Reduced tax rate rescues DB Corp’s Q2 earnings in a challenging environment
October 21, 2019 / 10:53 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
DB Corp, a large print media company, reported net profit growth of 64 percent YoY in Q2 FY20 but mainly attributable to the corporate tax rate reduction. Overall performance was weak as revenue declined. Moderation of newsprint prices also aided margin expansion and supported earnings. The company declared an interim dividend of Rs 6.5 per share.
Revenue growth elusive
DB Corp’s consolidated revenue plummeted by around 9 percent in Q2 FY20 due to de-growth in advertising revenue. Print and...