Jagran Prakashan, the parent company of well-known newspapers such as Dainik Jagran and Mid-Day, witnessed a sharp decline in its shares, plummeting 7 percent to a day’s low of Rs 97 per share on October 31. This downturn followed the revelation that the company’s profit had experienced a significant 17 percent decline year-on-year, amounting to Rs 41 crore in the July-September quarter of fiscal year 2023-24 (Q2FY24).
Over the past three months, Jagran Prakashan’s stock has faced a 6 percent decrease, a trend diverging from the 4 percent drop observed in the benchmark Sensex.
Despite challenges, Jagran Prakashan’s consolidated operating revenues managed a modest 1 percent increase, reaching Rs 458 crore in Q2FY24, compared to Rs 454 crore in Q2FY23. This growth was primarily driven by digital and advertising revenues.
At 1:37 pm the shares were trading 6.53% lower at ₹98.00
Commenting on the performance in Q2FY24, Mahendra Mohan Gupta, Chairman of Jagran Prakashan, stated, “The current quarter saw revenue growth, especially in our Radio and Digital businesses. NaiDunia also delivered exceptional performance due to advantageous location. However, our profits were impacted by increased expenses. Strengthening digital operations, higher promotional costs, non-recurring expenses, and inflationary pressures contributed to this effect.”
Despite the challenges faced, the company’s management remains optimistic about the second half of FY24. They anticipate an improvement driven by decreasing inflation rates and increased government expenditure. Additionally, they foresee enhanced profits in the future, thanks to rising revenues and newsprint cost savings resulting from moderating prices.
