TV TODAY NETWORK 2020-21 Annual Report Analysis

Wed, 31 Mar

TV TODAY NETWORK 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.

TV TODAY NETWORK Income Statement Analysis

• Operating income during the year fell 8.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 7.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 25.4% in FY21 as against 25.2% in FY20.
• Depreciation charges increased by 4.2% and finance costs decreased by 13.8% YoY, respectively.
• Other income declined by 14.3% YoY.
• Net profit for the year declined by 5.6% YoY.
• Net profit margins during the year grew from 16.3% in FY20 to 16.8% in FY21.

TV TODAY NETWORK Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	8,572	7,830	-8.7%
Other income	Rs m	433	371	-14.3%
Total Revenues	Rs m	9,005	8,201	-8.9%
Gross profit	Rs m	2,160	1,991	-7.8%
Depreciation	Rs m	385	401	4.2%
Interest	Rs m	28	24	-13.8%
Profit before tax	Rs m	2,179	1,936	-11.1%
Tax	Rs m	786	621	-20.9%
Profit after tax	Rs m	1,394	1,315	-5.6%
Gross profit margin	%	25.2	25.4
Effective tax rate	%	36.1	32.1
Net profit margin	%	16.3	16.8

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TV TODAY NETWORK Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 3 billion as compared to Rs 3 billion in FY20, thereby witnessing an decrease of -7.4%.
• Current assets rose 4% and stood at Rs 9 billion, while fixed assets rose 25% and stood at Rs 4 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 12 billion as against Rs 11 billion during FY20, thereby witnessing a growth of 9%.

TV TODAY NETWORK Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	8,720	9,905	13.6
Current Liabilities	Rs m	2,710	2,508	-7.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	11,409	12,476	9.4
Current assets	Rs m	8,331	8,629	3.6
Fixed Assets	Rs m	3,079	3,847	25.0
Total Assets	Rs m	11,409	12,476	9.4

TV TODAY NETWORK Cash Flow Statement Analysis

• TV TODAY NETWORK's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 978.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -172 million, an improvement of 90% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -174 million from the Rs 169 million net cash flows seen during FY20.

TV TODAY NETWORK 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	2,006	1,659	-17.3%
Cash Flow from Investing Activities	Rs m	-154	-1,661	-
Cash Flow from Financing Activities	Rs m	-1,683	-172	-
Net Cash Flow	Rs m	169	-174	-

Current Valuations for TV TODAY NETWORK

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.0, an decline from the EPS of Rs 23.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 266.6, stands at 12.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 7.6 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	143.7	131.2
TTM Earnings per share	Rs	23.4	22.0
Diluted earnings per share	Rs	23.4	22.0
Price to Cash Flow	x	5.5	7.6
TTM P/E ratio	x	7.1	12.1
Price / Book Value ratio	x	1.6	1.3
Market Cap	Rs m	14,133	13,121
Dividends per share (Unadj.)	Rs	22.3	2.5

Ratio Analysis for TV TODAY NETWORK

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.4x during FY21, from 3.1x 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 improved and stood at 80.4x during FY21, from 78.0x 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 13.3% during FY21, from 16.0% 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 19.8% during FY21, from 25.3% 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 10.7% during FY21, from 12.5% 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	3.1	3.4
Debtors’ Days	Days	9	9
Interest coverage	x	78.0	80.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.5	10.7
Return on equity	%	16.0	13.3
Return on capital employed	%	25.3	19.8

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

TV TODAY NETWORK Share Price Performance

Over the last one year, TV TODAY NETWORK share price has moved up from Rs 165.4 to Rs 266.6, registering a gain of Rs 101.3 or around 61.2%.

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 TV TODAY NETWORK and quarterly results for TV TODAY NETWORK)

Read: Latest Annual Report Analysis of TV TODAY NETWORK