Mumbai: Deccan Chronicle Holdings Ltd on Friday said its July-September quarter profit nearly halved as the newspaper publisher battled higher costs.
Profit fell 45% to Rs452.7 million even as sales grew 20.6% to Rs2.26 billion. Revenue growth matched a Reuters poll estimate of 19.6% to Rs2.25 billion, profit fell short of the poll’s Rs743 million estimate.
The company showed raw material consumption costs and staff costs more than doubling. While raw material costs grew to Rs1.17 billion from Rs559 million a year ago, staff costs expanded to Rs133.6 million from Rs61.7 million.
Newsprint prices rose 23% to $756 a tonne during the quarter and rupee depreciation added to the woes, brokerage Motilal Oswal had said in its pre-earnings report.
The company raised advertising tariff by 50% across its editions on 1October. It is also looking to sell its Indian Premier League Cricket team, Deccan Chargers, and earlier this week said it has mandated KPMG Corporate Finance to find a buyer.
Deccan Chronicle had paid $107.01 million for the Hyderabad team of the Indian cricket board’s Twenty20 series for 10 years.
The company’s shares extended gains to 13% after the results in a Mumbai market that is up 7%.