Hinduja group company Hinduja Ventures today reported a 20 per cent decline in its consolidated net profit at Rs 12.17 crore for the first quarter ended June 30, amid continuing stress in profitability in the media sector.
The company reported a total income of Rs 85.80 crore for the first quarter of this fiscal as against Rs 87.96 crore in the corresponding period a year ago, Hinduja Ventures said in a release.
The media subsidiary of company -- IndusInd Media & Communications (IMCL) contributed 87 per cent of the total income and 48 per cent of the profits of Hinduja Ventures.
The profitable performance by IMCL, was in the backdrop of continuing stress in profitability in media sector since last year on account of recession arising out of credit crunch, the company added.
Notwithstanding the flat to lower advertising spends and overall lackluster in the media sector, Hinduja Ventures' media segment led by IMCL reported a five per cent rise in the total income to Rs 74.88 crore and a 15 per cent jump in net profit after tax to 6.04 crore.
"The media subsidiary of IMCL continued to improve cash generation for reinvestments in new geographies and markets," a company statement said.