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A d g r o w t h i m p r e s s e s ; f o r e x l o s s h i t s P A T …
Jagran Prakashan reported its Q3FY12 numbers with the topline better
than our expectations. However, the bottomline fell below our
expectations on account of forex losses of | 8.7 crore. The company
reported a topline of | 324.0 crore against our expectation of | 313.0
crore, growing 13.3% YoY on the back of a 14.6% growth in ad revenue.
EBITDA for the quarter stood at | 85.1 crore against our expectations of
| 82.2 crore. The EBITDA margin stood at 26.3% in line with our
expectations staying more or less flat QoQ but falling 511 bps YoY on
account of higher news print costs due to a rise in newsprint prices and
increased circulation. PAT for the quarter stood at | 41.3 crore against our
estimate of | 45.8 crore falling 25.3% YoY.
Highlights of the quarter
During the quarter, the company reported ad revenue growth of 14.6%
YoY, better than both HT Media and DB Corp. The quarter was marked by
national advertisers growing faster than local advertisers. Circulation
revenues also showed good growth of 9.3% to | 62.3 crore attributable to
both increase in circulation and a hike in cover prices. While the EBITDA
margin fell 511 bps to 26.3% affected by high raw material costs, the PAT
margin fell 566 bps to 12.7% marred by forex losses of | 8.7 crore.
V a l u a t i o n
The quarter was marked by better ad revenue growth compared to its
peers at 14.6% thanks to growing revenues from national advertisers. Like
the last quarter, forex losses pressurised the profitability. At the CMP of
| 98, the stock is trading at 17.5x FY12E EPS of | 5.6 and 14.1x FY13E EPS
of | 7.0. We have valued the stock at 16x FY13 EPS to arrive at a target
price of | 111. This implies an upside of 14%. We maintain our BUY rating
on the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
A d g r o w t h i m p r e s s e s ; f o r e x l o s s h i t s P A T …
Jagran Prakashan reported its Q3FY12 numbers with the topline better
than our expectations. However, the bottomline fell below our
expectations on account of forex losses of | 8.7 crore. The company
reported a topline of | 324.0 crore against our expectation of | 313.0
crore, growing 13.3% YoY on the back of a 14.6% growth in ad revenue.
EBITDA for the quarter stood at | 85.1 crore against our expectations of
| 82.2 crore. The EBITDA margin stood at 26.3% in line with our
expectations staying more or less flat QoQ but falling 511 bps YoY on
account of higher news print costs due to a rise in newsprint prices and
increased circulation. PAT for the quarter stood at | 41.3 crore against our
estimate of | 45.8 crore falling 25.3% YoY.
Highlights of the quarter
During the quarter, the company reported ad revenue growth of 14.6%
YoY, better than both HT Media and DB Corp. The quarter was marked by
national advertisers growing faster than local advertisers. Circulation
revenues also showed good growth of 9.3% to | 62.3 crore attributable to
both increase in circulation and a hike in cover prices. While the EBITDA
margin fell 511 bps to 26.3% affected by high raw material costs, the PAT
margin fell 566 bps to 12.7% marred by forex losses of | 8.7 crore.
V a l u a t i o n
The quarter was marked by better ad revenue growth compared to its
peers at 14.6% thanks to growing revenues from national advertisers. Like
the last quarter, forex losses pressurised the profitability. At the CMP of
| 98, the stock is trading at 17.5x FY12E EPS of | 5.6 and 14.1x FY13E EPS
of | 7.0. We have valued the stock at 16x FY13 EPS to arrive at a target
price of | 111. This implies an upside of 14%. We maintain our BUY rating
on the stock.
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