The net profit is after accounting for sharp depreciation of rupee resulting in accounting for mark to market exchange fluctuation loss of over Rs.13.50 crores as against mark to market exchange fluctuation gain of about Rs. 3.50 crores in Q2FY11. On like to like basis, profit after tax excluding the impact of exchange fluctuation gain/loss would have been Rs.54.90 crores as against an amount of Rs.53.13 crores for Q2FY11, inspite of steep increase in newsprint prices, increase in circulation, launch of a new brand Punjabi Jagran and higher depreciation during Q2FY12.
Commenting on the performance of the company for the Q2FY2012, Mahendra Mohan Gupta, Chairman and Managing Director, JPL said, “The company’s focus on profitable growth continues. Investment made in expanding circulation of all the brands of the Group has started paying as is evident from the latest Indian Readership Survey 2011 Q2. Not only Dainik Jagran recorded the highest growth in readership amongst all dailies in the country but all other brands as well have made satisfactory progress,”.
“I am also happy to report that since rolling out our plans in mid of August 2011, the company has achieved advertisement revenue growth exceeding 20%. Festive season too is looking good but skepticism remains for post festive season due to macro economic conditions that have worsened in past couple of months and continue to remain uncertain. In this economic environment where no advertiser is prepared to make even short term commitments, sharp increase in newsprint prices with equally sharp depreciation of rupee is hurting further. However, we are going ahead with our investment plan for increasing circulation to ensure a long term sustainable growth and remain committed to return and value accretion on consistent basis for all the stakeholders,” he added.