Jagran Prakashan stock tumbles 6% as Q2 results disappoint Street

Commenting on Q2FY24 performance, Mahendra Mohan Gupta, Chairman, Jagran Prakashan said, “The company had some growth in revenues during the current quarter supported by growth of Radio business, Digital business and exceptional performance of NaiDunia which had specific advantage due to location. However, profits were adversely impacted due to increased expenses on account of strengthening the operations of digital business, higher promotional and some non-recurring expenses and also on account of impact of inflation.”

That said, the management expects improvement in the second half of FY24, owing to receding inflation trends and increased government spend. Profits, too, they expect would improve going ahead due to increased revenues coupled with newsprint cost savings due to moderation in prices.

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During the quarter, Dainik Jagran’s operating revenue declined 5 percent on-year, whereas profit tumbled 26 percent on-year.

Meanwhile, other publications operating revenue increased by 46 percent on-year to Rs 67 crore in Q2FY24.

The digital segment, too, saw a good performance in Q2FY24 as revenues rose by 35 percent on-year to Rs 27 crore.

Besides, operating revenue from the radio segment rose 8 percent on-year in Q2FY24.

Succession strife

Earlier, Chairman Mahendra Mohan Gupta along with his son Shailesh Gupta and VRSM Enterprises filed a petition before the National Company Law Tribunal (NCLT) Allahabad alleging that the rest of Gupta Family tried to illegally oust them from management of Jagran Prakashan and its holding company Jagran Media Network.

The outcome of the petition and potential impact on the company remains uncertain at this stage, the company had said.

However, the ongoing battle has raised concerns about the stability and governance of the media group, believe market participants.

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