Subdued performance from the advertising business meant Sun TV's quarterly revenue missed expectations from analysts.
As a result, shares ended 9 percent lower on Monday.
The company's revenue declined 3 percent for the quarter while net profit grew by a similar quantum from last year.
EBITDA margin expanded nearly 300 basis points to 65.1 percent, higher than the estimate of 61.2 percent.
Advertising revenue for the quarter remained muted at Rs 343 crore. The company has also approved an interim dividend of Rs 3.75 per share, record date for which has been set as November 21.
Brokerage firm UBS attributed the earnings miss due to an impact from high inflation. It has maintained its buy rating on the stock with a price target of Rs 600
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