TV18 BROADCAST 2017-18 Annual Report Analysis

Sat, 31 Mar

TV18 BROADCAST has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

TV18 BROADCAST Income Statement Analysis

• Operating income during the year rose 31.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 84.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.5% in FY18 as against 3.2% in FY17.
• Depreciation charges increased by 22.8% and finance costs increased by 20.2% YoY, respectively.
• Other income declined by 30.4% YoY.
• Net profit for the year grew by 105.5% YoY.
• Net profit margins during the year declined from 3.0% in FY17 to 4.7% in FY18.

TV18 BROADCAST Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	9,794	12,853	31.2%
Other income	Rs m	434	302	-30.4%
Total Revenues	Rs m	10,228	13,156	28.6%
Gross profit	Rs m	312	577	84.9%
Depreciation	Rs m	564	692	22.8%
Interest	Rs m	224	270	20.2%
Profit before tax	Rs m	-42	-82	95.9%
Tax	Rs m	251	520	107.0%
Profit after tax	Rs m	-293	-602	105.5%
Gross profit margin	%	3.2	4.5
Effective tax rate	%	-599.3	-633.3
Net profit margin	%	-3.0	-4.7

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TV18 BROADCAST Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 27 billion as compared to Rs 6 billion in FY17, thereby witnessing an increase of 358.1%.
• Long-term debt stood at Rs 54 million as compared to Rs 0 million during FY17, a fall of 0.0%.
• Current assets rose 372% and stood at Rs 36 billion, while fixed assets fell 0% and stood at Rs 32 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 67 billion as against Rs 39 billion during FY17, thereby witnessing a growth of 72%.

TV18 BROADCAST Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	33,308	33,402	0.3
Current Liabilities	Rs m	5,932	27,175	358.1
Long-term Debt	Rs m	0	54	0.0
Total Liabilities	Rs m	39,186	67,402	72.0
Current assets	Rs m	7,604	35,855	371.5
Fixed Assets	Rs m	31,582	31,546	-0.1
Total Assets	Rs m	39,186	67,402	72.0

TV18 BROADCAST Cash Flow Statement Analysis

• TV18 BROADCAST's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion, an improvement of 150.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -1 billion, an improvement of 15.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 251 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 2 billion from the Rs -152 million net cash flows seen during FY17.

TV18 BROADCAST Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	630	1,577	150.3%
Cash Flow from Investing Activities	Rs m	-1,080	-1,248	-
Cash Flow from Financing Activities	Rs m	298	251	-15.6%
Net Cash Flow	Rs m	-152	1,641	-

Current Valuations for TV18 BROADCAST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.4, an decline from the EPS of Rs -0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 67.1, stands at -649.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 8.9 times.
• The company's price to cash flow (P/CF) ratio stood at 980.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	5.7	7.5
TTM Earnings per share	Rs	-0.2	-0.4
Diluted earnings per share	Rs	-0.2	-0.4
Price to Cash Flow	x	266.3	980.9
TTM P/E ratio	x	470.0	-649.4
Price / Book Value ratio	x	2.2	2.6
Market Cap	Rs m	72,346	88,375
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TV18 BROADCAST

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY18, from 1.3x during FY17. 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 0.7x during FY18, from 0.8x during FY17. 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 -1.8% during FY18, from -0.9% during FY18. 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 0.6% during FY18, from 0.5% during FY17. 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 -0.5% during FY18, from -0.2% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	1.3	1.3
Debtors’ Days	Days	915	3,438
Interest coverage	x	0.8	0.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-0.2	-0.5
Return on equity	%	-0.9	-1.8
Return on capital employed	%	0.5	0.6

To see how TV18 BROADCAST has performed over the last 5 years, please visit here.

TV18 BROADCAST Share Price Performance

Over the last one year, TV18 BROADCAST share price has moved up from Rs 42.1 to Rs 67.1, registering a gain of Rs 25.0 or around 59.5%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 6,513.3 (down 0.7%). Over the last one year it has moved up from 5,771.5 to 6,513.3, a gain of 742 points (up 12.9%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for TV18 BROADCAST and quarterly results for TV18 BROADCAST)

Read: Latest Annual Report Analysis of TV18 BROADCAST