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TV Today Network is a company engaged in news broadcasting operations. The company is a part of India Today group and operates a network of TV news channels, namely Aaj Tak, Headlines Today, Tez and Dilli Aaj Tak. They are first Indian broadcaster to uplink from India, a 24 hour Hindi news channel. The company has also made strategic investment worth Rs 45 crore during FY12 in Mail Today Newspaper (Private) Limited, which publishes a news paper called Mail Today. The company has one subsidiary, namely TV Today Network (Business) Ltd.
June 2014 quarter results – Sales jump 54% and PAT soar 174%
For the quarter ended June 2014, sales jumped 54% to Rs 137.01 crore. OPM jumped 1340 basis points to 40.4% which saw OP rising 131% to Rs 55.31 crore.
Other income grew 67% to Rs 2.74 crore and interest cost went down 47% to Rs 55 lakh. As depreciation rose 20% to Rs 7.61 crore, PBT jumped 173% to Rs 49.89 crore.
Tax soared 173% to Rs 17.09 crore after which PAT ended up 174% to Rs 32.79 crore.
The company must have fully capitalised on the audience tuned to its channels as parliamentary elections progressed during June 2014 quarter.
FY 2014 results
For FY 2014, it registered a sharp 25% rise in sales to Rs 389.44 crore. OPM jumped 1650 basis points to 28.1% which saw OP rising 202% to Rs 109.27 crore.
Other income grew 59% to Rs 11.70 crore and interest cost rose 7% to Rs 3.59 crore. As depreciation grew 15% to Rs 24.18 crore, PBT jumped 387% to Rs 93.20 crore.
Pursuant to the requirements of the companies act, effective 1 April 2014, the depreciation is higher by Rs 1.11 crore.
EO loss was nil against Rs 1.57 crore. Thus PBT after EO grew 430% to Rs 93.20 crore.
Exceptional items represent payments made to M/s Prasar Bharti and BSNL towards telecast fee and the interest thereon (Rs 80.01 lacs) and monitoring charges for foreign satellite (Rs 76.91 lacs) respectively in respect of earlier years, during the quarter ended June 30, 2012.
Provision for tax soared 494% to Rs 31.88 crore after which PAT ended up 402% to Rs 61.32 crore.
Other details
During the quarter the company acquired digital rights of its news channel from its holding company, Living Media India Limited, for Rs 36.75 crore. Such consideration has been recognized as an intangible asset to be amortized over aperiod of 10 years.
The company has made strategic investment of Rs 45.52 crore in Mail Today Newspapers Pvt Ltd for entering into print media. Though Mail Today is in the initial stage of operations and is presently incurring losses, the company is confident of its future profitability and consequently of the carrying value of the investment.
Valuation
The share price trades at Rs 137.
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