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DB Corp Ltd. is India's largest print media company that publishes 6 newspapers with Dainik Bhaskar 46 editions, Divya Bhaskar 9 editions & Divya Marathi 6 editions with 208 sub-editions in 4 multiple languages (Hindi, Gujarati, Marathi and English) across 12 states in India.
Its flagship newspapers Dainik Bhaskar (in Hindi) established in 1958, Divya Bhaskar and Saurashtra Samachar (in Gujarati) have a combined average daily readership of 19.8 million, making us one of the most widely read newspaper groups in India with presence in Madhya Pradesh, Chhattisgarh, Rajasthan, Haryana, Punjab, Chandigarh, Himachal Pradesh, Delhi, Gujarat, Maharashtra, Bihar and Jharkhand.
Quarter results
D.B. Corp registered a 3% rise in consolidated sales to Rs 582.09 crore for the quarter ended September 2018.
Circulation Revenue has increased 5.6% YoY to Rs 131.8 crore, primarily due to volume driven growth.
Advertising revenues grew 4.3% to Rs 413.2 crore. Adjusted Advertising revenues grew 16.9% after adjusting for last fiscal's festive billing.
OPM fell 890 bps to 15.9% which saw OP fall 34% to Rs 92.32 crore.
Other income fell 7% to Rs 5.35 crore and interest cost grew 47% to Rs 3.00 crore. After providing for depreciation (up 10% to Rs 25.09 crore), PBT fell 42% to Rs 69.58 crore. Provision for taxation was down 44% to Rs 23.39 crore after which PAT fell 41% to Rs 46.19 crore.
Six months results
For the six months, it registered a 5% rise in consolidated sales to Rs 1214.47 crore.
Advertising Revenues grew 5% YOY to Rs 868.1 crore. On an adjusted basis Ad revenues reported 10% YOY growth.
Circulation Revenue increased 8% to Rs 266.4 crore, primarily due to volume driven growth.
OPM fell 670 bps to 21.4% which saw OP fall 20% to Rs 260.34 crore.
Other income fell 4% to Rs 12.19 crore and interest cost grew 32% to Rs 4.76 crore. After providing for depreciation (up 10% to Rs 49.43 crore), PBT fell 25% to Rs 218.35 crore. Provision for taxation was down 27% to Rs 74.59 crore after which PAT fell 24% to Rs 143.76 crore.
Forex loss and one time expense
There was a forex loss of around Rs 5.8 crore and non recurring expense of Rs 11 crore in Sep 18 quarter and for H1 FY 19, the forex loss and non recurring expense stood at Rs 8.3 crore and Rs 16.8 crore respectively.
FY 2018 results
For FY 2018, D.B. Corp registered a 3% growth in consolidated sales to Rs 2328.49 crore.
OPM fell 420 bps to 24.2% which saw OP fall 12% to Rs 563.76 crore.
Other income grew 40% to Rs 23.75 crore and interest cost fell 10% to Rs 6.70 crore. After providing for depreciation (up 7% to Rs 92.35 crore), PBT fell 14% to Rs 488.46 crore. Provision for taxation was down 14% to Rs 164.49 crore after which PAT fell 14% to Rs 323.97 crore.
Radio business
Radio business: Advertising revenues expanded 8.4% YOY to Rs 37.7 crore. On adjusted basis, radio delivered growth of 18% after adjusting for last fiscal's festive billing.
Radio business EBIDTA grew 30% YOY to Rs 12.0 crore
Radio Business PAT grew 47% YOY to Rs 5.8 crore
Digital business revenue grew 5% YOY to Rs 11.9 crore.
Other information
On an adjusted basis, total revenue grew 12.8% after adjusting for last fiscal one off items as well festival season billing.
EBIDTA stands after including expenses incurred for circulation expansion strategy related non-recurring expenditure of Rs.11 crore.
Valuation
The stock trades at Rs 165.
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