Jagran Prakashan (JPL), in its financial result for Q2FY24, reported a decrease of 18% in Profit After Tax (PAT), which stood at Rs 41.52 crore compared to Rs 50.62 crore in Q2FY23.
JPL reported its operating revenue at Rs 458.73 crore, up by 1% from Rs 454.16 crore in Q2FY23.
Additionally, the company reported advertising revenue of Rs 318.61 crore, reflecting a rise of 0.29% from Rs 317.69 crore.
Circulation revenue amounted to Rs 89.72 crore as against Rs 92.62 crore, down by 3.23%.
Other operating revenue stood at Rs 50.40 crore, up by 14.9% from Rs 43.86 crore. Digital revenue totalled Rs 27.57 crore, up by 32.7% from Rs 20.77 crore.
Operating profit stood at Rs 71.93 crore as against Rs 86 crore, down by 16%.
Profit Before Tax (PBT) was reported at Rs 56.46 crore, down by 16.25% from Rs 67.40 crore. Profit After Tax (PAT) amounted to Rs 41.52 crore, decreased by approximately 18% from Rs 50.62 crore.
Dainik Jagran reported an operating revenue of Rs 280.36 crore, marking a decrease of 4.59% from the Rs 293.86 crore it achieved in the second quarter of FY23.
Comparatively, other publications saw an increase in operating revenue, with Rs 67.04 crore in Q2FY24, which is a growth of 10.47% from Rs 60.69 crore in Q2FY23.
The radio segment also experienced a positive change in its operating revenue, reaching Rs 52.44 crore in Q2FY24, showing an increase of 7.79% from Rs 48.64 crore in the second quarter of FY23.
Digital operations showed growth, with operating revenues of Rs 27.57 crore in Q2FY24, indicating a 32.52% increase from the Rs 20.77 crore. The outdoor and event segment reported an operating revenue of Rs 37.83 crore in Q2FY24, signifying a 7.17% increase from the Rs 35.30 crore.
Mahendra Mohan Gupta, Chairman, JPL, said, "The economy of India has been resilient amid volatile and unpredictable geopolitical climate. It continued to record growth more than the inflation. However, the discretionary consumption by the populace of low and middle-income levels continued to remain subdued. High inflation in edibles leaves very little in their pocket for spending on items which are not necessary for survival. This environment is not supportive to industries like newspapers which thrive when discretionary spending is robust. Volumes apart, passing on inflation to consumers continues to remain difficult as any attempt to increase price drops volumes disproportionately and quickly.”
In this background and in the light of the company’s strategy to hold price points to the extent
possible, the company’s overall performance has to be viewed. The company had some growth in revenues during the current quarter as well as a half year as compared to the same period of the previous year supported by the growth of the radio business, digital business and exceptional performance of NaiDunia which had specific advantages due to location, he added.
“However, profits were adversely impacted due to increased expenses on account of strengthening the operations of digital business, higher promotional and some non-recurring expenses and also on account of the impact of inflation. Further, as stated earlier, I expect further improvement in revenues particularly in H2 benefiting 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,” Gupta said.