NETWORK18 MEDIA 2022-23 Annual Report Analysis

Thu, 17 Aug

NETWORK18 MEDIA has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

NETWORK18 MEDIA Income Statement Analysis

• Operating income during the year fell 96.8% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 29.2% in FY23 as against 18.8% in FY22.
• Depreciation charges decreased by 96.3% and finance costs increased by 38.7% YoY, respectively.
• Other income declined by 87.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 14.2% in FY22 to 99.6% in FY23.

NETWORK18 MEDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	58,802	1,872	-96.8%
Other income	Rs m	521	66	-87.4%
Total Revenues	Rs m	59,323	1,938	-96.7%
Gross profit	Rs m	11,033	-547	NA
Depreciation	Rs m	1,195	44	-96.3%
Interest	Rs m	966	1,340	38.7%
Profit before tax	Rs m	9,393	-1,865	NA
Tax	Rs m	1,016	0	-100.0%
Profit after tax	Rs m	8,377	-1,865	NA
Gross profit margin	%	18.8	-29.2
Effective tax rate	%	10.8	0.0
Net profit margin	%	14.2	-99.6

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NETWORK18 MEDIA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 27 billion as compared to Rs 43 billion in FY22, thereby witnessing an decrease of -37.1%.
• Current assets fell 99% and stood at Rs 517 million, while fixed assets fell 17% and stood at Rs 36 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 37 billion as against Rs 91 billion during FY22, thereby witnessing a fall of 60%.

NETWORK18 MEDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,548	9,812	30.0
Current Liabilities	Rs m	42,841	26,967	-37.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	91,404	36,932	-59.6
Current assets	Rs m	47,724	517	-98.9
Fixed Assets	Rs m	43,680	36,415	-16.6
Total Assets	Rs m	91,404	36,932	-59.6

NETWORK18 MEDIA Cash Flow Statement Analysis

• NETWORK18 MEDIA's cash flow from operating activities (CFO) during FY23 stood at Rs -521 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -24 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 542 million, an improvement of 114% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -4 million from the Rs 119 million net cash flows seen during FY22.

NETWORK18 MEDIA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	6,413	-521	-
Cash Flow from Investing Activities	Rs m	-2,501	-24	-
Cash Flow from Financing Activities	Rs m	-3,809	542	-
Net Cash Flow	Rs m	119	-4	-

Current Valuations for NETWORK18 MEDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.8, an decline from the EPS of Rs 8.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 61.1, stands at -56.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.5 times, while the price to sales ratio stands at 34.2 times.
• The company's price to cash flow (P/CF) ratio stood at -47.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	56.8	1.8
TTM Earnings per share	Rs	8.1	-1.8
Diluted earnings per share	Rs	8.0	-1.8
Price to Cash Flow	x	9.3	-47.6
TTM P/E ratio	x	11.0	-56.8
Price / Book Value ratio	x	10.3	8.8
Market Cap	Rs m	77,419	86,766
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NETWORK18 MEDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.0x during FY23, from 1.1x during FY22. 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 deteriorated and stood at -0.4x during FY23, from 10.7x during FY22. 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 declined and down at -19.0% during FY23, from 111.0% during FY23. 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 declined and down at -5.4% during FY23, from 137.2% during FY22. 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 declined and down at -1.4% during FY23, from 10.2% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.1	0.0
Debtors’ Days	Days	716	806
Interest coverage	x	10.7	-0.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.2	-1.4
Return on equity	%	111.0	-19.0
Return on capital employed	%	137.2	-5.4

To see how NETWORK18 MEDIA has performed over the last 5 years, please visit here.

NETWORK18 MEDIA Share Price Performance

Over the last one year, NETWORK18 MEDIA share price has moved down from Rs 72.5 to Rs 61.1, registering a loss of Rs 11.4 or around 15.7%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 13,986.0 (down 0.4%). Over the last one year it has moved up from 13,975.1 to 13,986.0, a gain of 11 points (up 0.1%).

Overall, the S&P BSE SENSEX is up 8.9% over the year.

(To know more, check out historical annual results for NETWORK18 MEDIA and quarterly results for NETWORK18 MEDIA)