Mumbai: Jagran Prakashan ltd reported profits after tax (PAT) at Rs 42.08 crore this quarter, up by 15.6% from Rs36.38 crore in the same quarter last year. Its operating revenues stood at Rs282.62 crore, up by 19.61% from Rs236.28 crore.
Advertisement revenues stood at Rs188.73 crore, up by 19.1% from Rs157.66 crore. Circulation revenues stand at Rs55.87 crore, up by 4.23% from Rs53.60 crore. On an yearly basis, Jagran Prakashan’s PAT stood at Rs205.83 crore for FY11, up by 17% from Rs175.90 crore in FY2010. Operating revenues were at Rs 1115.32 crore, up by 18.41% from Rs941.89 crore.
Mahendra Mohan Gupta, chairman and managing director, JPL said that notwithstanding unexpected increase in newsprint prices, circulation revenue loss due to drop in cover price in Jharkhand and 33% fall in other income, the company had still improved its operating margins, net margin and return on net worth.
“Our focus on digital business continued without going overboard and we added a number of offerings. Digital business registered 170% growth in revenue in JPL and 208% growth in revenue in Mid-Day, reducing the net losses which we consider as investment in this business,” he said.
Nikhil Vora, managing director, IDFC Securities said that strong momentum in advertising spends and particularly for Jagran was visible in the 20% ad growth in the quarter. “Incrementally, the acquisition of Mid Day as also potential inorganic expansion in regional markets (deployment of $50m to be infused by Blackstone) will add further momentum to the overall business. However, we remain apprehensive on the increasing competitive pressures in the Hindi belt with Hindustan extending its reach in UP and Dainik Bhaskar entering Bihar and Jharkhand markets,” he said.
Jagran Prakashan Ltd rose 2.55% to close at Rs126.5 on Bombay Stock Exchange on Tuesday. Its stock rose 18.06% in the past one year.