CMP: 573.40 DEC 6th, 2018 SUN TV NETWORKS LTD ISIN: Overweight Result Update (PARENT BASIS): Q2 FY19 INE424H01027 Index Details SYNOPSIS Stock Data Sun TV Network Limited, together with its Sector Broadcasting & Cable TV subsidiaries, engages in producing and BSE Code 532733 broadcasting satellite television and radio software Face Value 5.00 programming in the regional languages of South 52wk. High / Low (Rs.) 1097.05/564.05 India. Volume (2wk. Avg.) 68000 Sun Network Ltd has achieved a turnover of Rs. Market Cap (Rs. In mn.) 225965.47 7495.50 mn for Q2 FY19 as against Rs. 6759.00 mn in Q2 FY18, an increase of 10.90%. Annual Estimated Results(A*: Actual / E*: Estimated) Years (Rs. In mn) FY18A FY19E FY20E During the quarter, EBIDTA stood at Rs. 6160.90 mn as against Rs. 5333.20 mn in the corresponding Net Sales 28624.50 34349.40 39845.30 period of the previous year, up by 15.52%. EBITDA 20991.30 26213.43 30396.10 Net Profit 10930.40 14033.84 16506.03 Profit before tax (PBT) stood at Rs. 5336.30 mn in EPS 27.74 35.61 41.88 Q2 FY19 as against Rs. 4305.70 mn in the corresponding quarter of the previous year, an P/E 20.67 16.10 13.69 increase of 23.94%. Shareholding Pattern (%) During the 2nd quarter, net profit increased by 23.41% to Rs.3513.20 mn from Rs.2846.70 mn in As on Sep 2018 As on Jun 2018 the corresponding period of the previous year. Promoter 75.00 75.00 EPS of the company stood at Rs. 8.91 in Q2 FY19 as against Rs. 7.22 in the corresponding quarter of Public 25.00 25.00 the previous year. Others -- -- Revenue of the company registered a growth of 27.88% at Rs. 18699.40 mn in H1 FY19 as 1 Year Comparative Graph compared to Rs. 14622.20 mn in H1 FY18. During H1 FY19, PAT rose by 41.79% at Rs. 7604.60 mn as against Rs. 5363.10 mn in in H1 FY18. The company has declared an interim dividend of Rs.2.50 per share of Rs.5.00 each (i.e. 50%) for the financial year 31st Mar, 2019. Net Sales & PAT of the company are expected to grow at a CAGR of 14% and 17% over 2017 to 2020E, respectively. SUN TV NETWORKS LTD S&P BSE SENSEX PEER GROUPS CMP MARKET CAP EPS(TTM) P/E (X)(TTM) P/BV(X) DIVIDEND Company Name (Rs.) Rs. In mn. (Rs.) Ratio Ratio % Sun TV Networks Ltd 573.40 225965.47 33.42 17.15 4.87 200.00 Zee Entertainment Enterprises Ltd 471.95 453292.20 18.01 26.20 7.79 290.00 TV Today Networks Ltd 371.55 22167.10 23.27 15.97 3.07 45.00 Entertainment Network India Ltd 613.25 29233.90 9.00 68.14 3.31 10.00 Document code: FOTL_061220184_2 Copyright © 2016 Firstobject Technologies Ltd. All rights reserved QUARTERLY HIGHLIGHTS (PARENT BASIS) Results updates- Q2 FY19, (Rs. In million) Sep-18 Sep-17 % Change Revenue 7495.50 6759.00 10.90% Net Profit 3513.20 2846.70 23.41% EPS 8.91 7.22 23.41% EBIDTA 6160.90 5333.20 15.52% Sun Network Ltd has achieved a turnover of Rs. 7495.50 million for the 2nd quarter of the FY 2018-19 as against Rs. 6759.00 million in the corresponding quarter of the previous year, an increase of 10.90%. During the 2nd quarter, net profit increased by 23.41% to Rs. 3513.20 million from Rs. 2846.70 million in the corresponding quarter ending of previous year. Reported earnings per share of the company stood at Rs. 8.91 in Q2 FY19 as against Rs. 7.22 in the corresponding quarter of the previous year. Profit before interest, depreciation and tax stood at Rs. 6160.90 million as against Rs. 5333.20 million in the corresponding period of the previous year. Break up of Expenditure Value in Rs. Million Break up of Expenditure % Q2 FY19 Q2 FY18 Change Operating Expenses 901.10 640.80 41% Employee Benefit 734.70 773.90 -5% Expenses Depreciation & 818.90 1026.90 -20% Amortization Expense Other Expenses 320.00 383.40 -17% Document code: FOTL_061220184_2 Copyright © 2016 Firstobject Technologies Ltd. All rights reserved Updates The company has declared an interim dividend of Rs.2.50 per share of Rs.5.00 each (i.e. 50%) for the financial year 31st Mar, 2019. COMPANY PROFILE Sun TV Network Limited is engaged in providing broadcasting services. It operates through Media and Entertainment segment. Its geographical segments include India and Others. It is engaged in producing and broadcasting satellite television and radio software programming in the regional languages of South India it operates satelite Television Channels across four languages of Tamil, Telugu, Kannada and Malyalam, airs FM radio stations across Inida and owns the SunRisers Hyderabad Cricket Franchise of the Indian Premier League. And also to viewers in Sri Lanka, Singapore, Malaysia, the United Kingdom, Europe, the Middle East, the United States, Australia, South Africa and Canada. Document code: FOTL_061220184_2 Copyright © 2016 Firstobject Technologies Ltd. All rights reserved FINANCIAL HIGHLIGHT (PARENT BASIS) (A*- Actual, E* -Estimations & Rs. In Millions) Balance Sheet as of March 31, 2017-2020E FY17A FY18A FY19E FY20E APPLICATION OF FUNDS Non-Current Assets a) Property, Plant and Equipment 7630.10 7099.70 7277.19 7459.12 b) Capital Work in progress 14.90 441.50 520.97 599.12 c) Investment Properties 127.10 120.00 123.00 126.08 d) Other Intangible Assets 3263.30 3173.30 3300.23 3448.74 e) Investments In Subsidiary/ Joint Venture 7135.50 7135.50 7135.50 7135.50 f) Financial Assets i) Investments 1949.20 1934.10 1972.78 2012.24 ii) Other Financial Assets 420.40 94.10 105.39 112.24 g) Non Current Tax Assets (net) 669.40 636.90 678.30 719.00 h) Other Non Current Assets 795.40 1843.50 2212.20 2577.21 1.Total Non - Current Assets 22005.30 22478.60 23325.57 24189.24 Current Assets a) Inventories 8.90 2.50 2.80 3.08 b) Financial Assets i) Investments 5454.80 15051.00 23479.56 34045.36 ii) Trade Receivable 7237.80 10084.30 11899.47 13446.41 iii) Cash and Bank Balances 7384.40 3071.30 3301.65 3516.25 iv) Other Financial Assets 955.80 1026.30 1083.77 1132.54 c) Other Current Assets 451.30 190.00 202.35 218.54 2.Total Current Assets 21493.00 29425.40 39969.60 52362.18 Total Assets (1+2) 43498.30 51904.00 63295.17 76551.43 SOURCES OF FUNDS Shareholder's Funds a) Share Capital 1970.40 1970.40 1970.40 1970.40 b) Other Equity 38247.10 44430.30 55848.89 68973.38 1. Total Net worth 40217.50 46400.70 57819.29 70943.78 Non Current Liabilities a) Financial Liabilities i) Other Financial Liabilities 75.00 67.10 61.73 58.65 b) Government Grants 62.60 53.10 46.46 43.67 c) Deferred Tax Liabilities 555.50 769.70 912.09 1030.67 2. Total Non Current Liabilities 693.10 889.90 1020.29 1132.99 Current Liabilities a) Financial Liabilities i) Trade payables 497.00 577.40 649.58 704.79 ii) Other Current Financial Liabilities 1548.80 1949.80 2102.63 2255.55 b) Government Grants 11.80 9.50 8.74 8.00 c) Short Term Provisions 189.80 156.50 139.29 131.49 d) Other Current Liabilities 340.30 1920.20 1555.36 1374.84 3. Total Current Liabilities 2587.70 4613.40 4455.59 4474.67 Total Liabilities (1+2+3) 43498.30 51904.00 63295.17 76551.43 Document code: FOTL_061220184_2 Copyright © 2016 Firstobject Technologies Ltd. All rights reserved Annual Profit & Loss Statement for the period of 2017 to 2020E Value(Rs.in.mn) FY17A FY18A FY19E FY20E Description 12m 12m 12m 12m Net Sales 25582.50 28624.50 34349.40 39845.30 Other Income 1455.50 1396.50 2003.98 2404.77 Total Income 27038.00 30021.00 36353.38 42250.08 Expenditure -8212.80 -9029.70 -10139.94 -11853.98 Operating Profit 18825.20 20991.30 26213.43 30396.10 Interest -10.30 -10.50 -11.55 -12.47 Gross profit 18814.90 20980.80 26201.88 30383.63 Depreciation -3911.40 -4396.80 -4792.51 -5271.76 Tax 14903.50 16584.00 21409.37 25111.86 Profit After Tax -5109.40 -5653.60 -7375.53 -8605.84 Net Profit 9794.10 10930.40 14033.84 16506.03 Equity capital 1970.40 1970.40 1970.40 1970.40 Reserves 38247.10 44430.30 55848.89 68973.38 Face value 5.00 5.00 5.00 5.00 EPS 24.85 27.74 35.61 41.88 Quarterly Profit & Loss Statement for the period of 31st Mar, 2018 to 31st Dec, 2018E Value(Rs.in.mn) 31-Mar-18 30-Jun-18 30-Sep-18 31-Dec-18E Description 3m 3m 3m 3m Net sales 7169.50 11203.90 7495.50 7870.28 Other income 368.40 390.00 621.20 528.02 Total Income 7537.90 11593.90 8116.70 8398.30 Expenditure -1945.50 -3856.80 -1955.80 -2277.66 Operating profit 5592.40 7737.10 6160.90 6120.64 Interest -8.80 -2.60 -5.70 -5.42 Gross profit 5583.60 7734.50 6155.20 6115.22 Depreciation -1190.40 -1467.70 -818.90 -900.79 Profit Before Tax 4393.20 6266.80 5336.30 5214.43 Tax -1495.60 -2175.40 -1823.10 -1805.24 Net Profit 2897.60 4091.40 3513.20 3409.20 Equity capital 1970.40 1970.40 1970.40 1970.40 Face value 5.00 5.00 5.00 5.00 EPS 7.35 10.38 8.91 8.65 Document code: FOTL_061220184_2 Copyright © 2016 Firstobject Technologies Ltd.