Sun TV Network Ltd’s shares were up over 5 per cent after the company reported a 19 per cent profit increase at Rs 592.08 crore for the quarter ending June 30, 2023, compared to Rs 493.99 crore in the corresponding quarter last year.
Revenues were up by 10 per cent at Rs 1,349 crore, compared to Rs 1,219 crore last year. Sequentially, profits were higher by 55 per cent, compared to Rs 380.40 crore in the previous quarter.
In a recent announcement, the company declared an interim dividend of Rs 6.25 per equity share with a face value of Rs 5 each, marking a pay-out of 125 per cent for the financial year 2023-24.
At 1 pm, the stocks were trading at ₹613.00, 5.28 per cent higher than the previous day’s closing price. Sun TV shares have rallied over 12 per cent in the last one week. The stock recorded a low of ₹393.80 on NSE on March 28.
The blockbuster show of Rajinikanth’s Jailer is also having its effect on Dalal Street. The Kollywood superstar’s recent film was bankrolled by Sun Pictures, the film production arm of Sun TV Network, shares of which scaled a new high in the stock market on Friday. The movie, which was released worldwide on August 10, has crossed over ₹500 crore in global box-office collections.
Sun TV Network shares have been breaching new highs everyday since the release. On Friday, Sun TV shares crossed the ₹600 mark for the first time in nearly two years. The shares touched an intra-day high of ₹615.85 on the National Stock Exchange. Prior to this, the shares touched a high of ₹612 in November 2021.
According to experts, the current rally in share prices could be on expectations of higher revenues from movie production business in the current quarter.