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ZEE ENTERTAINMENT 2017-18 Annual Report Analysis
Sat, 31 Mar

ZEE ENTERTAINMENT has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

ZEE ENTERTAINMENT Income Statement Analysis

  • Operating income during the year rose 3.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 25.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 32.8% in FY18 as against 45.5% in FY17.
  • Depreciation charges increased by 58.1% and finance costs increased by 5.5% YoY, respectively.
  • Other income grew by 100.8% YoY.
  • Net profit for the year declined by 33.5% YoY.
  • Net profit margins during the year declined from 34.5% in FY17 to 22.1% in FY18.

ZEE ENTERTAINMENT Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 64,342 66,857 3.9%
Other income Rs m 2,240 4,499 100.8%
Total Revenues Rs m 66,582 71,356 7.2%
Gross profit Rs m 29,298 21,945 -25.1%
Depreciation Rs m 1,152 1,821 58.1%
Interest Rs m 1,372 1,448 5.5%
Profit before tax Rs m 29,014 23,175 -20.1%
Tax Rs m 6,808 8,409 23.5%
Profit after tax Rs m 22,206 14,766 -33.5%
Gross profit margin % 45.5 32.8
Effective tax rate % 23.5 36.3
Net profit margin % 34.5 22.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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ZEE ENTERTAINMENT Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 21 billion as compared to Rs 17 billion in FY17, thereby witnessing an increase of 27.1%.
  • Long-term debt down at Rs 11 billion as compared to Rs 18 billion during FY17, a fall of 37.1%.
  • Current assets rose 6% and stood at Rs 86 billion, while fixed assets rose 25% and stood at Rs 25 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 111 billion as against Rs 102 billion during FY17, thereby witnessing a growth of 9%.

ZEE ENTERTAINMENT Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 66,904 75,617 13.0
 
Current Liabilities Rs m 16,684 21,198 27.1
Long-term Debt Rs m 18,208 11,452 -37.1
Total Liabilities Rs m 101,671 111,297 9.5
 
Current assets Rs m 81,273 85,900 5.7
Fixed Assets Rs m 20,398 25,397 24.5
Total Assets Rs m 101,671 111,297 9.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ZEE ENTERTAINMENT Cash Flow Statement Analysis

  • ZEE ENTERTAINMENT's cash flow from operating activities (CFO) during FY18 stood at Rs 6 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -10 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -11 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -16 billion from the Rs 17 billion net cash flows seen during FY17.

ZEE ENTERTAINMENT Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 7,406 5,544 -25.1%
Cash Flow from Investing Activities Rs m 13,969 -10,497 -
Cash Flow from Financing Activities Rs m -4,138 -10,902 -
Net Cash Flow Rs m 16,520 -15,771 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ZEE ENTERTAINMENT

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.4, an decline from the EPS of Rs 23.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 576.3, stands at 39.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.0 times, while the price to sales ratio stands at 7.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 31.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 67.0 69.6
TTM Earnings per share Rs 23.1 15.4
Diluted earnings per share Rs 23.1 15.4
Price to Cash Flow x 22.0 31.8
TTM P/E ratio x 23.2 39.7
Price / Book Value ratio x 7.0 7.0
Market Cap Rs m 466,298 526,665
Dividends per share (Unadj.) Rs 2.5 2.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ZEE ENTERTAINMENT

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 4.1x during FY18, from 4.9x during FY17. 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 17.0x during FY18, from 22.1x during FY17. 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 19.5% during FY18, from 33.2% during FY18. 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 28.3% during FY18, from 35.7% during FY17. 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 14.6% during FY18, from 23.2% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 4.9 4.1
Debtors’ Days Days 70 84
Interest coverage x 22.1 17.0
Debt to equity ratio x 0.3 0.2
Return on assets % 23.2 14.6
Return on equity % 33.2 19.5
Return on capital employed % 35.7 28.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how ZEE ENTERTAINMENT has performed over the last 5 years, please visit here.

ZEE ENTERTAINMENT Share Price Performance

Over the last one year, ZEE ENTERTAINMENT share price has moved up from Rs 534.7 to Rs 576.3, registering a gain of Rs 41.7 or around 7.8%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 6,513.3 (down 0.7%). Over the last one year it has moved up from 5,771.5 to 6,513.3, a gain of 742 points (up 12.9%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for ZEE ENTERTAINMENT and quarterly results for ZEE ENTERTAINMENT)

Annual Report FAQs

What is the current share price of ZEE ENTERTAINMENT?

ZEE ENTERTAINMENT currently trades at Rs 143.3 per share. You can check out the latest share price performance of ZEE ENTERTAINMENT here...

What was the revenue of ZEE ENTERTAINMENT in FY18? How does it compare to earlier years?

The revenues of ZEE ENTERTAINMENT stood at Rs 71,356 m in FY18, which was up 7.2% compared to Rs 66,582 m reported in FY17.

ZEE ENTERTAINMENT's revenue has grown from Rs 46,024 m in FY14 to Rs 71,356 m in FY18.

Over the past 5 years, the revenue of ZEE ENTERTAINMENT has grown at a CAGR of 11.6%.

What was the net profit of ZEE ENTERTAINMENT in FY18? How does it compare to earlier years?

The net profit of ZEE ENTERTAINMENT stood at Rs 14,766 m in FY18, which was down -33.5% compared to Rs 22,206 m reported in FY17.

This compares to a net profit of Rs 8,237 m in FY16 and a net profit of Rs 9,755 m in FY15.

Over the past 5 years, ZEE ENTERTAINMENT net profit has grown at a CAGR of 13.5%.

What does the cash flow statement of ZEE ENTERTAINMENT reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of ZEE ENTERTAINMENT reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs 5,544 m as compared to Rs 7,406 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -10,497 m as compared to Rs 13,969 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs -10,902 m as compared to Rs -4,138 m in FY17.

Here's the cash flow statement of ZEE ENTERTAINMENT for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations3,8296,8097,3097,4065,544
From Investments-2,059-3,66116913,969-10,497
From Financial Activity-1,444-3,427-4,046-4,138-10,902
Net Cashflow326-2793,42516,520-15,771

What does the Key Ratio analysis of ZEE ENTERTAINMENT reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of ZEE ENTERTAINMENT reveals:

  • Operating profit margins witnessed a fall and stood at 32.8% in FY18 as against 45.5% in FY17.
  • Net profit margins declined from 34.5% in FY17 to 22.1% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.2 as compared to 0.3 in FY17.

Here's the ratio/financial analysis of ZEE ENTERTAINMENT for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)27.225.623.945.532.8
Net Profit Margin (%)20.120.014.234.522.1
Debt to Equity Ratio (x)0.00.00.40.30.2

Read: Latest Annual Report Analysis of ZEE ENTERTAINMENT

 

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