The media industry, a vibrant and dynamic field, is constantly evolving with the changing times. The Indian Media & Entertainment (M&E) sector is set for substantial growth, with a projected 10% CAGR, hitting ₹3.08 trillion (US$ 37.2 billion) by 2026.
Recently, DB Corp released its Q4 results, which have stirred up the market. The figures are impressive, showing a nearly three-fold jump in consolidated net profit. This announcement has not only caught the attention of investors but also sparked interesting movements in the company’s share price.
This article aims to delve into the details of DB Corp’s Q4 results, explore the factors that led to such a significant profit increase, and analyse the subsequent reaction in the share price.
About DB Corp Ltd
DB Corp Ltd, a leading media conglomerate in India, has left an indelible mark on the media landscape with its wide array of services. While its primary operations are rooted in the print media sector, it also boasts a robust presence in the realms of radio and digital media. DB Corp is renowned for its dedication to high-quality content and has an extensive reach across various Indian states, serving a diverse readership.
The company is responsible for the publication of numerous newspapers in a variety of languages, including Hindi, Gujarati, Marathi, and English. Its main newspapers, Dainik Bhaskar (Hindi), Divya Bhaskar and Saurashtra Samachar (Gujarati), and Divya Marathi (Marathi), collectively command a readership of around 44 million.
Beyond its print media operations, DB Corp has also made strides in the radio broadcasting industry. The company’s radio division has shown remarkable growth, making a substantial contribution to its overall revenue.
Another significant facet of DB Corp’s operations is its digital media services. The company offers comprehensive internet and mobile interactive services, delivering a broad spectrum of digital content to its users.
The market capitalisation of DB Corp Ltd is ₹5,219.89 crore, as of May 28, 2024.
DB Corp Ltd’s quarterly performance
Here are the key financial metrics reflecting the company’s quarterly performance in relation to the previous quarter:
| Q4 FY24(₹ crores) | Q3 FY24(₹ crores) | Change(%) | |
| Revenue | 617 | 645 | -4.34 |
| Operating profit | 172 | 183 | -6.01 |
| Profit before tax | 162 | 167 | -2.99 |
| Net profit | 123 | 124 | -0.81 |
| EPS | 6.88 | 6.96 | -1.15 |
In the fourth quarter of FY24, DB Corp witnessed consistent, broad-based growth for the 11th consecutive quarter. The company’s advertisement revenue saw a rise of 24.6%, amounting to ₹445.7 crore.
In the March quarter, the company’s total expenditures amounted to ₹480.23 crore, marking a decrease of 2.2%. Meanwhile, the revenue generated from its “printing, publishing and allied business” saw a rise of 15.42%, reaching ₹576.28 crore in the same quarter of the fiscal year 2023-24.
Also read: Unichem Labs Q4 results: A deep dive into share price impact
DB Corp Ltd’s annual performance
Here are the key financial indicators of the company, side by side with the data from the preceding year:
| FY2024(₹ crores) | FY2023(₹ crores) | Change(%) | |
| Revenue | 2,402 | 2,129 | 12.82 |
| Operating profit | 623 | 324 | 92.28 |
| Profit before tax | 565 | 228 | 147.81 |
| Net profit | 426 | 169 | 152.07 |
| EPS | 23.89 | 9.50 | 151.47 |
The EBITDA margin saw a significant expansion of 1500 basis points, reaching Rs 196.7 crore, which represents a 31% margin. This was accompanied by a year-on-year (YOY) growth of 121.2%.
At a meeting held on May 22, 2024, the Board of Directors of the company announced an interim dividend of ₹8 per equity share, each with a face value of ₹10. This dividend will be disbursed to all qualifying shareholders as per the record date specified by the Company.
Also read: The HR Vanguard: TeamLease’s Financial Performance in Q4 of FY 2024
Market reaction – DB Corp shares news
On May 22, 2024, DB Corp Ltd released its quarter 4 results. That day, the DB Corp share surged by approximately 4% intraday from ₹282.20 to ₹293.35. Post the event, DB Corp’s share price hit a 52-week high of ₹313.00 on May 24, 2024.
Looking at DB Corp’s share price history for the past year, the GE Power India share price has given a return of 48.90%.
The DB Corp share price target has been set at ₹351.50 as of May 28, 2024. This represents a promising potential upside of 20.31% for the company’s shares.
Also read: Petronet LNG Q4 results: Net profit soars 24%
Peer analysis
Let’s compare the key financial ratios of DB Corp Ltd with that of its competitors:
| Company | CMP (₹) | Market cap(₹ crores) | P/E | Earnings Yield (%) |
| DB Corp Ltd | 293.1 | 5,199 | 12.2 | 12.4 |
| Hindustan Media Ventures Ltd | 97.4 | 719 | 96.5 | 0.51 |
| Sambhaav Media Ltd | 5.25 | 99.4 | 94.6 | 2.87 |
| Diligent Media Corporation Ltd | 4.25 | 49.9 | 3.48 | 3.95 |
| Cyber Media (India) Ltd | 24.0 | 37.0 | 8.54 | 16.9 |
Bottomline
DB Corp Ltd’s recent Q4 FY24 results underscore its strong performance and significant growth within the Indian media industry. The company has shown impressive resilience and strategic agility, effectively navigating the evolving media landscape.
The market reaction to the Q4 results was positive, with DB Corp’s share price rising approximately 4% on the day of the announcement and reaching a 52-week high shortly after. This surge reflects investor confidence in the company’s strong performance and future potential.
DB Corp’s strategic focus on high-quality content and its diverse presence across print, radio, and digital media have positioned it well in the competitive media landscape. The company’s extensive reach, with a readership of around 44 million, and its robust digital and radio divisions contribute significantly to its overall revenue and market presence.
DB Corp Ltd is well-positioned to continue its growth trajectory, driven by its strategic focus on diversified media operations, cost management, and strong financial performance. The company’s robust annual performance and positive market reception underscore its potential for sustained growth and value creation for shareholders.
