DB Corp clocks Q4FY15 net profit of INR644.42m, Firstcall recommends for mid- to long-term

1. CMP 351.00
Target Price 395.00
ISIN: INE950I01011
MAY 18th
2015
D B CORP LTD
Result Update (PARENT BASIS): Q4 FY15
BUYBUYBUYBUY
Index Details
Stock Data
Sector Publishing
BSE Code 533151
Face Value 10.00
52wk. High / Low (Rs.) 422.95/267.70
Volume (2wk. Avg.) 5949
Market Cap (Rs. mn.) 64460.80
Annual Estimated Results (A*: Actual / E*: Estimated)
YEARS FY15A FY16E FY17E
Net Sales 20090.20 21898.32 23650.18
EBITDA 5885.28 6381.61 6813.02
Net Profit 3169.78 3379.67 3572.88
EPS 17.26 18.40 19.45
P/E 20.34 19.07 18.04
Shareholding Pattern (%)
1 Year Comparative Graph
D B CORP LTD S&P BSE SENSEX
SYNOPSIS
D B Corp Ltd. is engaged in printing and publication
of Newspaper in four languages across 14 states, in
Radio Business with "My FM" Radio station in 7
states and 17 cities along with strong web presence
in India.
The company achieved a standalone turnover of Rs.
4854.82 mn registering an increase of 4.85% for the
4th quarter of 2014-15 as against Rs. 4630.46 mn in
the corresponding quarter of the previous year.
During Q4 FY15, standalone net profit stood to Rs.
644.42 mn against Rs. 701.78 mn in Q4 FY14.
Standalone EBIDTA is Rs. 1296.18 mn in Q4 FY15 as
against Rs. 1072.22 mn in the corresponding period
of the previous year.
D. B. Corp has recommended a Final Dividend of Rs.
4.25/- per equity share of face value of Rs. 10/-
each, for the Financial Year 2014-15.
During the quarter, the Company has incorporated a
wholly owned subsidiary (WOS) by the name "DB
Infomedia Private Limited".
Consolidated Total Revenues have shown a growth
of 7% YOY to Rs. 4,953 mn in Q4 against Rs. 4,622
mn of Q4 of last fiscal.,
Consolidated EBIDTA margin for the quarter came
in at 26% at Rs. 1292 mn, against margin of 24%
and EBITDA of Rs. 1,127 mn, YOY growth of 15%.
Consolidated PAT grew by 5% to Rs. 640 mn against
Rs. 610 mn in Q4 of last year.
Net Sales and PAT of the company are expected to
grow at a CAGR of 11% and 12% over 2014 to
2017E respectively.
PEER GROUPS CMP MARKET CAP EPS P/E (X) P/BV(X) DIVIDEND
Company Name (Rs.) Rs. mn. (Rs.) Ratio Ratio (%)
D B Corp Ltd 351.00 64460.80 17.26 20.34 5.01 77.50
Jagran Prakashan Ltd 116.75 38167.00 7.10 16.44 4.01 200.00
Hindustan Media Ventures Ltd 232.10 16961.30 17.59 13.14 2.78 12.00
HT Media Ltd 99.20 23260.90 5.81 17.07 1.65 20.00

2. QUARTERLY HIGHLIGHTS (PARENT BASIS)
Results updates- Q4 FY15,
Months MAR-15 MAR-14 % Change
Net Sales 4854.82 4630.46 4.85
PAT 644.42 701.78 (8.17)
EPS 3.51 3.82 (8.26)
EBITDA 1296.18 1072.22 20.89
The company net profit stood to Rs. 644.42 million against Rs. 701.78 million in the corresponding quarter
ending of previous year, a decrease of 8.17%. The company achieved a turnover of Rs. 4854.82 million
registering an increase of 4.85% for the 4th quarter of the current year 2014-15 as against Rs. 4630.46 million in
the corresponding quarter of the previous year. Reported earnings per share of the company stood at Rs. 3.51 a
share during the quarter as against Rs. 3.82 over previous year period. Profit before interest, depreciation and
tax is Rs. 1296.18 million as against Rs. 1072.22 million in the corresponding period of the previous year.
Break up of Expenditure
Particulars
Rs. Millions
Q4 FY15 Q4 FY14
%
Change
Raw Materials
consumed
1516.97 1665.93 -9%
Depreciation 246.04 169.42 45%
Employees Benefit
Expenses
902.92 867.64 4%
Other Expenditure 1233.34 1097.35 12%

3. Latest Updates
D. B. Corp Ltd has recommended a Final Dividend @ 42.5% (i.e. Rs. 4.25 per equity share of face value of Rs.
10/- each) for the Financial Year 2014-15.
The Company has incorporated a wholly owned subsidiary (WOS) by the name "DB Infomedia Private
Limited". The registered office of the WOS is situated at Bhopal, Madhya Pradesh.
DB Corp Ltd. remains the highly respected regional news daily by 19.8 million readers across India’s fastest
growing markets.
Highlights Q4 FY15 (Consolidated)
Total Revenues have shown a growth of 7% YOY to Rs. 4,953 million in Q4 against Rs. 4,622 million of Q4 of
last fiscal.
EBIDTA margin for the quarter came in at 26% at Rs. 1,292 million, against margin of 24% and EBITDA of Rs.
1,127 million, YOY growth of 15%.
PAT grew by 5% to Rs. 640 million (PAT Margin 13%) against Rs. 610 million (PAT Margin 13%), in Q4 of
last year.
COMPANY PROFILE
DB Corp Ltd. is India’s largest print media company that publishes 7 newspapers with Dainik Bhaskar 37
editions, Divya Bhaskar 7 editions, & Divya Marathi 7 editions with 199 sub-editions in 4 multiple languages
(Hindi, Gujarati, English and Marathi) across 14 states in India. The Company flagship newspapers Dainik
Bhaskar (in Hindi) established in 1958, Divya Bhaskar and Saurashtra Samachar (in Gujarati) have a combined
average daily readership of 19.8 million, making us one of the most widely read newspaper groups in India with
presence in Madhya Pradesh, Chhattisgarh, Rajasthan, Haryana, Punjab, Chandigarh, Himachal Pradesh,
Uttrakhand, Delhi, Gujarat, Maharashtra, Jharkhand and Jammu. Other noteworthy newspaper brands are Dainik
Divya Marathi, DB Star and, DNA (in Gujarat & Rajasthan) on a franchisee basis. DBCL is the only media
conglomerate that enjoys a leadership position in multiple states, in multiple languages and is a dominant player
in its all major markets. The company’s other business interests also span the radio segment through the brand
"My FM" Radio station in 7 states and 17 cities, and a strong online presence in internet portals.
Newspaper and Magazines Brands
Dainik Bhaskar
'Dainik Bhaskar', the flagship Newspaper brand is established since 1958. This newspaper spreads in 12
states with 37 editions and 163 district editions.

4. Divya Bhaskar
Divya Bhaskar became No.1 from Day 1 of it’s launch in June 2003, out placing more than 50 year old local
Gujarati newspaper in Ahmedabad city and became a case study at IIM Ahmedabad. This newspaper has its
presence in Gujarat and Mumbai with 7 editions and 28 district editions.
Dainik Divya Marathi
D B Corp Ltd has begun its journey in Maharashtra with the launch of Marathi language newspaper Dainik
Divya Marathi newspaper in Amravati, Maharashtra on 11th August, 2013. The newspaper has emerged as the
most popular paper in the city from day 1 of its launch. This newspaper has its presence in 1 state with 7
editions, Aurangabad, Nashik, Jalgaon , Ahmednagar, Solapur, Akola and Amravati.
MYFM
MYFM launched in 2006 and has span the radio segment through the brand "My FM" Radio station with
presence in 7 states and 17stations, and a strong online presence in internet portals.
DB DIGITAL
DB Digital- present in Hindi, Gujarati, Marathi and English language. The Web Portals- are
www.dainikbhaskar.com, www.divyabhaskar.com, www.divyamarathi.com,www.dailybhaskar.com. Page
Views & Unique Visitors: Total of 500 million Page Views and 15 million Unique Visitors.
Magazines
Aha Zindagi!
Bal Bhaskar
Lakshya
Young Bhaskar

5. FINANCIAL HIGHLIGHT (PARENT BASIS) (A*- Actual, E* -Estimations & Rs. In Millions)
Balance Sheet as at March 31, 2014 -2017E FY14A FY15A FY16E FY17E
I EQUITY AND LIABILITIES
A) Shareholder's Funds
a) Share Capital 1834.86 1836.49 1836.49 1836.49
b) Reserves and Surplus 9609.18 11028.32 12572.28 14206.68
Sub-Total- Total Net worth 11444.04 12864.81 14408.77 16043.17
B) Non Current Liabilities
a) Long-term borrowings 726.81 505.44 424.57 369.38
b) Deferred Tax Liabilities 885.13 831.97 790.37 750.85
c) Other Long Term Liabilities 346.38 377.48 400.13 416.13
Total Non Current liabilities 1958.32 1714.89 1615.07 1536.36
C) Current Liabilities
a) Short-term borrowings 536.93 477.38 439.19 408.45
b) Trade payables 1116.83 1214.29 1299.29 1377.25
c) Other Current liabilities 1558.62 1547.86 1578.82 1610.39
d) Short term Provisions 1048.35 1205.57 1314.07 1392.92
Sub-Total- Current Liabilities 4260.73 4445.10 4631.37 4789.00
TOTAL EQUITY AND LIABILITIES (A + B + C) 17663.09 19024.80 20655.21 22368.54
II APPLICATION OF FUNDS
D) Non-Current Assets
a) Fixed Assets 8505.88 8180.68 8507.91 8933.30
b) Non-current investments 735.16 697.40 753.19 798.38
c) Long Term loans and advances 1855.19 3074.36 3535.51 3995.13
d) Other non-current assets 48.50 32.46 36.36 39.63
Sub-Total-Non-Current Assets 11144.73 11984.90 12832.97 13766.44
E) Current Assets
a) Inventories 1732.34 1401.96 1598.23 1790.02
b) Trade receivables 3274.17 3449.86 3725.85 3949.40
c) Cash and Bank Balances 1120.44 1760.74 2036.63 2369.03
d) Short-terms loans & advances 375.54 409.17 441.90 472.84
e) Other Current Assets 15.87 18.17 19.62 20.80
Sub-Total-Total Current Assets 6518.36 7039.90 7822.24 8602.09
TOTAL ASSETS (D+E) 17663.09 19024.80 20655.21 22368.54

6. Annual Profit & Loss Statement for the period of 2014 to 2017E
Value(Rs. mn) FY14A FY15A FY16E FY17E
Description 12m 12m 12m 12m
Net Sales 18562.09 20090.20 21898.32 23650.18
Other Income 238.62 256.58 271.97 285.57
Total Income 18800.71 20346.78 22170.29 23935.76
Expenditure -13565.46 -14461.50 -15788.69 -17122.73
Operating Profit 5235.25 5885.28 6381.61 6813.02
Interest -75.34 -75.57 -78.59 -83.31
Gross profit 5159.91 5809.71 6303.01 6729.72
Depreciation -641.54 -880.78 -1030.51 -1164.48
Profit Before Tax 4518.37 4928.93 5272.50 5565.24
Tax -1455.52 -1759.15 -1892.83 -1992.35
Net Profit 3062.85 3169.78 3379.67 3572.88
Equity capital 1834.86 1836.49 1836.49 1836.49
Reserves 9609.18 11028.32 12572.28 14206.68
Face value 10.00 10.00 10.00 10.00
EPS 16.69 17.26 18.40 19.45
Quarterly Profit & Loss Statement for the period of 30th Sep, 2014 to 30th Jun, 2015E
Value(Rs. mn) 30-Sep-14 31-Dec-14 31-Mar-15 30-Jun-15E
Description 3m 3m 3m 3m
Net sales 4799.60 5544.27 4854.82 5097.56
Other income 36.14 28.41 97.05 79.58
Total Income 4835.74 5572.68 4951.87 5177.14
Expenditure -3564.66 -3696.57 -3655.69 -3680.44
Operating profit 1271.08 1876.11 1296.18 1496.70
Interest -14.52 -31.82 -13.51 -15.27
Gross profit 1256.56 1844.29 1282.67 1481.44
Depreciation -207.87 -223.27 -246.04 -270.64
Profit Before Tax 1048.69 1621.02 1036.63 1210.79
Tax -367.42 -569.45 -392.21 -433.46
Net Profit 681.27 1051.57 644.42 777.33
Equity capital 1835.98 1836.31 1836.49 1836.49
Face value 10.00 10.00 10.00 10.00
EPS 3.71 5.73 3.51 4.23

7. Ratio Analysis
Particulars FY14A FY15A FY16E FY17E
EPS (Rs.) 16.69 17.26 18.40 19.45
EBITDA Margin (%) 28.20 29.29 29.14 28.81
PBT Margin (%) 24.34 24.53 24.08 23.53
PAT Margin (%) 16.50 15.78 15.43 15.11
P/E Ratio (x) 21.03 20.34 19.07 18.04
ROE (%) 26.76 24.64 23.46 22.27
ROCE (%) 46.25 48.86 48.53 47.43
Debt Equity Ratio 0.11 0.08 0.06 0.05
EV/EBITDA (x) 12.33 10.82 9.92 9.23
Book Value (Rs.) 62.37 70.05 78.46 87.36
P/BV 5.63 5.01 4.47 4.02
Charts

8. OUTLOOK AND CONCLUSION
At the current market price of Rs. 351.00, the stock P/E ratio is at 19.07 x FY16E and 18.04 x FY17E
respectively.
Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs. 18.40 and Rs.
19.45 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 11% and 12% over 2014 to 2017E
respectively.
On the basis of EV/EBITDA, the stock trades at 9.92 x for FY16E and 9.23 x for FY17E.
Price to Book Value of the stock is expected to be at 4.47 x and 4.02 x for FY16E and FY17E respectively.
We expect that the company surplus scenario is likely to continue for the next three years, will keep its
growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of
Rs. 395.00 for Medium to Long term investment.
INDUSTRY OVERVIEW
The Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy and is making high
growth strides. Proving its resilience to the world, the Indian M&E sector is on the cusp of a strong phase of
growth, backed by rising consumer payments and advertising revenues across all sectors.
The industry has been largely driven by increasing digitisation and higher internet usage over the last decade.
Internet has almost become a mainstream media for entertainment for most of the people. Recent statistics and
developments pertaining to the sector are discussed hereafter.

9. India’s entertainment and media sector is expected to grow steadily over the next five years as per CII-PwC’s
report, titled ‘India Entertainment & Media Outlook 2014’. The industry is expected to exceed Rs 227,000 crore
(US$ 36.49 billion) by 2018, growing at compound annual growth rate (CAGR) of 15 per cent between 2013 and
2018.
Road Ahead
The Indian M&E industry is on an impressive growth path. According to the CII-PwC study, the revenue from
advertising is expected to grow at a CAGR of 13 per cent and will exceed Rs 60,000 crore (US$ 9.64 billion) in
2018 from Rs 35,000 crore (US$ 5.62 billion) in 2013. Internet access has surpassed the print segment as the
second-largest segment contributing to the overall pie of M&E sector revenues.
Television and print are expected to remain the largest contributors to the advertising pie in 2018 as well.
Internet advertising will emerge as the third-largest segment, with a share of about 16 per cent in the total M&E
advertising pie. The film segment estimated at Rs 12,600 crore (US$ 2.02 billion) in 2013 is projected to grow
steadily at a CAGR of 12 per cent on the back of higher domestic and overseas box-office collections as well as
cable and satellite rights
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