Jagran prakashan

Highlights of the call by Capital Mkt
For the quarter ended Sept 2015, the consolidated operating revenue increased by 19% to Rs 519.51 crore, Advertisement revenue increased 27% to Rs 388.96 crore. Circulation revenue was up by 3.5% to Rs 99.83 crore. The net profit increased by 61% to Rs 91.28 crore.On standalone basis, the company reported 7% growth in revenue to Rs 437.26 crore. Advertising revenues grew 9% to Rs 312.74 crore, Circulation revenue was up by 3% to Rs 93.87 crore. The net profit grew 4% at Rs 58.31 crore.The company has discontinued publication of Cityplus in Q2.
Dainik Jagran’s ad growth was driven by mix of yield improvement (50%) and volumes (50%) while growth for other editions primarily driven by volume increase. October-2015 has seen better than expected ad growth, mgmt expects at least 10% growth till Diwali. UP has started to get its due share with improving national advertisement.
Madhya Pradesh market is going very slow. The mgmt said that local market is low while national one is not impacted. Bihar, U.P. doing well.City plus had 0.7% impact on the ad growth.
The sector which has contributed to advertisement revenue growth are automobile, white goods and online shopping companies. Auto did excellently. Online shopping also did well but the company has not carried every company ads to protect rates. Retail on local side is picking up.
Radio operating revenue grew 8% to Rs 55.5 crore, driven by yield improvement. EBITDA stood at Rs 16 crore registering decline of 2% with EBITDA margin of 29% vs 32.1% in Q2 FY15. EBITDA was impacted by higher provision for license of Rs 3.5 crore. The net profit was Rs 12 crore. In H1, core market has grown by 10-12%. Utilization has not grown. Both large and small markets have grown, large markets grown on rate hike and small market on volume. Consumer durable. Government and e-commerce companies have helped ad revenue growth for H1. The company will take rate hike in radio business. 8% growth is sustainable.
There was improvement per copy realization especially in Midday.65% digital ad revenue growth for Q2. Rs 5 crore run-rate per quarter in digital biz.
I next – increased share in core market after its re-launch. Circulation improved 55%.Newsprint consumption for H1 was 80000 tonnes. The mgmt said that newsprint price will remain stable.
Land parcel – always looking for disposal of it, at right price.The capex for Jagran Prakashan is Rs 60 – 70 crore for FY16.Net Debt stands at Rs 104 crore for the group as on 30th September 2015.Tax rate for FY17 will be 27-28%.