ZEE ENTERTAINMENT Announces Quarterly Results (2QFY20); Net Profit Up 7.1%

Fri, 25 Oct

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

ZEE ENTERTAINMENT Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-18*	3 Jun-19*	3 Sep-19*	QoQ Change	YoY Change
Net Sales	Rs m	19,759	20,081	21,220	5.7%	7.4%
Other income	Rs m	589	1,039	681	-34.4%	15.6%
Turnover	Rs m	20,348	21,120	21,901	3.7%	7.6%
Expenses	Rs m	13,222	12,805	14,378	12.3%	8.7%
Gross profit	Rs m	6,537	7,276	5,136	-29.4%	-21.4%
Depreciation	Rs m	588	690	583	-15.5%	-0.9%
Interest	Rs m	55	205	180	-12.4%	229.7%
Profit before tax	Rs m	6,483	7,420	5,054	-31.9%	-22.1%
Tax	Rs m	2,624	2,146	921	-57.1%	-64.9%
Profit after tax	Rs m	3,859	5,275	4,133	-21.6%	7.1%
Gross profit margin	%	33.1	36.2	24.2
Effective tax rate	%	40.5	28.9	18.2
Net profit margin	%	19.0	25.0	18.9

Year-on-Year Performance:

• The company's operating income during the quarter grew 7.4% on a year-on-year (YoY) basis. The expenses were up by 8.7% YoY during the same period.
• The company's operating profit declined by 21.4% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 24.2% in 2QFY20 as against 33.1% in 2QFY19.
• Depreciation charges declined by 0.9% and finance costs increased by 229.7% YoY, respectively.
• Other income increased by 15.6% YoY during the quarter.
• Net profit for the quarter increased by 7.1% YoY. Net profit margins during the quarter declined from 19.0% in 2QFY19 to 18.9% in 2QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 5.7% on a quarter-on-quarter (QoQ) basis. The expenses were up by 12.3% QoQ during the same period.
• The company's operating profit declined by 29.4% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 24.2% in 2QFY20 as against 36.2% in 1QFY19.
• Net profit for the quarter declined by 21.6% QoQ, while net profit margins declined from 25.0% in 1QFY19 to 18.9% in 2QFY20.

To see how ZEE ENTERTAINMENT has performed over the last eight quarters,please visit here.

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ZEE ENTERTAINMENT Share Price Performance

Over the last one year,ZEE ENTERTAINMENT share price has moved down from Rs 431.4 to Rs 238.5, registering a Loss of Rs 192.9 or around 44.7%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 7,098.6 (up 0.2%). Over the last one year it has moved up from 6,876.4 to 7,098.6, a gain of 222 points (up 3.2%).

Overall, the S&P BSE SENSEX is up 14.6% over the year.

Current Valuations

At the current price of Rs 238.5, the price to earnings (P/E) ratio of ZEE ENTERTAINMENT stands at 12.8 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.6 times.