Hold HT Media Ltd - Q2FY13 Result Update - Emkay

Reco: HOLD
CMP: Rs96
Target Price: Rs107

Cost escalations disappoint, retain HOLD

- Revenues at Rs5.1bn (up 4.5% YoY), EBITDA at Rs565mn (down 20% YoY) & PAT at Rs333mn (down 24% YoY)

- Print ad revenue declined 1.4% yoy to Rs3.6bn. English ad declined 2.8% yoy, while Hindi ad grew just 2% yoy. EBITDA margin declined 330bps yoy and 259bps qoq to 11.1%, due to 22%/ 8% yoy increase in employee exp./raw material cost

- Going forward, we remain cautious on ad growth as macro environment continues to be challenging. We estimate print ad growth of 2%/9% for FY13E/14E. EBITDA margins are expected at 14%/15% for FY13E/14E

- Due to cost escalations we have revised our EPS estimates downward by 8.5%8% for FY13E/14E to Rs7.4/8.9. Maintain HOLD with TP of Rs107 (12x FY14E EPS).

Source : Equity Bulls

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