X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Jagran Prakashan: Strong bounce back - Views on News from Equitymaster

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

MidCapSelect
  • MyStocks

MEMBER'S LOGINX

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

Jagran Prakashan: Strong bounce back
Aug 1, 2009

Performance summary
  • Topline increases by 12% YoY during 1QFY10 led by better than expected advertising revenues.
  • EBITDA margins improved from 24% in 1QFY09 to 30% during the quarter due to low newsprint prices and cost control.
  • Other income, which includes revenues from outdoor advertising, event management activity and short code services increases by 149% YoY during 1QFY10.
  • Bottomline grows by 56% YoY during the quarter on account of topline growth, expansion in margins and higher other income.


Standalone financial snapshot
(Rs m) 1QFY09 1QFY10 Change
Net sales 2,065 2,319 12.3%
Expenditure 1,568 1,614 2.9%
Operating profit (EBDITA) 496 705 42.0%
EBDITA margin (%) 24.0% 30.4%  
Other income 63 157 148.7%
Interest 10 14 39.0%
Depreciation 84 124 48.0%
Profit before tax 466 724 55.5%
Tax 150 229 53.4%
Profit after tax/(loss) 316 495 56.4%
Net profit margin (%) 15.3% 21.4%  
No. of shares (m)   301.2  
Diluted earnings per share (Rs)*   3.6  
Price to earnings ratio (x)*   25.7  
*On trailing 12 months earnings

What has driven performance in 1QFY10?
  • Jagran Prakashan clocked advertisement revenues of Rs 1.6 bn in 1QFY10, up by 14.9% from Rs 1.4 bn in 1QFY09. It also received circulation revenues of Rs 545 m in 1QFY10, up by 14.1% from Rs 478 m in the corresponding period last year. Sales of Dainik Jagran, the company’s flagship Hindi newspaper was higher by 3.5% during the quarter, in terms of number of copies sold per day.

  • On the cost front, Jagran Prakahan benifited from lower newsprint prices and better cost control. This is reflected in lower cost of raw materials, which declined by 4% YoY in 1QFY10 on an absolute basis and by 5% as a percentage of sales.

    Cost break-up
    (Rs m) 1QFY09 1QFY10 Change
    Raw materials 731 701 -4.0%
    % sales 35.4% 30.2%  
    Staff cost 255 289 13.6%
    % sales 12.3% 12.5%  
    Other expenditure 583 623 6.8%
    % sales 28.2% 26.9%  
    Total cost 1,568 1,614 2.9%
    % sales 76.0% 69.6%  

  • Other income, which includes revenues from outdoor advertising, event management activity and short code services, increases by 149% YoY during 1QFY10.

What to expect?
Jagran Praksahan continues to be the leading newspaper company in the country. It is also witnessing a rise in circulation numbers. As it is more of a local player, the impact of slowdown was less than its peers. It has been unable to pass the price of higher newsprint costs and any further price hikes also seems doubtful. However, the benefit of softening newsprint prices have started kicking in and are likely to continue in the forthcoming quarters. At the current share price of Rs 94, the company is trading at 25.7 times it trailing 12 months earnings and 15.4 times our estimated FY11 earnings. We shall soon update our view on the stock.

To Read the Full Story, Subscribe or Sign In


Small Investments
BIG Returns

Zero To Millions Guide 2019
Get our special report, Zero To Millions
(2019 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

JAGRAN PRAKASHAN SHARE PRICE


Nov 16, 2018 03:37 PM

TRACK JAGRAN PRAKASHAN

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

MORE ON JAGRAN PRAKASHAN

JAGRAN PRAKASHAN 8-QTR ANALYSIS

COMPARE JAGRAN PRAKASHAN WITH

MARKET STATS