HINDUSTAN MEDIA VENTURES 2020-21 Annual Report Analysis

Wed, 31 Mar

HINDUSTAN MEDIA VENTURES 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.

HINDUSTAN MEDIA VENTURES Income Statement Analysis

• Operating income during the year fell 31.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 93.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 1.2% in FY21 as against 12.5% in FY20.
• Depreciation charges decreased by 0.7% and finance costs decreased by 8.3% YoY, respectively.
• Other income grew by 8.2% YoY.
• Net profit for the year declined by 38.6% YoY.
• Net profit margins during the year declined from 15.0% in FY20 to 13.4% in FY21.

HINDUSTAN MEDIA VENTURES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	7,958	5,454	-31.5%
Other income	Rs m	1,088	1,176	8.2%
Total Revenues	Rs m	9,046	6,631	-26.7%
Gross profit	Rs m	992	65	-93.5%
Depreciation	Rs m	307	304	-0.7%
Interest	Rs m	95	87	-8.3%
Profit before tax	Rs m	1,679	850	-49.4%
Tax	Rs m	489	119	-75.6%
Profit after tax	Rs m	1,190	731	-38.6%
Gross profit margin	%	12.5	1.2
Effective tax rate	%	29.1	14.0
Net profit margin	%	15.0	13.4

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HINDUSTAN MEDIA VENTURES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 5 billion as compared to Rs 3 billion in FY20, thereby witnessing an increase of 45.6%.
• Long-term debt down at Rs 274 million as compared to Rs 472 million during FY20, a fall of 42.0%.
• Current assets fell 5% and stood at Rs 6 billion, while fixed assets rose 17% and stood at Rs 15 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 21 billion as against Rs 19 billion during FY20, thereby witnessing a growth of 10%.

HINDUSTAN MEDIA VENTURES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	15,140	15,845	4.7
Current Liabilities	Rs m	3,270	4,760	45.6
Long-term Debt	Rs m	472	274	-42.0
Total Liabilities	Rs m	19,214	21,076	9.7
Current assets	Rs m	6,142	5,830	-5.1
Fixed Assets	Rs m	13,072	15,247	16.6
Total Assets	Rs m	19,214	21,076	9.7

HINDUSTAN MEDIA VENTURES Cash Flow Statement Analysis

• HINDUSTAN MEDIA VENTURES's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 297.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion, an improvement of 53.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -522 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 47 million from the Rs -518 million net cash flows seen during FY20.

HINDUSTAN MEDIA VENTURES 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	512	2,034	297.1%
Cash Flow from Investing Activities	Rs m	-955	-1,465	-
Cash Flow from Financing Activities	Rs m	-75	-522	-
Net Cash Flow	Rs m	-518	47	-

Current Valuations for HINDUSTAN MEDIA VENTURES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.9, an decline from the EPS of Rs 16.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 60.0, stands at 6.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 4.0 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	108.0	74.0
TTM Earnings per share	Rs	16.1	9.9
Diluted earnings per share	Rs	16.1	9.9
Price to Cash Flow	x	1.9	4.0
TTM P/E ratio	x	2.3	6.0
Price / Book Value ratio	x	0.4	0.3
Market Cap	Rs m	5,733	4,177
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HINDUSTAN MEDIA VENTURES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY21, from 1.9x 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 10.8x during FY21, from 18.7x 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 4.6% during FY21, from 7.9% 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 5.8% during FY21, from 11.4% 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 3.9% during FY21, from 6.7% 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	1.9	1.2
Debtors’ Days	Days	770	845
Interest coverage	x	18.7	10.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.7	3.9
Return on equity	%	7.9	4.6
Return on capital employed	%	11.4	5.8

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 up from Rs 37.9 to Rs 60.0, registering a gain of Rs 22.1 or around 58.2%.

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 HINDUSTAN MEDIA VENTURES and quarterly results for HINDUSTAN MEDIA VENTURES)

Read: Latest Annual Report Analysis of HINDUSTAN MEDIA VENTURES