BALAJI TELEFILMS 2020-21 Annual Report Analysis

Wed, 31 Mar

BALAJI TELEFILMS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

BALAJI TELEFILMS Income Statement Analysis

• Operating income during the year fell 48.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 971.6% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 31.9% in FY21 as against 1.9% in FY20.
• Depreciation charges decreased by 26.4% and finance costs decreased by 37.1% YoY, respectively.
• Other income grew by 56.1% YoY.
• Net profit for the year grew by 101.7% YoY.
• Net profit margins during the year declined from 10.3% in FY20 to 40.5% in FY21.

BALAJI TELEFILMS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	5,736	2,937	-48.8%
Other income	Rs m	86	134	56.1%
Total Revenues	Rs m	5,822	3,071	-47.2%
Gross profit	Rs m	107	-936	-971.6%
Depreciation	Rs m	388	286	-26.4%
Interest	Rs m	27	17	-37.1%
Profit before tax	Rs m	-222	-1,104	397.9%
Tax	Rs m	368	85	-76.8%
Profit after tax	Rs m	-590	-1,189	101.7%
Gross profit margin	%	1.9	-31.9
Effective tax rate	%	-166.0	-7.7
Net profit margin	%	-10.3	-40.5

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BALAJI TELEFILMS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 2 billion as compared to Rs 2 billion in FY20, thereby witnessing an decrease of -10.8%.
• Current assets fell 27% and stood at Rs 6 billion, while fixed assets rose 70% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 8 billion as against Rs 9 billion during FY20, thereby witnessing a fall of 13%.

BALAJI TELEFILMS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	6,808	5,662	-16.8
Current Liabilities	Rs m	2,158	1,924	-10.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	9,171	8,021	-12.5
Current assets	Rs m	7,825	5,737	-26.7
Fixed Assets	Rs m	1,345	2,284	69.8
Total Assets	Rs m	9,171	8,021	-12.5

BALAJI TELEFILMS Cash Flow Statement Analysis

• BALAJI TELEFILMS's cash flow from operating activities (CFO) during FY21 stood at Rs -122 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 862 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -163 million, an improvement of 51% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 576 million from the Rs 14 million net cash flows seen during FY20.

BALAJI TELEFILMS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	-1,339	-122	-
Cash Flow from Investing Activities	Rs m	1,685	862	-48.8%
Cash Flow from Financing Activities	Rs m	-331	-163	-
Net Cash Flow	Rs m	14	576	3,937.0%

Current Valuations for BALAJI TELEFILMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -11.8, an decline from the EPS of Rs -5.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 57.3, stands at -4.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at -7.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	56.7	29.0
TTM Earnings per share	Rs	-5.8	-11.8
Diluted earnings per share	Rs	-5.8	-11.8
Price to Cash Flow	x	-19.1	-7.7
TTM P/E ratio	x	-6.5	-4.9
Price / Book Value ratio	x	0.9	1.2
Market Cap	Rs m	5,812	6,955
Dividends per share (Unadj.)	Rs	0.4	0.2

Ratio Analysis for BALAJI TELEFILMS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.0x during FY21, from 3.6x during FY20. 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 deteriorated and stood at -64.9x during FY21, from -7.3x during FY20. 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 -21.0% during FY21, from -8.7% during FY21. 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 -19.2% during FY21, from -2.9% during FY20. 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 -14.6% during FY21, from -6.1% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	3.6	3.0
Debtors’ Days	Days	1,124	1,453
Interest coverage	x	-7.3	-64.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-6.1	-14.6
Return on equity	%	-8.7	-21.0
Return on capital employed	%	-2.9	-19.2

To see how BALAJI TELEFILMS has performed over the last 5 years, please visit here.

BALAJI TELEFILMS Share Price Performance

Over the last one year, BALAJI TELEFILMS share price has moved up from Rs 38.0 to Rs 57.3, registering a gain of Rs 19.3 or around 50.7%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 11,919.9 (down 0.9%). Over the last one year it has moved up from 6,403.4 to 11,919.9, a gain of 5,517 points (up 86.1%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for BALAJI TELEFILMS and quarterly results for BALAJI TELEFILMS)

Read: Latest Annual Report Analysis of BALAJI TELEFILMS