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ZEE ENTERTAINMENT 2019-20 Annual Report Analysis
Tue, 31 Mar

ZEE ENTERTAINMENT has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

ZEE ENTERTAINMENT Income Statement Analysis

  • Operating income during the year rose 2.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 61.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.0% in FY20 as against 32.0% in FY19.
  • Depreciation charges increased by 15.3% and finance costs increased by 11.1% YoY, respectively.
  • Other income grew by 54.1% YoY.
  • Net profit for the year declined by 66.5% YoY.
  • Net profit margins during the year declined from 19.7% in FY19 to 6.5% in FY20.

ZEE ENTERTAINMENT Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 79,339 81,299 2.5%
Other income Rs m 2,573 3,966 54.1%
Total Revenues Rs m 81,912 85,265 4.1%
Gross profit Rs m 25,399 9,752 -61.6%
Depreciation Rs m 2,347 2,706 15.3%
Interest Rs m 1,304 1,449 11.1%
Profit before tax Rs m 24,321 9,563 -60.7%
Tax Rs m 8,673 4,317 -50.2%
Profit after tax Rs m 15,648 5,246 -66.5%
Gross profit margin % 32.0 12.0
Effective tax rate % 35.7 45.1
Net profit margin % 19.7 6.5
* 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 FY20 down at Rs 26 billion as compared to Rs 30 billion in FY19, thereby witnessing an decrease of -14.0%.
  • Long-term debt down at Rs 4 billion as compared to Rs 7 billion during FY19, a fall of 52.9%.
  • Current assets fell 2% and stood at Rs 101 billion, while fixed assets fell 23% and stood at Rs 20 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 121 billion as against Rs 129 billion during FY19, thereby witnessing a fall of 6%.

ZEE ENTERTAINMENT Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 89,219 93,408 4.7
 
Current Liabilities Rs m 29,907 25,722 -14.0
Long-term Debt Rs m 7,429 3,501 -52.9
Total Liabilities Rs m 129,330 121,435 -6.1
 
Current assets Rs m 103,339 101,412 -1.9
Fixed Assets Rs m 25,991 20,023 -23.0
Total Assets Rs m 129,330 121,435 -6.1
* 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 FY20 stood at Rs 2 billion, an improvement of 84.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs 4 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -11 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs -4 billion from the Rs 332 million net cash flows seen during FY19.

ZEE ENTERTAINMENT Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 1,352 2,499 84.8%
Cash Flow from Investing Activities Rs m 8,663 3,888 -55.1%
Cash Flow from Financing Activities Rs m -9,664 -10,620 -
Net Cash Flow Rs m 332 -4,148 -
* 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 5.5, an decline from the EPS of Rs 16.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 124.0, stands at 22.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 1.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 34.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 82.6 84.6
TTM Earnings per share Rs 16.3 5.5
Diluted earnings per share Rs 16.3 5.5
Price to Cash Flow x 23.7 34.0
TTM P/E ratio x 27.2 22.6
Price / Book Value ratio x 4.8 2.9
Market Cap Rs m 431,634 270,136
Dividends per share (Unadj.) Rs 3.5 0.3
* 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 improved and stood at 3.9x during FY20, from 3.5x during FY19. 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 7.6x during FY20, from 19.7x during FY19. 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 5.6% during FY20, from 17.5% during FY20. 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 11.4% during FY20, from 26.5% during FY19. 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 5.5% during FY20, from 13.1% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 3.5 3.9
Debtors’ Days Days 84 96
Interest coverage x 19.7 7.6
Debt to equity ratio x 0.1 0.0
Return on assets % 13.1 5.5
Return on equity % 17.5 5.6
Return on capital employed % 26.5 11.4
* 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 444.3 to Rs 124.0, registering a loss of Rs 320.3 or around 72.1%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 6,403.4 (up 2.8%). Over the last one year it has moved down from 7,621.8 to 6,403.4, a loss of 1,218 points (down 16.0%).

Overall, the S&P BSE SENSEX is down 24.2% 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 141.1 per share. You can check out the latest share price performance of ZEE ENTERTAINMENT here...

What was the revenue of ZEE ENTERTAINMENT in FY20? How does it compare to earlier years?

The revenues of ZEE ENTERTAINMENT stood at Rs 85,265 m in FY20, which was up 4.1% compared to Rs 81,912 m reported in FY19.

ZEE ENTERTAINMENT's revenue has grown from Rs 60,365 m in FY16 to Rs 85,265 m in FY20.

Over the past 5 years, the revenue of ZEE ENTERTAINMENT has grown at a CAGR of 9.0%.

What was the net profit of ZEE ENTERTAINMENT in FY20? How does it compare to earlier years?

The net profit of ZEE ENTERTAINMENT stood at Rs 5,246 m in FY20, which was down -66.5% compared to Rs 15,648 m reported in FY19.

This compares to a net profit of Rs 14,766 m in FY18 and a net profit of Rs 22,206 m in FY17.

Over the past 5 years, ZEE ENTERTAINMENT net profit has grown at a CAGR of -10.7%.

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 increased in FY20 and stood at Rs 2,499 m as compared to Rs 1,352 m in FY19.
  • Cash flow from investments decreased in FY20 and stood at Rs 3,888 m as compared to Rs 8,663 m in FY19.
  • Cash flow from financial activity decreased in FY20 and stood at Rs -10,620 m as compared to Rs -9,664 m in FY19.

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

(Rs m)FY16FY17FY18FY19FY20
From Operations7,3097,4065,5441,3522,499
From Investments16913,969-10,4978,6633,888
From Financial Activity-4,046-4,138-10,902-9,664-10,620
Net Cashflow3,42516,520-15,771332-4,148

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 12.0% in FY20 as against 32.0% in FY19.
  • Net profit margins declined from 19.7% in FY19 to 6.5% in FY20.
  • Debt to Equity ratio for FY20 stood at 0.0 as compared to 0.1 in FY19.

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

 FY16FY17FY18FY19FY20
Operating Profit Margin (%)23.945.532.832.012.0
Net Profit Margin (%)14.234.522.119.76.5
Debt to Equity Ratio (x)0.40.30.20.10.0

Read: Latest Annual Report Analysis of ZEE ENTERTAINMENT

 

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