Buy Jagran Prakashan– revenues boosted by 31% ad revenue growth:: Edelweiss

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Jagran Prakashan– Buy
n JPL revenues boosted by 31% ad revenue growth
Jagran Prakashan’s (JPL) Q3FY11 revenue, at INR 2,860 mn, rose 26% Y-o-Y against our
estimate of INR 2,791 mn. The topline growth was driven by advertising revenues, which
jumped 31% Y-o-Y to INR 1,945 mn. Circulation revenues grew 7% Y-o-Y to INR 570
mn. The company has registered a growth in circulation of 10% during the quarter.
Outdoor event management and digital revenues stood at INR 252 mn, a strong 20% Yo-
Y growth.

n EBITDA margin expands 261bps
The company’s Q3FY11 EBITDA margin expanded 261bps over Q3FY10. Raw material
consumption jumped 28% Y-o-Y as a result of increase in circulation and newsprint
prices. However, the staff cost and other expenditure (as percentage of sales) declined
by 69bps and 241bps respectively.
n Net profit at INR 526 mn against our estimate of INR 500 mn
JPL’s net profit grew 33% Y -o-Y to INR 526 mn, ahead of our expectation of INR 500 mn.
Net profit margin stood at 18.4% against 17.5% in Q3FY10. Interest cost has gone up by
56% Y -o-Y and 49% Q -o-Q.
n Acquisition of Mid-Day Multimedia’s print business
The scheme of arrangement to acquire Mid-Day Multimedia’ print business has been
approved by the High Courts of Mumbai and Allahabad on October 15, 2010 and January
5, 2011 respectively. The results of Mid-Day Multimedia’s print business have not been
incorporated in Q3FY11 results.