ZEE ENTERTAINMENT Announces Quarterly Results (3QFY19); Net Profit Up 74.8%

Wed, 16 Jan

ZEE ENTERTAINMENT has announced its results for the quarter ended December 2018. Here is a detailed performance review of the same:

ZEE ENTERTAINMENT Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-17*	3 Sep-18*	3 Dec-18*	QoQ Change	YoY Change
Net Sales	Rs m	18,381	19,759	21,668	9.7%	17.9%
Other income	Rs m	480	589	860	45.9%	79.0%
Turnover	Rs m	18,861	20,348	22,528	10.7%	19.4%
Expenses	Rs m	12,856	13,222	13,748	4.0%	6.9%
Gross profit	Rs m	5,525	6,537	7,919	21.1%	43.3%
Depreciation	Rs m	505	588	615	4.5%	21.8%
Interest	Rs m	24	55	55	1.3%	133.9%
Profit before tax	Rs m	5,477	6,483	8,109	25.1%	48.1%
Tax	Rs m	2,260	2,624	2,484	-5.3%	9.9%
Profit after tax	Rs m	3,218	3,859	5,625	45.8%	74.8%
Gross profit margin	%	30.1	33.1	36.5
Effective tax rate	%	41.3	40.5	30.6
Net profit margin	%	17.1	19.0	25.0

Year-on-Year Performance:

• The company's operating income during the quarter grew 17.9% on a year-on-year (YoY) basis. The expenses were up by 6.9% YoY during the same period.
• The company's operating profit increased by 43.3% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 36.5% in 3QFY19 as against 30.1% in 3QFY18.
• Depreciation charges increased by 21.8% and finance costs increased by 133.9% YoY, respectively.
• Other income increased by 79.0% YoY during the quarter.
• Net profit for the quarter increased by 74.8% YoY. Net profit margins during the quarter increased from 17.1% in 3QFY18 to 25.0% in 3QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 9.7% on a quarter-on-quarter (QoQ) basis. The expenses were up by 4.0% QoQ during the same period.
• The company's operating profit increased by 21.1% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 36.5% in 3QFY19 as against 33.1% in 2QFY18.
• Net profit for the quarter increased by 45.8% QoQ, while net profit margins increased from 19.0% in 2QFY18 to 25.0% in 3QFY19.

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

ZEE ENTERTAINMENT Share Price Performance

Over the last one year, ZEE ENTERTAINMENT share price has moved up from Rs 613.1 to Rs 458.8, registering a Loss of Rs 154.3 or around 25.2%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 7,309.3 (up 0.4%). Over the last one year it has moved up from 6,712.2 to 7,309.3, a gain of 597 points (up 8.9%).

Overall, the S&P BSE SENSEX is up 4.3% over the year.

Current Valuations

At the current price of Rs 458.8, the price to earnings (P/E) ratio of ZEE ENTERTAINMENT stands at 29.3 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 5.8 times.