ENTERTAINMENT NETWORK 2023-24 Annual Report Analysis

Wed, 16 Oct

ENTERTAINMENT NETWORK has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

ENTERTAINMENT NETWORK Income Statement Analysis

• Operating income during the year rose 4.7% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.0% in FY24 as against 17.2% in FY23.
• Depreciation charges decreased by 11.4% and finance costs decreased by 12.1% YoY, respectively.
• Other income grew by 5.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 32.2% in FY23 to 6.2% in FY24.

ENTERTAINMENT NETWORK Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,113	5,356	4.7%
Other income	Rs m	264	277	5.0%
Total Revenues	Rs m	5,377	5,633	4.8%
Gross profit	Rs m	-880	1,072	NA
Depreciation	Rs m	900	798	-11.4%
Interest	Rs m	175	154	-12.1%
Profit before tax	Rs m	-1,691	397	NA
Tax	Rs m	-45	67	NA
Profit after tax	Rs m	-1,646	330	NA
Gross profit margin	%	-17.2	20.0
Effective tax rate	%	2.7	16.9
Net profit margin	%	-32.2	6.2

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ENTERTAINMENT NETWORK Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 4 billion in FY23, thereby witnessing an decrease of -25.6%.
• Current assets rose 24% and stood at Rs 6 billion, while fixed assets fell 9% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 12 billion during FY23, thereby witnessing a growth of 5%.

ENTERTAINMENT NETWORK Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,920	7,713	30.3
Current Liabilities	Rs m	4,236	3,151	-25.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	11,879	12,447	4.8
Current assets	Rs m	4,847	6,025	24.3
Fixed Assets	Rs m	7,032	6,422	-8.7
Total Assets	Rs m	11,879	12,447	4.8

ENTERTAINMENT NETWORK Cash Flow Statement Analysis

• ENTERTAINMENT NETWORK's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 11.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -381 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -397 million, an improvement of 8% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 471 million from the Rs 119 million net cash flows seen during FY23.

ENTERTAINMENT NETWORK Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	1,140	1,274	11.8%
Cash Flow from Investing Activities	Rs m	-599	-381	-
Cash Flow from Financing Activities	Rs m	-430	-397	-
Net Cash Flow	Rs m	119	471	296.9%

Current Valuations for ENTERTAINMENT NETWORK

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.9, an improvement from the EPS of Rs -34.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 208.8, stands at 32.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 10.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	107.3	112.3
TTM Earnings per share	Rs	-34.5	6.9
Diluted earnings per share	Rs	-34.5	6.9
Price to Cash Flow	x	-7.4	10.0
TTM P/E ratio	x	-18.9	32.1
Price / Book Value ratio	x	1.4	1.5
Market Cap	Rs m	8,097	11,255
Dividends per share (Unadj.)	Rs	1.0	1.5

Ratio Analysis for ENTERTAINMENT NETWORK

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY24, from 1.1x during FY23. 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 3.6x during FY24, from -8.7x during FY23. 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 4.3% during FY24, from -27.8% during FY24. 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 7.1% during FY24, from -25.6% during FY23. 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 improved and stood at 3.9% during FY24, from -12.4% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.1	1.9
Debtors’ Days	Days	1,041	1,243
Interest coverage	x	-8.7	3.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-12.4	3.9
Return on equity	%	-27.8	4.3
Return on capital employed	%	-25.6	7.1

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

ENTERTAINMENT NETWORK Share Price Performance

Over the last one year, ENTERTAINMENT NETWORK share price has moved up from Rs 191.8 to Rs 208.8, registering a gain of Rs 17.1 or around 8.9%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 19,801.1 (down 0.8%). Over the last one year it has moved up from 14,503.7 to 19,801.1, a gain of 5,297 points (up 36.5%).

Overall, the S&P BSE SENSEX is up 23.2% over the year.

(To know more, check out historical annual results for ENTERTAINMENT NETWORK and quarterly results for ENTERTAINMENT NETWORK)