Sun TV ends 9% higher as company clocks 19% rise in Q1 net

NEW DELHI: Holding on to its early gains, Sun TV remained around its day's high level after report a healthy set of June quarter results.

The media company has reported a 19 per cent YoY rise in its net profit to Rs 197 crore for the June quarter, compared with Rs 165 crore in the corresponding quarter of last year.Sales for the company grew 9.16 per cent YoY to Rs 691 crore for the quarter, compared with Rs 633 crore in the year-ago quarter.

The stock rose 11.76 per cent to hit its day’s high of Rs 345 on the BSE. This has been the third consecutive day of gains for the media stock.
Including Friday’s gains, the scrip has surged about 18 per cent in three sessions.

The stock ended the day in green, up 8.93 per cent or Rs 27.60 at Rs 336.55.

The Chennai-based media company is scheduled to report its quarterly earnings later in the day.

Brokerage Edelweiss Securities in its recent preview had expected Sun TV to report a 5-6 per cent YoY ad growth on low base.

It had expected profit for the company to rise by 3.8 per cent YoY to Rs 172 crore on a 5.4 per cent YoY rise in net sales to Rs 667.50 crore.

The scrip has seen some buying of late after the government decided not to proceed against 33 channels of the group, at least for now, after both Madras and Delhi High Courts disregarded MHA's objections to the Chennai-based group participating in the auction for FM radio licences.