ZEE MEDIA CORP 2017-18 Annual Report Analysis

Sat, 31 Mar

ZEE MEDIA CORP has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

ZEE MEDIA CORP Income Statement Analysis

• Operating income during the year rose 28.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1214.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.0% in FY18 as against 1.8% in FY17.
• Depreciation charges increased by 49.3% and finance costs increased by 17.3% YoY, respectively.
• Other income declined by 43.6% YoY.
• Net profit for the year declined by 348.0% YoY.
• Net profit margins during the year grew from 2.9% in FY17 to 5.6% in FY18.

ZEE MEDIA CORP Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	4,498	5,780	28.5%
Other income	Rs m	166	94	-43.6%
Total Revenues	Rs m	4,665	5,874	25.9%
Gross profit	Rs m	79	1,041	1,214.9%
Depreciation	Rs m	275	410	49.3%
Interest	Rs m	150	176	17.3%
Profit before tax	Rs m	-179	549	-406.3%
Tax	Rs m	-49	225	-563.4%
Profit after tax	Rs m	-131	324	-348.0%
Gross profit margin	%	1.8	18.0
Effective tax rate	%	27.1	41.0
Net profit margin	%	-2.9	5.6

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

ZEE MEDIA CORP Balance Sheet Analysis

• The company's current liabilities during FY18 down at Rs 3 billion as compared to Rs 6 billion in FY17, thereby witnessing an decrease of -54.6%.
• Long-term debt stood at Rs 628 million as compared to Rs 479 million during FY17, a growth of 31.0%.
• Current assets fell 48% and stood at Rs 2 billion, while fixed assets rose 10% and stood at Rs 8 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 10 billion as against Rs 12 billion during FY17, thereby witnessing a fall of 12%.

ZEE MEDIA CORP Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	5,157	6,762	31.1
Current Liabilities	Rs m	5,785	2,629	-54.6
Long-term Debt	Rs m	479	628	31.0
Total Liabilities	Rs m	11,742	10,276	-12.5
Current assets	Rs m	4,565	2,379	-47.9
Fixed Assets	Rs m	7,177	7,897	10.0
Total Assets	Rs m	11,742	10,276	-12.5

ZEE MEDIA CORP Cash Flow Statement Analysis

• ZEE MEDIA CORP's cash flow from operating activities (CFO) during FY18 stood at Rs 660 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -1 billion, an improvement of 7.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -148 million, an improvement of 55% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -516 million from the Rs -330 million net cash flows seen during FY17.

ZEE MEDIA CORP Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	951	660	-30.6%
Cash Flow from Investing Activities	Rs m	-954	-1,028	-
Cash Flow from Financing Activities	Rs m	-326	-148	-
Net Cash Flow	Rs m	-330	-516	-

Current Valuations for ZEE MEDIA CORP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.7, an improvement from the EPS of Rs -0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 38.2, stands at 72.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 26.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	9.6	12.3
TTM Earnings per share	Rs	-0.3	0.7
Diluted earnings per share	Rs	-0.2	0.5
Price to Cash Flow	x	153.6	26.9
TTM P/E ratio	x	-117.7	72.6
Price / Book Value ratio	x	2.7	2.9
Market Cap	Rs m	14,006	19,750
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ZEE MEDIA CORP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY18, from 0.8x during FY17. 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 4.1x during FY18, from -0.2x during FY17. 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 4.8% during FY18, from -2.5% during FY18. 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 9.8% during FY18, from -0.5% during FY17. 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 4.9% during FY18, from 0.2% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	0.8	0.9
Debtors’ Days	Days	114	111
Interest coverage	x	-0.2	4.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	0.2	4.9
Return on equity	%	-2.5	4.8
Return on capital employed	%	-0.5	9.8

To see how ZEE MEDIA CORP has performed over the last 5 years, please visit here.

ZEE MEDIA CORP Share Price Performance

Over the last one year, ZEE MEDIA CORP share price has moved up from Rs 35.4 to Rs 38.2, registering a gain of Rs 2.8 or around 7.9%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 6,513.3 (down 0.7%). Over the last one year it has moved up from 5,771.5 to 6,513.3, a gain of 742 points (up 12.9%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Read: Latest Annual Report Analysis of ZEE MEDIA CORP