The print media sector will reach only three-fourths of pre-pandemic levels this fiscal notwithstanding a 35 percent growth on a low base, Crisil Ratings said in a report.

However, profitability will revive to 9-10 percent due to sharp cost rationalisation measures and digitalisation of content, regardless of the recent rise in newsprint prices, the ratings agency said. “The credit profiles of large print media companies will be resilient, cushioned by healthy liquidity and strong balance sheets, while for the remaining ones, liquidity management will be crucial,” Crisil said, admitting that the bottom line will grow despite the 20-30 percent rise in newsprint prices over the last six months.

The sector's revenue of Rs 31,000 crore in FY20, split 70:30 between advertisement and subscriptions, had declined 40 percent last fiscal amid the first wave. The same is expected to reach Rs 24,000-25,000 crore in FY22.

The agency, which ratings on companies representing 40 percent of the revenues for the sector, said credit profiles of large print media companies will be resilient, cushioned by healthy liquidity and strong balance sheets, while for the remaining ones, liquidity management will be crucial.

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