Tata Donnelley: bottomline blues - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Tata Donnelley: bottomline blues

Jun 28, 2000

Tata Donnelley has reported a 16.5% topline growth for the year FY2000. However, the bottomline has stagnated since the company took a huge write off on account of VRS. Out of 220 people, the company has relieved almost 115 people. The company has consistently toned down its commercial printing operations which now contribute around 16% of the company's turnover. (These contributed 71% of the turnover a decade back.) However, this business is very competitive and is actually in a loss.

(Rs m) FY1999 FY2000 Change
Sales 853 993 16.5%
Other Income 53 73 36.7%
Expenditure 690 819 18.6%
Operating Profit (EBDIT) 162 174 7.3%
Operating Profit Margin (%) 19.1% 17.6%  
Interest 3 2 -30.0%
Depreciation 57 55 -5.0%
Profit before Tax 155 190 22.9%
Other Adjustments 0 (32)  
Tax 50 53 6.0%
Profit after Tax/(Loss) 105 105 -0.2%
Net profit margin (%) 12.3% 10.6%  
Earnings per share 13.81 13.78  

The bread and butter business for the company remains the Yellow Pages business which contributes a bulk of the profits (the management would not specify the percentage). However, the business needs to transit to a web based one. Already the company licenses the exporters pages to other portals. It is planning to put in place its own portals in the current year. The company also has a special interest publishing business which publishes magazines catering to niche markets such as Photography, AV Max, Search (industrial product finder) and Overdrive (an auto magazine).

Overall value added products (which includes the Yellow Pages and the special interest publishing business) contributed 63% of the revenues with contractual printing contributing another 19.9%. (Contractual printing basically involves printing magazines such as Outlook, Femina, Filmfare, Intelligent Investor etc.) The coming year is unlikely to get any easier. The stock currently quotes at a price of Rs 258 which implies an earning multiple of 18.7 times. If one were to exclude the VRS expenditure, the earning multiple works out to around 15.5 times.

Equitymaster requests your view! Post a comment on "Tata Donnelley: bottomline blues". Click here!


More Views on News

Sorry! There are no related views on news for this company/sector.

Most Popular

6 Charts Showing the State of Indian Financial Markets in 2020 (Sector Info)

May 26, 2020

Six charts showing how Indian financial markets have performed in 2020 so far...

Why We Picked This Smallcap Stock for a Post Coronavirus World (Profit Hunter)

May 28, 2020

Covid-19 has made it a survival of the fittest race for many companies. The ones that can adapt will thrive in a post crisis world.

The Best Safe Investment for Senior Citizens (Fast Profits Daily)

Jun 4, 2020

With Interest rates near record lows, there is a safe investment which still pays a decent interest.

Who Will Be Crowned the 'Multibagger Blue Chip' of the Decade? (Profit Hunter)

May 25, 2020

Will the mutlibagger blue chips of the past decade continue to rule the bourses?


India's #1 Trader
Reveals His Secrets

The Secret to Increasing Your Trading Profits Today
Get this Special Report, The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Jun 1, 2020 (Close)


  • Track your investment in INFOMEDIA PRESS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks