SUN TV 2020-21 Annual Report Analysis

Wed, 31 Mar

SUN TV has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

SUN TV Income Statement Analysis

• Operating income during the year fell 9.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 9.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 65.2% in FY21 as against 64.7% in FY20.
• Depreciation charges decreased by 42.3% and finance costs increased by 110.7% YoY, respectively.
• Other income grew by 18.0% YoY.
• Net profit for the year grew by 10.2% YoY.
• Net profit margins during the year grew from 39.5% in FY20 to 48.2% in FY21.

SUN TV Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	35,199	31,769	-9.7%
Other income	Rs m	2,607	3,075	18.0%
Total Revenues	Rs m	37,805	34,844	-7.8%
Gross profit	Rs m	22,759	20,707	-9.0%
Depreciation	Rs m	7,002	4,039	-42.3%
Interest	Rs m	128	269	110.7%
Profit before tax	Rs m	18,236	19,474	6.8%
Tax	Rs m	4,340	4,158	-4.2%
Profit after tax	Rs m	13,897	15,317	10.2%
Gross profit margin	%	64.7	65.2
Effective tax rate	%	23.8	21.4
Net profit margin	%	39.5	48.2

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SUN TV Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 8 billion as compared to Rs 6 billion in FY20, thereby witnessing an increase of 35.5%.
• Current assets rose 22% and stood at Rs 52 billion, while fixed assets rose 7% and stood at Rs 24 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 76 billion as against Rs 65 billion during FY20, thereby witnessing a growth of 17%.

SUN TV Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	57,241	70,537	23.2
Current Liabilities	Rs m	6,110	8,279	35.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	65,066	76,077	16.9
Current assets	Rs m	42,744	52,081	21.8
Fixed Assets	Rs m	22,322	23,996	7.5
Total Assets	Rs m	65,066	76,077	16.9

SUN TV Cash Flow Statement Analysis

• SUN TV's cash flow from operating activities (CFO) during FY21 stood at Rs 15 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -12 billion, an improvement of 182.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion, an improvement of 80% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 631 million from the Rs 269 million net cash flows seen during FY20.

SUN TV Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	16,556	14,642	-11.6%
Cash Flow from Investing Activities	Rs m	-4,080	-11,514	-
Cash Flow from Financing Activities	Rs m	-12,224	-2,495	-
Net Cash Flow	Rs m	269	631	134.5%

Current Valuations for SUN TV

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 38.9, an improvement from the EPS of Rs 35.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 470.1, stands at 12.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 5.8 times.
• The company's price to cash flow (P/CF) ratio stood at 8.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	89.3	80.6
TTM Earnings per share	Rs	35.3	38.9
Diluted earnings per share	Rs	35.3	38.9
Price to Cash Flow	x	5.4	8.5
TTM P/E ratio	x	8.1	12.3
Price / Book Value ratio	x	3.2	2.3
Market Cap	Rs m	180,570	163,644
Dividends per share (Unadj.)	Rs	25.0	5.0

Ratio Analysis for SUN TV

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 6.3x during FY21, from 7.0x during FY20. 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 73.5x during FY21, from 144.0x during FY20. 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 declined and down at 21.7% during FY21, from 24.3% during FY21. 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 28.0% during FY21, from 32.1% during FY20. 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 20.5% during FY21, from 21.6% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	7.0	6.3
Debtors’ Days	Days	14	16
Interest coverage	x	144.0	73.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	21.6	20.5
Return on equity	%	24.3	21.7
Return on capital employed	%	32.1	28.0

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

SUN TV Share Price Performance

Over the last one year, SUN TV share price has moved up from Rs 285.7 to Rs 470.1, registering a gain of Rs 184.4 or around 64.5%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 11,919.9 (down 0.9%). Over the last one year it has moved up from 6,403.4 to 11,919.9, a gain of 5,517 points (up 86.1%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for SUN TV and quarterly results for SUN TV)

Read: Latest Annual Report Analysis of SUN TV