Deccan Chronicle Net Up 26% At Rs77 Crore; Share Buyback To Commence Soon

Publisher Deccan Chronicle Holdings Ltd today posted Q1 net profit of Rs77.02 crore, up 26% from the year-ago period on ad sales growth and lower newsprint costs. A Reuters poll of analysts expected the company’s net profit to fall by half to Rs28 crore.

Managing director P.K. Iyer told CNBC TV18 that the company was able to post better than expected profits thanks to lower newsprint costs.

Total expenditure rose 13% to Rs120.62 crore. Raw material cost rose 11% to Rs85.47 crore.

Iyer said the board has approved the buy back of shares and the process will begin soon. The company will buy back a maximum of 3.5 crore shares and a minimum of 1 crore. The company made the application when the stock was Rs25, Iyer said. On the Bombay Stock Exchange, the Deccan Chronicle scrip closed at Rs101.80, down 2.12% from the previous close.

Iyer said the company will start monetizing the Deccan Chargers IPL team, but there is no clarity yet on how the company will do it.

1Q 2009 1Q 2008
EPS Rs3.15 Rs2.49
Net Income Rs77.02 crore Rs60.92 crore
Revenue Rs216.62 Rs193.53 crore

Comments have been disabled for this post