NDTV 2017-18 Annual Report Analysis

Sat, 31 Mar

NDTV 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.

NDTV Income Statement Analysis

• Operating income during the year fell 13.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.3% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 12.5% in FY18 as against 10.1% in FY17.
• Depreciation charges decreased by 16.3% and finance costs decreased by 5.3% YoY, respectively.
• Other income grew by 23.4% YoY.
• Net profit for the year declined by 0.4% YoY.
• Net profit margins during the year declined from 17.6% in FY17 to 20.2% in FY18.

NDTV Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	4,900	4,256	-13.1%
Other income	Rs m	115	141	23.4%
Total Revenues	Rs m	5,015	4,398	-12.3%
Gross profit	Rs m	-497	-534	7.3%
Depreciation	Rs m	185	155	-16.3%
Interest	Rs m	218	206	-5.3%
Profit before tax	Rs m	-785	-753	-4.1%
Tax	Rs m	79	108	36.9%
Profit after tax	Rs m	-864	-861	-0.4%
Gross profit margin	%	-10.1	-12.5
Effective tax rate	%	-10.0	-14.3
Net profit margin	%	-17.6	-20.2

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NDTV Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 4 billion as compared to Rs 3 billion in FY17, thereby witnessing an increase of 21.8%.
• Long-term debt stood at Rs 653 million as compared to Rs 474 million during FY17, a growth of 37.6%.
• Current assets rose 9% and stood at Rs 4 billion, while fixed assets fell 30% and stood at Rs 1 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 5 billion as against Rs 5 billion during FY17, thereby witnessing a fall of 5%.

NDTV Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	648	-191	-129.5
Current Liabilities	Rs m	3,034	3,696	21.8
Long-term Debt	Rs m	474	653	37.6
Total Liabilities	Rs m	5,292	5,013	-5.3
Current assets	Rs m	3,374	3,667	8.7
Fixed Assets	Rs m	1,918	1,346	-29.8
Total Assets	Rs m	5,292	5,013	-5.3

NDTV Cash Flow Statement Analysis

• NDTV's cash flow from operating activities (CFO) during FY18 stood at Rs 412 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs 52 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs 22 million, an improvement of 137% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 486 million from the Rs -43 million net cash flows seen during FY17.

NDTV 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	-73	412	-
Cash Flow from Investing Activities	Rs m	90	52	-43.0%
Cash Flow from Financing Activities	Rs m	-60	22	-
Net Cash Flow	Rs m	-43	486	-

Current Valuations for NDTV

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -13.4, an improvement from the EPS of Rs -13.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 41.6, stands at -44.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -14.0 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at -5.1 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	76.0	66.0
TTM Earnings per share	Rs	-13.4	-13.4
Diluted earnings per share	Rs	-13.4	-13.4
Price to Cash Flow	x	-6.5	-5.1
TTM P/E ratio	x	-6.4	-44.8
Price / Book Value ratio	x	9.0	-18.8
Market Cap	Rs m	5,823	3,591
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NDTV

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY18, from 1.1x 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 deteriorated and stood at -2.6x during FY18, from -2.6x 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 450.1% during FY18, from -133.4% 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 -118.5% during FY18, from -50.5% 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 -13.1% during FY18, from -12.2% 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	1.1	1.0
Debtors’ Days	Days	114	121
Interest coverage	x	-2.6	-2.6
Debt to equity ratio	x	0.7	-3.4
Return on assets	%	-12.2	-13.1
Return on equity	%	-133.4	450.1
Return on capital employed	%	-50.5	-118.5

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

NDTV Share Price Performance

Over the last one year, NDTV share price has moved down from Rs 68.4 to Rs 41.6, registering a loss of Rs 26.8 or around 39.2%.

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 NDTV and quarterly results for NDTV)

Read: Latest Annual Report Analysis of NDTV