Times group profit up 44%

Bennett, Coleman and Company (BCCL), the publisher of India's most-circulated English daily, The Times of India, and business paper, The Economic Times, has reported highest-ever earnings and profit in FY15, beating the competition hands down.

According to the data provided to the Registrar of Companies (ROC) by the unlisted media conglomerate, BCCL's income in FY15 was Rs 8,778.35 crore, three-and-a-half times more than the listed peer HT Media (Rs 2,457.25 crore) and four-and-a-half times more than Jagran Prakashan (Rs 1,882 crore).

In terms of profitability, the print behemoth has not only beaten its competitors but also several blue chip companies. BCCL's net profit was Rs 1,186.24 crore, almost 44 per cent more than Rs 821.1 crore in the previous financial year.

Data from Capitaline shows that BCCL is also ahead of India's second-largest television broadcaster ZEE Entertainment Enterprises, whose FY15 incomes was Rs 5,125 crore and profit after tax was Rs 977.5 crore. Figures of top TV broadcaster STAR could not be accessed for the same period.

"With absolute dominance of the English print sector, and accumulation of readership and advertisement interests, BCCL can now be compared with any successful conglomerate. It can reap benefits if it gets listed," said a sector analyst on the condition of anonymity.

Profitability was mainly driven by 33.62 per cent growth in advertisement revenue at Rs 6,258.77 crore against Rs 4,683.80 crore in the previous financial year. At the same time, revenue from sales of publication also increased to Rs 703.21 crore from Rs 583.25 crore.

The print segment earned the lion's share of revenue at Rs 5,910.9 crore. "The company performed well on its objectives of driving the business in both English & Metro business and sustaining the momentum in languages," the company mentioned in its directors' report.

Apart from TOI and ET, the group publishes several city-specific dailies like Mumbai Mirror and Bangalore Mirror. Vernacular newspapers like Navbharat Times (Hindi), Ei Samay (Bengali) and Maharashtra Times (Marathi) also command a large market share. "The group's focus now is mainly to make its vernacular banners stronger, with an eye on the regional ad revenues coming from smaller towns," the analyst added.

BCCL directors' report says: "The company's distribution network has expanded rapidly over the last three years, with thirteen new locations added, enabling market expansion and a wider spread of circulation base and creating opportunity in the future both for vernacular and the flagship brand."