Cyber Media Research & Services Limited (CMRSL) Q2 FY2026 Earnings Call Transcript & Summary

Good evening, ladies and gentlemen. Welcome to Cyber Media Research & Services Limited Q2 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. Now I would like to hand over the floor to the Managing Director, Mr. Dhaval Gupta. Thank you, and over to you, sir.

Yes, hello.

Yes, sir, please go ahead, sir.

Yes. Thanks, Akash. It's 4:01. I think, Akash, can I just get a sense of how many investors are on the call, please?

We have around 11 investors right now on the call.

Sorry?

11, sir. 11.

so I think let's just -- maybe at 4:03 or 4:04 rather, let's starts. I want to make sure that we have a few more people who are logging in. They're able to do that. A very good evening to all the investors, and thank you for taking out the time to join us for this earnings call today. In the previous investor call, we had pointed out that the management was not happy about the organization's performance in the previous financial year. I am happy to share that for H1, we have responded by registering a top line of INR 43.55 crores, a year-on-year growth of 20.4% and EBITDA of INR 2.69 crores, which is a year-on-year growth of 46.2%. EBITDA margins for H1 were, of course, 2.69%, as I mentioned, but the margin improvement was from 5.1% to 6.2% compared to the previous financial year. PBT was recorded at INR 2.34 crores compared to INR 1.45 crores last year. For quarter 2, revenue top line registered at INR 21.31 crores, a year-on-year growth of 19.2% and an EBITDA of INR 1.26 crores, a year-on-year growth of 41.6%. This performance is a good indication of our steady improvement, and we expect to deliver CMRSL's best financial year performance yet. Let me first go through some performance highlights. CMRSL International business also expanded by about 30%. We have also added business development manpower to specifically focus on growing both in Southeast Asia as well as the Middle East. CMRSL's domestic business grew by 22%. Specific areas of growth include growth, programmatic advertising and market research business. Programmatic advertising through a combination of relationships with Google DV360, PubMatic, Magnite among other global partners has been steadily growing. We are also delivering higher value to our clients by automating reports. Market research continued to deliver high-value insights to our enterprise customers, including AWS, Qualcomm, HP, among many others. CMGalaxy remains an area of investment. However, we are looking at adding new customers on the platform in the coming quarter. I can share more details on that later as well. CMRSL continues to adopt AI technology across various functions to improve business outcomes. There is a focused effort to improve this across finance, operations as well as sales functions, while improving efficiency under the supervision of the Board, CMRSL is also adopting new policies and protocols to streamline costs. Some of these policies include career planning framework for the employees, a new IT and password policy, credit and vendor management policies and ECL policy. Let me now move on and talk about the merger for CMRSL with CMIL. As you may know, as you may all be aware, the Board has recommended the merger of CMRSL with Cyber Media India Limited or CMIL. In fact, this was also a recommendation that was raised in the previous investor call by the investors. We have taken cognizance of this and based on our evaluation, believe this to be highly beneficial for the organization as well as its investors. CMIL today is the largest investor in CMRSL with a holding of 38.17%. With technology playing a pivotal role in Vikshit Bharat 2047 Cyber Media and the merged entity aims to establish market-leading products, we believe -- we firmly believe a merged entity will set up the combined entity for growth and transformation. The merger proposal suggests that for every 8 shares of CMRSL investors of CMRSL will get 35 shares in CMIL. Below are the points behind the rationale for this merger. The merger will strategically position Cyber Media as a single entity for marketing solutions for customers. This synergy will result in cross-leveraging clients to fuel additional growth opportunities. Cyber Media has historically built strong products and brands. A merged entity will allow our businesses to create higher value for its clients and therefore, higher profitability. A merged entity will also have a larger market capitalization. This would lay the road map for long-term growth, both organic as well as inorganic and therefore, maximize shareholder value. Furthermore, cost savings will be achieved because of reduced compliance costs as well as better tax planning. The management expects a cost saving of at least INR 1 crore annually for the next 3 to 4 years in a merged entity. The shares of CMRSL are currently listed on SME Emerge platform, as I'm sure all of you are clearly aware. The shares of CMIL, however, are listed on the main board of NSE and BSE. Upon merger, the shareholders of CMRSL will have better liquidity by trading in CMIL shares at the main board of NSE and BSE with no restriction on lot side. As per CMIL balance sheet, there are immovable assets as well, i.e. land and building have a fair market value under advisement of approximately INR 27 crores. This primarily includes CMIL's offices, office properties in Gurugram and Bengaluru. The joined entity will therefore have a stronger balance sheet and healthier financial health due to these fixed assets as well. Next point. This will also improve cash flows, resulting in efficient utilization of capital as well as better debt management. From a manpower perspective, the merged entity will strengthen decision-making and optimized management bandwidth as well as the merger will result in better cost management, sales operations will become far more lean and efficient with a reduction in duplication of -- also of administrative, marketing and selling costs. In conclusion, H1 has been a year of recovery as promised, with improving results, we continue to be excited about the future in both the short as well as the long term. With a merged entity, we believe we will be able to deliver higher value creation to investors and customers while creating a strong platform for future growth. And with that, I would like to request Akash, the moderator to open it up for questions.

[Operator Instructions] We have a question from Mr. Bhavesh Choudhary from Wealth Vichar.

First of all, congratulations for a great set of numbers in quarter 2.

Thank you. Thank you, Bhaveshji. Good to speak to you again.

So my first question is like as per the annexure you shared regarding the merger of CMRSL and CMIL, CMIL's network is currently reported as negative. Could you clarify that factor contributing to this and how to plan to address it post-merger, sir?

Yes. So very quickly, let me, by the way, also, I should have done this at the beginning of the call. So along with me is Mr. Pradeep Gupta, Chairman of the Board of CMRSL as well as Mr. Krishan Kant Tulshan, who is the Independent Director in CMRSL. So Bhaveshji, thank you for that question. And I would request -- can you -- could you just repeat it once your voice was not 100% clear.

Yes, one second. So like as per the annexure you shared regarding the merger of CMRSL and CMIL. So CMIL's net worth is currently reported as negative. Could you clarify the factors contributing to this and how you guys are planning to address it post merger?

Right. Okay. So this is Pradeep Gupta here, Chairman of the company. Let me address this particular issue. The negative net worth, actually, if you look at the property that is available with us, it actually is not a negative net worth. And I think Dhaval made that point earlier because the property that is available with us is almost about INR 27 crores is the value of the property, which in our book is shown as probably INR 1 crore or something of that sort. And the second thing is that the negative thing has happened because of the losses that we incurred in our operations in the U.S. And as we have shared earlier, we have written off all the investments that were made in the U.S., which was a substantial figure, we have settled all the claims and other things, which were there to -- regarding that. In fact, in the year, '20, we had written off almost about INR 25 crores. And then after that, another INR 8 crores of liabilities this year to a total of INR 33 crores had been written off. Now this was written off a few years back. And therefore, in terms of the cash flow, et cetera, there is no impact currently of this particular thing. And also, what had been mentioned earlier to our investors and our exchange filings, there are no previous liabilities of any sort. They have all been settled, whether it was with the banks or whether it was with various statutory authorities, et cetera. And everything has been absolutely delivered clean play.

Yes. So my next question is, recently, CMIL is currently undertaking a rights issue, but it appears the issue is not fully supplied. So how do you plan to fund the gap or ensure adequate capital infusion?

No. So in fact, we had a very good response to the rights issue. We -- in fact, the rights issue was subscribed. I think I don't have the exact figure with me, but almost close to 90% was -- it was maybe 86% or so 87% was the exact number. But yes, so we actually had a good and positive response to the rights issue from the CMIL shareholders. And I think that is again showing a vote of confidence in the fact that compared to the previous history, today, that company also sits in a much, much healthier situation, having put all its liabilities, old liabilities, legacy issues behind it.

I would like to add that as far as the second call is concerned, it will go in the next quarter. So in the JFM so much before the merger happens, the rights issue will be closed.

Okay. With whom? Can you please...

No. So what we are saying was that in the rights issue, the second call for capital will go within the next -- within the coming quarter and the rights issue will be completely closed within the coming quarter.

Okay. So before merger or after merger?

Before the merger.

Before the merger.

The merger is still likely to take 6 to 9 months' time frame. And so we are working on it obviously and subject to approvals and so on. We will do that in the next financial year, complete the merger in the next financial year.

Okay. So like my next question is like when comparing both businesses, like CMRSL demonstrate a stronger growth, better business fundamental, higher valuation potential and superior net worth, book value metrics. So however, like CMIL seems to receive a relatively higher market cap consideration in the merger? Could you explain the rationale behind this valuation structure?

Yes. So let me just start by mentioning that we looked at this very, very closely. And based on inputs from our advisers, receive -- took an approach, which would put both CMIL and CMRSL on a very, very fair sort of value. And for that, we have used instruments, we've used calculation as recommended by SEBI and exactly sort of followed those calculations. And so for a little more detailing, I'd like to also invite Mr. Tulshan to share his views.

Well, I would like to add about the valuation part. The valuation has been done as per the SEBI formula. And basically, in the valuation, we have applied only the market approach where the share price of CMRSL was compared with the share price of Cyber Media India Limited. And on that basis, the share swap ratio has been worked out. So share swap ratio has been worked out based on the relative market price in a particular period. As far as SEBI is concerned, the formula is last 90 days trading results or last 10 days trading results. So we have gone exactly as per SEBI formula. We have not used the NAV method or any other method, et cetera. So the entire valuation is done based on the market approach. Second is from a CMRSL perspective. I think the major benefit which I personally see is the listing of CMRSL shareholders shares now and trading, as mentioned by Mr. Dhaval Gupta earlier on the main board of NSE and BSE. And so the shareholders of CMRSL will gain immensely with -- due to this increased exposure. As of now, our shares are listed only on SME stock exchange, which has a limited exposure. So I think the value addition will come through the listing of shares on the main board.

Okay. So my next question is like as you tell, Dhaval, like expected estimated time line to complete this merger is around 6 to 9 months, am I correct? Am I including all the remaining regulatory approvals?

That is correct. That is correct. In fact, let me further add to that, which is that in January, we are doing strategic get together of the businesses, the teams, the management to work out the way forward in terms of how we are going to smoothly take things forward. And also, I think there is ultimately a very strong emphasis on growth, on future growth, right? So the value creation that we can do, the optimization that we can get from a sales point of view, that's exactly what our focus is. And that's one of the key rationales behind the merger.

I would like to add to that. While the legal process is going to take time of 6 to 9 months, et cetera. We have already started our internal processes of demerger exercise, and which includes restructuring of the teams, which includes training of the teams, which includes the cultural alignment, which includes HR alignment. So -- and -- so all the alignments and the restructuring, et cetera, post merger. That activity is being conducted in the month of January with all the top brands of Cyber Media India Limited and Cyber Media Research Limited for a brainstorming session. So that we have a proper business integration of one company into the other company. We are not going to wait for the merger official approval. So internally, we have started the process, so that we don't lose any time in the transition period.

Okay. So my next question is, like can you please tell what is the estimated cost of acquisition will come in?

Can you repeat that, please, Bhaveshji?

What is like estimated cost of acquisition will come in?

Okay. So the total merger cost is estimated somewhere between INR 40 lakhs to INR 50 lakhs. But in case we look at the cost saving part, as Mr. Dhaval has mentioned, cost savings will be at least INR 1 crores per year. So the merger cost is going to repay itself within the first 6 months.

And like my next question is like, Dhaval, could you provide an update on the current demand environment across all business segments of both CMRSL and CMIL segment-wise breakdown of client traction, revenue visibility or/and order pipeline, would it be helpful, like business by business.

Sure, sure. So in terms of the overall market picture in the -- let me refer to the previous call also, we had talked about how we had created a strong pipeline. And that is something that we have been successful in converting. And we continue to look at increased and strong pipeline moving forward as well, right? Now specifically from a business point of view, let me start by talking about the agency business focusing on advertisers. So what we've successfully been able to do is look at onboarding of a bunch of clients -- large number of clients, almost 30, 40 B2B clients on the programmatic and -- programmatic side of business. So this has been healthy for us where DV360, which is a Google product, premium Google product that is a sort of a very strong value proposition for us. And we have been delivering a large variety of campaigns for different kind of brands in the auto sector, FMCG sector, banking sector and so on. Overall -- so this is as far as agency is concerned. For the publisher side -- publisher monetization side of the business, I earlier mentioned in my notes that we had seen about 30% increment coming in the international business. So that's again been a business where we have done much better compared to last year. And we have been expanding now into markets, including Southeast Asia as well as the U.S. So more and more connected TV inventory is coming online there, and we are now finding some good solutions and giving good monetization results to the clients that we're working with. Coming to the market research bit of it. So in the market research business, this last 6 months -- the first 6 months of this financial year, we had some very good programs that were delivered. We had onboarded with clients like Maruti Suzuki for their research work and so on. And we've already received the first order from them. And we continue to service and work with brands like Qualcomm, AWS, HP, mobile manufacturers like Vivo and many others. So all across the board, we had an improvement in our numbers. And I think the -- one of the heartiest things is that also this was happening while there was an improvement in the EBITDA margins, right? So that's something that we are continuing to work towards and we ideally want to move in the direction of double-digit margins and basically make sure that we are adding more value. So that's a little bit in terms of each of our business units. And I think the bottom line for us is that sales and marketing has been an engine that we are continuing to grow. We are continuing to invest in that. And we expect that this pipeline as well as the conversions, we'll start sort of growing more aggressively in the coming years.

Okay. And what is happening in CMIL?

Sorry, in?

CMIL, Cyber Media India.

So in CMIL, the media business is a combination of what they do online in digital as well as events. And they also, of course, have print magazine, which are very prominent, very well established and credible brands. Now the media space has some very interesting opportunities. They focus on B2B primarily. And the audience for them is working with CIOs and with technology decision-makers across the country, right? So in the media business, one growth engine that we see for the future is definitely events and not just -- and looking at large format events is something that I think is definitely part of our plans for the future. Even on digital, there are new properties, there are new -- sort of new branding or rather video of new formats that we are working on. And so this, again, remains an area where we believe that there is a strong growth potential. If I talk about the -- if I talk about the results broadly for the first half of the year -- just give me a second. So in the first half of the year, the media business grew by 33% compared to the previous financial year. So it was -- it again, had a good start to this financial year. And we are very -- as soon as sort of the business is in a place where as soon as the top line increases, most of that earnings comes straight into the bottom line, right? So those are -- because we don't need to invest significantly in terms of sort of building up teams and so on. So the revenues have grown from INR 5.87 crores in H1 of last year to INR 7.79 crores in H1 of this year.

Okay. And like coming on CMGalaxy. So how many paying customers have been onboarded so far on CMGalaxy?

Yes. On CMGalaxy, as I had mentioned in the previous call as well that in the second half of this year, we will look at onboarding more and more customers, and we are in line to do that. We are, of course, continuing to invest on the technology side with more and more agenetic AI being a part of that. And so we are on track to do that. In terms of sort of specific numbers. I think -- I don't know sort of break that up at this stage right now, and that's something I had mentioned in the previous call as well. So maybe next year onwards, we can start sharing the specific information as far as that is concerned.

Okay. And like have you collected a structured feedback from the CMGalaxy demos and earlier adopters. If yes, like what key feedback have you received? And what improvements have been implemented based on that?

Yes. So that's a great question. And the answer to that is, yes, there is a lot of input and feedback that we have received from both existing customers as well as other potential customers to whom we are demoing. And I think one of the things that is definitely coming across is how is AI going to play a role in improving the situation. So that's where we are also putting emphasis and focus. And seeing more and more AI integration being done into the platform. I think the feedback has also been that, look, when it comes to the data, the problem is a real problem. And it's a big problem that many organizations face where their data is often sitting in silos. And so there is a need for products like this. I think the third particular feedback that I want to share is that it's also a product that does require some change management, right? So it requires sort of decision makers from a couple of teams to sit together and say that, okay, yes, this is something that as an organization will play a significant role in bringing -- adding value, organizing data, making better decisions and so on. So I would say those are the 3 key feedback, but overall, the positive feedback has always been that, yes, there is -- this is a great product. It's a very user-friendly product. And it is a genuine challenge that we wish to solve for, right? So the queries that we are getting in line -- are in line with that. And we are also customizing a few things in order to make sure that the existing customers are finding more and more value from the product.

Okay. And my next question is on Auxo Ads. So in some previous call, you told us that Auxo Ads contribute around 20% of the top line. So what is the current status of the Auxo Ads business and how we are planning to scale that business like to grow more and more?

Yes. So I refer to the publisher monetization business and also the growth in the international business. So that predominantly reflects what we are doing on Auxo Ads. And so Auxo Ads as a product is, of course, something that all our customers use. We in Auxo Ads are also building more functionality and features. But yes, that is very much a live product across all our customers, and it does bring us double-digit margin. So the -- in terms of growing that and scaling that up, we are looking at markets like Southeast Asia as well as U.S. to add more and more publishers as well as demand partners there. So that's on the Auxo Ads front.

So like after CMGalaxy, Auxo Ads, like we are doing merger. So what new product launches or development initiatives are planned in the road map?

In terms of the businesses that we have spoken about, and there are, I would say, 4 of them, which are, of course, the agency business, the publisher monetization business, the market research and consulting business and now in the merged entity, the media business. And we think that within these 4 areas, there is a lot of opportunity for growth, right? And of course, CMGalaxy is already something that we are working on. So rather than at this stage, look at sort of launching new things. I think we want to double down on the opportunities that are already there in these businesses and make sure that we are starting to build more revenues as well as bottom line in each of them, right? So that's going to be the focus for the time being. And yes, for example, in the media business, we may certainly do a new event series, right? So if we do that, that's going to happen. It's not like we're going to stop innovation, but it's going to be part and parcel of what that team takes up as a new opportunity and challenge rather than completely go out and invest in a new revenue stream on a completely new business case.

Okay. Great answer, Dhaval. So my next question is like have you hired any senior product or technology leaders recently? Or are there any plans to onboard experienced leadership to drive product innovation and scale?

So on the product front, I think we have an excellent team already in place, right? I mean there are, I would say, 3 senior leaders on the technology front. And this is pure technology and from a product point of view, I'm not even referring to sales and GTMs that are driving product innovation, primarily in CMGalaxy but also in sort of other areas across the organization. So I think we have a very good team. And we will always look at and we have done, improved the team, improved our internal processes. But I'm fairly confident and comfortable with the kind of tech road map that we have, not just for this year, but also for the coming year.

And for GTM?

So for GTM also, we've expanded our team. We have expanded the number of resources that we have. I also mentioned that we are looking at new geographies outside of India. And so there is a lot of -- because primarily without sales, we can sort of build a great technology, but without sales, I mean, that brings the bread-and-butter parts. So sales is very much a day-to-day exercise for the senior management in the organization. And very rightly, so we are -- and we have this year added in more people at the senior level to drive sales and marketing.

Okay. So my last question.

I also want to add -- I also want to add that when it comes to things like marketing and sales, we've also adopted better systems, right? So we've created better technology for outreach. We have used AI agents for putting together our proposals and GTM much faster. We have better tracking systems in terms of our pipeline. So it's not just a function of having more people, but I think also building maturity in the sales ecosystem for -- so that everybody from senior sales people to even younger sales people can thrive and flourish.

Yes. So my last question is like what are the plans to scale both like merged entities, both businesses significantly in the coming quarters?

No. So like I mentioned, there is, a, going to be an optimization, I think, that the merged entity will definitely present, right? So in terms of management bandwidth, there will be a significant improvement there. I also want to mention that I think the financial health of the merged entity will be significantly better. So we can plan future activity in a -- with in a much better manner. But from a business point of view, 2 things. One is that I mentioned we are doubling down on our existing businesses and making sure that we give our team the relevant support, bandwidth, bring in new systems, processes. So I think that is going to make a big difference. And then you already talked about Galaxy as well as Auxo Ads, right? So product-driven growth with much better margins is a very -- I think, a fundamental thing that we want to move towards as an organization. So both Auxo Ads and CMGalaxy are going to be an important part of scaling things up in the future. And then finally, from a merged entity point of view, we -- as mentioned, we are in January, looking at making sure that we spend a lot of energy in ensuring that there is a very good and smooth merger and we can realize the benefits of, what is that new entity, how is it going to operate, how are these -- we are going to scale things up. And so perhaps next time we have the investor call, we'll be in an even better position to give you more specifics as far as this is concerned.

Great to have a top line.

No, likewise, and thank you, Bhaveshji, for all the questions which is fantastic when we have investors who have, not only, I mean, the curiosity, but also understanding of what we are doing. So it's really wonderful. Thank you for all the questions. Akash, back to you.

The next question comes from Mr. [ Ankur Gulati ], an individual investor.

I guess most of the questions were answered. So if you have anything else on CMGalaxy or a new product, I guess you covered it 10 years.

Sorry, could you repeat that once, please? And maybe just if you could speak into the microphone, the voice was a little scrambled.

Most of the questions were anyways answered. Is there anything else in your mind with respect to Galaxy or when do you see the rollout happening? I mean I guess you said Q4 of this year, right? But anything else on the broader strategy.

No. So from both the product as well as -- so I think one of the things that I had shared last time was that we're continuing to build the product, but also in line with that, we are expanding our emphasis as far as GTM is concerned. And I think last time we had spoken, we were kind of still in the planning phase, but I'm happy to share that now we're in the execution phase. So if you -- I would encourage all of you to please visit and follow CMGalaxy on LinkedIn as well as the website. And there is quite a bit of GTM action that has already started. We are -- so as we do that, there is also now a focused outreach in a much wider manner to clients, both in India as well as abroad, right? So that's something that we were doing in a very limited fashion in the past, but we're starting to do that more and more. So yes, I mean, as I had mentioned in next quarter, we should start getting the first sort of signs of consistently building up client base.

So Dhaval, that means that your business plan is ready, right? So that rollout has started?

Yes.

And is it fair that by end of Q3 call or Q4, you will be in a position to give more details of business plan? Or do you think you're in a position right now to give us more color, sir?

I think in the next call that we do, we will be in a much better position to add more details. Right now, it would -- it is, like I said, in that strategy phase, it is in that rollout phase, early -- very sort of early rollout phase in that sense from a GTM point of view. And yes, I think I will have -- I'll be very happy to share more details in the next call that we do.

But have you guys crossed the MVB phase, I mean your minimum viable kind of stuff is done or that MVB rollout still happening?

No. We are across that MVB stage for sure. In fact, I would say that we are moving towards being in an MCP kind of category, which is a minimum competitive product. So yes, we are very quickly moving into -- towards the MCP. And I think the feedback is in line with that. So yes, just sort of continuing to build a little bit of more momentum when it comes to GTM because it's sort of not a plug-and-play kind of solution, right? So it means to -- we need to also make sure that the clients are understanding the value they are getting from a product like this.

So any feedback from clients on MVP on the product side? I mean -- and who are the clients, these are still ad agencies or someone else?

Yes. So we are onboarding both ad agencies and D2C clients. The D2C is direct, of course, and then ad agencies are definitely reacting well to the product and because they need -- I mean from their team, they are getting a lot of interest in a product like this that can help them be more competitive in the market. So yes, those are the 2 primary categories that we have, types of clients that we are connecting with. And feedback is positive. I mean just sort of every week, I'm personally having 2 to 3 calls and demos and so on, and we continue to receive very positive feedback. There are always requests for some customization or some integration. And yes, that is something that will take its time.

And you mentioned MCP, so is there a feedback on pricing already or no?

So pricing, we have a fair idea about, but we haven't yet published a fixed pricing. So it also depends on what is the requirement for clients, right? Because how many integrations, how many accounts, how many -- what is the size of the data that they want to process. So -- and also the cloud infrastructure involved therefore. So there are a few variables that can significantly matter to finalize any proposals. So that's something that we are continuing to fine tune and work out.

The next question comes from Mr. [ Rajat Jain ], an individual investor.

My question is regarding, which are the peers that are addressing the same market as ours, like are fairly at a more advanced stage than us? And the second question, so right now, like even in the previous calls that you have mentioned that we're growing better than the industry standard 20%, 25%, which has been happening. But when will that inflection point, do you see coming when we will, let's say, from the small base that we have, we can actually start seeing 50%, 70%, 80% growth, higher double-digit growth?

Yes. Rajatji, thank you for the question. So the first question, just a clarification. Are you referring to other organizations like CMRSL as a whole? Or is it specifically related to the question was terms of market peers, specifically related to a product?

Like CMRSL so maybe catering to ad agencies and their requirements?

So see, for each of our 3 businesses, which is the agency, the publisher monetization and the market research business, there are very, very different organizations that are competitors, right? So I don't -- I wouldn't -- I don't think there is a single organization in that sense that I wouldn't be able to point out as a competitor. And let me give you a simple example of that. So for example, all the agencies that you're talking about, they are almost entirely focused only on the advertising side of the business and don't interact or operate directly with publishers. Whereas in CMRSL, we also, with Auxo Ads have clear product and offering for the publisher monetization side as well, right? Now that combination is not something that is very, very common, right? And there are maybe -- I mean, you'll be very hard press to find too many companies that are doing both. So that's where we believe that we can create a value offering that is better than what is there in the market and that there is a growth opportunity there. So that's one. And then the second part you mentioned is growing better than the industry standard. And we do, as mentioned, clearly, today, there are 3, 4 areas that we see as very scalable opportunities, right? So the first one is -- first 2 are products like, which is CMGalaxy as well as Auxo Ads. And then even our market research and consulting business, which has a good margin. That again, offers a good opportunity for growth. Not to mention -- I mean even the other areas do. So the inflection point can come from -- we have 2, 3 different areas of opportunity through which can offer some of the inflection point so to speak that you're talking about, right? So I don't want to put a specific time line to that today. It would be a little premature for us to do that. But the merger will certainly help in that direction is what we do.

[Operator Instructions] The next question comes from Mr. [ Muzamil Hussain ], an individual investor.

Dhaval, my question to you is regarding the merger. As far as I know there are our various parameters, which can be considered regarding the merger. But like NAV, book value and EPS, but ignoring all these parameters considering only price parameter, which is not favorable to the shareholders of Cyber Media. Do you think it is good to -- that we are going considering only that parameter?

So as we shared earlier and Mr. Tulshan had also spoken about it, in both the organizations, there is a significant benefit that we can see to investors. So for example, for CMRSL investors being listed on the main board also having a significantly healthier balance sheet given that CMIL has assets of INR 27 crores and -- fixed assets of INR 27 crores. And so therefore, the -- what we effectively have done is that we have followed the standard SEBI norms to put the right kind of valuation ratios that is fair to both sides -- both investors and both the company, right? And that's sort of the principle that we have followed. I'd also request Mr. Tulshan to say something about this.

Hussainji, I would like to add that income approach and even the NAV approach requires lots of assumptions to be made. And we feel that the market approach being listed prices, since both the entities are listed, gives us a better indicator of what the SREP ratio should be. And generally, NAV is used so far as our experience is concerned, NAV is used when we are going for, say, liquidation, et cetera. And as far as DCF is concerned, we make projections for the future. So as listed entities, we are not supposed to make future projections, et cetera. So that is the reason why we have not done DCF as far as NAV is concerned, this is not used for, I think, the SREP ratio, that is use only for dissolution purposes, et cetera. And another thing which I would like to add is both the companies being listed companies are required to follow Indian accounting standards or Ind AS, which are based on IFRS. And there is a particular IFRS or Ind AS which is Ind AS 113, which is with respect to fair value measurements. And in that term, fair value measurement, there are 3 types of valuations. One is Level 1 valuation and second is Level 2 valuation; and third is Level 3 valuation. And generally, that accounting standard preferred the Level 1 valuation, which is based on the listed price. And in the Level 2 valuation, we generally look for similar companies, et cetera, based on listed price. So -- and as far as Level 3 valuation is concerned, that is used for unlisted entities, et cetera, for whom the regular pricing is not available. So we have gone as per the SEBI guidelines, which lays down a determined formula how you are supposed to calculate the price. And so we have taken out all the assumptions. We have taken out all the assumptions, which may or may not happen in future because all the assumptions are management based, et cetera. And so the Board considers that we should go from the market perspective. And second, from an accounting standard perspective, which are the global standard, et cetera, that also prefers a Level 1 valuation. And so we are in compliance with the accounting guidelines also, and we are in compliance with the statutory guidelines also. That is the reason we have gone for the market approach.

My second question is CMRSL shareholders are having healthier dividend payout ratio than CMIL. Do you think this dividend payout ratio can be maintained going forward after merger?

Basically, he's asking, will we be able to maintain the dividend?

Yes.

Yes. So we will -- I mean, like we mentioned, we believe the merged entity will have a much stronger balance sheet. We will have cost savings and therefore, we expect that, yes, the -- I mean, the goal is to maintain that. Yes. You know forward-looking statements, we cannot give an absolute assurance.

[Operator Instructions] I believe that would be the last question for the day, sir. Now I hand over the call to the Managing Director, Mr. Dhaval Gupta for closing comments.

Right. Okay. Thanks, Akash. And again, a very big thank you to all the investors for taking out the time. And for some closing remarks, I'd like to pass this on to the Chairman, Mr. Pradeep Gupta.

Thank you for all those questions. I think the agenda for the company is very clear. In the next 3 months, we will be working towards ensuring that integration process starts. And as far as the next year is concerned, we are looking at the launch of Galaxy and doubling down of existing businesses. So those are the 2 key things that we will be doing. Thank you very much.

Thank you, everyone.

Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Door Sabha's conference call service. You may disconnect your lines now. Thank you, and have a pleasant day.