SUN TV 2023-24 Annual Report Analysis

Mon, 2 Sep

SUN TV 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.

SUN TV Income Statement Analysis

• Operating income during the year rose 13.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 61.8% in FY24 as against 63.5% in FY23.
• Depreciation charges increased by 9.4% and finance costs decreased by 9.1% YoY, respectively.
• Other income grew by 33.9% YoY.
• Net profit for the year grew by 12.8% YoY.
• Net profit margins during the year declined from 45.3% in FY23 to 45.0% in FY24.

SUN TV Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	37,721	42,821	13.5%
Other income	Rs m	3,771	5,050	33.9%
Total Revenues	Rs m	41,491	47,871	15.4%
Gross profit	Rs m	23,965	26,484	10.5%
Depreciation	Rs m	4,860	5,317	9.4%
Interest	Rs m	94	86	-9.1%
Profit before tax	Rs m	22,782	26,131	14.7%
Tax	Rs m	5,713	6,873	20.3%
Profit after tax	Rs m	17,069	19,258	12.8%
Gross profit margin	%	63.5	61.8
Effective tax rate	%	25.1	26.3
Net profit margin	%	45.3	45.0

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SUN TV Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 8 billion as compared to Rs 8 billion in FY23, thereby witnessing an increase of 1.8%.
• Current assets rose 14% and stood at Rs 68 billion, while fixed assets rose 12% and stood at Rs 45 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 113 billion as against Rs 99 billion during FY23, thereby witnessing a growth of 13%.

SUN TV Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	92,716	105,360	13.6
Current Liabilities	Rs m	8,236	8,387	1.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	99,231	112,573	13.4
Current assets	Rs m	59,509	67,984	14.2
Fixed Assets	Rs m	39,722	44,589	12.3
Total Assets	Rs m	99,231	112,573	13.4

SUN TV Cash Flow Statement Analysis

• SUN TV's cash flow from operating activities (CFO) during FY24 stood at Rs 22 billion, an improvement of 3.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -13 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs -878 million net cash flows seen during FY23.

SUN TV 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	20,955	21,713	3.6%
Cash Flow from Investing Activities	Rs m	-15,539	-13,134	-
Cash Flow from Financing Activities	Rs m	-6,306	-6,971	-
Net Cash Flow	Rs m	-878	1,609	-

Current Valuations for SUN TV

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 48.9, an improvement from the EPS of Rs 43.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 809.6, stands at 17.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 7.5 times.
• The company's price to cash flow (P/CF) ratio stood at 9.2 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	95.7	108.7
TTM Earnings per share	Rs	43.3	48.9
Diluted earnings per share	Rs	43.3	48.9
Price to Cash Flow	x	7.5	9.2
TTM P/E ratio	x	9.6	17.0
Price / Book Value ratio	x	2.0	2.1
Market Cap	Rs m	189,594	226,471
Dividends per share (Unadj.)	Rs	15.0	16.8

Ratio Analysis for SUN TV

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 8.1x during FY24, from 7.2x 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 306.3x during FY24, from 242.8x 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 declined and down at 18.3% during FY24, from 18.4% 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 24.9% during FY24, from 24.7% 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 17.2% during FY24, from 17.3% 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	7.2	8.1
Debtors’ Days	Days	14	11
Interest coverage	x	242.8	306.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.3	17.2
Return on equity	%	18.4	18.3
Return on capital employed	%	24.7	24.9

To see how SUN TV has performed over the last 5 years, please visit here.

SUN TV Share Price Performance

Over the last one year, SUN TV share price has moved up from Rs 620.6 to Rs 809.6, registering a gain of Rs 189.0 or around 30.4%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 19,979.6 (up 0.1%). Over the last one year it has moved up from 14,185.1 to 19,979.6, a gain of 5,794 points (up 40.8%).

Overall, the S&P BSE SENSEX is up 26.9% over the year.

(To know more, check out historical annual results for SUN TV and quarterly results for SUN TV)