Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

Are you sitting on the sidelines
while this small cap trend unfolds?

(Minor market corrections will not stop this)




**Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
**By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.


AD

ZEE ENTERTAINMENT 2018-19 Annual Report Analysis
Sun, 31 Mar

ZEE ENTERTAINMENT has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

ZEE ENTERTAINMENT Income Statement Analysis

  • Operating income during the year rose 18.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 15.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 32.0% in FY19 as against 32.8% in FY18.
  • Depreciation charges increased by 28.9% and finance costs decreased by 9.9% YoY, respectively.
  • Other income declined by 42.8% YoY.
  • Net profit for the year grew by 6.0% YoY.
  • Net profit margins during the year declined from 22.1% in FY18 to 19.7% in FY19.

ZEE ENTERTAINMENT Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 66,857 79,339 18.7%
Other income Rs m 4,499 2,573 -42.8%
Total Revenues Rs m 71,356 81,912 14.8%
Gross profit Rs m 21,945 25,399 15.7%
Depreciation Rs m 1,821 2,347 28.9%
Interest Rs m 1,448 1,304 -9.9%
Profit before tax Rs m 23,175 24,321 4.9%
Tax Rs m 8,409 8,673 3.1%
Profit after tax Rs m 14,766 15,648 6.0%
Gross profit margin % 32.8 32.0
Effective tax rate % 36.3 35.7
Net profit margin % 22.1 19.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Coming Soon: Equitymaster Small Cap Meeting. Register now

ZEE ENTERTAINMENT Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 30 billion as compared to Rs 21 billion in FY18, thereby witnessing an increase of 41.1%.
  • Long-term debt down at Rs 7 billion as compared to Rs 11 billion during FY18, a fall of 35.1%.
  • Current assets rose 20% and stood at Rs 103 billion, while fixed assets rose 2% and stood at Rs 26 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 129 billion as against Rs 111 billion during FY18, thereby witnessing a growth of 16%.

ZEE ENTERTAINMENT Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 75,617 89,219 18.0
 
Current Liabilities Rs m 21,198 29,907 41.1
Long-term Debt Rs m 11,452 7,429 -35.1
Total Liabilities Rs m 111,297 129,330 16.2
 
Current assets Rs m 85,900 103,339 20.3
Fixed Assets Rs m 25,397 25,991 2.3
Total Assets Rs m 111,297 129,330 16.2
* 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 FY19 stood at Rs 1 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 9 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -10 billion, an improvement of 11% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 332 million from the Rs -16 billion net cash flows seen during FY18.

ZEE ENTERTAINMENT Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 5,544 1,352 -75.6%
Cash Flow from Investing Activities Rs m -10,497 8,663 -
Cash Flow from Financing Activities Rs m -10,902 -9,664 -
Net Cash Flow Rs m -15,771 332 -
* 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 16.3, an improvement from the EPS of Rs 15.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 444.3, stands at 27.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.8 times, while the price to sales ratio stands at 5.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 24.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 69.6 82.6
TTM Earnings per share Rs 15.4 16.3
Diluted earnings per share Rs 15.4 16.3
Price to Cash Flow x 33.4 24.0
TTM P/E ratio x 39.7 27.2
Price / Book Value ratio x 7.0 4.8
Market Cap Rs m 526,665 431,634
Dividends per share (Unadj.) Rs 2.9 3.5
* 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 3.5x during FY19, from 4.1x during FY18. 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 19.7x during FY19, from 17.0x during FY18. 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 17.5% during FY19, from 19.5% during FY19. 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 26.5% during FY19, from 28.3% during FY18. 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 13.1% during FY19, from 14.6% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 4.1 3.5
Debtors’ Days Days 84 84
Interest coverage x 17.0 19.7
Debt to equity ratio x 0.2 0.1
Return on assets % 14.6 13.1
Return on equity % 19.5 17.5
Return on capital employed % 28.3 26.5
* 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 down from Rs 576.3 to Rs 444.3, registering a loss of Rs 132.0 or around 22.9%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 7,621.8 (up 0.4%). Over the last one year it has moved up from 6,513.3 to 7,621.8, a gain of 1,109 points (up 17.0%).

Overall, the S&P BSE SENSEX is up 16.3% 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 143.1 per share. You can check out the latest share price performance of ZEE ENTERTAINMENT here...

What was the revenue of ZEE ENTERTAINMENT in FY19? How does it compare to earlier years?

The revenues of ZEE ENTERTAINMENT stood at Rs 81,912 m in FY19, which was up 14.8% compared to Rs 71,356 m reported in FY18.

ZEE ENTERTAINMENT's revenue has grown from Rs 51,131 m in FY15 to Rs 81,912 m in FY19.

Over the past 5 years, the revenue of ZEE ENTERTAINMENT has grown at a CAGR of 12.5%.

What was the net profit of ZEE ENTERTAINMENT in FY19? How does it compare to earlier years?

The net profit of ZEE ENTERTAINMENT stood at Rs 15,648 m in FY19, which was up 6.0% compared to Rs 14,766 m reported in FY18.

This compares to a net profit of Rs 22,206 m in FY17 and a net profit of Rs 8,237 m in FY16.

Over the past 5 years, ZEE ENTERTAINMENT net profit has grown at a CAGR of 12.5%.

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 FY19 and stood at Rs 1,352 m as compared to Rs 5,544 m in FY18.
  • Cash flow from investments increased in FY19 and stood at Rs 8,663 m as compared to Rs -10,497 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs -9,664 m as compared to Rs -10,902 m in FY18.

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

(Rs m)FY15FY16FY17FY18FY19
From Operations6,8097,3097,4065,5441,352
From Investments-3,66116913,969-10,4978,663
From Financial Activity-3,427-4,046-4,138-10,902-9,664
Net Cashflow-2793,42516,520-15,771332

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 32.0% in FY19 as against 32.8% in FY18.
  • Net profit margins declined from 22.1% in FY18 to 19.7% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.1 as compared to 0.2 in FY18.

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

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)25.623.945.532.832.0
Net Profit Margin (%)20.014.234.522.119.7
Debt to Equity Ratio (x)0.00.40.30.20.1

Read: Latest Annual Report Analysis of ZEE ENTERTAINMENT

 

Equitymaster requests your view! Post a comment on "ZEE ENTERTAINMENT 2018-19 Annual Report Analysis". Click here!