Economic downturn and the sharp decline in the value of rupee against dollar have slowed down the pace of profit of Jagran Prakashan Ltd (JPL). Country’s largest newspaper Dainik Jagran’s Publication Company had to bear heavy foreign exchange losses due to decline the value of rupee. Company witnessed reduction in profit in the first quarter of fiscal 2012-13.

Due to strengthening dollar in international currency markets and deteriorating domestic economic conditions, the value of rupee against the dollar has fallen more than thirty percent in the last six months due to which JPL had to bear foreign exchange loss of Rs 13.78 crore in the first quarter. The company still managed to earn a profit of Rs 55.73 crore in the first quarter. The company could have used other options to compensate for the losses it incurred but the company decided to stick to the conventional accounting policy.

The company's board meeting on Thursday approved the first quarter results. Commenting on the results, Mahendra Mohan, Chairman and Managing Director, JPL said, “Jagran team has done a fantastic job in adverse market conditions. It would be even better if there were no sharp exchange rate fluctuations because of which company had to bear foreign exchange losses.

During this period, company registered operating profit of Rs 317.52 crore. In the last three quarters, the company also registered a fast growth in the revenues from advertisements as compared to its competitors. Jagran Group publishes 12 newspaper and magazines with 100 editions and 250 sub editions. All these editions are published in five different languages in 35 locations of 15 states. Total readership of newspapers and magazines published by the group is 6.9 million.