Shares of this radio broadcasting services providing company jumped around 5 percent after reporting an increase in net profits by 595 percent in net profits QoQ. The shares have delivered more than 50 percent returns to its shareholders in one year.
With a market capitalization of Rs. 667 crores, the shares of Music Broadcast Ltd started Wednesday’s trading session on a flatter note at Rs. 18.75 compared to its previous close of Rs. 18.45. During the trading session, the shares hit a high of Rs. 20, gaining around 7 percent and are currently trading at Rs. 19.55 apiece.
Such a bullish movement in the share price was observed after the company announced October December results. Looking at the recent financial statements, the revenue by 15 percent from Rs. 52.42 crores during Q2FY24 to Rs. 60.43 crores in Q3FY24. In addition, the net profits magnified by 595 percent from Rs. 37 lakhs to Rs. 2.57 crores during the same period.
Comparing these metrics on a YoY basis, the revenue increased by 11 percent from Rs. 54.67 crores during Q3FY23 to Rs. 60.43 crores in Q3FY24. On a contrasting note, the net profits declined by 37 percent from Rs. 4.09 crores to Rs. 2.57 crores during the same timeframe.
Coming onto the important financial ratios, the return on equity stood at 0.65 percent during FY22-23 and the return on capital employed was recorded at 1.60 percent during the same time horizon. And the company has a debt-to-equity ratio of 0.1 which means that the business hasn’t relied much on borrowing to finance operations.
According to the latest shareholding pattern, the Promoters have a 74.05 percet stake and the retail investors have 25.91 percent of the share. Furthermore, during the reporting quarter, the FIIs increased their stake to 0.04 percent in the company.
Headquartered in Mumbai, Music Broadcast was incorporated in 1999. The company is a subsidiary of Jagran Prakashan Ltd. It owns and operates radio stations and internet music portals for a range of music genres. The company operates private FM radio stations through the brand Radio City and has grown its presence from four cities in 2001 to 39 currently.
Written By Vaibhav Patil
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