SUN TV 2022-23 Annual Report Analysis

Thu, 21 Sep

SUN TV 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.

SUN TV Income Statement Analysis

• Operating income during the year rose 5.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 63.5% in FY23 as against 63.6% in FY22.
• Depreciation charges increased by 58.8% and finance costs decreased by 71.7% YoY, respectively.
• Other income grew by 47.3% YoY.
• Net profit for the year grew by 4.0% YoY.
• Net profit margins during the year declined from 45.8% in FY22 to 45.3% in FY23.

SUN TV Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	35,848	37,721	5.2%
Other income	Rs m	2,560	3,771	47.3%
Total Revenues	Rs m	38,408	41,491	8.0%
Gross profit	Rs m	22,788	23,965	5.2%
Depreciation	Rs m	3,061	4,860	58.8%
Interest	Rs m	333	94	-71.7%
Profit before tax	Rs m	21,954	22,782	3.8%
Tax	Rs m	5,535	5,713	3.2%
Profit after tax	Rs m	16,419	17,069	4.0%
Gross profit margin	%	63.6	63.5
Effective tax rate	%	25.2	25.1
Net profit margin	%	45.8	45.3

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SUN TV Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 7 billion in FY22, thereby witnessing an increase of 23.8%.
• Current assets rose 13% and stood at Rs 60 billion, while fixed assets rose 19% and stood at Rs 40 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 99 billion as against Rs 86 billion during FY22, thereby witnessing a growth of 15%.

SUN TV Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	81,552	92,716	13.7
Current Liabilities	Rs m	6,653	8,236	23.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	86,239	99,231	15.1
Current assets	Rs m	52,849	59,509	12.6
Fixed Assets	Rs m	33,390	39,722	19.0
Total Assets	Rs m	86,239	99,231	15.1

SUN TV Cash Flow Statement Analysis

• SUN TV's cash flow from operating activities (CFO) during FY23 stood at Rs 21 billion, an improvement of 28.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -16 billion, an improvement of 51.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -878 million from the Rs 49 million net cash flows seen during FY22.

SUN TV 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	16,337	20,955	28.3%
Cash Flow from Investing Activities	Rs m	-10,269	-15,539	-
Cash Flow from Financing Activities	Rs m	-6,027	-6,306	-
Net Cash Flow	Rs m	49	-878	-

Current Valuations for SUN TV

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 43.3, an improvement from the EPS of Rs 41.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 587.5, stands at 12.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 6.1 times.
• The company's price to cash flow (P/CF) ratio stood at 8.6 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	91.0	95.7
TTM Earnings per share	Rs	41.7	43.3
Diluted earnings per share	Rs	41.7	43.3
Price to Cash Flow	x	9.9	8.6
TTM P/E ratio	x	11.7	12.9
Price / Book Value ratio	x	2.5	2.0
Market Cap	Rs m	204,185	189,594
Dividends per share (Unadj.)	Rs	13.8	15.0

Ratio Analysis for SUN TV

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 7.2x during FY23, from 7.9x 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 242.8x during FY23, from 67.0x 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 18.4% during FY23, from 20.1% 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 24.7% during FY23, from 27.3% 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 17.3% during FY23, from 19.4% 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	7.9	7.2
Debtors’ Days	Days	15	14
Interest coverage	x	67.0	242.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	19.4	17.3
Return on equity	%	20.1	18.4
Return on capital employed	%	27.3	24.7

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

SUN TV Share Price Performance

Over the last one year, SUN TV share price has moved up from Rs 508.7 to Rs 587.5, registering a gain of Rs 78.9 or around 15.5%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 14,834.6 (up 0.1%). Over the last one year it has moved up from 12,706.3 to 14,834.6, a gain of 2,128 points (up 16.7%).

Overall, the S&P BSE SENSEX is up 10.9% over the year.

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