As operating profit margin turn negative 15.7% (against positive 28.9% in the corresponding previous period), it was an operating loss of Rs 33.05 crore compared to a profit of Rs 175.50 crore in the corresponding previous period. After accounting for higher other income, higher interest and lower depreciation, the PBT was a loss of Rs 63.72 crore compared to a profit of Rs 143.94 crore in the corresponding previous period. The taxation was a write-back of Rs 15.67 crore compared to a provision of Rs 50.22 crore in the corresponding previous period. Thus the PAT was a loss of Rs 48.05 crore compared to a profit of Rs 93.73 crore in the corresponding previous period.

Yearly performance

Consolidated sales for the period was down by 10% to Rs 2223.83 crore dragged down by 11% fall in advertisement revenue to RS 1703.1 crore and 2% fall in circulation revenue to Rs 512.2 crore. But with 120 bps expansion in OPM, the fall at operating profit was restricted at 5% to Rs 481.51 crore. After accounting for lower other income, higher interest and higher depreciation, the PBT was down by 16% to Rs 348.16 crore. Eventually with taxation stand lower by 48% to Rs 73.19 crore, the PAT was flat at Rs 274.98 crore.

Management Comment

Commenting on the performance for Q1 FY 2020-21, Sudhir Agarwal, Managing Director, said, ""In what has proven to be an intractable business environment, we are thankful that the Dainik Bhaskar Group's fundamentals continue to remain strong. Our Company's focus on implementing a centrally managed multi-pronged strategy to deal with the pandemic has ensured that our operations continued with minimal disruptions, while adhering to the Government's guidelines for health and safety of our stakeholders. As India's largest newspaper group, our employees and operations reacted with agility to the extraordinary challenges faced due to the widespread economic disruption and uncertainty. Clearly the pandemic has had an impact on our results in the quarter, but all of our efforts, including embarking on cost-cutting programs are intended not only to deal with the short-term needs but also to ensure that the Company is well-equipped to prosper in a decidedly different business environment. Economic activity in Tier-II and Tier-III towns has already begun its path to normalcy and Dainik Bhaskar's strong position in these markets will help quicken the pace of our return to pre-Covid levels. We believe, worst is behind us and we are determined and working hard to recover the previous quarter's operating losses within next quarter. With our strong legacy of execution excellence, well implemented cost rationalisation measures and editorial excellence, we are confident of seeing this challenge through and are hopeful that this will be reflected in our future performance when the impact of Covid-19 eases and resultant economy picks up."