Accumulate DB Corp - Emkay

DB Corp
Reco: ACCUMULATE
CMP: Rs 184
Target Price: Rs 228

Expansion in tough times to impact margins

- Con. Revenue at Rs3.9bn was up 13.6% yoy (in line with est.). Ad revenue of Rs3.0bn, growing by 7.8% yoy (our estimate of 10.2%). Print ad revenues grew 7.1% yoy to Rs2.9bn

- EBITDA at Rs1.0bn declined 11.4% yoy. EBITDA margin declined 724bps to 25.7%, on account of losses from Jharkhand and Maharashtra launches

- Q3FY12 PAT at Rs553mn (our est. of Rs570mn), declined 16.1% yoy due to lower EBITDA (incl. forex loss of Rs27.9mn) and higher interest cost (incl. forex loss of Rs59.4mn)

- Cut our EPS est. by 12.0%/12.4% for FY12E/13E resulting in EPS of Rs10.6/13.8 for FY12E/13E. Maintain ACCUMULATE with revised TP of Rs228 (earlier Rs271).

Source : Equity Bulls

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