Radio improves its operating margin to 33.1%
New Delhi, October 31, 2018; Jagran Prakashan Limited (JPL) (BSE SCRIP ID: 532705; NSE SYMBOL: JAGRAN), publishers of ‘Dainik Jagran’, India’s largest read newspaper (Source: IRS2017), has reported Consolidated Operating Revenues of Rs 553.45 crores, Consolidated Operating Profit of Rs 99.60 crores and Consolidated Net Profit (PAT) of Rs 44.88 crores for Q2FY19.
Commenting on the performance of the company, Mr. Mahendra Mohan Gupta, Chairman and Managing Director, JPL said,
“The quarter unexpectedly delivered disappointing results in spite of our best efforts such as taking the increase in cover prices wherever possible and keeping the cost under check. We could
mitigate some impact of steep fall in revenues and abnormal increase in newsprint prices but these efforts were not enough to maintain revenues and profits. However, Radio, Digital and Nai Dunia performed strongly in spite of shift of festive season to Q3. Growth in advertisement revenue for Nai Dunia was 9% in Q2 and 5% in H1 which was driven by local revenues that grew by 38% and 29% respectively. Another positive was continued growth in local revenues for Dainik Jagran in Q2 as well even though Q2 of the previous year benefited from the festivity.
Exchange fluctuation due to depreciating rupee and MTM losses due to increasing yield hurt the Company further.
We are cognizant of the fact that the overall economic environment is not conducive for the industry and there is a lack of visibility of growth but still H2 is expected to be better and should compensate some loss at the back of festive season and ensuing general elections. Going forward, some drop in newsprint prices is also expected which will improve the results for H2 further.
After completing the buyback of Rs.292 cores in July 2018, the Company has distributed dividend @ Rs. 3 per share in the first week of October in line with its policy of rewarding shareholders. I
would also like to reassure that we remain committed to do our best in the interest of all the stakeholders and reward them as always and we expect your support in our endeavour as hitherto”.