Shareholders to decide on Zee CEO Punit Goenka’s reappointment

Zee Entertainment’s MD and CEO Punit Goenka is nearing the end of his term in December 2024. With over 15 years at the helm, he’s the company’s longest serving CEO. However there hasn’t been any discussion with shareholders about his reappointment. At the FY 2024 Q4 earnings call on Friday May 17 Goenka said the decision on whether he continues in this role will ultimately be theirs.

Under his leadership, Zee has navigated various industry challenges and opportunities. Goenka and his father Subhash Chandra who is also the chairman emeritus of the chairman are currently under investigation by SEBI (Securities and Exchange Board of India) on allegations of financial misconduct.

On August 14 2023, shortly after the NCLT (National Company Law Tribunal) approved the $10 billion Zee-Sony merger, SEBI issued an order barring Zee promoters Punit Goenka and Subhash Chandra from taking on significant management positions within Zee companies or the newly merged entity with Sony. However, on October 30, the Securities Appellate Tribunal (SAT) overturned SEBI's decision to prohibit Goenka from holding any managerial positions in listed companies for a year.

Even after SEBI’s order and other ongoing legal proceedings Zee promoters continued to express confidence in the merger deal that ultimately collapsed in January 2024.

Ever since, the company has been through a tough time seeing restructuring, layoffs and strengthening of strategic focus.

Read More: ZEE's restructuring, layoffs, strategic focus; Punit Goenka charts a new course after Sony-merger collapse

While the financials for the December quarter of FY24 were being announced, Goenka mentioned chalking out a firm and structured plan to bring back margins. According to his plan the company’s forward looking plan would be centred around three key aspects of frugality, optimisation and sharp focus on quality content.

Cut to months later, at the earning call of the FY 24 Q4 results, Goenka again emphasised on frugality. According to him, the need of the hour is to pivot to business to achieve a balanced cost structure in order to achieve sustained long term growth.

Read More: ZEE's Punit Goenka: We have to be frugal, make sure of buying right content at the right price

"With that backdrop we are looking at every element of the business with the lens of improving the overall performance. As a result we expect some short term aberration in digital business financial performance."

The next quarter, Zee Entertainment Enterprises Limited (ZEEL) reported a net profit of Rs. 13.35 crore for the quarter that ended March 2024. During the same quarter last year, ZEEL reported a loss of Rs. 196 crore.The company disclosed a total income of Rs 2185.29 crore. This is an increase from Rs. 2126.35 crore that the company reported a year ago during the same period.

Read More: ZEEL reports profit of Rs.13.35 crore in Q4FY24

While the company’s board and shareholders face a crucial decision that could impact the direction of the company, stakeholders are keenly watching for any indications, strategic shifts or continuity plans.