SUN TV Announces Quarterly Results (3QFY20); Net Profit Up 6.3%

Wed, 19 Feb

SUN TV has announced its results for the quarter ended December 2019. Here is a detailed performance review of the same:

SUN TV Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-18*	3 Sep-19*	3 Dec-19*	QoQ Change	YoY Change
Net Sales	Rs m	9,045	7,956	8,150	2.4%	-9.9%
Other income	Rs m	516	721	636	-11.9%	23.3%
Turnover	Rs m	9,560	8,677	8,786	1.2%	-8.1%
Expenses	Rs m	2,373	3,268	2,346	-28.2%	-1.1%
Gross profit	Rs m	6,672	4,687	5,804	23.8%	-13.0%
Depreciation	Rs m	1,761	1,444	1,436	-0.5%	-18.4%
Interest	Rs m	7	20	19	-6.1%	162.0%
Profit before tax	Rs m	5,420	3,945	4,985	26.4%	-8.0%
Tax	Rs m	1,907	280	1,250	346.8%	-34.4%
Profit after tax	Rs m	3,513	3,665	3,735	1.9%	6.3%
Gross profit margin	%	73.8	58.9	71.2
Effective tax rate	%	35.2	7.1	25.1
Net profit margin	%	36.7	42.2	42.5

Year-on-Year Performance:

• The company's operating income during the quarter fell 9.9% on a year-on-year (YoY) basis. The expenses were down by 1.1% YoY during the same period.
• The company's operating profit declined by 13.0% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 71.2% in 3QFY20 as against 73.8% in 3QFY19.
• Depreciation charges declined by 18.4% and finance costs increased by 162.0% YoY, respectively.
• Other income increased by 23.3% YoY during the quarter.
• Net profit for the quarter increased by 6.3% YoY. Net profit margins during the quarter increased from 36.7% in 3QFY19 to 42.5% in 3QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 2.4% on a quarter-on-quarter (QoQ) basis. The expenses were down by 28.2% QoQ during the same period.
• The company's operating profit increased by 23.8% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 71.2% in 3QFY20 as against 58.9% in 2QFY19.
• Net profit for the quarter increased by 1.9% QoQ, while net profit margins increased from 42.2% in 2QFY19 to 42.5% in 3QFY20.

To see how SUN TV has performed over the last eight quarters,please visit here.

Know More: Which way are the markets & the mutual fund industry headed?

SUN TV Share Price Performance

Over the last one year,SUN TV share price has moved down from Rs 557.6 to Rs 491.7, registering a Loss of Rs 65.9 or around 11.8%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 8,223.0 (up 0.2%). Over the last one year it has moved up from 7,414.0 to 8,223.0, a gain of 809 points (up 10.9%).

Overall, the S&P BSE SENSEX is up 16.1% over the year.

Current Valuations

At the current price of Rs 491.7, the price to earnings (P/E) ratio of SUN TV stands at 13.8 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 3.5 times.