TV 18 Broadcast reported marginal growth of 4.72% in top line sales for the Sep-20 quarter at Rs1,180.38cr. The operating profits for the quarter ended Sep-20 doubled to Rs128.82cr while the net profits more than trebled at Rs115.55cr on a yoy basis. The sharp spurt in profit performance was largely on the back of better cost control initiated.
This had significant impact on the margins of TV18 Broadcast. For the Sep-20 quarter, the operating profit margins or OPM nearly doubled to 10.41% on the back of favorable expense management in the latest quarter. Net profit margins or NPM for the quarter virtually tripled to 9.79%.
Financial highlights for Sep-20 compared yoy and sequentially
|
Particulars |
Sep-20 Quarter |
Growth (yoy) |
Growth (qoq) |
|
Total Revenues |
Rs1180.38r |
+4.72% |
+52.12% |
|
Operating Profit |
Rs128.82cr |
+112.05% |
+1617.60% |
|
Net Profits |
Rs115.55cr |
+215.62% |
Not Applicable |
|
Key Ratios |
Sep-20 Quarter |
Sep-19 Quarter |
Jun-20 Quarter |
|
Diluted EPS |
Rs0.44 |
Rs0.14 |
Rs0.01 |
|
Operating Margins |
10.41% |
5.39% |
0.97% |
|
Net Profit Margin |
9.79% |
3.25% |
-1.65% |
Key takeaways from the Sep-20 quarter results
-
The June quarter was exceptionally bad in terms of top line and bottom line. Hence the sequential numbers may not be strictly comparable as the growth would look over magnified due to a low base.
-
The company had a debt equity ratio of just about 0.40. As a result its interest service coverage ratio is comfortable at 7.13 times while the debt service coverage ratio or the DSCR has also improved in the last yoy period to 6.85 times.
-
The cash flow from operations in the first half turned around sharply from negative to positive on account of favourable working capital movements as well as due to relatively lower finance costs.
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