HTMedia - Q4FY13 Result Review - Angel Broking

For 4QFY2013, HT Media's top-line performance was below our expectations, growing by tepid 1.5% yoy to Rs. 501cr. Although circulation revenue continues its double digit growth for third consecutive quarter, growing by robust 19% yoy to Rs. 57cr (largely due to cover price hike), sluggish growth in advertising revenue (up by only 1.1% yoy to Rs. 378cr) continues to remain a drag on top-line performance.

Although yoy fall in newsprint costs and other expenses aided HT Media to register OPM expansion of 456bp yoy to 14.3%, it was still ~100bp lower than our expectation due to 160bp yoy increase in staff cost as a percentage of sales. Consequently, profit came in below our expectations at Rs. 40cr (however, up 82.0% yoy aided by low base effect). At the current market price, HTMedia is trading at 10.9x FY2015E consolidated EPS of Rs. 9.1.

We maintain Accumulate on the stock with target price under review.

Source : Equity Bulls

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