BENGALURU: DB Corp Limited (DB Corp), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar reported improved year on year results in Q4-2014. Its board has recommended a final dividend of Rs 4.25 per share for FY-2014.

The company reported a higher PAT at Rs 306.6 crores in FY-2014 as compared to the Rs 218.1 crores in FY-2013, which includes a onetime tax gain of Rs 14.9 crores, on account of demerger of digital media business.

The company says that its FY-2014 consolidated advertising revenue grew by 17.4 per cent to Rs 1417.8 crores as against Rs 1270.5 crores in FY-2013. The company says that its radio business ad revenue grew by 19.2 per cent to Rs 80.1 crores from Rs 67.2 crores in FY-2013 and that its digital media ad revenue grew by about 54 per cent to Rs 16.3 crores in FY-2014 from Rs 10.8 crores in FY-2013.

Let us look at the figures for FY-2014 and Q4-2014 reported by DB Corp

DB Corp’s Total Operating Income (Op Inc) in FY-2014 at Rs.1895.76 crores was 16.8 per cent more than the Rs.1592.32 crores in FY-2013. Q4-2014 Op Inc at Rs.454.17 crores was (-12.36) per cent lower than the Rs.518.20 crores in Q3-2014 and 14.08 per cent more than the Rs.398.10 crores in the last year quarter Q4-2013.

Total Expense (Tot Exp) in FY-2014 at Rs.1423.72 crores was 11.94 per cent more than the Rs.1271.91 crores in FY-2013. In Q4-2014, Tot Exp at Rs.366.02 crores was (-3.48) per cent lower than the Rs.379.21 crores in Q3-2014 and 14.67 per cent more than the Rs.319.19 crores in Q4-2013.

Raw Material consumption (RM cost) forms a major portion of DB Corp’s expense (Between 33 and 37 per cent of Tot Inc). In FY-2014, DB Corp’s RM cost at Rs.632.95 crores (34.03 per cent of Op Inc) was 16.4 per cent more than the Rs.544.54 crores (34.20 per cent of Op Inc) in FY-2013. RM cost in Q4-2014 at Rs.166.59 crores (36.68 per cent of Op Inc) was (-3.37) per cent lower than the Rs.172.41 crores (33.27 per cent of Op Inc) in the immediate trailing quarter Q3-2014 and 24.57 per cent more than the Rs.133.74 crores (33.57 per cent of Op Inc) in the corresponding quarter of last year.

PAT in FY-2014 at Rs.306.64 crores (16.49 per cent of Op Inc) was

40.58 per cent more than the Rs.218.14 crores (13.7 per cent of Op Inc) in FY-2013. In Q4-2014, PAT at Rs.7.59 crores (1.67 per cent of Op Inc) was 1.67 per cent more than the Rs.9.45 crores (1.82 per cent of Op Inc) in Q3-2014 and (-86.26) per cent less than the Rs.55.26 crores(13.88 per cent of PAT) in Q4-2013.

Radio Business segment

DB Corp’s radio segment reported revenue of Rs.79.45 crores (4.27 per cent of Op Inc) in FY-2014 was 19.2 per cent more than the Rs.66.65 crores (4.19 per cent of Op Inc) in FY-2013. This segment’s Op Inc in Q4-2014 at Rs.21.37 crores (4.99 per cent of Op Inc) was (-10.28) per cent lower than the Rs.23.83 crores (4.88 per cent of Op Inc) in Q3-2014 and 17 per cent more than the Rs.18.27 crores (4.59 per cent of Op Inc) in Q4-2013.

This segment returned a positive result of Rs.20.56 crores in Fy-2014 which was 89.18 per cent more than the Rs.10.87 crores in FY-2013. In Q4-2014, DB Corp’s radio business reported a result of Rs.7.19 crores which was (-15.47) per cent less than the Rs.8.51 crores in Q3-2014 and 75.73 per cent more than the Rs.4.09 crores in Q4-2014.

The other segments –events, internet and power have reported very low numbers and have eroded the profits generated by DB Corp’s Printing and Radio business segments.

DB Corp Managing Director Sudhir Agarwal, said, “We have delivered a robust operating performance this year amidst a challenging market environment. Our focus on sustaining and extending leadership in core markets, consistent focus on operational efficiencies as well as strong performance across non-print segments have enabled us to report significant growth.

The Bhaskar way of journalism places the reader at the center. Our growth strategy revolves around this philosophy and as we have successfully done in the past – we have ensured that our strategies combine ‘knowledge enhancement’ for the reader and ‘product differentiation’ towards growth. Therefore, our earlier associations with leading media brands for exclusive, unique content have started delivering exciting results. This quarter, we re-aligned our corporate sales and marketing strategy supported by key senior management appointments – with the aim of providing greater focus to advertisers at every state level. Our Un-Metro – Markets Driving India initiative extensively analysed the potential of high-growth non-metro regions with inspiring participation by marketing stalwarts across Bengaluru, Mumbai and New Delhi, have also contributed significantly towards broadening our horizons. Our Bihar-Patna launch was an exciting challenge in that region and we are encouraged by an overwhelming response and wide acceptance; while our progress in Maharashtra continues well on course. DBCL’s non-print media segments have been making strong headway as we report commendable developments across our digital and radio properties. We have been leveraging our leadership strengths in print media - extending our editorial excellence and deep readership insights to make steady progress across digital and radio platforms. We are excited with the potential of post Phase 3 licensing and are well poised to strengthen our radio footprint. While the macro outlook does remain undefined, we are hopeful that, as we move towards political certainty, the consumer sentiment will become more positive and result in better growth across sectors. I am confident that with our clear strategic focus, strong business fundamentals, superior execution capabilities supported by a talented team, we will strive towards our vision to be the largest and most admired media brand as well as active socio-economic change agents.”