Jagran prakashan

Hiteshbhai,

Excellent narration of the Jagran story. Few questions I have

1) Company’s operating margins in last 5 years have been fluctuating between 19-29% and hence the bottom line growth seems relatively slower compared to its peer (DB Corp – CAGR 12%; HMVL – 28%). What is the normalized margin trajectory for Jagran post turn around of Nai Duniya & Mid day and consolidation of radio business?

2) There is hardly any top line growth in Other publications (Mid day, Nai Duniya), Dainik Jagran has been growing at 10% odd CAGR while radio business has been growing at faster clip but with much smaller base. In this context, what will drive the topline growth going forward?

To me, two critical catalyst in the Jagaran’s case

• Improving margins on non- Dainik Jagaran publications from 7-8% to Dainik Jagran’s base business OPM level of 28-30% ( Though I am not clear whether this is possible given the smaller size of these publications and niche market that they serve hence the hypothesis needs to be validated.) It will also be useful to understand the time line to achieve the base business level OPM.
• Management has indicated in concall that new cities acquired in Phase-III will add 40% to topline eventually thus driving the contribution to topline. Whether company is able to achieve the same and in what time frame?