ZEE ENTERTAINMENT 2017-18 Annual Report Analysis

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ZEE ENTERTAINMENT 2017-18 Annual Report Analysis
Thu, 9 Aug

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 increased by 21.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 31.0% in FY18 as against 26.5% in FY17.
  • Depreciation charges and finance costs increased by 58.1% YoY and 5.5% YoY, respectively.
  • Other income grew by 96.6% YoY.
  • Net profit for the year declined by 33.4% YoY.
  • Net profit margins during the year declined from 33.3% in FY17 to 20.7% 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 4,403 96.6%
Total Revenues Rs m 66,582 71,260 7.0%
Gross profit Rs m 17,064 20,695 21.3%
Depreciation Rs m 1,152 1,821 58.1%
Interest Rs m 1,372 1,448 5.5%
Profit before tax Rs m 16,780 21,829 30.1%
Tax Rs m 6,804 8,409 23.6%
Profit after tax Rs m 22,205 14,778 -33.4%
Gross profit margin % 26.5 31.0
Effective tax rate % 40.5 38.5
Net profit margin % 33.3 20.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ZEE ENTERTAINMENT Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 23 billion as compared to Rs 17 billion in FY17, thereby witnessing an increase of 39.0%.
  • 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 46% and stood at Rs 16 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 111 billion as against Rs 103 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 16,685 23,194 39.0
Long-term Debt Rs m 18,208 11,452 -37.1
Total Liabilities Rs m 102,575 111,297 8.5
 
Current assets Rs m 81,273 85,900 5.7
Fixed Assets Rs m 10,712 15,680 46.4
Total Assets Rs m 102,575 111,297 8.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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: Company Reports, Regulatory Filings, 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 523.0, stands at 34.2 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 30.3 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 21.5 30.3
TTM P/E ratio x 34.2 34.2
Price / Book Value ratio x 7.0 7.0
Market Cap Rs m 502,315 502,314
Dividends per share (Unadj.) Rs 2.5 2.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ZEE ENTERTAINMENT

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 3.7x 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 16.1x during FY18, from 13.2x 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 23.0% 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 3.7
Debtors’ Days Days 70 84
Interest coverage x 13.2 16.1
Debt to equity ratio x 0.3 0.2
Return on assets % 23.0 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: Company Reports, Regulatory Filings, 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 538.8 to Rs 523.0, registering a loss of Rs 15.8 or around 2.9%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 7,431.1 (up 0.1%). Over the last one year it has moved up from 5,781.0 to 7,431.1, a gain of 1,650 points (up 28.5%).

Overall, the S&P BSE SENSEX is up 18.8% over the year.

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

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ZEE ENTERTAINMENT Announces Quarterly Results (3QFY20); Net Profit Down 38.0% (Quarterly Result Update)

Jan 24, 2020 | Updated on Jan 24, 2020

For the quarter ended December 2019, ZEE ENTERTAINMENT has posted a net profit of Rs 3 bn (down 38.0% YoY). Sales on the other hand came in at Rs 20 bn (down 5.5% YoY). Read on for a complete analysis of ZEE ENTERTAINMENT's quarterly results.

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ZEE ENTERTAINMENT 2018-19 Annual Report Analysis (Annual Result Update)

Sep 9, 2019 | Updated on Sep 9, 2019

Here's an analysis of the annual report of ZEE ENTERTAINMENT for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of ZEE ENTERTAINMENT. Also includes updates on the valuation of ZEE ENTERTAINMENT.

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