Music Broadcast, a Jagran group firm that runs Radio City FM, today posted a 24.54 per cent rise in net profit at Rs 13.50 crore in the June quarter.
It had reported a net profit of Rs 10.84 crore in the year-ago period, the company said in a statement.
Total income during the quarter under review stood at Rs 78.10 crore, compared with Rs 74.98 crore in the same quarter last year.
"Our topline showed a growth of 8 per cent, on the back of rate hikes in all 12 core markets and improved utilisations in the Phase III stations in accordance with our strategy formulated for the year," said Apurva Purohit, director, Music Broadcast.
"Our PAT growth, which is more than three times of the topline growth at 25 per cent, reiterates the fixed cost nature of our business as well as validates the strategic choices we made while bidding, that is to expand our geographic footprint, rather than deepen it at unviable costs," she added.
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The company today also said that its board has approved the share buyback programme of Rs 57 crore at a price up to Rs 385 per share.
"Even post the buyback, our balance sheet remains strong to support future inorganic growth," said Purohit.
Going forward, the growth would be contributed by a mix of yield improvement and inventory growth with Phase III markets raising their share in revenues and profits, she said.
"Additionally, the enhancement of our footprint to 72 per cent of the FM reach, through the recent acquisition of Friends FM in a key market like Kolkata, becomes a more formidable network for our advertisers," she added.
The company's stock ended 1.50 per cent higher at Rs 300.40 apiece on the BSE today, against 0.29 per cent rise in the benchmark.
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