DB Corp's total savings for FY21 will touch Rs 200 crore: Girish Agarwaal
DB Corp Non-Executive Director Agarwaal said that the group's circulation revenue has reached 85-90% in Q3 and has even touched 100% of the pre-COVID level in certain markets
Print media company DB Corp's cost rationalisation strategy has led to savings of Rs 178 crore in 9M FY21. The company hopes to save another Rs 22 crore in Q4 to touch the figure of Rs 200 crore for FY21. The company's initial plan was to save Rs 125 crore in expenses for the full fiscal year.
"Our cost optimisation has further resulted in saving of Rs 178 crore in other operating expenses in the last nine months. If you remember we had done the initial planning and we had announced that we will save almost Rs 125 crore in the full-year. I’m happy to say that we have already achieved Rs 178 crore saving in nine months and in the balanced three months which is Q4 we hope that the total saving for this year will touch the number of around Rs 200 crore," DB Corp Non-Executive Director Girish Agarwaal told analysts during the Q3 earnings conference call.
Agarwaal further stated that this number includes personal as well as operational costs. He also noted that the company will continue to save costs on major expense heads in the long run. "There is a 14% saving in the personal cost. There is a 23% saving in the operational cost. Now out of this 14%, we are hopeful that around 8-10% will continue as it is. The operational expenses which are down by 23% maybe with more pages, more copies printed instead of 23% this may come down to say 15-16%. So, if you see our overall number of Rs 178 crore what we are talking about is including the printing processes of the newsprint, manufacturing, and all that. So, I guess out of this Rs. 200 crore we should be able to continue saving Rs 80 crore to 100 crore," he noted.
DB Corp is a leading print media company that publishes 46 editions of Dainik Bhaskar Newspaper (Hindi daily), 9 editions of Divya Bhaskar Newspaper (Gujarati Daily), 6 editions of Divya Marathi Newspaper (Marathi Daily), and 211 sub-editions in three languages (Hindi, Gujarati, and Marathi) in 12 states in India. It also a presence in radio and digital segments.
Speaking about the Q3 performance, Agarwaal said that the group's circulation revenue has reached almost 85-90% and in certain markets, it has even touched 100% of the pre-COVID level. On a YoY basis, the circulation was 80% of what it was in Q3 FY20.
"On the circulation front, we are happy to share that our circulation teams continued effort and focused strategies have enabled the group to reach almost 85-90% of our pre-COVID circulation level. Though we are still down if I had to compare from the Q3 of ‘20, we are at almost 80% but if I compare in the month of March and February base then we are at almost 85% to 90% and in some markets, we have even achieved the number of 100% also," he revealed.
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