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ZEE ENTERTAINMENT 2020-21 Annual Report Analysis
Wed, 31 Mar

ZEE ENTERTAINMENT has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

ZEE ENTERTAINMENT Income Statement Analysis

  • Operating income during the year fell 4.9% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 50.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.0% in FY21 as against 12.0% in FY20.
  • Depreciation charges decreased by 2.1% and finance costs decreased by 60.6% YoY, respectively.
  • Other income declined by 72.2% YoY.
  • Net profit for the year grew by 51.2% YoY.
  • Net profit margins during the year grew from 6.5% in FY20 to 10.3% in FY21.

ZEE ENTERTAINMENT Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 81,299 77,299 -4.9%
Other income Rs m 3,966 1,104 -72.2%
Total Revenues Rs m 85,265 78,403 -8.0%
Gross profit Rs m 9,752 14,672 50.5%
Depreciation Rs m 2,706 2,649 -2.1%
Interest Rs m 1,449 571 -60.6%
Profit before tax Rs m 9,563 12,556 31.3%
Tax Rs m 4,317 4,625 7.1%
Profit after tax Rs m 5,246 7,931 51.2%
Gross profit margin % 12.0 19.0
Effective tax rate % 45.1 36.8
Net profit margin % 6.5 10.3
* 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 FY21 down at Rs 25 billion as compared to Rs 26 billion in FY20, thereby witnessing an decrease of -1.4%.
  • Long-term debt down at Rs 195 million as compared to Rs 4 billion during FY20, a fall of 94.4%.
  • Current assets rose 5% and stood at Rs 107 billion, while fixed assets fell 7% and stood at Rs 19 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 125 billion as against Rs 121 billion during FY20, thereby witnessing a growth of 3%.

ZEE ENTERTAINMENT Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 93,408 100,912 8.0
 
Current Liabilities Rs m 25,722 25,371 -1.4
Long-term Debt Rs m 3,501 195 -94.4
Total Liabilities Rs m 121,435 125,036 3.0
 
Current assets Rs m 101,412 106,509 5.0
Fixed Assets Rs m 20,023 18,527 -7.5
Total Assets Rs m 121,435 125,036 3.0
* 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 FY21 stood at Rs 15 billion, an improvement of 519.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -5 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -5 billion, an improvement of 49% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 5 billion from the Rs -4 billion net cash flows seen during FY20.

ZEE ENTERTAINMENT Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 2,499 15,477 519.3%
Cash Flow from Investing Activities Rs m 3,888 -5,062 -
Cash Flow from Financing Activities Rs m -10,620 -5,408 -
Net Cash Flow Rs m -4,148 4,956 -
* 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 8.3, an improvement from the EPS of Rs 5.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 203.2, stands at 24.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 2.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 17.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 84.6 80.5
TTM Earnings per share Rs 5.5 8.3
Diluted earnings per share Rs 5.5 8.3
Price to Cash Flow x 15.0 17.3
TTM P/E ratio x 22.6 24.6
Price / Book Value ratio x 2.9 1.8
Market Cap Rs m 270,136 182,568
Dividends per share (Unadj.) Rs 0.3 2.5
* 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 improved and stood at 4.2x during FY21, from 3.9x during FY20. 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 23.0x during FY21, from 7.6x during FY20. 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 improved and stood at 7.9% during FY21, from 5.6% during FY21. 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 improved and stood at 13.0% during FY21, from 11.4% during FY20. 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 improved and stood at 6.8% during FY21, from 5.5% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 3.9 4.2
Debtors’ Days Days 96 92
Interest coverage x 7.6 23.0
Debt to equity ratio x 0.0 0.0
Return on assets % 5.5 6.8
Return on equity % 5.6 7.9
Return on capital employed % 11.4 13.0
* 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 up from Rs 124.0 to Rs 203.2, registering a gain of Rs 79.2 or around 63.8%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 11,919.9 (down 0.9%). Over the last one year it has moved up from 6,403.4 to 11,919.9, a gain of 5,517 points (up 86.1%).

Overall, the S&P BSE SENSEX is up 74.1% 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 250.1 per share. You can check out the latest share price performance of ZEE ENTERTAINMENT here...

What was the revenue of ZEE ENTERTAINMENT in FY21? How does it compare to earlier years?

The revenues of ZEE ENTERTAINMENT stood at Rs 78,403 m in FY21, which was down -8.0% compared to Rs 85,265 m reported in FY20.

ZEE ENTERTAINMENT's revenue has grown from Rs 66,582 m in FY17 to Rs 78,403 m in FY21.

Over the past 5 years, the revenue of ZEE ENTERTAINMENT has grown at a CAGR of 4.2%.

What was the net profit of ZEE ENTERTAINMENT in FY21? How does it compare to earlier years?

The net profit of ZEE ENTERTAINMENT stood at Rs 7,931 m in FY21, which was up 51.2% compared to Rs 5,246 m reported in FY20.

This compares to a net profit of Rs 15,648 m in FY19 and a net profit of Rs 14,766 m in FY18.

Over the past 5 years, ZEE ENTERTAINMENT net profit has grown at a CAGR of -22.7%.

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 FY21 and stood at Rs 15,477 m as compared to Rs 2,499 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -5,062 m as compared to Rs 3,888 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -5,408 m as compared to Rs -10,620 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations7,4065,5441,3522,49915,477
From Investments13,969-10,4978,6633,888-5,062
From Financial Activity-4,138-10,902-9,664-10,620-5,408
Net Cashflow16,520-15,771332-4,1484,956

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 down at 19.0% in FY21 as against 12.0% in FY20.
  • Net profit margins grew from 6.5% in FY20 to 10.3% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.0 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)45.532.832.012.019.0
Net Profit Margin (%)34.522.119.76.510.3
Debt to Equity Ratio (x)0.30.20.10.00.0

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