X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
HT Media: Healthy growth in other businesses - Views on News from Equitymaster
MidCapSelect
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

HT Media: Healthy growth in other businesses
May 19, 2011

HT Media announced the fourth quarter results of financial year 2010-2011 (4QFY11) The company has reported a 21.7% YoY and 11.8% YoY increase in top line and net profits respectively. Here is our analysis of the results

Performance summary
  • Top line increased by 21.7% YoY on back of robust revenue growth from the radio, entertainment and advertising segments. For the full year, revenues grew by 24%.
  • Operating margins declined by 5% YoY during the quarter. For the FY11, there was a fall in operating margin by 0.4%.
  • Net profits grew by 11.8% YoY during the quarter and 33% YoY during the full year 2011.


Financial performance snapshot
(Rs m) 4QFY10 4QFY11 Change FY10 FY11 Change
Net sales 3,865 4,704 21.7% 14,392 17,861 24.1%
Expenditure 2,937 3,828 30.3% 11,630 14,503 24.7%
Operating profit (EBDITA) 928 876 -5.6% 2,762 3,358 21.6%
EBDITA margin (%) 24.0% 18.6%   19.2% 18.8%  
Other income 31 117 277.4% 146 291 99.3%
Interest 71 71 0.0% 295 236 -20.0%
Depreciation & amortisation 180 220 22.2% 707 842 19.1%
Profit before tax 708 702 -0.8% 1,906 2,571 34.9%
Profit before tax margin (%) 18.3% 14.9%   13.2% 14.4%  
Exceptional items - -   14 -  
Tax 230 166 -27.8% 544 713 31.1%
Profit after tax before moinority 478 536 12.1% 1,348 1,858 37.8%
Share of minority 5 7   (11) 49  
Profit after tax  473 529 11.8% 1,359 1,809 33.1%
Net profit margin (%) 12.4% 11.4% 9.4% 10.4%  
No. of shares (m)         235  
Diluted earnings per share (Rs)*         7.7  
P/E (x)         20.7  
(*trailing twelve month earnings)

What has driven performance in 4QFY11?
  • Topline rose by 22% over the corresponding quarter last year led by a strong growth of 20% YoY and 81% YoY from its advertising and radio businesses respectively. For the full year, revenues grew by 24% YoY on the back of 22% YoY growth in advertising.

  • The internet business has also been doing well and clocked in revenues of Rs 37 m for this quarter. Shine.com and HT campus.com are some of the websites that operate under this segment.

  • Operating profits took a hit by 5.6% in Q4 and the operating margins reduced by more than 5%. This was mainly because the company is in an expansionary phase and incurred higher expenses for advertising and sales promotion. Operating profits over the full year grew by 22% YoY with raw material costs rising by 31% YoY.

    Cost breakup
    (% of sales) 4QFY10 4QFY11 Change FY10 FY11 Change
    Raw materials consumed 1,155 1,648 42.7% 4,760 6,250 31.3%
    % sales 29.9% 35.0%   33.1% 35.0%  
    Staff cost 631 766 21.4% 2,520 3,009 19.4%
    % sales 16.3% 16.3%   17.5% 16.8%  
    Advertising cost 270 385 42.6% 1,159 1,353 16.7%
    % sales 7.0% 8.2%   8.1% 7.6%  
    Other expenses 881 1,029 16.8% 3,191 3,891 21.9%
    % sales 22.8% 21.9%   22.2% 21.8%  
    Total expenditure 2,937 3,828   11,630 14,503  

  • The readership for the English daily ‘Hindustan times' grew 2% q-o-q and it maintained its top position in Delhi with a significant lead over competitors in the premium segments. Mint, the English business daily, is now at no 2. in this segment. It enjoys a readership of 24% in Delhi, Mumbai, Bengaluru and Kolkata.

  • Net profits grew by 12% YoY despite the decline in operating profits on account of higher other income and lower tax expenses.

What to expect?
With the Indian economy expected to do well in the future, print media will continue to be one of the key beneficiaries. HT Media's foray into new businesses like internet and radio are also doing well at the moment. The company is expecting significant revenue contribution from Mint and the Mumbai edition of the English newspaper in the future. At the current price of Rs 155, the stock is trading at a multiple of 21 times its trailing 12-months earnings. We are in the process of revising our estimates and will update our research report on the company within next 30-45 days.

To Read the Full Story, Subscribe or Sign In


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

HT MEDIA SHARE PRICE


Feb 16, 2018 (Close)

TRACK HT MEDIA

  • Track your investment in HT MEDIA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

HT MEDIA 8-QTR ANALYSIS

COMPARE HT MEDIA WITH

MARKET STATS