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Bank possesses Jagran Prakashan MPC’s assets for non-payment of dues

29-January-2009
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Bank possesses Jagran Prakashan MPC’s assets for non-payment of dues

The assets of Jagran Prakashan (MPC) Pvt Ltd, an associate of Jagran Prakashan Ltd, were taken possession of by a lender bank due to non-payment of dues. Jagran Prakashan MPC publishes the Indore edition of Dainik Jagran.

In a communiqué to the BSE, Jagran Prakashan said that the bank had taken possession of the assets under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act. The overdue loan amount was reportedly Rs 8.05 crore.

Meanwhile, Jagran Prakashan Ltd declared its Q3 results on January 28. In the communiqué to BSE Jagran said that bank’s action did not have any impact on the operations of the company nor on the revenue of the company.

For the third quarter ended December 31, 2008, Jagran has reported a 40.54 per cent drop in its net profit to Rs 15.46 crore as against Rs 25.92 crore in Q3 of FY08. The company’s Q3 net profit margin decreased to 7.31 per cent from 12.67 per cent owing to the economic slowdown and increase in newsprint cost.

Jagran’s Q3 revenues stood at Rs 211.50 crore, up 3.34 per cent, as compared to Rs 204.67 in the corresponding quarter of the previous fiscal. In Q3 FY09, revenue from non-publishing activities (out of home advertising, event management, and SMS) stood at Rs 17.22 crore as against Rs 16.98 crore in Q3 FY08, a marginal increase of 1.41 per cent.

Commenting on the company’s Q3 performance, Mahendra Mohan Gupta, Chairman and Managing Director, Jagran Prakashan Ltd, said, “This quarter registered the lowest growth in revenue in past many years due to a difficult economic scenario, which has unexpectedly deteriorated further since November 2008. Lower growth in revenue coupled with high newsprint cost resulted in profitability.”

He further said, “For the next year, we are preparing ourselves and working on strategies to minimise the impact of the slowdown, and I am confident that once there is a bit fo certainty in the economic environment, the company will again be in double digit growth trajectory.”

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