DB Corp Ltd's Q2FY19 consolidated net profit declines 41.28% yoy to Rs46.19cr: Misses Estimates

The company’s consolidated revenue in the period stood at Rs582.09cr, up 2.42% yoy but down 7.95% qoq.

Oct 25, 2018 05:10 IST India Infoline Research Team

DB Corp Ltd Q2FY19

Consolidated Results Q2FY19: (in Rs cr)

Q2FY19 YoY (%)
Revenue 582.09 2.9
EBITDA 92.32 [34.0]
EBITDA Margin (%) 15.9 [888]
Net Profit (adjusted) 46.19 [41.3]
***EBITDA margin change is bps

DB Corp Ltd’s revenue in the Q2FY19 grew 2.9% yoy (declined 8% qoq) to Rs582cr. EBITDA came in at Rs92cr, down 34% yoy (45.1% qoq). EBITDA margin also contracted 888bps yoy (1,071bps qoq) to 15.86%. The company’s adjusted net profit declined 41.3% yoy and 52.7% qoq to Rs46cr. Both revenue and net profit came below the estimates of Rs599cr and Rs63cr, respectively.

• Its printing & publishing, radio, and internet segments' revenue grew 4%, 8.4% and 4.8% yoy to Rs531cr, Rs38cr, and Rs12cr, respectively.
• Circulation revenue has increased 5.5% yoy to Rs132cr from Rs124cr, primarily due to volume-driven growth. 
• Cost of goods sold stood at 40% of revenue vs 31.6% yoy impacting the EBITDA margin of the company.
• EBITDA margins were also impacted by the circulation of expansion strategy-related non-recurring expenditure of Rs11cr during Q2FY19.

Technical View:

DB Corp Ltd ended at Rs163.10, up 0.15 points, or 0.09%, from its previous close of Rs162.95 on the BSE. The scrip opened at Rs160 and touched a high and low of Rs168 and Rs152.85, respectively. A total of 3,78,410 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200-DMA.

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