TV TODAY NETWORK 2017-18 Annual Report Analysis

Sat, 31 Mar

TV TODAY NETWORK 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.

TV TODAY NETWORK Income Statement Analysis

• Operating income during the year rose 10.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.9% in FY18 as against 26.2% in FY17.
• Depreciation charges increased by 7.1% and finance costs decreased by 55.6% YoY, respectively.
• Other income grew by 15.5% YoY.
• Net profit for the year grew by 18.4% YoY.
• Net profit margins during the year grew from 15.4% in FY17 to 16.5% in FY18.

TV TODAY NETWORK Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	6,523	7,209	10.5%
Other income	Rs m	214	247	15.5%
Total Revenues	Rs m	6,737	7,456	10.7%
Gross profit	Rs m	1,710	1,938	13.4%
Depreciation	Rs m	294	314	7.1%
Interest	Rs m	84	37	-55.6%
Profit before tax	Rs m	1,546	1,834	18.6%
Tax	Rs m	541	645	19.0%
Profit after tax	Rs m	1,005	1,189	18.4%
Gross profit margin	%	26.2	26.9
Effective tax rate	%	35.0	35.1
Net profit margin	%	15.4	16.5

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TV TODAY NETWORK Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 2 billion as compared to Rs 2 billion in FY17, thereby witnessing an increase of 31.1%.
• Current assets rose 2% and stood at Rs 5 billion, while fixed assets rose 48% and stood at Rs 4 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 9 billion as against Rs 8 billion during FY17, thereby witnessing a growth of 17%.

TV TODAY NETWORK Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	5,810	6,617	13.9
Current Liabilities	Rs m	1,704	2,234	31.1
Long-term Debt	Rs m	52	0	-100.0
Total Liabilities	Rs m	7,535	8,840	17.3
Current assets	Rs m	5,077	5,200	2.4
Fixed Assets	Rs m	2,458	3,640	48.1
Total Assets	Rs m	7,535	8,840	17.3

TV TODAY NETWORK Cash Flow Statement Analysis

• TV TODAY NETWORK's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion, an improvement of 26.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -938 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -587 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -4 million from the Rs 10 million net cash flows seen during FY17.

TV TODAY NETWORK 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	1,201	1,520	26.6%
Cash Flow from Investing Activities	Rs m	-1,031	-938	-
Cash Flow from Financing Activities	Rs m	-161	-587	-
Net Cash Flow	Rs m	10	-4	-

Current Valuations for TV TODAY NETWORK

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.9, an improvement from the EPS of Rs 16.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 489.8, stands at 24.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 15.3 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	109.4	120.9
TTM Earnings per share	Rs	16.8	19.9
Diluted earnings per share	Rs	16.8	19.9
Price to Cash Flow	x	11.9	15.3
TTM P/E ratio	x	14.3	24.9
Price / Book Value ratio	x	3.1	3.5
Market Cap	Rs m	18,190	22,935
Dividends per share (Unadj.)	Rs	2.0	2.3

Ratio Analysis for TV TODAY NETWORK

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY18, from 3.0x 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 50.1x during FY18, from 19.4x 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 18.0% during FY18, from 17.3% 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 28.3% during FY18, from 27.8% 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 declined and down at 13.9% during FY18, from 14.4% 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	3.0	2.3
Debtors’ Days	Days	1,004	936
Interest coverage	x	19.4	50.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.4	13.9
Return on equity	%	17.3	18.0
Return on capital employed	%	27.8	28.3

To see how TV TODAY NETWORK has performed over the last 5 years, please visit here.

TV TODAY NETWORK Share Price Performance

Over the last one year, TV TODAY NETWORK share price has moved up from Rs 257.9 to Rs 489.8, registering a gain of Rs 231.9 or around 89.9%.

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 TV TODAY NETWORK and quarterly results for TV TODAY NETWORK)

Read: Latest Annual Report Analysis of TV TODAY NETWORK