BackHindustan Media Ventures Q4 net profit rises 20%
Net profit rises to `27.2 crore from `22.7 crore a year ago
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New Delhi: Hindustan Media Ventures Ltd (HMVL), publisher of the Hindi daily Hindustan, reported a 20% increase in net profit for the quarter ended 31 March, on the back of increased advertising revenue and higher circulation.
Net profit rose to 27.2 crore from 22.7 crore a year ago, the company said on Wednesday. Revenue increased 19% to 194.5 crore from 163 crore. HMVL is a unit of HT Media Ltd which publishes Mint and Hindustan Times. Advertising revenue for the paper rose 20% to 137.5 crore from 132.9 crore as a result of better yields and volumes in advertising. Circulation revenue rose 14% to 45.5 crore in the quarter from 40 crore a year earlier.
The gains were partially offset by a 28% increase in raw material costs in addition to increase in employee costs and advertising and sales promotions expenses. Commenting on the results, HMVL chairperson Shobhana Bhartia said, “We are glad to close the year with a strong growth in revenue and profitability. While our pricing initiatives have contributed to top-line growth, our sustained cost control measures have ensured an increase in profitability despite rising input costs."
For the fiscal year, net profit rose 32% to 111.2 crore. Total revenue increased by 14% from 664.7 crore to 760.3 crore.
“The company has reported good numbers overall. The 20% increase in advertising revenue exceeded expectations, although the EBITDA (earnings before interest, taxes, depreciation and amortization) margins could have been higher," said Karan Mittal, media analyst at ICICI Securities. The board of directors have recommended a dividend of 1.2 per equity share of 10 each.
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