MUSIC BROADCAST 2021-22 Annual Report Analysis

Tue, 6 Sep

MUSIC BROADCAST 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.

MUSIC BROADCAST Income Statement Analysis

• Operating income during the year rose 32.0% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.5% in FY22 as against 8.8% in FY21.
• Depreciation charges decreased by 1.5% and finance costs decreased by 18.1% YoY, respectively.
• Other income grew by 12.6% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 19.0% in FY21 to 3.4% in FY22.

MUSIC BROADCAST Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,276	1,684	32.0%
Other income	Rs m	149	168	12.6%
Total Revenues	Rs m	1,425	1,852	30.0%
Gross profit	Rs m	-112	110	NA
Depreciation	Rs m	332	327	-1.5%
Interest	Rs m	32	26	-18.1%
Profit before tax	Rs m	-328	-76	NA
Tax	Rs m	-86	-19	NA
Profit after tax	Rs m	-242	-57	NA
Gross profit margin	%	-8.8	6.5
Effective tax rate	%	26.2	24.6
Net profit margin	%	-19.0	-3.4

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MUSIC BROADCAST Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 351 million as compared to Rs 271 million in FY21, thereby witnessing an increase of 29.7%.
• Current assets fell 48% and stood at Rs 2 billion, while fixed assets rose 40% and stood at Rs 5 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 6 billion as against Rs 6 billion during FY21, thereby witnessing a fall of 0%.

MUSIC BROADCAST Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	6,098	6,036	-1.0
Current Liabilities	Rs m	271	351	29.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,391	6,383	-0.1
Current assets	Rs m	2,919	1,526	-47.7
Fixed Assets	Rs m	3,472	4,858	39.9
Total Assets	Rs m	6,391	6,383	-0.1

MUSIC BROADCAST Cash Flow Statement Analysis

• MUSIC BROADCAST's cash flow from operating activities (CFO) during FY22 stood at Rs 227 million, an improvement of 317.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -176 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -74 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -23 million from the Rs 23 million net cash flows seen during FY21.

MUSIC BROADCAST 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	55	227	317.1%
Cash Flow from Investing Activities	Rs m	38	-176	-
Cash Flow from Financing Activities	Rs m	-70	-74	-
Net Cash Flow	Rs m	23	-23	-

Current Valuations for MUSIC BROADCAST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.2, an improvement from the EPS of Rs -0.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 24.6, stands at 117.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 5.0 times.
• The company's price to cash flow (P/CF) ratio stood at 32.9 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	3.7	4.9
TTM Earnings per share	Rs	-0.7	-0.2
Diluted earnings per share	Rs	-0.7	-0.2
Price to Cash Flow	x	89.8	32.9
TTM P/E ratio	x	-33.6	117.1
Price / Book Value ratio	x	1.1	1.5
Market Cap	Rs m	6,879	8,910
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MUSIC BROADCAST

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.3x during FY22, from 10.8x 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 -1.9x during FY22, from -9.2x 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 -0.9% during FY22, from -4.0% 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 -0.8% during FY22, from -4.8% 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 improved and stood at -0.5% during FY22, from -3.3% 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	10.8	4.3
Debtors’ Days	Days	2,210	1,639
Interest coverage	x	-9.2	-1.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-3.3	-0.5
Return on equity	%	-4.0	-0.9
Return on capital employed	%	-4.8	-0.8

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

MUSIC BROADCAST Share Price Performance

Over the last one year, MUSIC BROADCAST share price has moved up from Rs 24.3 to Rs 24.6, registering a gain of Rs 0.3 or around 1.0%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 13,100.2 (up 0.0%). Over the last one year it has moved down from 15,220.8 to 13,100.2, a loss of 2,121 points (down 13.9%).

Overall, the S&P BSE SENSEX is up 2.3% over the year.

(To know more, check out historical annual results for MUSIC BROADCAST and quarterly results for MUSIC BROADCAST)

Read: Latest Annual Report Analysis of MUSIC BROADCAST