NDTV 2022-23 Annual Report Analysis

Sat, 1 Jul

NDTV has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

NDTV Income Statement Analysis

• Operating income during the year fell 2.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 18.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.4% in FY23 as against 20.8% in FY22.
• Depreciation charges decreased by 9.6% and finance costs decreased by 72.0% YoY, respectively.
• Other income declined by 62.1% YoY.
• Net profit for the year declined by 37.5% YoY.
• Net profit margins during the year declined from 21.4% in FY22 to 13.7% in FY23.

NDTV Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,964	3,859	-2.7%
Other income	Rs m	429	163	-62.1%
Total Revenues	Rs m	4,393	4,021	-8.5%
Gross profit	Rs m	823	670	-18.7%
Depreciation	Rs m	189	171	-9.6%
Interest	Rs m	102	29	-72.0%
Profit before tax	Rs m	961	632	-34.2%
Tax	Rs m	114	103	-9.3%
Profit after tax	Rs m	848	529	-37.5%
Gross profit margin	%	20.8	17.4
Effective tax rate	%	11.8	16.3
Net profit margin	%	21.4	13.7

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NDTV Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 1 billion as compared to Rs 2 billion in FY22, thereby witnessing an decrease of -30.3%.
• Long-term debt down at Rs 13 million as compared to Rs 32 million during FY22, a fall of 58.3%.
• Current assets fell 14% and stood at Rs 2 billion, while fixed assets rose 11% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 5 billion during FY22, thereby witnessing a fall of 3%.

NDTV Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,251	2,792	24.1
Current Liabilities	Rs m	2,030	1,414	-30.3
Long-term Debt	Rs m	32	13	-58.3
Total Liabilities	Rs m	4,777	4,639	-2.9
Current assets	Rs m	2,585	2,211	-14.5
Fixed Assets	Rs m	2,191	2,428	10.8
Total Assets	Rs m	4,777	4,639	-2.9

NDTV Cash Flow Statement Analysis

• NDTV's cash flow from operating activities (CFO) during FY23 stood at Rs -130 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 396 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -192 million, an improvement of 76% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 74 million from the Rs -46 million net cash flows seen during FY22.

NDTV Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	1,546	-130	-
Cash Flow from Investing Activities	Rs m	-781	396	-
Cash Flow from Financing Activities	Rs m	-811	-192	-
Net Cash Flow	Rs m	-46	74	-

Current Valuations for NDTV

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.2, an decline from the EPS of Rs 13.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 227.4, stands at 28.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.3 times, while the price to sales ratio stands at 3.8 times.
• The company's price to cash flow (P/CF) ratio stood at 33.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	61.5	59.9
TTM Earnings per share	Rs	13.1	8.2
Diluted earnings per share	Rs	13.1	8.2
Price to Cash Flow	x	14.1	33.0
TTM P/E ratio	x	17.7	28.0
Price / Book Value ratio	x	4.7	8.3
Market Cap	Rs m	10,585	23,127
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NDTV

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY23, from 1.3x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 23.1x during FY23, from 10.4x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 19.0% during FY23, from 37.7% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 23.6% during FY23, from 46.6% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 12.0% during FY23, from 19.9% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.3	1.6
Debtors’ Days	Days	68	70
Interest coverage	x	10.4	23.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	19.9	12.0
Return on equity	%	37.7	19.0
Return on capital employed	%	46.6	23.6

To see how NDTV has performed over the last 5 years, please visit here.

NDTV Share Price Performance

Over the last one year, NDTV share price has moved up from Rs 168.0 to Rs 227.4, registering a gain of Rs 59.5 or around 35.4%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 13,423.1 (up 2.1%). Over the last one year it has moved up from 13,055.8 to 13,423.1, a gain of 367 points (up 2.8%).

Overall, the S&P BSE SENSEX is up 21.7% over the year.

(To know more, check out historical annual results for NDTV and quarterly results for NDTV)