Zee Entertainment pares early gains post Q1 results

At 1059 hours, the stock was up less than 1% at Rs 378, declining nearly 2% from intra-day highs on the BSE.

Shares of Zee Entertainment were trading higher by less than 1% at Rs 378, declining nearly 2% from intra-day highs on the BSE, after the company said that operating profit margins for the June quarter stood at 23.2%. It was 29.29% in the previous year's corresponding quarter.

Meanwhile, the company has reported a 15.4% year on year (y-o-y) growth in consolidated net profit at Rs 242 crore for the quarter ended June 30, 2015 (Q1). It had posted a profit of Rs 210 crore in the same quarter a year ago.

Operational revenues during the quarter under review grew by 27% at Rs 1,340 crore on a y-o-y basis, Zee Entertainment said in a statement.

Analysts on an average had expected a profit of Rs 207 crore on revenues of Rs 1,273 crore during the period.

EBITDA (earnings before interest tax depreciation and amortization) or operating profit margins, however, declined by 600 basis points to 23.22% due to higher operational costs, which increased by 51.4% on a y-o-y basis.

The stock opened at Rs 375 and touched a high of Rs 386 on the BSE. A combined 2.88 million shares changed hands on the counter on the BSE and NSE till 1059 hours.