ENTERTAINMENT NETWORK 2022-23 Annual Report Analysis

Fri, 31 Mar

ENTERTAINMENT NETWORK has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

ENTERTAINMENT NETWORK Income Statement Analysis

• Operating income during the year rose 37.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 61.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.5% in FY23 as against 13.3% in FY22.
• Depreciation charges decreased by 1.7% and finance costs decreased by 3.9% YoY, respectively.
• Other income grew by 13.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 10.4% in FY22 to 1.5% in FY23.

ENTERTAINMENT NETWORK Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,190	4,400	37.9%
Other income	Rs m	197	223	13.2%
Total Revenues	Rs m	3,387	4,622	36.5%
Gross profit	Rs m	423	683	61.2%
Depreciation	Rs m	865	850	-1.7%
Interest	Rs m	173	167	-3.9%
Profit before tax	Rs m	-419	-112	NA
Tax	Rs m	-88	-45	NA
Profit after tax	Rs m	-331	-67	NA
Gross profit margin	%	13.3	15.5
Effective tax rate	%	20.9	40.2
Net profit margin	%	-10.4	-1.5

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ENTERTAINMENT NETWORK Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 22.6%.
• Current assets rose 15% and stood at Rs 4 billion, while fixed assets fell 14% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 11 billion as against Rs 11 billion during FY22, thereby witnessing a fall of 4%.

ENTERTAINMENT NETWORK Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,608	7,457	-2.0
Current Liabilities	Rs m	1,243	1,524	22.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	11,158	10,736	-3.8
Current assets	Rs m	3,775	4,347	15.1
Fixed Assets	Rs m	7,383	6,370	-13.7
Total Assets	Rs m	11,158	10,736	-3.8

ENTERTAINMENT NETWORK Cash Flow Statement Analysis

• ENTERTAINMENT NETWORK's cash flow from operating activities (CFO) during FY23 stood at Rs 926 million, an improvement of 128.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -405 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -430 million, an improvement of 5% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 98 million from the Rs 14 million net cash flows seen during FY22.

ENTERTAINMENT NETWORK Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	404	926	128.9%
Cash Flow from Investing Activities	Rs m	62	-405	-
Cash Flow from Financing Activities	Rs m	-451	-430	-
Net Cash Flow	Rs m	14	98	580.7%

Current Valuations for ENTERTAINMENT NETWORK

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.4, an improvement from the EPS of Rs -6.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 116.0, stands at -68.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 10.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	66.9	92.3
TTM Earnings per share	Rs	-6.9	-1.4
Diluted earnings per share	Rs	-6.9	-1.4
Price to Cash Flow	x	18.0	10.3
TTM P/E ratio	x	-27.6	-68.2
Price / Book Value ratio	x	1.2	1.1
Market Cap	Rs m	8,886	8,097
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for ENTERTAINMENT NETWORK

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.9x during FY23, from 3.0x during FY22. 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 improved and stood at 0.3x during FY23, from -1.4x during FY22. 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 improved and stood at -0.9% during FY23, from -4.4% during FY23. 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 improved and stood at 0.7% during FY23, from -3.2% during FY22. 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 improved and stood at 0.9% during FY23, from -1.4% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	3.0	2.9
Debtors’ Days	Days	1,500	1,099
Interest coverage	x	-1.4	0.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-1.4	0.9
Return on equity	%	-4.4	-0.9
Return on capital employed	%	-3.2	0.7

To see how ENTERTAINMENT NETWORK has performed over the last 5 years, please visit here.

ENTERTAINMENT NETWORK Share Price Performance

Over the last one year, ENTERTAINMENT NETWORK share price has moved down from Rs 202.1 to Rs 116.0, registering a loss of Rs 86.1 or around 42.6%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 12,978.0 (up 2.2%). Over the last one year it has moved down from 16,247.8 to 12,978.0, a loss of 3,270 points (down 20.1%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for ENTERTAINMENT NETWORK and quarterly results for ENTERTAINMENT NETWORK)