InvestorQ : Why has one of India’s leading media companies, DB Corp reported a sharp decline in net profits for the Mar-20 quarter?
Debbie Mascarenhas made post

Why has one of India’s leading media companies, DB Corp reported a sharp decline in net profits for the Mar-20 quarter?

Answer
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Crowny Pinto answered.
3 months ago


DB Corp reported 55.83% fall in net profits at Rs.24 crore for the Mar-20 quarter. Its revenue from operations was also lower by 17.3% at Rs.487 crore. DB Corp owns the marquee Dainik Bhaskar newspaper, which is one of the largest circulated papers in the Hindi belt of India. It competes with Dainik Jagran and Amar Ujala in the Hindi Belt.

The lockdown due to the outbreak of COVID-19 disrupted businesses and severely impacted subscription and advertisement revenues in the fourth quarter of fiscal 2020. The company got some relief from a 10.3% fall in expenses at Rs.458 crore. Overall revenues from printing, publishing and allied business took deep cuts in the fourth quarter.

For the full fiscal year 2019-20, DB Corp reported 9.4% lower net profit at Rs.248 crore. Revenues in the last fiscal year were at Rs.2224 crore, which was also down nearly 9.6% on a YOY basis. DB remains one of the reasonably priced shares in the media space quoting at Rs.76, especially considering its reach and its spread.