Any current/future new fundraising through debt or equity?

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 upgrad

Any current/future capex/capital investment/strategic investment?

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

Future growth expectations in sales/revenue/volumes?

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 con

Future growth expectations in earnings/operating earnings/profits/EPS?

Management expresses optimism about growth resuming sooner rather than later, expecting good times not far off (Page 18). Target to achieve 10% margin in outdoor business this year, with potential increase to 15%-18% after converting sites to digital (Pages 17). Local advertising revenues for Dainik Jagran continue to grow; state government spend picking up; central government and national revenue still degrowing but expected to improve (Pages 2, 16). Despite Q1 challenges, initiatives helped contain degrowth to less than 2%; expectation of growth from August/September due to festive season an

Current/ Expected Orderbook/ Pending Orders?

The company does not provide specific numerical data on current or expected order book or pending orders. Discussions and deal executions have increased in intensity, indicating a positive trend in business opportunities. August and September are expected to see improvement due to the beginning of the festive season and increased government spending. State government spending has started, contributing about 15% of the advertising category. Central government spending, contributing about 20%-25%, is expected to start soon with investments leading to related advertisements. The company bases its

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Jagran Prakashan LtdQ2 FY19Media

Jagran Prakashan Ltd Q2 FY19 Earnings Call Analysis

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

Price: ₹65.2P/E: 8.9Market Cap: ₹1.5K 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.

Margin guidance

Category 3

→Management expresses optimism about growth resuming sooner rather than later, expecting good times not far off (Page 18).
→Target to achieve 10% margin in outdoor business this year, with potential increase to 15%-18% after converting sites to digital (Pages 17).
→Local advertising revenues for Dainik Jagran continue to grow; state government spend picking up; central government and national revenue still degrowing but expected to improve (Pages 2, 16).
→Despite Q1 challenges, initiatives helped contain degrowth to less than 2%; expectation of growth from August/September due to festive season and increased government spending (Pages 4, 16).
→Digital business is growing mid-teens, considered an "incredible" growth given the peer context (Page 3, 5).
→Radio business has stabilized and is expected to improve from bottoming out in July (Pages 4, 16).
→FY20 newsprint cost savings expected to aid margins by Rs. 40-50 Crores (Page 14).

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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.

Order book

Yes

→The company does not provide specific numerical data on current or expected order book or pending orders.
→Discussions and deal executions have increased in intensity, indicating a positive trend in business opportunities.
→August and September are expected to see improvement due to the beginning of the festive season and increased government spending.
→State government spending has started, contributing about 15% of the advertising category.
→Central government spending, contributing about 20%-25%, is expected to start soon with investments leading to related advertisements.
→The company bases its expectation on conversations and deals executed rather than fixed numerical forecasts.
→While there is some optimistic thinking, expectations are grounded in realistic assessments.

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.

How does Jagran Prakashan Ltd rank vs peers in Media?

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1Jagran Prakashan Ltd

Rev 4Mar 3

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