New Delhi: Hindustan Media Ventures Ltd (HMVL), publisher of the Hindi daily Hindustan, on Thursday said net profit rose 16.9% in the three months to 30 June, helped by higher advertising and circulation revenue.
Net profit increased to Rs.48.7 crore in the quarter from Rs.41.7 crore in the year-ago period, said HMVL, a unit of HT Media Ltd, which publishes Mint and the Hindustan Times.
Earnings before interest, tax, depreciation and amortization, an indicator of operating profitability, rose 16.4% to Rs.77 crore in the quarter from Rs.66.1 crore a year ago, a company statement said.
Total revenue rose 10.1% to Rs.259. 3 crore from Rs.235.4 crore.
Advertising revenue rose 6.7% to Rs.177.7 crore from Rs.166.5 crore. Circulation revenue rose 5.5% to Rs.56.3 crore from Rs.53.4 crore.
The higher revenue helped offset a 10.7% rise in raw material costs due to higher circulation and a marginal increase in newsprint prices, and a 5.5% increase in employee costs.
“The company’s profitability continues to improve despite a soft start to the year on account of macro-economic concerns which were reflected in moderate spends by large advertisers,” HMVL chairperson Shobhana Bhartia said.
“We also continue to strengthen our presence in Uttar Pradesh and Uttarakhand, while actively consolidating our dominant position in Bihar and Jharkhand. We expect sentiment to improve on the back of a good monsoon and implementation of the Seventh Pay Commission recommendations. This will drive advertising revenue growth in the second half of the year,” she added.
Shares of HMVL closed 1.53% down at Rs.271.10 apiece on BSE, while the benchmark Sensex closed 0.06% up at 27,714.37 points.