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  • JULY 19, 2000

TV 18: Performance surpasses projections

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.

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