D B Corp posts disappointing June quarter results

DB Corp (DBCL) posted  its June quarter results today. The company's consolidated total income declined by 3.24 per cent to Rs 473 crore in Q1FY16 as compared to the same period in previous financial year. Its total expenditure decreased by 0.87 per cent to Rs 352 crore in Q1FY16 on yearly basis. DBCL's total expenditure declined largely due to a 12.74 per cent reduction in raw material prices during the quarter. However, The company had a 11.28 per cent increment in employee cost and 8.56 per cent increment in other expenses in Q1FY16 on yearly basis.

DBCL's EBITDA decreased by 9.47 per cent from Rs 135 crore in Q1FY15 to Rs 122 crore in Q1FY16. EBITDA margin of the company contracted by 177 basis points to 25.74 per cent in Q1FY16 compared to same period in previous fiscal year. Its PBT too decreased by 13.42 per cent to Rs 106 crore in Q1FY16 on yearly basis as other income decreased by 8.64 per cent to Rs 6.84 crore during the quarter. The net profit of the DBCL also declined by 16.01 per cent from Rs 79 crore in Q1FY15 to 66.46 crore in Q1FY16. The company's net profit margin contracted by 214 basis points to 14.04 per cent in Q1FY16 on yearly basis.

Considering segment wise revenue, DBCL earns majority of revenue about 92.98 per cent from the News Print segment, 4.54 per cent from Radio segment, 2.14 per cent from the internet segment and remaining 0.34 per cent from others in Q1FY16. The company's internet segment grew by 71.71 per cent to Rs 10.11 crore in Q1FY16 on yearly basis. Its radio business also increased by 3.7 per cent to 21.5 crore in Q1FY16 compared to previous fiscal year.

Highlighting the disappointing quarterly results, the stock on BSE declined by 2.11 per cent to Rs 311.25 on July 16, 2015. The company's shareholding pattern indicates that FII holdings contracted bt 1 basis points to 18.49 per cent and DII holdings contracted by 24 basis points to 7.78 per cent in June 2015 quarter.

DBCL is engaged in developing, editing, publishing, printing, distributing and marketing newspapers, periodicals and other publications in languages other than English and other foreign languages; wind farm business; frequency modulation (FM) radio business, apart from  other business. The Company’s radio business operates under the brand name My FM radio station in 7 states and 17 cities. It publishes periodicals in Hindi, Gujarati and English languages.