Vivek Khanna CEO of the company addressed the call.
Highlights of the call by Capital Mkt:
Total sales grew 18% at Rs 199.0 crore from Rs 168.5 crore.
Advertising revenues increased 16% to Rs 137.5 crore from Rs 118.2 crore primarily due to increase in advertising yields and volumes.
The company saw 18% increase in circulation revenues to Rs 45.9 crore from Rs 39.0 crore primarily due to higher realization per copy.
EBITDA increased by 35% to Rs 47.2 crore from Rs 35.0 crore primarily due to growth in advertising and circulation revenues.
Raw materials increased 22% to Rs 80.6 crore from Rs 66.3 crore to increase in newsprint price and consumption.
Employee costs grew 6% to Rs 21.8 crore.
The company saw increase in advertising and sales promotions expense.
The company’s pricing initiatives and improved traction in advertising revenues across markets have resulted in the highest ever top-line in any quarter.
The latest IRS results have been quite encouraging, with Hindustan emerging as the second largest Daily in the country. It is now a clear No.2 in Uttar Pradesh and No.1 in Uttarakhand, while maintaining dominance in Bihar and Jharkhand.
The management believes that Hindustan Media Ventures’ expansion strategy, combined with its healthy balance sheet, puts the company in a strong position to deliver sustained growth.
Realisation per copy rose from 1.8 from Q3 last year to Rs 2.11.
The company increased copies by a lakh.
The company’s past focus on UP and Bihar is now giving returns.
It is now number 1 in Bihar and Jharkhand. It has retained its position in Delhi.
Lead over number 2 player has gone up significantly in Patna.
Patna has seen close to 45% increase in number of copies sold.
Though there is confusion over the latest IRS survey results, the management feels it is more accurate method than what was done previously. In any case apart from one or two states, ranking has not changed much.
As far as the company is concerned latest IRs has shown appropriate reflection of its ranking in UP.
This time IRS survey was for around 30 minutes unlike one and a half hours so it is likely to get more accurate replies.
Bihar and Jharkhand continue to grow at a rate close to 16%. In UP growth rate is ahead of these two. Delhi has not grown due to election and real estate business.
The company expect its growth in UP to be in double digits. It has now dominant position in Patna, entire Bihar and UP. The company will continue to get good growth here.
The company did not get much revenue from the assembly election in Delhi. This is the first time it has happened so. Aam Aadmi Party did not use the print media but resorted to the radio and âmohalla’ and street meetings.
However it got ample business when the last time assembly election happened in UP and Bihar.
Political revenue (due to forth coming general election) was negligible in December 2013 quarter. It will have slight impact in March 2014 quarter but will have significant impact in march 2015 quarter.
The company is looking at both organic and inorganic growth opportunities and will come out with some news soon.
The company’s circulation in UP is just above 12 lakh.
Top sectors contributing to the sales are retail, fmcg, medical and DAVP. Real estate is slow.
Outlook
HMVL’s business outlook continues to look strong on the back of continuous readership growth to be fueled by strengthening brand and leveraging opportunities.
Increasing prosperity and rise in consumption in rural regions points towards a strong growth in advertising revenues.
The company has strong balance sheet (net cash of Rs 380.9 crore) capable of funding its expansion.