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MUSIC BROADCAST 2022-23 Annual Report Analysis

Mon, 19 Feb

MUSIC BROADCAST has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

MUSIC BROADCAST Income Statement Analysis

• Operating income during the year rose 18.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 109.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.6% in FY23 as against 6.5% in FY22.
• Depreciation charges increased by 0.1% and finance costs increased by 48.3% YoY, respectively.
• Other income grew by 17.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 3.4% in FY22 to 1.7% in FY23.

MUSIC BROADCAST Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,684	1,989	18.1%
Other income	Rs m	168	197	17.3%
Total Revenues	Rs m	1,852	2,186	18.0%
Gross profit	Rs m	110	231	109.2%
Depreciation	Rs m	327	328	0.1%
Interest	Rs m	26	39	48.3%
Profit before tax	Rs m	-76	61	NA
Tax	Rs m	-19	26	NA
Profit after tax	Rs m	-57	34	NA
Gross profit margin	%	6.5	11.6
Effective tax rate	%	24.6	43.3
Net profit margin	%	-3.4	1.7

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MUSIC BROADCAST Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 363 million as compared to Rs 351 million in FY22, thereby witnessing an increase of 3.4%.
• Long-term debt stood at Rs 837 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets fell 3% and stood at Rs 1 billion, while fixed assets rose 1% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 6 billion as against Rs 6 billion during FY22, thereby witnessing a growth of 0%.

MUSIC BROADCAST Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,036	5,247	-13.1
Current Liabilities	Rs m	351	363	3.4
Long-term Debt	Rs m	0	837	0.0
Total Liabilities	Rs m	6,383	6,412	0.5
Current assets	Rs m	1,526	1,484	-2.7
Fixed Assets	Rs m	4,858	4,929	1.5
Total Assets	Rs m	6,383	6,412	0.5

MUSIC BROADCAST Cash Flow Statement Analysis

• MUSIC BROADCAST's cash flow from operating activities (CFO) during FY23 stood at Rs 305 million, an improvement of 34.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -238 million, an improvement of 35.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -79 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -12 million from the Rs -23 million net cash flows seen during FY22.

MUSIC BROADCAST Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	227	305	34.1%
Cash Flow from Investing Activities	Rs m	-176	-238	-
Cash Flow from Financing Activities	Rs m	-74	-79	-
Net Cash Flow	Rs m	-23	-12	-

Current Valuations for MUSIC BROADCAST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an improvement from the EPS of Rs -0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 10.8, stands at 109.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 17.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	4.9	5.8
TTM Earnings per share	Rs	-0.2	0.1
Diluted earnings per share	Rs	-0.2	0.1
Price to Cash Flow	x	33.0	17.8
TTM P/E ratio	x	-156.4	109.0
Price / Book Value ratio	x	1.5	1.2
Market Cap	Rs m	8,910	6,447
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 4.1x during FY23, from 4.3x during FY22. 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 2.5x during FY23, from -1.9x during FY22. 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 0.7% during FY23, from -0.9% during FY23. 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 1.6% during FY23, from -0.8% during FY22. 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 1.1% during FY23, from -0.5% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	4.3	4.1
Debtors’ Days	Days	1,639	1,209
Interest coverage	x	-1.9	2.5
Debt to equity ratio	x	0.0	0.2
Return on assets	%	-0.5	1.1
Return on equity	%	-0.9	0.7
Return on capital employed	%	-0.8	1.6

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 down from Rs 25.8 to Rs 10.8, registering a loss of Rs 15.0 or around 58.0%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 12,978.0 (up 2.2%). Over the last one year it has moved down from 16,247.8 to 12,978.0, a loss of 3,270 points (down 20.1%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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