NETWORK18 MEDIA 2021-22 Annual Report Analysis

Tue, 13 Sep

NETWORK18 MEDIA 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.

NETWORK18 MEDIA Income Statement Analysis

• Operating income during the year rose 25.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 42.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.8% in FY22 as against 16.4% in FY21.
• Depreciation charges decreased by 18.6% and finance costs decreased by 38.5% YoY, respectively.
• Other income grew by 18.9% YoY.
• Net profit for the year grew by 53.3% YoY.
• Net profit margins during the year grew from 11.6% in FY21 to 14.2% in FY22.

NETWORK18 MEDIA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	47,051	58,802	25.0%
Other income	Rs m	438	521	18.9%
Total Revenues	Rs m	47,490	59,323	24.9%
Gross profit	Rs m	7,719	11,033	42.9%
Depreciation	Rs m	1,468	1,195	-18.6%
Interest	Rs m	1,571	966	-38.5%
Profit before tax	Rs m	5,118	9,393	83.5%
Tax	Rs m	-348	1,016	NA
Profit after tax	Rs m	5,466	8,377	53.3%
Gross profit margin	%	16.4	18.8
Effective tax rate	%	-6.8	10.8
Net profit margin	%	11.6	14.2

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NETWORK18 MEDIA Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 43 billion as compared to Rs 43 billion in FY21, thereby witnessing an increase of 0.0%.
• Current assets rose 24% and stood at Rs 48 billion, while fixed assets fell 0% and stood at Rs 44 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 91 billion as against Rs 82 billion during FY21, thereby witnessing a growth of 11%.

NETWORK18 MEDIA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	5,466	7,548	38.1
Current Liabilities	Rs m	42,829	42,841	0.0
Long-term Debt	Rs m	2	0	-100.0
Total Liabilities	Rs m	82,408	91,404	10.9
Current assets	Rs m	38,642	47,724	23.5
Fixed Assets	Rs m	43,766	43,680	-0.2
Total Assets	Rs m	82,408	91,404	10.9

NETWORK18 MEDIA Cash Flow Statement Analysis

• NETWORK18 MEDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -3 billion, an improvement of 194.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -4 billion, an improvement of 64% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 119 million from the Rs 2 billion net cash flows seen during FY21.

NETWORK18 MEDIA 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	13,456	6,413	-52.3%
Cash Flow from Investing Activities	Rs m	-848	-2,501	-
Cash Flow from Financing Activities	Rs m	-10,485	-3,809	-
Net Cash Flow	Rs m	2,124	119	-94.4%

Current Valuations for NETWORK18 MEDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.1, an improvement from the EPS of Rs 5.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 74.6, stands at 11.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.3 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 8.1 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	45.4	56.8
TTM Earnings per share	Rs	5.3	8.1
Diluted earnings per share	Rs	5.2	8.0
Price to Cash Flow	x	5.5	8.1
TTM P/E ratio	x	6.7	11.2
Price / Book Value ratio	x	6.3	10.3
Market Cap	Rs m	34,685	77,419
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NETWORK18 MEDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY22, from 0.9x 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 improved and stood at 10.7x during FY22, from 4.3x 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 improved and stood at 111.0% during FY22, from 100.0% 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 improved and stood at 137.2% during FY22, from 122.3% 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 improved and stood at 10.2% during FY22, from 8.5% 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	0.9	1.1
Debtors’ Days	Days	992	716
Interest coverage	x	4.3	10.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.5	10.2
Return on equity	%	100.0	111.0
Return on capital employed	%	122.3	137.2

To see how NETWORK18 MEDIA has performed over the last 5 years, please visit here.

NETWORK18 MEDIA Share Price Performance

Over the last one year, NETWORK18 MEDIA share price has moved up from Rs 50.7 to Rs 74.6, registering a gain of Rs 23.9 or around 47.2%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 13,684.5 (up 0.4%). Over the last one year it has moved down from 15,188.7 to 13,684.5, a loss of 1,504 points (down 9.9%).

Overall, the S&P BSE SENSEX is up 3.9% over the year.

(To know more, check out historical annual results for NETWORK18 MEDIA and quarterly results for NETWORK18 MEDIA)

Read: Latest Annual Report Analysis of NETWORK18 MEDIA