Company Report | Q1FY12 Result Update

LONG TERM INVESTMENT CALL

23 July 2011 Industry CMP (INR) Target (INR) 52 week High/Low (INR) Market Cap (INR BN) 3M Avg. Daily Volumes (000) P/E (FY12e) Media 164 200 185/125 38.5 96.5 17.6 Q1FY12 Result Highlights

BUY

HT Media Ltd Q1FY12 numbers were broadly in line with our estimates, with revenue registering a ~23% growth YoY from INR 4.1 bn to INR 5 bn. EBITDA witnessed a growth of ~12% YoY to INR 903 mn from INR 808 mn. The EBITDA margins registered a decline of 177 bps due to the higher newsprint prices and increase print order. However, the company registered a growth of ~24% YoY in PAT from INR 414 mn to INR 515 mn due to increase in other income and lower tax rate.

Shareholding Pattern (%) The advertising revenue registered a growth of ~17% on YoY basis, from INR 3289 mn to INR 3844 mn primarily driven by advertising yield improvements. English ad revenue grew ~18% YoY to INR 1.1 bn, the growth in the English market was driven by the growth in Mumbai market which registered a growth of ~35%. Hindi registered a growth of 15% to INR 1108 mn from INR 963 mn. On circulation front, the company register an increase of 3%YoY to INR 485 mn from INR 468 mn driven by following circulation. Radio & Entertainment segment resisted 75% increase in revenue to INR. 215 mn from INR. 123 mn with EBIT of INR 34 mn. HT Burda printing revenue is at INR 245 mn for Q1FYfrom INR 24 mn and achieved EBITDA breakeven as compared to loss of INR 13 mn. Digital segment revenues registered a growth of ~39% YoY from INR 62 mn to INR 86 mn Raw material cost increase by 32% YoY, which was 35% of the revenue from 33%, given due to high newsprint price and increase in print order.

Stock Performance

Performance (%) 1 Month 1.4 HT Media 6.7 NIFTY

3 Months 5.3 -4.3

1 Year 0.5 3.5 Outlook and valuation HTML posted better than expected Q1FY12 result. Going forward, management has guided a muted ad growth for near term, with interest rate sensitive sectors like real estate and financials cutting down on ad spending. Moreover, company is cross selling advertising inventory across division which is expected to give better utilization levels. At CMP the stock trades at PE multiple of 17.6x and 14x for FY12E and FY13E earning respectively. We maintain BUY on the stock with the target price of INR 200.

* Source: Bloomberg, Unicon Research

Wealth Research, Unicon Financial Intermediaries. Pvt Ltd. Email: wealthresearch@uniconindia.in

Financials
(INR in mn)

Q1 FY12 Net Revenue Other Operating income Total Income (Increase)/Decrease in Inventory Consumption of Raw Materials Employees Cost Advertising and Sales Promotion Other Expenditure Operating Exp. EBITDA EBITDA (%) Depreciation Other income EBIT EBIT (%) Financial charges PBT Tax Provision Tax Rate (%) PAT MI Reported PAT Reported PAT (%) EPS
Source: Company, Unicon Research *Consolidated

Q1 FY11 4,029 22 4,051 -41 1,345 749 285 905 3,243 808 20 194 49 663 16 64 599 197 32.9 402 12 414 10.2 1.8

Y-o-Y 22.7 13.6 22.7 -68.3 29.1 17.5 15.8 25.1 25.4 11.8 -177bps 10.3 198.0 25.9 44bps -17.2 30.6 22.8 -194bps 34.3 -308.3 24.4 14bps 24.4

Q4FY11 4,672 32 4,704 -4 1,652 766 385 1,029 3,828 876 19 220 117 773 16 71 702 166 23.6 536 -7 529 11.2 2

Q-o-Q 5.8 -21.9 5.6 225.0 5.1 14.9 -14.3 10.0 6.2 3.1 -45bps -2.7 24.8 8.0 37bps -25.4 11.4 45.8 730bps 0.7 257.1 -2.6 -88bps -2.7

4,944 25 4,969 -13 1,737 880 330 1,132 4,066 903 18 214 146 835 17 53 782 242 30.9 540 -25 515 10.4 2.2

Wealth Research, Unicon Financial Intermediaries. Pvt Ltd. Email: wealthresearch@uniconindia.in

Unicon Investment Ranking Methodology

Rating Return Range Buy >= 20% Accumulate 10% to 20% Hold -10% to 10% Reduce -10% to -20% Sell <= -20%

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Wealth Research, Unicon Financial Intermediaries. Pvt Ltd. Email: wealthresearch@uniconindia.in