HMVL reports strong growth in profits; pays 12% dividend

The profit after tax (PAT) increased by 65 per cent to Rs 227 million in Q4, and by 29 per cent to Rs 845 million in FY2013

BestMediaInfo Bureau | Delhi | May 14, 2013

Hindustan Media Ventures Limited (HMVL), publisher of Hindustan, one of India's leading Hindi language dailies, has announced its financial results for the fourth quarter ended March 31, 2013. While the total revenue went up 2 per cent at Rs 1,630 million from Rs 1,593 million, the EBITDA increased by 43 per cent to Rs 370 million from Rs 258 million. The profit after tax (PAT) increased by 65 per cent to Rs 227 million from Rs 137 million.

The company has said there was a 3 per cent decline in advertising revenues in the quarter to Rs 1,105 million from Rs 1,136 million due to decline in advertising yields. However, there was a 15 per cent increase in circulation revenues to Rs 400 million from Rs 346 million due to higher circulation and realisation per copy.

Key Highlights of FY 2013 (all comparisons with FY 2012):

• Total revenue up 8 per cent at Rs 6,647 million from Rs 6,158 million
• 5 per cent increase in advertising revenues to Rs 4,601 million from Rs 4,392 million
• 15% increase in circulation revenues to Rs 1,553 million from Rs 1,348 million
• EBITDA increased by 23 per cent to Rs 1,410 million from Rs 1,144 million primarily due to growth in advertising and circulation revenues
• PAT margin increased by 29 per cent to Rs 845 million from Rs 653 million
• EPS (annualised) stood at Rs 11.52

Commenting on the performance for Q4 & FY2013, Shobhana Bhartia, Chairperson, HMVL, said, “Hindustan's expansion initiatives, combined with a focus on cost optimisation, continue to yield encouraging results. This is reflected in the healthy financial and operational performance for the year despite challenges in the macro-environment.

“The latest Indian Readership Survey is testimony to our increasing lead over competition in terms of total readership. It also reaffirms Hindustan's dominant position in the markets of Bihar and Jharkhand while being the fastest growing daily in Uttar Pradesh and Uttarakhand.

“Overall, we are well entrenched in the regional segment in northern India. With a strong brand, growing readership and a healthy balance sheet, we are confident that we will continue to deliver even greater value to our shareholders as the economic environment picks up.”

The Board of Directors also recommended a dividend of Rs 1.20 per equity share on face value of Rs 10 each; translating to 12 per cent of face value. Dividend for the year amounted to Rs 88 million (excluding dividend distribution tax).

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