December 2013 quarter results

For the quarter ended December 2013, it registered a solid 23% rise in sales to Rs 111.42 crore. OPM jumped 760 basis points to 31.6% which saw OP rising 62% to Rs 35.23 crore.

Other income grew 45% to Rs 2.73 crore and interest cost went down 44% to Rs 82 lakh. As depreciation fell 6% to Rs 6.04 crore, PBT grew 99% to Rs 31.10 crore.

Tax soared from just Rs 29 lakh to Rs 10.45 crore after which PAT ended up 34% to Rs 20.65 crore.

Nine month results

For the nine months ended December 2013, it registered a sharp 28% rise in sales to Rs 292.03 crore. OPM jumped 1860 basis points to 28.7% which saw OP rising 262% to Rs 83.84 crore.

Other income grew 53% to Rs 6.69 crore and interest cost rose 24% to Rs 2.73 crore. As depreciation grew 31% to Rs 18.85 crore, PBT grew 533% to Rs 68.95 crore.

EO loss was nil against Rs 1.57 crore. Thus PBT after EO grew 639% to Rs 68.95 crore.

Exceptional items represent payments made to M/s Prasar Bharti and BSNL towards telecast fee and the interest thereon (Rs 80.01 lacs) and monitoring charges for foreign satellite (Rs 76.91 lacs) respectively in respect of earlier years, during the quarter ended June 30, 2012.

Tax soared 575% to Rs 23.48 crore after which PAT ended up 677% to Rs 45.46 crore.

Riding three favourable trends

The company is currently riding three major favourable trends

On the back of buoyancy in rural markets, spends on non-English media is increasing at a faster rate.

Digitisation is yielding more revenues at lower cost

Elections are gluing viewers to news channels and as parliamentary elections near, there will be more and more elections related news and discussions to garner more viewership share.

Valuation

The share price trades at Rs 112.