Deccan Chronicle Holdings Ltd has reported a 53.12% fall in consolidated net profits to Rs. 1423.5 million in FY 09 from last fiscal, and a corresponding 53.41% decline in earnings per share.
The Hyderabad-based company runs three newspapers – its flagship Deccan Chronicle, pink paper Financial Chronicle, Asian Age and the regional daily Andhra Bhoomi. It had recently claimed that DC was the largest circulated English newspaper in South India, ahead of rivals The Hindu, The Times of India and Deccan Herald. Deccan Chronicle also owns the IPL Franchise Deccan Chargers.
Though operating revenues rose by 8.2% to Rs. 9683.3 million, the rise in raw material consumption expenses is worrying – raw material costs more than doubled to Rs. 6075.7 million, leading to the drop in profits. Remember that newsprint was at its highest last year during the Beijing Olympics, and has declined since. Hopefully, that will result in a decline costs for Deccan Chronicle. Depreciation accounted for Rs. 530 million and employee costs contributed Rs. 690.8 million to expenditure.
Profits Decline, But Co Remains Profitable
A majority of the companys Rs. 1423.5 million profits come from its standalone business (publishing): standalone net profit rose by 4% to Rs. 1400 million over operational income of Rs. 8149.3 million on a year on year basis. In the December quarter (Q3 09), the company reported a 75% fall in net profits to Rs. 256.7 million compared to Q3 2008. Its total income was Rs. 2282.8 million.
We wrote to Deccan Chronicle’s investor desk on Friday for more inputs, but are yet to receive a response