Jagran Prakashan LtdQ1 FY20

Jagran Prakashan Ltd Q1 FY20 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹61.6P/E: 7.2Market Cap: ₹1.4K CrSector: Media

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 4
  • Local advertisement revenues for Dainik Jagran continue to grow, with state government spending picking up.
  • Central government and national revenues are still showing degrowth, but some recovery is expected, particularly with increased government infrastructure spending.
  • Future growth in auto advertising is anticipated due to clearing of old stock and new launches around the festive season.
  • Digital business is expected to grow at a mid-teen rate (15%-20%) consistently over the next three years.
  • Outdoor media margins are targeted to reach around 10% in the medium term by upgrading sites and converting to digital displays.
  • Circulation volumes will see very negligible increases; growth focus is on price realization and efficiency.
  • Overall advertising revenue recovery expected from August/September onward, supported by improving monsoon, better liquidity, and festive season demand.
  • The company remains optimistic about exiting the current downturn sooner rather than later with growth resuming.

See what Jagran Prakashan Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

  • There is no explicit mention of any current or future fundraising through debt or equity in the provided text.
  • The company is focused on maintaining a net cash positive position with about Rs. 300 Crores net cash as of June.
  • Borrowings had increased temporarily due to dividend distribution and buyback in the past, but interest costs are expected to reduce over time.
  • Management is cautious on acquisitions and cash allocation, weighing pros and cons when opportunities arise.
  • No plans to acquire properties in outdoor business; preference is on lease model with long-term leases and capex to upgrade sites.
  • Dividend and buyback remain preferred routes for capital allocation rather than fresh fundraising.
  • Overall, no indication of plans for new debt or equity raising based on current outlook.

See what Jagran Prakashan Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes
  • Jagran Prakashan Limited follows a lease model for its outdoor advertising properties and does not intend to acquire properties currently, preferring long-term leases of 5-10 years.
  • The company plans to invest in upgrading leased outdoor sites by converting them into digital sites, where profit margins could improve from current levels (around 7%) to 10-18% over time.
  • Capex is primarily allocated towards digital transformation of outdoor advertising panels (e.g., metro tenders requiring digital panels).
  • For the next couple of years, the company does not plan to acquire new outdoor advertising assets but will invest in digital conversions once the macro environment improves.
  • The subsidiary company (Music Broadcast Limited) is pursuing strategic acquisition proposals in the radio space.
  • No immediate large-scale capital investments or acquisitions are indicated for the parent company, but opportunities may be evaluated given liquidity conditions in the market.

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