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A d r e v e n u e s c o n t i n u e t o g r o w h a n d s o m e l y …
DB Corp reported its Q1FY12 numbers that have surpassed our
expectations. The revenues for the quarter stood at | 352.7 crore against
our estimate of | 334.4 crore, growing 18.1% YoY led by 20.2% ad
revenue growth. EBITDA for the quarter stood at | 102.4 crore against our
estimate of | 80.4 crore. The EBITDA margin stood at 29.0%, which
represents an 899 bps fall YoY primarily on account of a significant
(42.3% YoY) rise in newsprint prices. PAT for the quarter stood at | 63.4
crore against our estimate of | 47.0 crore due to a better-than-expected
operational performance. However, PAT for this quarter de-grew by
33.5% but showed growth of 40.5% QoQ.
ƒ Highlights for the quarter
Beating our expectations, DB Corp managed to post a robust ad
growth of 20.2% YoY to | 283.2 crore. Print ad revenues showed a
growth of 20.0% YoY to | 270.7 crore whereas the radio business
also saw good traction with ad growth of 13.6% YoY to | 12.5 crore.
The circulation revenue also grew 5.8% YoY and 6.4% QoQ to |
56.8 crore. The overall EBITDA margin, however, contracted by 899
bps to 29.0% primarily due to high input prices, which rose to |
118.4 crore from | 83.2 crore.
V a l u a t i o n
The company has posted robust growth, thus far. We expect the story to
continue further. However, recent launches and new launches in the
coming quarters are expected to put pressure on margins. At the CMP of
| 242, DB Corp is currently trading at 19.2x FY 12E EPS and 15.5x FY 13E
EPS. We value the stock at 17x FY 13E EPS to arrive at a target price of |
280. This implies an upside of 16%. We continue to rate the stock as BUY.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
A d r e v e n u e s c o n t i n u e t o g r o w h a n d s o m e l y …
DB Corp reported its Q1FY12 numbers that have surpassed our
expectations. The revenues for the quarter stood at | 352.7 crore against
our estimate of | 334.4 crore, growing 18.1% YoY led by 20.2% ad
revenue growth. EBITDA for the quarter stood at | 102.4 crore against our
estimate of | 80.4 crore. The EBITDA margin stood at 29.0%, which
represents an 899 bps fall YoY primarily on account of a significant
(42.3% YoY) rise in newsprint prices. PAT for the quarter stood at | 63.4
crore against our estimate of | 47.0 crore due to a better-than-expected
operational performance. However, PAT for this quarter de-grew by
33.5% but showed growth of 40.5% QoQ.
ƒ Highlights for the quarter
Beating our expectations, DB Corp managed to post a robust ad
growth of 20.2% YoY to | 283.2 crore. Print ad revenues showed a
growth of 20.0% YoY to | 270.7 crore whereas the radio business
also saw good traction with ad growth of 13.6% YoY to | 12.5 crore.
The circulation revenue also grew 5.8% YoY and 6.4% QoQ to |
56.8 crore. The overall EBITDA margin, however, contracted by 899
bps to 29.0% primarily due to high input prices, which rose to |
118.4 crore from | 83.2 crore.
V a l u a t i o n
The company has posted robust growth, thus far. We expect the story to
continue further. However, recent launches and new launches in the
coming quarters are expected to put pressure on margins. At the CMP of
| 242, DB Corp is currently trading at 19.2x FY 12E EPS and 15.5x FY 13E
EPS. We value the stock at 17x FY 13E EPS to arrive at a target price of |
280. This implies an upside of 16%. We continue to rate the stock as BUY.
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