ZEE ENTERTAINMENT 2018-19 Annual Report Analysis

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ZEE ENTERTAINMENT 2018-19 Annual Report Analysis
Mon, 9 Sep

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 24.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 32.4% in FY19 as against 31.0% in FY18.
  • Depreciation charges increased by 28.9% and finance costs decreased by 9.9% YoY, respectively.
  • Other income declined by 42.9% YoY.
  • Net profit for the year grew by 6.0% YoY.
  • Net profit margins during the year declined from 20.7% in FY18 to 19.1% 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 4,403 2,515 -42.9%
Total Revenues Rs m 71,260 81,854 14.9%
Gross profit Rs m 20,695 25,675 24.1%
Depreciation Rs m 1,821 2,347 28.9%
Interest Rs m 1,448 1,304 -9.9%
Profit before tax Rs m 21,829 24,539 12.4%
Tax Rs m 8,409 8,673 3.1%
Profit after tax Rs m 14,778 15,672 6.0%
Gross profit margin % 31.0 32.4
Effective tax rate % 38.5 35.3
Net profit margin % 20.7 19.1
* 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 FY19 stood at Rs 31 billion as compared to Rs 23 billion in FY18, thereby witnessing an increase of 34.4%.
  • Long-term debt down at Rs 7 billion as compared to Rs 11 billion during FY18, a fall of 35.3%.
  • Current assets rose 20% and stood at Rs 103 billion, while fixed assets rose 0% and stood at Rs 16 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 89,239 18.0
 
Current Liabilities Rs m 23,194 31,169 34.4
Long-term Debt Rs m 11,443 7,409 -35.3
Total Liabilities Rs m 111,297 129,330 16.2
 
Current assets Rs m 85,900 103,339 20.3
Fixed Assets Rs m 15,680 15,706 0.2
Total Assets Rs m 111,297 129,330 16.2
* 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 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: Company Reports, Regulatory Filings, 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 363.3, stands at 19.7 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 19.4 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 21.0 19.4
TTM P/E ratio x 19.7 19.7
Price / Book Value ratio x 7.0 4.8
Market Cap Rs m 348,931 348,931
Dividends per share (Unadj.) Rs 2.9 3.5
* 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 deteriorated and stood at 3.3x during FY19, from 3.7x 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 19.8x during FY19, from 16.1x 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 17.6% 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 3.7 3.3
Debtors’ Days Days 84 84
Interest coverage x 16.1 19.8
Debt to equity ratio x 0.2 0.1
Return on assets % 14.6 13.1
Return on equity % 19.5 17.6
Return on capital employed % 28.3 26.5
* 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 down from Rs 469.6 to Rs 363.3, registering a loss of Rs 106.3 or around 22.6%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 7,863.8 (down 0.4%). Over the last one year it has moved down from 7,884.2 to 7,863.8, a loss of 20 points (down 0.3%).

Overall, the S&P BSE SENSEX is down 2.7% 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 (1QFY20); Net Profit Up 61.9% (Quarterly Result Update)

Jul 25, 2019 | Updated on Jul 25, 2019

For the quarter ended June 2019, ZEE ENTERTAINMENT has posted a net profit of Rs 5 bn (up 61.9% YoY). Sales on the other hand came in at Rs 20 bn (up 13.3% YoY). Read on for a complete analysis of ZEE ENTERTAINMENT's quarterly results.

ZEE ENTERTAINMENT Announces Quarterly Results (4QFY19); Net Profit Up 27.0% (Quarterly Result Update)

May 29, 2019 | Updated on May 29, 2019

For the quarter ended March 2019, ZEE ENTERTAINMENT has posted a net profit of Rs 3 bn (up 27.0% YoY). Sales on the other hand came in at Rs 20 bn (up 17.0% YoY). Read on for a complete analysis of ZEE ENTERTAINMENT's quarterly results.

ZEE ENTERTAINMENT 2017-18 Annual Report Analysis (Annual Result Update)

Aug 9, 2018 | Updated on Aug 9, 2018

Here's an analysis of the annual report of ZEE ENTERTAINMENT for 2017-18. 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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