Zee Entertainment Resumes Salary Increments from September 1

Zee Entertainment Enterprises Limited (ZEEL) has resumed payment increments, beginning September 1, 2024, following prior cost-cutting measures that resulted in a 15% workforce decrease. ZEEL's Chief Financial Officer, Mukund Galgali, confirmed this change during the company's second-quarter results call on October 18.

According to Mahesh Pratap Singh, ZEEL's Head of Investor Relations, one month of this wage increase has been included into the results for the quarter ending September.

"From a Q2 standpoint, you already have a one-month increase in the figures because these were effective on September 1st. So, to that extent, the one-month cost is already calculated," Singh explained.

Singh stated that, while exact data for employee benefit expense inflation cannot be disclosed, the company maintains strong cost controls, which will be visible in future performance.

"Yes, you should include some of the impact of that coming in, but bear in mind that our efficiencies have been coming in during Q2, and you may not have seen the full quarter impact yet, so plan accordingly. I mean, it will be a little bit of modeling," Singh added.

Punit Goenka, MD & CEO of ZEEL, further stated that human cost rationalisation is now complete, with continued natural attrition expected as part of normal company operations.

"Going forward, as any business has churn in employee, we will have those regular churns that happen, but that's part of our day-to-day life," continued the CEO.

As part of a larger strategy to reach a 20% EBITDA margin by FY26, ZEEL implemented a 15% workforce reduction, affecting about 700 individuals out of a total of 4,577.

In addition, ZEEL has reduced expenditures by 50% in its Technology & Innovation Centre (TIC), with the goal of increasing its operating profit margin.

This restructuring also resulted in the resignation of key officials such as Rahul Johri (head of revenue), Punit Misra (head of content), Shariq Patel (head of movie business), and Atul Das (head of distribution).