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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) FY99 FY00
(9 mths)
Change
Sales 175.1 236.3 35.0%
Other Income 3.4 185.9  
Expenditure 101.0 129.1 27.8%
Operating Profit (EBDIT) 74.1 107.2 44.6%
Operating Profit Margin (%) 42.3% 45.4%  
Interest 20.0 15.0 -25.0%
Depreciation 6.2 5.7 -8.1%
Profit before Tax 51.3 272.5 430.7%
Other Adjustments -11.3 -3.1 -72.3%
Tax 0.2 71.0  
Profit after Tax/(Loss) 39.8 198.3 398.3%
Net profit margin (%) 22.7% 85.3%  
No. of Shares (m) (eoy) 7.8 10.9  
Diluted no. of shares (m) 10.9 10.9  
Diluted Earnings per share* 14.6 72.5  

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 Revenues 302.21 261.6*
PAT 113.6 99.52**
*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.


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