TV18 BROADCAST 2022-23 Annual Report Analysis

Tue, 22 Aug

TV18 BROADCAST 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.

TV18 BROADCAST Income Statement Analysis

• Operating income during the year rose 6.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 78.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.8% in FY23 as against 23.6% in FY22.
• Depreciation charges increased by 8.4% and finance costs increased by 205.0% YoY, respectively.
• Other income grew by 65.3% YoY.
• Net profit for the year declined by 86.2% YoY.
• Net profit margins during the year declined from 20.0% in FY22 to 2.6% in FY23.

TV18 BROADCAST Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	46,201	49,081	6.2%
Other income	Rs m	772	1,275	65.3%
Total Revenues	Rs m	46,972	50,357	7.2%
Gross profit	Rs m	10,903	2,380	-78.2%
Depreciation	Rs m	1,131	1,226	8.4%
Interest	Rs m	381	1,162	205.0%
Profit before tax	Rs m	10,163	1,268	-87.5%
Tax	Rs m	901	-10	NA
Profit after tax	Rs m	9,262	1,278	-86.2%
Gross profit margin	%	23.6	4.8
Effective tax rate	%	8.9	-0.8
Net profit margin	%	20.0	2.6

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TV18 BROADCAST Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 72 billion as compared to Rs 27 billion in FY22, thereby witnessing an increase of 168.9%.
• Current assets rose 67% and stood at Rs 95 billion, while fixed assets rose 22% and stood at Rs 43 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 138 billion as against Rs 92 billion during FY22, thereby witnessing a growth of 50%.

TV18 BROADCAST Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	47,797	46,785	-2.1
Current Liabilities	Rs m	26,720	71,844	168.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	91,966	137,679	49.7
Current assets	Rs m	56,916	94,804	66.6
Fixed Assets	Rs m	35,051	42,875	22.3
Total Assets	Rs m	91,966	137,679	49.7

TV18 BROADCAST Cash Flow Statement Analysis

• TV18 BROADCAST's cash flow from operating activities (CFO) during FY23 stood at Rs -27 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -7 billion, an improvement of 141.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 33 billion, an improvement of 1,232% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 billion from the Rs 75 million net cash flows seen during FY22.

TV18 BROADCAST 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	5,931	-27,181	-
Cash Flow from Investing Activities	Rs m	-2,941	-7,093	-
Cash Flow from Financing Activities	Rs m	-2,930	33,170	-
Net Cash Flow	Rs m	75	-1,066	-

Current Valuations for TV18 BROADCAST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.7, an decline from the EPS of Rs 5.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 47.6, stands at 77.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 37.6 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	26.9	28.6
TTM Earnings per share	Rs	5.4	0.7
Diluted earnings per share	Rs	5.4	0.7
Price to Cash Flow	x	12.2	37.6
TTM P/E ratio	x	14.6	77.9
Price / Book Value ratio	x	1.9	2.0
Market Cap	Rs m	89,404	94,204
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TV18 BROADCAST

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 2.1x 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 deteriorated and stood at 2.1x during FY23, from 27.7x 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 declined and down at 2.7% during FY23, from 19.4% 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 declined and down at 5.2% during FY23, from 22.1% 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 declined and down at 1.8% during FY23, from 10.5% 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	2.1	1.3
Debtors’ Days	Days	862	916
Interest coverage	x	27.7	2.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.5	1.8
Return on equity	%	19.4	2.7
Return on capital employed	%	22.1	5.2

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 40.9 to Rs 47.6, registering a gain of Rs 6.7 or around 16.4%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 13,960.8 (up 0.1%). Over the last one year it has moved up from 13,715.3 to 13,960.8, a gain of 246 points (up 1.8%).

Overall, the S&P BSE SENSEX is up 8.2% over the year.

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