ZEE ENTERTAINMENT 2019-20 Annual Report Analysis

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ZEE ENTERTAINMENT 2019-20 Annual Report Analysis
Fri, 8 Jan

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 46.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.9% in FY20 as against 32.4% in FY19.
  • Depreciation charges increased by 15.3% and finance costs increased by 11.1% YoY, respectively.
  • Other income grew by 12.8% YoY.
  • Net profit for the year declined by 66.5% YoY.
  • Net profit margins during the year declined from 19.1% in FY19 to 6.2% 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 2,515 2,836 12.8%
Total Revenues Rs m 81,854 84,135 2.8%
Gross profit Rs m 25,675 13,749 -46.4%
Depreciation Rs m 2,347 2,706 15.3%
Interest Rs m 1,304 1,449 11.1%
Profit before tax Rs m 24,539 12,430 -49.3%
Tax Rs m 8,673 4,317 -50.2%
Profit after tax Rs m 15,672 5,246 -66.5%
Gross profit margin % 32.4 16.9
Effective tax rate % 35.3 34.7
Net profit margin % 19.1 6.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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ZEE ENTERTAINMENT Balance Sheet Analysis

  • The company's current liabilities during FY20 down at Rs 25 billion as compared to Rs 31 billion in FY19, thereby witnessing an decrease of -18.9%.
  • Long-term debt down at Rs 3 billion as compared to Rs 7 billion during FY19, a fall of 59.8%.
  • Current assets fell 2% and stood at Rs 101 billion, while fixed assets fell 11% and stood at Rs 14 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 124 billion as against Rs 129 billion during FY19, thereby witnessing a fall of 4%.

ZEE ENTERTAINMENT Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 89,239 93,439 4.7
 
Current Liabilities Rs m 31,169 25,282 -18.9
Long-term Debt Rs m 7,409 2,975 -59.8
Total Liabilities Rs m 129,330 123,737 -4.3
 
Current assets Rs m 103,339 100,973 -2.3
Fixed Assets Rs m 15,706 13,979 -11.0
Total Assets Rs m 129,330 123,737 -4.3
* 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 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: Company Reports, Regulatory Filings, 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 234.5, stands at -77.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 3.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 28.2 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 12.5 28.2
TTM P/E ratio x -77.4 -77.4
Price / Book Value ratio x 4.8 2.9
Market Cap Rs m 225,226 225,225
Dividends per share (Unadj.) Rs 3.5 0.3
* 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 4.0x during FY20, from 3.3x 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 9.6x during FY20, from 19.8x 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 17.6% 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 5.4% 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 3.3 4.0
Debtors’ Days Days 84 94
Interest coverage x 19.8 9.6
Debt to equity ratio x 0.1 0.0
Return on assets % 13.1 5.4
Return on equity % 17.6 5.6
Return on capital employed % 26.5 11.4
* 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 264.5 to Rs 234.5, registering a loss of Rs 30.0 or around 11.3%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 11,694.7 (up 1.8%). Over the last one year it has moved up from 7,781.3 to 11,694.7, a gain of 3,913 points (up 50.3%).

Overall, the S&P BSE SENSEX is up 19.2% over the year.

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

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Related Views on News

ZEE ENTERTAINMENT Announces Quarterly Results (3QFY21); Net Profit Up 14.2% (Quarterly Result Update)

Feb 5, 2021 | Updated on Feb 5, 2021

For the quarter ended December 2020, ZEE ENTERTAINMENT has posted a net profit of Rs 4 bn (up 14.2% YoY). Sales on the other hand came in at Rs 27 bn (up 33.2% YoY). Read on for a complete analysis of ZEE ENTERTAINMENT's quarterly results.

ZEE ENTERTAINMENT Announces Quarterly Results (1QFY21); Net Profit Down 94.5% (Quarterly Result Update)

Sep 1, 2020 | Updated on Sep 1, 2020

For the quarter ended June 2020, ZEE ENTERTAINMENT has posted a net profit of Rs 292 m (down 94.5% YoY). Sales on the other hand came in at Rs 13 bn (down 34.7% YoY). Read on for a complete analysis of ZEE ENTERTAINMENT's quarterly results.

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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