HINDUSTAN MEDIA VENTURES 2017-18 Annual Report Analysis

Sat, 31 Mar

HINDUSTAN MEDIA VENTURES 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.

HINDUSTAN MEDIA VENTURES Income Statement Analysis

• Operating income during the year fell 5.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 11.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.6% in FY18 as against 22.0% in FY17.
• Depreciation charges decreased by 2.7% and finance costs decreased by 29.8% YoY, respectively.
• Other income grew by 0.5% YoY.
• Net profit for the year declined by 4.8% YoY.
• Net profit margins during the year grew from 20.7% in FY17 to 20.9% in FY18.

HINDUSTAN MEDIA VENTURES Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	9,333	8,801	-5.7%
Other income	Rs m	921	925	0.5%
Total Revenues	Rs m	10,253	9,726	-5.1%
Gross profit	Rs m	2,055	1,811	-11.9%
Depreciation	Rs m	202	197	-2.7%
Interest	Rs m	161	113	-29.8%
Profit before tax	Rs m	2,612	2,426	-7.1%
Tax	Rs m	676	583	-13.8%
Profit after tax	Rs m	1,936	1,843	-4.8%
Gross profit margin	%	22.0	20.6
Effective tax rate	%	25.9	24.0
Net profit margin	%	20.7	20.9

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HINDUSTAN MEDIA VENTURES Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 3 billion as compared to Rs 3 billion in FY17, thereby witnessing an increase of 6.1%.
• Current assets rose 120% and stood at Rs 7 billion, while fixed assets fell 18% and stood at Rs 9 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 17 billion as against Rs 15 billion during FY17, thereby witnessing a growth of 12%.

HINDUSTAN MEDIA VENTURES Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	11,668	13,317	14.1
Current Liabilities	Rs m	2,756	2,925	6.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	14,672	16,502	12.5
Current assets	Rs m	3,249	7,140	119.8
Fixed Assets	Rs m	11,424	9,362	-18.0
Total Assets	Rs m	14,672	16,502	12.5

HINDUSTAN MEDIA VENTURES Cash Flow Statement Analysis

• HINDUSTAN MEDIA VENTURES's cash flow from operating activities (CFO) during FY18 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -809 million, an improvement of 18.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -231 million, an improvement of 71% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 182 million from the Rs -68 million net cash flows seen during FY17.

HINDUSTAN MEDIA VENTURES 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	1,427	1,222	-14.3%
Cash Flow from Investing Activities	Rs m	-683	-809	-
Cash Flow from Financing Activities	Rs m	-811	-231	-
Net Cash Flow	Rs m	-68	182	-

Current Valuations for HINDUSTAN MEDIA VENTURES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.1, an decline from the EPS of Rs 26.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 220.8, stands at 9.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 9.2 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	127.2	119.9
TTM Earnings per share	Rs	26.4	25.1
Diluted earnings per share	Rs	26.3	25.0
Price to Cash Flow	x	9.8	9.2
TTM P/E ratio	x	10.8	9.3
Price / Book Value ratio	x	1.8	1.4
Market Cap	Rs m	20,521	18,706
Dividends per share (Unadj.)	Rs	1.2	1.2

Ratio Analysis for HINDUSTAN MEDIA VENTURES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY18, from 1.2x 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 improved and stood at 22.4x during FY18, from 17.2x 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 13.8% during FY18, from 16.6% 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 declined and down at 19.1% during FY18, from 23.8% 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 11.9% during FY18, from 14.3% 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	1.2	2.4
Debtors’ Days	Days	455	581
Interest coverage	x	17.2	22.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.3	11.9
Return on equity	%	16.6	13.8
Return on capital employed	%	23.8	19.1

To see how HINDUSTAN MEDIA VENTURES has performed over the last 5 years, please visit here.

HINDUSTAN MEDIA VENTURES Share Price Performance

Over the last one year, HINDUSTAN MEDIA VENTURES share price has moved down from Rs 283.3 to Rs 220.8, registering a loss of Rs 62.5 or around 22.1%.

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 HINDUSTAN MEDIA VENTURES and quarterly results for HINDUSTAN MEDIA VENTURES)

Read: Latest Annual Report Analysis of HINDUSTAN MEDIA VENTURES