Any current/future new fundraising through debt or equity?

No immediate plans for fundraising through buybacks or additional equity; management prefers to wait and assess the situation before any distribution decisions (Page 22). The company recently augmented liquidity by borrowing Rs. 250-300 Crores via Non-Convertible Debentures (NCDs) with interest rates around 8.25% to 8.5%, having maturities of 3 to 4 years (Pages 8-9, 22). Management views borrowing as a necessary step during uncertain times, even with substantial cash on hand (about Rs. 600 Crores excluding working capital limits) (Pages 8, 14). No discussion of further aggressive acquisitions

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

For the fiscal year 2019-2020, Jagran Prakashan Limited undertook very insignificant capex. There are no plans to invest heavily in capex in the current year (FY 2021) either. The company will only invest the bare minimum capex required. Expected capex for the current year is estimated to be between Rs. 25 Crores to Rs. 30 Crores maximum. No mention of any new strategic investment or large-scale capital investment plans at this time. The focus appears to be on maintaining liquidity and operational efficiency rather than aggressive capital spending.

Future growth expectations in sales/revenue/volumes?

Circulation has already recovered to 75-80% post-lockdown and is expected to return to pre-COVID levels once the lockdown fully lifts. Management remains bullish about the future of the newspaper industry and expects most circulation to come back. Digital, which grew about 10% in FY2020 and 30% in Q4, still faces pressure but subscription models will be actively explored to boost revenue. Advertising revenue experienced a sharp decline, especially in Q4 due to lockdown, but some improvement has been seen post-lockdown with expectations of gradual recovery. Government advertisements are

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

No explicit earnings or EPS guidance given due to uncertain economic environment post-COVID; management advises living "month by month" (Page 9). EBITDA potential to return to previous high levels (~Rs. 500 Crores) within 2-3 years, assuming revenue recovers and fixed costs remain controlled (Page 19). Cost-saving measures targeting Rs. 100 Crores at consolidated fixed cost level with at least 50% of savings expected to remain permanent (Page 17). Print business revenue expected to gradually recover with circulation nearly 80% restored post-lockdown and ability to scale to pre-COVID levels (Pa

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Jagran Prakashan LtdQ1 FY20Media

Jagran Prakashan Ltd Q1 FY20 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

Order

N/A

Capex

0 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 4

→Circulation has already recovered to 75-80% post-lockdown and is expected to return to pre-COVID levels once the lockdown fully lifts.
→Management remains bullish about the future of the newspaper industry and expects most circulation to come back.
→Digital, which grew about 10% in FY2020 and 30% in Q4, still faces pressure but subscription models will be actively explored to boost revenue.
→Advertising revenue experienced a sharp decline, especially in Q4 due to lockdown, but some improvement has been seen post-lockdown with expectations of gradual recovery.
→Government advertisements are expected to increase with infrastructure investments, potentially benefiting revenues.
→Cost savings and operational efficiencies are being implemented which may help sustain profitability despite uncertain advertising trends.
→No explicit long-term revenue growth guidance given; the outlook remains uncertain and dependent on overall economic recovery and normalization post-COVID.

Margin guidance

Category 3

→No explicit earnings or EPS guidance given due to uncertain economic environment post-COVID; management advises living "month by month" (Page 9).
→EBITDA potential to return to previous high levels (~Rs. 500 Crores) within 2-3 years, assuming revenue recovers and fixed costs remain controlled (Page 19).
→Cost-saving measures targeting Rs. 100 Crores at consolidated fixed cost level with at least 50% of savings expected to remain permanent (Page 17).
→Print business revenue expected to gradually recover with circulation nearly 80% restored post-lockdown and ability to scale to pre-COVID levels (Page 10, 12).
→Growth in digital business (10% annual, 30% Q4 growth) noted, though under pressure during lockdown (Page 3).
→Cover price and pagination strategies to improve per copy realization, with past increases of 12-13% and potential for further increases (Page 18).
→Government advertisement and tender spending expected to increase, potentially offsetting decline in other sectors (Page 19).

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Fundraise plans

→No immediate plans for fundraising through buybacks or additional equity; management prefers to wait and assess the situation before any distribution decisions (Page 22).
→The company recently augmented liquidity by borrowing Rs. 250-300 Crores via Non-Convertible Debentures (NCDs) with interest rates around 8.25% to 8.5%, having maturities of 3 to 4 years (Pages 8-9, 22).
→Management views borrowing as a necessary step during uncertain times, even with substantial cash on hand (about Rs. 600 Crores excluding working capital limits) (Pages 8, 14).
→No discussion of further aggressive acquisitions or investments currently; focus is on maintaining the business (Page 4).
→No explicit mention of future equity fundraising plans in the call.

Order book

The transcript does not provide any information on current or expected order book or pending orders for Jagran Prakashan Limited or its subsidiaries. The discussion primarily focuses on: - Liquidity and financial health during COVID-19. - Advertisement revenue impact and recovery trends. - Capex plans (minimal for FY 2021, about Rs. 25-30 Crores). - Cost-saving measures across businesses. - Newsprint prices and circulation recovery. - Business model robustness and future outlook. - No mention of order book status or pending orders. Hence, no details on order book or pending orders are available in the provided pages.

Capex plans

→For the fiscal year 2019-2020, Jagran Prakashan Limited undertook very insignificant capex.
→There are no plans to invest heavily in capex in the current year (FY 2021) either.
→The company will only invest the bare minimum capex required.
→Expected capex for the current year is estimated to be between Rs. 25 Crores to Rs. 30 Crores maximum.
→No mention of any new strategic investment or large-scale capital investment plans at this time.
→The focus appears to be on maintaining liquidity and operational efficiency rather than aggressive capital spending.

How does Jagran Prakashan Ltd rank vs peers in Media?

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1Jagran Prakashan Ltd

Rev 4Mar 3

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