HMVL posts 13% revenue growth in Q1 FY14

Hindustan Media Ventures Limited, the enterprise that runs the Hindi daily Hindustan, children's magazine Nandan and general interest magazine Kadambini, has posted 13% increase in the total revenue for Q1 FY14 ended 30 June at Rs 1887 million as compared to Rs 1665 million in Q1 FY13. Supporting this spurt was a surge in advertising revenues from Rs 1166 million in Q1 FY3 to Rs 1326 million in Q1 FY14 (14%) and increase in cirulation revenue from Rs 375 million in the first quarter of FY13 to Rs 422 million Q1 FY14.

HMVL's profit after tax stood at Rs 303 million for the just concluded quarter, up 57% from the corresponding quarter last year (Rs 193 million).

The company recorded 46% increase in EBITDA (Q1 FY13 – Rs 330 million; Q1 FY14 – 480 million). Th main reasons attributed to this are growth in advertising and circulation revenues and decline cost of raw material due to reduction in consumption of newsprint (cost went down from Rs 690 million in the first quarter of the previous financial yeah to Rs 685 million in the corresponding quarter of the current fiscal).

Due to increase in production cost, HMVL's expenses on that front increased by 12% (from Rs 452 million in Q1 FY13 to Rs 506 million in Q1 FY14). It also saw 10% increase in employee costs (Rs 195 million in Q1 FY13 as compared to Q1 FY14).

The company holds net cash of Rs 3404 million which makes it capable of funding expansion.

Shobhana Bhartia, Chairperson, HMVL, said, “Performance has been robust in the new financial year with a healthy growth in revenue and a significant improvement in profitability. That’s the result of improved traction in advertising revenue led by the Uttar Pradesh and Uttarakhand markets, combined with a sustained focus on reducing costs. With a strong brand, a growing readership, and a healthy balance sheet, we are confident that we will continue to deliver value to our shareholders.”

The offer for sale of approximately 19 Lac shares of HMVL concluded on July 11, 2013 resulting in Q1 FY14 dilution of promoters holdings to 75% from 77.64%.