DB Corp that publishes newspapers such as Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar on Wednesday reported a 62.26% drop in consolidated net profit at Rs 28.52 crore in the second quarter ended on September 30, 2020, on account of lower revenue from operations. The company had reported a net profit of Rs 75.57 crore in the July-September quarter a year ago.
Revenue from operations during the quarter under review was down 34.82% at Rs 346.36 crore as against Rs 531.39 crore in the second quarter of 2019-20, DB Corp said in a regulatory filing. However, the Q2 revenues were up 62% compared to the previous quarter.
Meanwhile, in a separate filing, DB Corp informed the BSE that its board approved the appointment of Santosh Desai as an additional director with effect from October 21, 2020, to hold the office as a non-executive independent director for a term of three years subject to the approval by the shareholders. Desai is the Managing Director and CEO of Future Brands.
Commenting on the performance for H1 FY 2020-21, Sudhir Agarwal, Managing Director, DB Corp Ltd, said, â We entered the first half of this financial year filled with uncertainty, brought about by the global pandemic, and while the threat is far from over, we are extremely pleased with the resilience shown by our business, employees and partners. We have been strong believers of the Indian growth story, especially the depth and strength of the non-metro cities in India. The pandemic has underscored this belief and all the markets that the Dainik Bhaskar Group operates in, primarily, Tier-II and Tier-III cities, have been returning to normalcy at a rate that is outpacing the metros.
While our results are reflective of the disruption in the first quarter, it is important to note that on almost all parameters, i.e. operations, advertising revenues and circulation, we have seen phenomenal traction beginning mid-July, that has improved sequentially. With Navratri coming in late by a month this year, our advertising revenues from this season shifted from the last week of September to October. Adjusted for this, we are happy to report that our performance is now approaching near pre-Covid levels. Our profitability has been witnessing improvement on the back of our relentless cost optimisation measures, soft newsprint prices.
With the upcoming festive season already showing signs of an imminent revival, and given the strong work that our teams have put in the past few months, we are hopeful that we should be able to recover a large part of the performance that was lost to the pandemic.â