New Delhi: Jagran Prakashan Ltd, publisher of Hindi daily Dainik Jagran, posted a 12% fall in first quarter net profit because of an increase in newsprint costs and a drop in advertising revenue.
Dainik Jagran is the country’s No. 1 daily newspaper by readers, according to the Indian Readership Survey.
Profit fell to Rs49.7 crore, or Rs1.57 a share, in the three months ended 30 June from Rs55.6 crore, or Rs1.85, in the year earlier, the company said in a statement to the Bombay Stock Exchange. Revenue rose 13% to Rs304.6 crore. Expenditure increased 21% to Rs237.6 crore because of an increase in raw material and employee costs.
The company performed well given “the competitive environment”, Mahendra Mohan Gupta, chairman and managing director of Jagran Prakashan, said in the statement.
“It registered high growth in circulation in all the six print brands of the group,” he said. “However, growth in advertising revenue was subdued due to the slowdown in national advertising, lower-than-expected growth in the education sector and (a) strategic decision not to offer steep discounts as desired by few advertisers.”
Shares of Jagran fell 3.5% to Rs113.55 on the Bombay Stock Exchange on Thursday. The benchmark Sensex dropped 1.2% to 18,209.52.
Dainik Jagran competes with Hindustan published by Hindustan Media Ventures Ltd, a unit of HT Media Ltd, which publishes Mint.