TV 18: Performance surpasses projections - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

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

TV 18: Performance surpasses projections

Jul 19, 2000

Television 18 has surpassed the projections it made at the time of its IPO in December'99. The company has reported a net profit of Rs 198 m on a turnover of Rs 236.3 m for the nine month period ended June 2000.

(Rs m)FY99FY00
(9 mths)
Change
Sales175.1236.335.0%
Other Income3.4185.9 
Expenditure101.0129.127.8%
Operating Profit (EBDIT)74.1107.244.6%
Operating Profit Margin (%)42.3%45.4% 
Interest 20.015.0-25.0%
Depreciation6.25.7-8.1%
Profit before Tax51.3272.5430.7%
Other Adjustments-11.3-3.1-72.3%
Tax0.271.0 
Profit after Tax/(Loss)39.8198.3398.3%
Net profit margin (%)22.7%85.3% 
No. of Shares (m) (eoy)7.810.9 
Diluted no. of shares (m)10.910.9 
Diluted Earnings per share*14.672.5 

Interest on IPO application money which amounts to almost 59% of its pre–tax profit is partly responsible for the growth at the net level.

Comparison of actuals with projections made during the IPO

 Projected
(FY00-12 mths)
Actuals
(9 mths)
Total Revenues302.21261.6*
PAT113.699.52**
*excludes Interest on IPO application money Rs 160.65 m
** excludes post tax profit on IPO interest Rs 98.80m

However, even if one were to adjust for this, the company would have achieved a net profit of over Rs 130 m on an annualised basis. This implies an earning multiple of 58 times at the current price of Rs 710.

Equitymaster requests your view! Post a comment on "TV 18: Performance surpasses projections ". Click here!

  

More Views on News

What Fuelled the Sudden Surge in PVR and Inox Shares Today (Views On News)

Sep 27, 2021

Shares of both multiplex chain operators surged almost 18% to hit their 52-week highs.

8 Penny Stocks with Exceptionally High Promoter Holding (Views On News)

Sep 25, 2021

While high promoter holding is a good thing, there can be rare cases where penny stock promoters use misleading information about the actual valuation.

Shareholder Activism Triggers a 30% Rally in Zee Entertainment Shares (Views On News)

Sep 14, 2021

Zee Entertainment shares zoom after top investors seek CEO and MD Punit Goenka's removal.

Here's Why Affle India Hit 5% Upper Circuit Today (Views On News)

Jul 2, 2021

In the past one year, the company's share price is up 202%. Can it go higher?

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

TRACK TV18

MARKET STATS