RAJ TELEVISION 2017-18 Annual Report Analysis

Sat, 31 Mar

RAJ TELEVISION has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

RAJ TELEVISION Income Statement Analysis

• Operating income during the year rose 0.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 34.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.8% in FY18 as against 12.6% in FY17.
• Depreciation charges increased by 1.1% and finance costs increased by 9.0% YoY, respectively.
• Other income grew by 116.1% YoY.
• Net profit for the year declined by 71.3% YoY.
• Net profit margins during the year grew from 7.8% in FY17 to 2.2% in FY18.

RAJ TELEVISION Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	612	616	0.6%
Other income	Rs m	8	18	116.1%
Total Revenues	Rs m	621	634	2.2%
Gross profit	Rs m	77	103	34.1%
Depreciation	Rs m	66	67	1.1%
Interest	Rs m	50	54	9.0%
Profit before tax	Rs m	-30	0	-101.3%
Tax	Rs m	17	14	-18.7%
Profit after tax	Rs m	-48	-14	-71.3%
Gross profit margin	%	12.6	16.8
Effective tax rate	%	-57.1	3,532.5
Net profit margin	%	-7.8	-2.2

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RAJ TELEVISION Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 256 million as compared to Rs 178 million in FY17, thereby witnessing an increase of 44.2%.
• Long-term debt down at Rs 242 million as compared to Rs 286 million during FY17, a fall of 15.2%.
• Current assets rose 18% and stood at Rs 573 million, while fixed assets fell 4% and stood at Rs 1 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 2 billion as against Rs 2 billion during FY17, thereby witnessing a growth of 2%.

RAJ TELEVISION Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	1,380	1,366	-1.0
Current Liabilities	Rs m	178	256	44.2
Long-term Debt	Rs m	286	242	-15.2
Total Liabilities	Rs m	1,853	1,889	1.9
Current assets	Rs m	485	573	18.2
Fixed Assets	Rs m	1,368	1,315	-3.8
Total Assets	Rs m	1,853	1,889	1.9

RAJ TELEVISION Cash Flow Statement Analysis

• RAJ TELEVISION's cash flow from operating activities (CFO) during FY18 stood at Rs 116 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -18 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -98 million on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 1 million from the Rs -31 million net cash flows seen during FY17.

RAJ TELEVISION Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	-116	116	-
Cash Flow from Investing Activities	Rs m	-105	-18	-
Cash Flow from Financing Activities	Rs m	190	-98	-
Net Cash Flow	Rs m	-31	1	-

Current Valuations for RAJ TELEVISION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.3, an improvement from the EPS of Rs -0.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 53.6, stands at -64.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 4.5 times.
• The company's price to cash flow (P/CF) ratio stood at 60.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	11.8	11.9
TTM Earnings per share	Rs	-0.9	-0.3
Diluted earnings per share	Rs	-0.9	-0.3
Price to Cash Flow	x	166.2	60.7
TTM P/E ratio	x	-34.7	-64.0
Price / Book Value ratio	x	2.6	2.4
Market Cap	Rs m	3,553	3,228
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RAJ TELEVISION

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY18, from 2.7x during FY17. 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 1.0x during FY18, from 0.4x during FY17. 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 -1.0% during FY18, from -3.5% during FY18. 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 3.4% during FY18, from 1.2% during FY17. 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 2.1% during FY18, from 0.1% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	2.7	2.2
Debtors’ Days	Days	257,027,824	289,622,119
Interest coverage	x	0.4	1.0
Debt to equity ratio	x	0.2	0.2
Return on assets	%	0.1	2.1
Return on equity	%	-3.5	-1.0
Return on capital employed	%	1.2	3.4

To see how RAJ TELEVISION has performed over the last 5 years, please visit here.

RAJ TELEVISION Share Price Performance

Over the last one year, RAJ TELEVISION share price has moved down from Rs 58.9 to Rs 53.6, registering a loss of Rs 5.3 or around 8.9%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 6,513.3 (down 0.7%). Over the last one year it has moved up from 5,771.5 to 6,513.3, a gain of 742 points (up 12.9%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for RAJ TELEVISION and quarterly results for RAJ TELEVISION)