Jagran Prakashan Ltd's Q2FY19 consolidated net profit declines 39.4% yoy to Rs42cr : Misses Estimates

The company’s consolidated revenue stood at Rs553cr, down 2.3% yoy and 8.2% qoq.

Nov 01, 2018 08:11 IST India Infoline Research Team

Jagran Prakashan Ltd Q2FY19

Consolidated Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 553.44 [2.3]
EBITDA 99.60 [28.2]
EBITDA Margin (%) 18 [647]
Net Profit (adjusted) 42.10 [39.4]
***EBITDA margin change is bps

Jagran Prakashan Ltd’s revenue declined by 2.3% yoy and 8.2% qoq to Rs553cr. EBITDA came in at ~Rs100cr, down 28.2% yoy and 39.1% qoq. EBITDA margin contracted by 647bps yoy and 915bps qoq to 18%. Company’s adjusted Net profit declined by 39.4% yoy and 50.7% qoq to Rs42cr. EBITDA and Net profit came below estimates of Rs121cr and Rs57cr respectively.

• Advertisement revenues at Rs399cr as against Rs422cr yoy.
• Circulation revenues at Rs110cr, up by 3.8% yoy from Rs106cr.
• Other operating revenues at Rs45cr, up by 12% yoy from Rs39cr.
• Revenues of Dainik Jagran and Other publications stood at Rs352cr and Rs 82cr, down 5.5% and 5% yoy respectively, dragging overall revenue growth. The reasons include negative consumer sentiments, impact seen in Automobile & Education sector, shift in festive season and lower ad spent by government.
• Operating profit margin of Dainik Jagran stood at 22.1% vs. 30.7% yoy, impacting overall margin profile of the company. This is due to rising newspaper cost, which grew by ~40% yoy. Similarly operating loss of other publications stood at ~Rs1cr vs. profit of ~Rs5cr yoy.
• Digital Advertisement Revenue at Rs11cr, up by 35.1% yoy.
• Radio business’ (Music broadcast Ltd) revenue grew to Rs80cr vs. Rs76cr yoy. While operating margin of this business stood at 33.1% vs. 31.9% yoy.
• Cost of goods sold stood at 32.6% of sales vs. 29.2% yoy impacting the EBITDA margin.
• Other expenses stood at 29.3% of sales vs. 27.8% yoy.
• Dainik Jagran further strengthened its No. 1 position in the Country in all languages including English with a Total Readership of over 7cr.
• Dainik Jagran is ahead of the No.2 newspaper Hindustan by a significant margin of 1.8cr readers, leading by 34%.

Technical View:

Jagran Prakashan Ltd ended at Rs. 112, down by 1.6 points or 1.41% from its previous closing of Rs. 113.60 on the BSE.
The scrip opened at Rs. 115.30 and touched a high and low of Rs. 116.10 and Rs. 110.25 respectively. A total of 1,14,152 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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