Sales Value (7.92 % of Total Sales), Waste which contributed Rs. 15.80 Crore to
Sales Value (0.79 % of Total Sales) and Sale of services which contributed Rs. 3.40 Crore to Sales Value (0.17 % of
Total Sales) for the year ending 31-Mar-2020. For the quarter ended 30-09-2020, the company has reported a
consolidated sale of Rs. 1744.80 Crore, up 4.40 % from last quarter Sales of Rs. 1671.30 Crore and up 10.98 % from
last year same quarter Sales of Rs. 1572.20 Crore Company has reported net profit after tax of Rs. 200.40 Crore in
latest quarter. As on 30-09-2020, the company has a total of 1,200,000,000 shares outstanding.

14.  SUN PHARMACEUTICALS INDUSTRIES LIMITED
Sun Pharmaceutical Industries Ltd., incorporated in the year 1993, is a Large Cap company (having a market cap of
Rs.112876.71 Crore) operating in Pharmaceuticals sector. Sun Pharmaceutical Industries Ltd. key Products/Revenue
Segments include Pharmaceuticals which contributed Rs.11906.74 Crore to Sales Value (95.01 % of Total Sales) and
Other Operating Revenue which contributed Rs.625.19 Crore to Sales Value (4.98 % of Total Sales) for the year
ending 31-Mar-2020. For the quarter ended 30-06-2020, the company has reported a consolidated sale of Rs.7467.19
Crore, down - 7.56 % from last quarter Sales of Rs. 8078.03 Crore and down -9.59 % from last year same quarter
Sales of Rs. 8259.30 Crore Company has reported net profit after tax of Rs . 2429.81 Crore in latest quarter. As on
30-09-2020, the company has a total of 2,399,334,970 shares outstanding.

15. FMCG SECTOR
 The fast-moving consumer goods (FMCG) sector is India’s fourth-largest sector by economy and sales revenue.
The FMCG sector is more lucrative as a result of low penetration levels, well-established distribution network,
low operating expenses, lower per capita consumption, massive client base, and straight forward manufacturing
processes for most of the products leading to low capital investments.. There are three major segments within it:
Food and Beverages (19%), Healthcare (31%), and household and personal care (50%).
 However, the COVID-19 has had an incredible impact on the constant growth of FMCG-related products,
bringing down the demand and the ratio reduction of staple dealers and linear distribution and low growth
predictions on the availability chain and logistics end. Several FMCG companies have decided to supply only
essential products during this pandemic, with the hope of overcoming the economic shock. Hence, companies
have to follow the ‘Make To Stock’ policy that is employed by businesses to match the inventory with
anticipated consumer demand, alongside the push strategy.

16.  The Lockdown period in India, has forced large manufacturing companies like Hindustan Unilever, GCPL, ITC
& Wipro to ramp-up their production and distribution of hygienic products as demand keeps surging. The
government should permit production managing staff movement around their plants due to the shortage of raw
material supply, transportation, and workforce.
 Several companies are not able to produce at their full capacity. Since the demand for these products is high, but
production has gone down by 50% during this pandemic, India is ready to face grave difficulties, considering it
has a complex FMCG distribution channel that makes supply and demand of products a herculean task during
the lockdown.
 On a positive note, rural areas remain functioning with relative normality with the limitations of lack of E-
Commerce distribution used to deliver essential products. The only solution would be to restart E-Commerce
operations that support social distancing, generate revenue, and benefit all the players.
 FMCG will have to be more resilient than other sectors, bouncing back with effectiveness. After the lockdown
ends, things will take a substantial amount of your time to be back on target. The Government of India is has
predicted to cross-check the market products and costs, ensuring equivalent conditions or normality and open
market remain available.

17. GRAPH - FMCG SECTOR - INDIA

18. COMPANY ANALYSIS
 HINDUSTAN UNILEVER LIMITED
Hindustan Unilever Ltd., incorporated in the year 1933, is a Large Cap company (having a market cap of Rs.
511427.91 Crore) operating in FMCG sector. Hindustan Unilever Ltd. key Products/Revenue Segments include
Personal Care which contributed Rs. 38273.00 Crore to Sales Value (98.67 % of Total Sales) and Other Operating
Revenue which contributed Rs. 512.00 Crore to Sales Value (1.32 % of Total Sales) for the year ending 31-Mar-2020.
For the quarter ended 30-09-2020, the company has reported a consolidated sale of Rs. 11520.00 Crore, up 8.97 %
from last quarter Sales of Rs. 10572.00 Crore and up 15.70 % from last year same quarter Sales of Rs. 9957.00 Crore
Company has reported net profit after tax of Rs. 1974.00 Crore in latest quarter. As on 30-09-2020, the company has
a total of 2,349,556,255 shares outstanding.

19.  DABUR INDIA LIMITED
Dabur India Ltd., incorporated in the year 1975, is a Large Cap company (having a market cap of Rs. 92471.44
Crore) operating in FMCG sector. Dabur India Ltd. key Products/Revenue Segments include Personal Care which
contributed Rs. 6241.09 Crore to Sales Value (98.91 % of Total Sales), Other Operating Revenue which contributed
Rs. 58.61 Crore to Sales Value (0.92 % of Total Sales) and Scrap which contributed Rs. 10.10 Crore to Sales Value
(0.16 % of Total Sales) for the year ending 31-Mar-2020. For the quarter ended 30-06-2020, the company has
reported a consolidated sale of Rs. 1979.98 Crore, up 6.14 % from last quarter Sales of Rs. 1865.36 Crore and down -
12.90 % from last year same quarter Sales of Rs. 2273.29 Crore Company has reported net profit after tax of Rs.
341.29 Crore in latest quarter. As on 30-09-2020, the company has a total of 1,767,420,476 shares outstanding.

20.  BRITANNIA INDUSTRIES LIMITED
Britannia Industries Ltd., incorporated in the year 1918, is a Large Cap company (having a market cap of Rs.
85993.21 Crore) operating in FMCG sector. Britannia Industries Ltd. key Products/Revenue Segments include Food
Products which contributed Rs. 10820.57 Crore to Sales Value (98.48 % of Total Sales), Other Services which
contributed Rs. 124.07 Crore to Sales Value (1.12 % of Total Sales), Scrap which contributed Rs. 27.28 Crore to
Sales Value (0.24 % of Total Sales), Royalty Income which contributed Rs. 14.76 Crore to Sales Value (0.13 % of
Total Sales) for the year ending 31-Mar-2020. For the quarter ended 30-09-2020, the company has reported a
consolidated sale of Rs. 3354.35 Crore, down -0.89 % from last quarter Sales of Rs. 3384.46 Crore and up 10.96 %
from last year same quarter Sales of Rs. 3022.91 Crore Company has reported net profit after tax of Rs. 495.09 Crore
in latest quarter. As on 30-09-2020, the company has a total of 240,725,630 shares outstanding.

21. CONCLUSION
Therefore, we can see the impact of coronavirus on different industries is adverse, making
businesses face unique and significant challenges. And one of the best ways they have come up
with to overcome the coronavirus impact on industries and sectors is using trending technologies.