HINDUSTAN MEDIA VENTURES 2021-22 Annual Report Analysis

Wed, 7 Sep

HINDUSTAN MEDIA VENTURES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

HINDUSTAN MEDIA VENTURES Income Statement Analysis

• Operating income during the year rose 22.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 37.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 1.3% in FY22 as against 1.2% in FY21.
• Depreciation charges decreased by 2.0% and finance costs increased by 7.8% YoY, respectively.
• Other income declined by 34.0% YoY.
• Net profit for the year declined by 41.0% YoY.
• Net profit margins during the year declined from 13.4% in FY21 to 6.4% in FY22.

HINDUSTAN MEDIA VENTURES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	5,454	6,692	22.7%
Other income	Rs m	1,176	777	-34.0%
Total Revenues	Rs m	6,631	7,469	12.6%
Gross profit	Rs m	65	89	37.0%
Depreciation	Rs m	304	298	-2.0%
Interest	Rs m	87	94	7.8%
Profit before tax	Rs m	850	473	-44.3%
Tax	Rs m	119	43	-64.3%
Profit after tax	Rs m	731	431	-41.0%
Gross profit margin	%	1.2	1.3
Effective tax rate	%	14.0	9.0
Net profit margin	%	13.4	6.4

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HINDUSTAN MEDIA VENTURES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 6 billion as compared to Rs 5 billion in FY21, thereby witnessing an increase of 22.1%.
• Long-term debt down at Rs 95 million as compared to Rs 274 million during FY21, a fall of 65.5%.
• Current assets rose 94% and stood at Rs 11 billion, while fixed assets fell 30% and stood at Rs 11 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 22 billion as against Rs 21 billion during FY21, thereby witnessing a growth of 4%.

HINDUSTAN MEDIA VENTURES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	15,845	15,894	0.3
Current Liabilities	Rs m	4,740	5,786	22.1
Long-term Debt	Rs m	274	95	-65.5
Total Liabilities	Rs m	21,056	21,838	3.7
Current assets	Rs m	5,668	11,013	94.3
Fixed Assets	Rs m	15,388	10,825	-29.7
Total Assets	Rs m	21,056	21,838	3.7

HINDUSTAN MEDIA VENTURES Cash Flow Statement Analysis

• HINDUSTAN MEDIA VENTURES's cash flow from operating activities (CFO) during FY22 stood at Rs 542 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -785 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 211 million, an improvement of 140% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -32 million from the Rs 47 million net cash flows seen during FY21.

HINDUSTAN MEDIA VENTURES Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	2,034	542	-73.3%
Cash Flow from Investing Activities	Rs m	-1,465	-785	-
Cash Flow from Financing Activities	Rs m	-522	211	-
Net Cash Flow	Rs m	47	-32	-

Current Valuations for HINDUSTAN MEDIA VENTURES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.8, an decline from the EPS of Rs 9.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 60.1, stands at 9.9 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 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 8.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	74.0	90.8
TTM Earnings per share	Rs	9.9	5.8
Diluted earnings per share	Rs	9.9	5.8
Price to Cash Flow	x	4.3	8.2
TTM P/E ratio	x	6.0	9.9
Price / Book Value ratio	x	0.3	0.4
Market Cap	Rs m	4,177	6,010
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HINDUSTAN MEDIA VENTURES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY22, from 1.2x during FY21. 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 6.0x during FY22, from 10.8x during FY21. 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 FY22, from 4.6% during FY22. 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 3.5% during FY22, from 5.8% during FY21. 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 2.4% during FY22, from 3.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.2	1.9
Debtors’ Days	Days	832	603
Interest coverage	x	10.8	6.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.9	2.4
Return on equity	%	4.6	2.7
Return on capital employed	%	5.8	3.5

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 75.9 to Rs 60.1, registering a loss of Rs 15.9 or around 20.9%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 13,130.0 (up 0.2%). Over the last one year it has moved down from 15,115.3 to 13,130.0, a loss of 1,985 points (down 13.1%).

Overall, the S&P BSE SENSEX is up 1.3% 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