Balaji Telefilms revenue dropped on 15.0% in 2015 while EBITDA Margin increased on 7.0 pp from -5.1% to 1.9%
20-05-2015 • About Balaji Telefilms (
$BALAJITELE) • By InTwits
Balaji Telefilms reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Balaji Telefilms is a company in decline: FY2015 revenue growth was -15.0%, 5 years revenue CAGR was -3.5%
- EBITDA Margin is quite volatile: 1.9% in FY2015, -5.1% in FY2014, 4.4% in FY2013, 1.3% in FY2012, 0.6% in FY2011
- Balaji Telefilms spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -0.2%0
- Balaji Telefilms has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.1%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: 148 in FY2015, 24.0 in FY2014, 24.8 in FY2013, 45.5 in FY2012, 129 in FY2011
- The company has unprofitable business model: ROIC is at -0.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Balaji Telefilms ($BALAJITELE) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,922 | 1,878 | 1,860 | 4,075 | 3,465 | -15.0% |
| EBITDA | 11 | 25 | 83 | -208 | 65 | |
| Net Income | -11 | 204 | 146 | -172 | 56 | |
Balance Sheet
|
|---|
| Cash | 50 | 60 | 109 | 77 | 109 | 42.0% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 129 | 46 | 25 | 24 | 148 | 516.0% |
Ratios
|
|---|
| Revenue growth | -53.5% | -2.3% | -1.0% | 119.1% | -15.0% | |
| EBITDA growth | -59.4% | 116.1% | 232.8% | -352.5% | -131.0% | |
| EBITDA Margin | 0.6% | 1.3% | 4.4% | -5.1% | 1.9% | 7.0% |
| Net Income Margin | -0.6% | 10.9% | 7.8% | -4.2% | 1.6% | 5.8% |
| CAPEX, % of revenue | 6.7% | 2.4% | 1.3% | 0.6% | 4.3% | 3.7% |
| ROIC | -2.7% | -1.4% | 0.1% | -6.8% | -0.5% | 6.3% |
| ROE | -0.3% | 5.4% | 3.7% | -4.4% | 1.5% | 5.9% |
| Net Debt/EBITDA | -4.4x | -2.4x | -1.3x | | -1.7x | -1.7x |
Revenue and profitability
The company's Revenue dropped on 15.0% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 7.0 pp from -5.1% to 1.9% in FY2015.
Net Income marign increased on 5.8 pp from -4.2% to 1.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.3% in FY2015. Balaji Telefilms's CAPEX/Revenue increased slightly on 1.8 pp from 2.4% in FY2012 to 4.3% in FY2015. It's average level of CAPEX/Revenue for the last three years was 2.1%.Battling declining revenue Balaji Telefilms made large investments to CAPEX (229% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-0.46%) and low but positive ROE (1.47%). ROIC increased on 6.3 pp from -6.8% to -0.46% in FY2015. ROE increased on 5.9 pp from -4.4% to 1.5% in FY2015.
Leverage (Debt)
The company has no debt. Cash surged on 42.0% in FY2015.
Appendix 1: Peers in Broadcasting & Cable TV
Below we provide Balaji Telefilms benchmarking against other companies in Broadcasting & Cable TV industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Siti Cable Network ($SITICABLE) | -71.5% | 12.0% | 37.0% | 41.6% | |
| Hinduja Ventures ($HINDUJAVEN) | | 25.6% | 31.8% | 29.6% | 81.8% |
| Den Networks ($DEN) | | 10.0% | -21.7% | 24.8% | 1.2% |
| B.A.G.Films & Media ($BAGFILMS) | -49.9% | 55.3% | 0.5% | 22.9% | |
| Zee Entertainment Enterprises ($ZEEL) | -48.4% | 0.6% | 21.7% | 18.6% | |
| |
|---|
| Median (9 companies) | -54.5% | 12.0% | 10.7% | 18.6% | 15.9% |
|---|
| Balaji Telefilms ($BALAJITELE) | | -2.3% | -1.0% | 119.1% | -15.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Entertainment Network (India) ($ENIL) | 21.9% | 32.1% | 30.8% | 32.4% | 33.3% |
| Zee Entertainment Enterprises ($ZEEL) | 27.3% | 24.4% | 25.9% | 27.6% | |
| Dish Tv India ($DISHTV) | 17.8% | 25.5% | 27.3% | 26.4% | |
| Den Networks ($DEN) | 13.2% | 7.3% | 22.5% | 24.8% | 7.3% |
| Siti Cable Network ($SITICABLE) | 3.7% | 1.6% | 17.5% | 19.9% | |
| |
|---|
| Median (9 companies) | 16.6% | 18.6% | 21.0% | 19.9% | 22.1% |
|---|
| Balaji Telefilms ($BALAJITELE) | 0.6% | 1.3% | 4.4% | -5.1% | 1.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Siti Cable Network ($SITICABLE) | 10.2% | 10.6% | 80.9% | 73.0% | |
| Den Networks ($DEN) | 8.4% | 12.6% | 60.4% | 53.2% | 28.5% |
| Zee Media Corporation ($ZEEMEDIA) | 3.8% | 3.4% | 5.9% | 31.6% | |
| Hinduja Ventures ($HINDUJAVEN) | 8.8% | 11.6% | 65.8% | 14.2% | 7.1% |
| Dish Tv India ($DISHTV) | 70.0% | 33.5% | 32.2% | 11.9% | |
| |
|---|
| Median (8 companies) | 8.4% | 10.6% | 19.0% | 13.1% | 5.6% |
|---|
| Balaji Telefilms ($BALAJITELE) | 6.7% | 2.4% | 1.3% | 0.6% | 4.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zee Entertainment Enterprises ($ZEEL) | 21.6% | 21.1% | 24.2% | 25.5% | |
| Entertainment Network (India) ($ENIL) | 13.4% | 15.2% | 14.8% | 16.7% | 17.9% |
| Raj Television Network ($RAJTV) | -9.1% | 10.1% | 10.3% | 11.5% | |
| Dish Tv India ($DISHTV) | -14.4% | -2.5% | -4.6% | 8.7% | |
| Den Networks ($DEN) | 9.2% | 2.7% | 8.1% | 5.6% | -4.0% |
| |
|---|
| Median (12 companies) | 2.4% | 3.0% | 3.8% | 5.4% | 11.6% |
|---|
| Balaji Telefilms ($BALAJITELE) | -2.7% | -1.4% | 0.1% | -6.8% | -0.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | 0.8x | 0.7x | 5.9x | 5.6x | 1.1x |
| Siti Cable Network ($SITICABLE) | 23.2x | 56.0x | 9.5x | 5.6x | |
| Zee Media Corporation ($ZEEMEDIA) | -0.6x | 0.2x | 0.3x | 3.0x | |
| Dish Tv India ($DISHTV) | 2.1x | 2.1x | 2.6x | 2.0x | |
| Den Networks ($DEN) | -0.8x | -0.5x | 2.4x | 1.7x | 6.0x |
| |
|---|
| Median (10 companies) | 0.8x | 0.2x | 2.4x | 1.6x | 1.2x |
|---|
