NEXT MEDIAWORKS Announces Quarterly Results (2QFY20); Net Profit Down 57.4%

Mon, 4 Nov

NEXT MEDIAWORKS has announced its results for the quarter ended September 2019. Here is a detailed performance review of the same:

NEXT MEDIAWORKS Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-18*	3 Jun-19*	3 Sep-19*	QoQ Change	YoY Change
Net Sales	Rs m	196	131	161	22.4%	-17.9%
Other income	Rs m	5	2	20	831.5%	301.6%
Turnover	Rs m	201	133	181	35.6%	-9.9%
Expenses	Rs m	174	141	151	7.1%	-13.1%
Gross profit	Rs m	25	-10	10		-62.0%
Depreciation	Rs m	27	31	32	2.0%	20.4%
Interest	Rs m	23	22	28	27.5%	20.8%
Profit before tax	Rs m	-19	-61	-30
Tax	Rs m	0	0	0	0.0%	0.0%
Profit after tax	Rs m	-19	-61	-31
Gross profit margin	%	13.0	-7.4	6.0
Effective tax rate	%	0.0	0.0	-0.9
Net profit margin	%	-9.7	-45.8	-17.0

Year-on-Year Performance:

• The company's operating income during the quarter fell 17.9% on a year-on-year (YoY) basis. The expenses were down by 13.1% YoY during the same period.
• The company's operating profit declined by 62.0% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 6.0% in 2QFY20 as against 13.0% in 2QFY19.
• Depreciation charges increased by 20.4% and finance costs increased by 20.8% YoY, respectively.
• Other income increased by 301.6% YoY during the quarter.
• Net profit for the quarter declined by 57.4% YoY. Net profit margins during the quarter declined from -9.7% in 2QFY19 to -17.0% in 2QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 22.4% on a quarter-on-quarter (QoQ) basis. The expenses were up by 7.1% QoQ during the same period.
• The company's operating profit declined by 199.3% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 6.0% in 2QFY20 as against 7.4% in 1QFY19.
• Net profit for the quarter increased by 49.7% QoQ, while net profit margins increased from -45.9% in 1QFY19 to -17.0% in 2QFY20.

To see how NEXT MEDIAWORKS has performed over the last eight quarters,please visit here.

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NEXT MEDIAWORKS Share Price Performance

Over the last one year,NEXT MEDIAWORKS share price has moved down from Rs 15.7 to Rs 12.3, registering a Loss of Rs 3.4 or around 21.7%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 7,462.6 (up 0.1%). Over the last one year it has moved up from 7,050.7 to 7,462.6, a gain of 412 points (up 5.8%).

Overall, the S&P BSE SENSEX is up 17.2% over the year.

Current Valuations

At the current price of Rs 12.3, the price to book value (P/BV) ratio of NEXT MEDIAWORKS stands at 3.5 times.