NETWORK18 MEDIA 2023-24 Annual Report Analysis

Fri, 29 Nov

NETWORK18 MEDIA 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.

NETWORK18 MEDIA Income Statement Analysis

• Operating income during the year rose 49.4% 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 6.0% in FY24 as against 3.5% in FY23.
• Depreciation charges increased by 64.4% and finance costs increased by 54.3% YoY, respectively.
• Other income grew by 597.9% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 0.3% in FY23 to 3.5% in FY24.

NETWORK18 MEDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	62,230	92,975	49.4%
Other income	Rs m	999	6,970	597.9%
Total Revenues	Rs m	63,229	99,944	58.1%
Gross profit	Rs m	2,208	-5,535	NA
Depreciation	Rs m	1,277	2,101	64.4%
Interest	Rs m	2,089	3,224	54.3%
Profit before tax	Rs m	-160	-3,890	NA
Tax	Rs m	-2	-644	NA
Profit after tax	Rs m	-158	-3,246	NA
Gross profit margin	%	3.5	-6.0
Effective tax rate	%	1.4	16.6
Net profit margin	%	-0.3	-3.5

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NETWORK18 MEDIA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 107 billion as compared to Rs 90 billion in FY23, thereby witnessing an increase of 19.3%.
• Current assets rose 164% and stood at Rs 232 billion, while fixed assets rose 214% and stood at Rs 167 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 399 billion as against Rs 141 billion during FY23, thereby witnessing a growth of 183%.

NETWORK18 MEDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,751	149,798	2,119.0
Current Liabilities	Rs m	89,853	107,174	19.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	141,184	399,013	182.6
Current assets	Rs m	87,902	231,913	163.8
Fixed Assets	Rs m	53,281	167,101	213.6
Total Assets	Rs m	141,184	399,013	182.6

NETWORK18 MEDIA Cash Flow Statement Analysis

• NETWORK18 MEDIA's cash flow from operating activities (CFO) during FY24 stood at Rs -65 billion, an improvement of 130.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -52 billion, an improvement of 616.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 11 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 46 billion from the Rs -1 billion net cash flows seen during FY23.

NETWORK18 MEDIA 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	-28,042	-64,649	-
Cash Flow from Investing Activities	Rs m	-7,218	-51,689	-
Cash Flow from Financing Activities	Rs m	34,113	11,386	-66.6%
Net Cash Flow	Rs m	-1,109	46,028	-

Current Valuations for NETWORK18 MEDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.1, an decline from the EPS of Rs -0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 79.3, stands at -15.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at -85.7 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	60.1	89.8
TTM Earnings per share	Rs	-0.2	-3.1
Diluted earnings per share	Rs	-0.1	-2.1
Price to Cash Flow	x	74.7	-85.7
TTM P/E ratio	x	-82.7	-15.9
Price / Book Value ratio	x	12.7	0.7
Market Cap	Rs m	85,806	98,126
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NETWORK18 MEDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY24, from 1.0x 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 deteriorated and stood at -0.2x during FY24, from 0.9x 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 -2.2% during FY24, from -2.3% 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 declined and down at -0.4% during FY24, from 28.6% 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 declined and down at 0.0% during FY24, from 1.4% 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	1.0	2.2
Debtors’ Days	Days	761	691
Interest coverage	x	0.9	-0.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.4	0.0
Return on equity	%	-2.3	-2.2
Return on capital employed	%	28.6	-0.4

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 84.2 to Rs 79.3, registering a loss of Rs 4.8 or around 5.7%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 19,317.0 (down 0.2%). Over the last one year it has moved up from 14,848.7 to 19,317.0, a gain of 4,468 points (up 30.1%).

Overall, the S&P BSE SENSEX is up 19.5% over the year.

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