HT MEDIA 2017-18 Annual Report Analysis

Sat, 31 Mar

HT MEDIA 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.

HT MEDIA Income Statement Analysis

• Operating income during the year fell 4.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 22.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.8% in FY18 as against 12.2% in FY17.
• Depreciation charges decreased by 1.6% and finance costs decreased by 14.2% YoY, respectively.
• Other income grew by 82.1% YoY.
• Net profit for the year grew by 48.7% YoY.
• Net profit margins during the year grew from 9.8% in FY17 to 15.3% in FY18.

HT MEDIA Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	24,521	23,462	-4.3%
Other income	Rs m	2,295	4,178	82.1%
Total Revenues	Rs m	26,816	27,641	3.1%
Gross profit	Rs m	2,983	2,304	-22.8%
Depreciation	Rs m	1,248	1,228	-1.6%
Interest	Rs m	951	816	-14.2%
Profit before tax	Rs m	3,079	4,438	44.2%
Tax	Rs m	671	859	28.0%
Profit after tax	Rs m	2,407	3,579	48.7%
Gross profit margin	%	12.2	9.8
Effective tax rate	%	21.8	19.4
Net profit margin	%	9.8	15.3

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HT MEDIA Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 20 billion as compared to Rs 20 billion in FY17, thereby witnessing an increase of 2.0%.
• Long-term debt down at Rs 57 million as compared to Rs 170 million during FY17, a fall of 66.5%.
• Current assets rose 54% and stood at Rs 15 billion, while fixed assets fell 4% and stood at Rs 34 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 49 billion as against Rs 45 billion during FY17, thereby witnessing a growth of 9%.

HT MEDIA Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	22,318	25,436	14.0
Current Liabilities	Rs m	19,859	20,258	2.0
Long-term Debt	Rs m	170	57	-66.5
Total Liabilities	Rs m	45,416	49,374	8.7
Current assets	Rs m	9,771	15,051	54.0
Fixed Assets	Rs m	35,645	34,323	-3.7
Total Assets	Rs m	45,416	49,374	8.7

HT MEDIA Cash Flow Statement Analysis

• HT MEDIA's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion, an improvement of 0.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -91 million, an improvement of 85% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 369 million from the Rs -222 million net cash flows seen during FY17.

HT MEDIA 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	3,064	3,087	0.8%
Cash Flow from Investing Activities	Rs m	-2,662	-2,452	-
Cash Flow from Financing Activities	Rs m	-621	-91	-
Net Cash Flow	Rs m	-222	369	-

Current Valuations for HT MEDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.4, an improvement from the EPS of Rs 10.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 84.3, stands at 6.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 4.8 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	105.4	100.8
TTM Earnings per share	Rs	10.3	15.4
Diluted earnings per share	Rs	10.3	15.4
Price to Cash Flow	x	5.3	4.8
TTM P/E ratio	x	9.9	6.4
Price / Book Value ratio	x	0.9	0.9
Market Cap	Rs m	19,295	22,868
Dividends per share (Unadj.)	Rs	0.4	0.4

Ratio Analysis for HT MEDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.7x during FY18, from 0.5x 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 6.4x during FY18, from 4.2x 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 improved and stood at 14.1% during FY18, from 10.8% 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 20.6% during FY18, from 17.9% 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 improved and stood at 8.9% during FY18, from 7.4% 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	0.5	0.7
Debtors’ Days	Days	485	527
Interest coverage	x	4.2	6.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.4	8.9
Return on equity	%	10.8	14.1
Return on capital employed	%	17.9	20.6

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

HT MEDIA Share Price Performance

Over the last one year, HT MEDIA share price has moved up from Rs 82.8 to Rs 84.3, registering a gain of Rs 1.5 or around 1.8%.

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 HT MEDIA and quarterly results for HT MEDIA)

Read: Latest Annual Report Analysis of HT MEDIA