Jagran Q2 net dips 17.5% as expenses surge

MUMBAI: Jagran Prakashan Ltd. (JPL) has reported a 17.53 per cent fall in its net profit for the quarter ended 30 September as its expenses saw a 20 per cent jump.

The company has posted a net profit of Rs 457.77 million, as against Rs 555.06 million a year ago.

Income from operations jumped to Rs 3.05 billion, from Rs 2.77 billion in the corresponding quarter of the previous fiscal.

The company?s expenses also surged to Rs 2.42 billion, compared to Rs 2.01 billion a year ago.

?I am happy to report that since rolling out our plans in mid-August 2011, the company has achieved advertisement revenue growth exceeding 20 per cent. Festive season too is looking good but scepticism 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 environment where no advertiser s prepared to make even short term commitments, sharp increase in newsprint prices with equally sharp depreciation of rupee is hurting further,? JPL CMD Mahendra Mohan Gupta said.

Gupta asserted that the company would continue to go ahead with its investment plan for increasing circulation to "ensure a long term sustainable growth".