Mumbai: Jagran Prakashan Ltd (JPL) posted a near doubling of net profit in the financial year that ended in March on the back of better margins, growth in advertising revenue and a drop in newsprint prices.
The publisher of the Hindi daily Dainik Jagran said profit rose 92% to Rs175.9 crore from Rs91.63 crore a year ago. Operating revenue rose 14.39% to Rs941.89 crore.
Fourth-quarter profit rose 68% to Rs36.38 crore from Rs21.65 crore from a year ago. Advertising revenue in the quarter stood at Rs157.66 crore, up 20%.
“The growth is on account of increased volumes as well as advertising rates,” said Mahendra Mohan Gupta, chairman and managing director, JPL.
The increase in ad revenue was a surprise, said Anand Shah, analyst, Angel Broking Pvt Ltd.
“We expected it to be lower due to the slowdown,” he said. “Also top lines (net sales) are much higher. We thought their top lines would be up at best by 13%, but it’s gone up to 17%”.
Gupta attributes the growth due to the increased share of advertising in markets where the media brand is present.
“We have not launched any new edition in the last almost two years but the markets we are present in are maturing,” he said. The company’s outdoor and events division posted a revenue of Rs70.86 crore, said Gupta. He expects the Mid-Day acquisition to have a positive impact on the balance sheet in the future.
Anand Shah said that analysts continue to be optimistic about Jagran’s deal with Mid-Day and its association with one of the largest private equity investors Blackstone.
Jagran competes with Mint’s sister publication Hindustan.