Dainik Bhaskar's PAT up by 21.3% to Rs 99 crore in Q3 FY21

The group's advertising revenue stood at Rs. 291 million

e4m by exchange4media Staff
Updated: Jan 28, 2021 5:31 PM
dainik bhaskar

Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar, today announced its financial results for the quarter ended December 31, 2020. The company has released an official communication, detailing its earnings in Q3FY21.

The circulation team’s continued efforts and focused strategies have enabled the Group in achieving currently around 90% of the pre-Covid circulation levels. We are witnessing continuous improvement in our circulation nos & expect to gain back most of the copies once normal market operations, including running of normal railways & bus services, are allowed.

Advertising revenues are reclaiming pre-Covid levels (YOY), and with the festive season providing a strong impetus, we have reached print business advertising at 87% of last year Qtr 3 with festival months of October and November together seen advertising revenue achievement of 95%.

The Print business EBITDA in Q3 FY2021 stood at Rs.1699 million (EBIDTA margin of 36.8%) as against Rs.1380 (EBIDTA Margin of 24.7%) million last year, which translated into an EBITDA margin expansion by almost 1200 basis points, underscoring the benefits of improved economic performance, soft newsprint prices & cost-cutting measures.

The consolidated revenue for Q3 FY2021 came in at Rs. 4966 million, which registered a growth of 42% compared to the previous quarter Dainik Bhaskar continues to set milestones of publishing ‘Mega Editions’ across its major markets like Sikar - 172 pages, Rajkot – 160 pages, Shimla – 144 pages, Bikaner - 130 pages, Indore – 128 pages, Ahmedabad - 80 pages, Raipur - 80 pages, Khandwa – 84 pages, Bhopal - 72 pages, Rewari - 78 pages, Jamshedpur – 76 pages, Ujjain - 60 pages, Hoshangabad - 60 pages, Jhunjhunu – 60 pages, Sagar - 60 pages, Bilaspur – 54 pages, which is a strong testament to not only the prowess of the Group but the fact that economic revival emanating from Tier-II & III cities/markets for Dainik Bhaskar Group are leading the growth trajectory of the overall economic revival which is also reflected in December’ 20 GST collection figures with Dainik Bhaskar Group Markets posting a stellar growth of 10% YOY which is higher than the growth for All India GST collection of 6.7% YOY.

While the sector has been witnessing changes even pre-Covid, the on-going pandemic has further strengthened two clear emerging trends. The first is - Print media continues to dominate the mind space of the reader when it comes to fact-based trustworthy & credible reporting, especially in an era where widespread fake news makes it difficult for a reader to discern.

This is also confirmed by the Ormax News Credibility Index 2020 in September, the Kantar Trust in News Study in November 2020 and the ASCI Trust Study in December 2020. The second is- The growth of the Indian Language newspapers that are showing great resilience in circulation and ad-revenues, on back of fast normalisation of Tier-II and Tier-III cities which are leading overall India’s economic growth. This is also confirmed by the EY Non-Metro Report in July 2020 This focus on the “un-Metro” cities is one of the legacies of the Dainik Bhaskar Group’s founder and it is fitting that Late Chairman, Shri Ramesh Chandra Agarwal’s rich legacy was honoured by Chief Ministers of 12 States and 4 Governors with the release of a ‘Special Commemorative Postal Stamp’.

Performance highlights for Q3 FY2021 Conso lidated [All Comparisons with Q3 FY2020
 Advertising Revenue stood at Rs. 3667 million as against Rs. 4248 million
 Circulation Revenue stood at Rs. 1082 million as against Rs. 1321 million
 Total Revenue came in at Rs. 4966 million as against Rs. 6018 million
 EBIDTA grew by 16% YOY at Rs. 1679 million 34 % margin) as against Rs. 1447 million (margin
of 24 af ter considering forex loss of Rs. 3.3 million
 PAT grew by 21.3% YOY a t Rs. 990 million as against Rs . 816 million aft er considering forex loss of Rs. 3 million
Radio business:
 Advertising R evenue at Rs. 291 million versus Rs. 372 million
 EBIDTA stands at Rs. 108 million versus Rs. 135 million
 PAT at Rs. 44 million versus profit of Rs. 62 million

Performance highlights for YTD 9M FY2021 Consolidated [All Comparisons with 9M FY2020]
 Circulation Revenue stood at Rs. 3043 million as against Rs. 3921 million
 Advertising Revenue stood at Rs. 7001 million as against Rs. 12338 million
 Total Revenue came in at Rs. 10621 million as against Rs. 17465 million
 EBIDTA stood at Rs. 2146 million as against Rs. 4249 million after considering forex gain of Rs.
6.6 million
 PAT stood at Rs. 795 million as against Rs. 2509 million, after considering forex gain of Rs. 6.6
 Radio Business:
 Advertising Revenue at Rs. 553 million versus Rs. 1065 million last year
 EBIDTA at Rs. 74 million versus Rs. 334 million
 Net loss came in at Rs. 57 million versus Net profit of Rs. 164 million

Commenting on the performance for 9 Months FY 20 20 21, Mr Sudhir Agarwal, Managing Director, DB Corp Ltd said, Fiscal 2021 has undoubtedly been a challenging and difficult year for all of us. With the brightest minds in the world working together, they finally seem to be some light at the end of this long and arduous tunnel and hopefully, the widespread availability of the vaccine will help all of us get a semblance of normalcy back in our lives. The Print Industry undoubtedly dealt a severe blow by the pandemic and while the economy gets back on track slowly, Tier II and Tier III cities have not only bounced back stronger than most of the country but are leading the charge and have seen considerable improvement, especially in the festive season.

The pandemic has further strengthened the divide between India and Bharat when it comes to the Print Industry. Indian language newspapers are doing well not only in circulation numbers and pagination, but as advertisers turn their focus from the metros to smaller cities, advertising revenue is also set to see growth. For Dainik Bhaskar Group, the advertising revenues have seen a significant increase and our sustainable cost optimisation measures have given us permanent gains and this is reflected in improved operating performance. We are hopeful that this will set the pace for the forthcoming fiscal.

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