ZEE ENTERTAINMENT 2020-21 Annual Report Analysis

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ZEE ENTERTAINMENT 2020-21 Annual Report Analysis
Mon, 18 Oct

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 50.1% 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 50.5% YoY.
  • Net profit margins during the year grew from 6.2% in FY20 to 10.1% 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 9,776 14,673 50.1%
Depreciation Rs m 2,706 2,649 -2.1%
Interest Rs m 1,449 571 -60.6%
Profit before tax Rs m 9,587 12,557 31.0%
Tax Rs m 4,317 4,625 7.1%
Profit after tax Rs m 5,270 7,932 50.5%
Gross profit margin % 12.0 19.0
Effective tax rate % 45.0 36.8
Net profit margin % 6.2 10.1
* 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 312.0, stands at 30.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 2.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 28.3 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 37.6 28.3
TTM P/E ratio x 30.8 30.8
Price / Book Value ratio x 2.9 1.8
Market Cap Rs m 299,671 299,681
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 175.7 to Rs 312.0, registering a gain of Rs 136.4 or around 77.6%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 15,744.2 (up 1.3%). Over the last one year it has moved up from 9,881.3 to 15,744.2, a gain of 5,863 points (up 59.3%).

Overall, the S&P BSE SENSEX is up 52.5% 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 (1QFY22); Net Profit Up 614.0% (Quarterly Result Update)

Aug 9, 2021 | Updated on Aug 9, 2021

For the quarter ended June 2021, ZEE ENTERTAINMENT has posted a net profit of Rs 2 bn (up 614.0% YoY). Sales on the other hand came in at Rs 18 bn (up 35.3% YoY). Read on for a complete analysis of ZEE ENTERTAINMENT's quarterly results.

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.

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