Jagran Prakashan reports 8.4% rise in Q1 PAT at Rs 43.89 crore

Jagran Prakashan (JPL), in its financial result for Q1FY24, reported a positive trajectory with 8.4% increase in PAT, which stood at Rs 43.89 crore compared to Rs 40.50 crore in Q1FY23. Additionally, the company reported advertising revenue of Rs 309.37 crore, reflecting a rise of 1.5% from Rs 304.92 crore in the same period last year.

Operating revenues stood at Rs 454.58 crore, showing a marginal increase of 0.02% compared to Rs 454.47 crore in Q1FY23.

Circulation revenues amounted to Rs 95.13 crore, reflecting an increase of 1.8% from the Rs 93.42 crore reported in Q1FY23.

Other operating revenues totalled Rs 50.07 crore, compared to Rs 56.13 crore in the previous year. Digital Revenue was noted at Rs 20.43 crore, slightly lower than the Rs 20.78 crore reported in Q1FY23.

Operating profit reached Rs 69.42 crore, down by 10.0% from the previous year's Rs 77.15 crore.

Profit before tax (PBT) was reported at Rs 56.76 crore, indicating a growth of 4.8% from Rs 54.18 crore in Q1FY23.

Mahendra Mohan Gupta, Chairman and Managing Director, JPL, said, "The company maintained the same revenues and profits as it reported in Q1 of the previous year. Going forward, however, I expect improved revenues particularly in H2 benefitting from lower inflation and increased government spending and even more improved profits due to increased revenues coupled with newsprint cost savings due to moderation in prices which is not yet fully reflected in operating results."

"Outdoor and event businesses maintained robust performance over the last some quarters and have been contributing to the overall profit of the company. There was some fall in revenue during the quarter in comparison to Q1 of the previous year due to a shift in strategy to focus on more stable and profitable revenue streams which would continue. These businesses maintained profits of the last year despite fall in revenue in Q1," he added.

Gupta said that digital business had nearly the same revenue as in Q1 of the previous year partly because of unfavourable market conditions and partly because of inability to monetise the consumer base to the expected level.

"However, operational metrics remain strong and I hope that the team will work towards generating revenues commensurate with the user base and the costs most of which are fixed in nature," Gupta said.

"Radio business recorded strong growth in revenue as well as profit during the quarter. However, they are still behind pre-pandemic revenues by 30 - 35%. Further, its increasing dependence on revenue streams other than pure play radio is reducing the operating leverage. These areas are being closely monitored for taking appropriate action wherever required," he added.

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