New Delhi: Hindustan Media Ventures Ltd (HMVL), publisher of the Hindi daily Hindustan, on Thursday reported an increase in net profit for the year to 31 March on higher advertising and circulation revenue as well as investment income.
Net profit rose 6% to Rs189.50 crore from Rs178.70 crore in the previous year, said the company, a unit of HT Media Ltd, which publishes Mint and Hindustan Times. Revenue for the year rose 4.8% to Rs1,025.3 crore from Rs978.8 crore, it said in a statement.
The profit was notched up on a 0.7% increase in advertising revenue to Rs691.2 crore in the year ended 31 March from Rs686.1 crore in the previous year, led by an improvement in advertisement yields. Circulation revenue rose 4.6% to Rs221.3 crore from Rs211.7 crore on higher realization per copy and rise in the number of copies sold. The company reported a 39.2% increase in other income, thanks to investment gains.
For the quarter ended 31 March, net profit declined 4.8% to Rs42.4 crore from Rs44.5 crore a year ago. Revenue increased by 2% to Rs251 crore from Rs246.1 crore.
A 28.4% increase in other expenses offset higher revenue from advertising and circulation, and declines in raw material and employee costs.
“The last financial year was tough not just for your company but the media industry as a whole. A short-term economic slowdown in the second half of the year put paid to any hopes of a recovery and hit advertising spends across sectors,” Shobhana Bhartia, chairperson of HMVL, said in the company statement.
“Still, despite subdued revenue growth, our profitability increased on the back of stable newsprint prices and wide-ranging cost management initiatives. We see early signs of recovery in the new year. Our strong fundamentals are complemented by the overall bright prospects for regional language print media where readership and advertiser-interest continue to grow. A faster revival in economic growth will stimulate growth in advertising spends and help us deliver value to all stakeholders,” she added.