Balaji Telefilms revenue dropped on 18.4% and EBITDA Margin showed almost no change
17-05-2016 • About Balaji Telefilms (
$BALAJITELE) • By InTwits
Balaji Telefilms reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 2.1% in FY2016, 1.9% in FY2015, -5.1% in FY2014, 4.4% in FY2013, 1.3% in FY2012
- Balaji Telefilms has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's a lot of higher than industry average of 2.7%.
- CAPEX is quite volatile: ₹170m in FY2016, ₹148m in FY2015, ₹24m in FY2014, ₹25m in FY2013, ₹46m in FY2012
- The company has unprofitable business model: ROIC is -0.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 18.4%. During FY2012-FY2016 Revenue growth topped in FY2014 at 119% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.7 pp from 6.5% to 10.2% in FY2016.
Net Income margin decreased slightly on 0.63 pp from 1.6% to 0.99% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Balaji Telefilms had CAPEX/Revenue of 6.0%. CAPEX/Revenue increased on 4.7 pp from 1.3% in FY2013 to 6.0% in FY2016. It's average level of CAPEX/Revenue for the last three years was 3.6%. Balaji Telefilms has spent a lot to CAPEX (285% of EBITDA) which didn't stop revenue from falling. During the last 5 years CAPEX as a % of Revenue bottomed in FY2014 at 0.59% and was growing since that time.
Return on investment
The company operates at negative ROIC (-0.7%) and low but positive ROE (0.6%). ROIC showed almost no change in FY2016. ROE decreased slightly on 0.85 pp from 1.5% to 0.62% in FY2016.
Leverage (Debt)
The company has no debt. Cash jumped on 54.2%.
Financial and operational results
Balaji Telefilms ($BALAJITELE) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,878 | 1,860 | 4,075 | 3,465 | 2,828 | -18.4% |
| EBITDA | 25 | 83 | -208 | 65 | 60 | -7.6% |
| Net Income | 204 | 146 | -172 | 56 | 28 | -50.0% |
Balance Sheet
|
|---|
| Cash | 60 | 109 | 77 | 109 | 168 | 54.2% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 46 | 25 | 24 | 148 | 170 | 15.2% |
Ratios
|
|---|
| Revenue growth | -2.3% | -1.0% | 119.1% | -15.0% | -18.4% | |
| EBITDA growth | 116.1% | 232.8% | -352.5% | -131.0% | -7.6% | |
|
|---|
| EBITDA Margin | 1.3% | 4.4% | -5.1% | 1.9% | 2.1% | 0.2% |
| Net Income Margin | 10.9% | 7.8% | -4.2% | 1.6% | 1.0% | -0.6% |
| CAPEX, % of revenue | 2.4% | 1.3% | 0.6% | 4.3% | 6.0% | 1.8% |
|
|---|
| ROIC | -1.4% | 0.1% | -6.8% | -0.5% | -0.7% | -0.3% |
| ROE | 5.4% | 3.7% | -4.4% | 1.5% | 0.6% | -0.8% |
| Net Debt/EBITDA | -2.4x | -1.3x | | -1.7x | -2.8x | -1.1x |
Peers in Broadcasting & Cable TV
Below you can find Balaji Telefilms benchmarking vs. other companies in Broadcasting & Cable TV industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | - | 31.8% | 29.6% | 81.8% | -52.6% |
| Zee Media Corporation ($ZEEMEDIA) | 10.6% | -1.7% | 11.3% | 62.6% | - |
| Siti Cable Network ($SITICABLE) | 12.0% | 37.0% | 41.6% | 36.2% | - |
| Tv18 Broadcast ($TV18BRDCST) | - | 21.4% | 16.4% | 17.8% | 10.8% |
| Entertainment Network (India) ($ENIL) | -32.9% | 9.2% | 13.2% | 14.0% | - |
| |
|---|
| Median (9 companies) | 11.3% | 10.7% | 18.6% | 14.0% | 10.8% |
|---|
| Balaji Telefilms ($BALAJITELE) | - | -1.0% | 119.1% | -15.0% | -18.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | 27.7% | 21.0% | 18.2% | 54.7% | 17.1% |
| Entertainment Network (India) ($ENIL) | 32.1% | 30.8% | 32.4% | 33.3% | - |
| Raj Television Network ($RAJTV) | - | - | - | 29.6% | - |
| Dish Tv India ($DISHTV) | 25.5% | 27.3% | 26.4% | 28.1% | - |
| Zee Entertainment Enterprises ($ZEEL) | 24.4% | 25.9% | 27.6% | 25.7% | 25.8% |
| |
|---|
| Median (11 companies) | 18.6% | 21.0% | 19.9% | 24.1% | 17.1% |
|---|
| Balaji Telefilms ($BALAJITELE) | 1.3% | 4.4% | -5.1% | 1.9% | 2.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Siti Cable Network ($SITICABLE) | 10.6% | 80.9% | 73.0% | 32.5% | - |
| Den Networks ($DEN) | 12.6% | 60.4% | 53.2% | 28.5% | - |
| Dish Tv India ($DISHTV) | 33.5% | 32.2% | 11.9% | 26.3% | - |
| Hinduja Ventures ($HINDUJAVEN) | 11.6% | 65.8% | 14.2% | 7.1% | 65.0% |
| Tv18 Broadcast ($TV18BRDCST) | 3.5% | 2.3% | 3.1% | 4.1% | 4.3% |
| |
|---|
| Median (9 companies) | 10.6% | 19.0% | 13.1% | 4.1% | 5.3% |
|---|
| Balaji Telefilms ($BALAJITELE) | 2.4% | 1.3% | 0.6% | 4.3% | 6.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hinduja Ventures ($HINDUJAVEN) | 8.3% | 4.0% | 1.0% | 39.5% | 1.3% |
| Dish Tv India ($DISHTV) | -2.5% | -4.6% | 8.7% | 24.0% | - |
| Zee Entertainment Enterprises ($ZEEL) | 21.1% | 24.2% | 25.5% | 22.1% | 23.6% |
| Entertainment Network (India) ($ENIL) | 15.2% | 14.8% | 16.7% | 17.9% | - |
| Raj Television Network ($RAJTV) | 10.1% | 10.3% | 11.5% | 9.1% | - |
| |
|---|
| Median (12 companies) | 3.0% | 3.8% | 5.4% | 9.1% | 5.2% |
|---|
| Balaji Telefilms ($BALAJITELE) | -1.4% | 0.1% | -6.8% | -0.5% | -0.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zee Media Corporation ($ZEEMEDIA) | 0.2x | 0.3x | 3.0x | 10.1x | - |
| Siti Cable Network ($SITICABLE) | 56.0x | 9.5x | 5.6x | 6.7x | - |
| Den Networks ($DEN) | -0.5x | 2.4x | 1.7x | 6.0x | - |
| Dish Tv India ($DISHTV) | 2.1x | 2.6x | 2.0x | 1.4x | - |
| Tv18 Broadcast ($TV18BRDCST) | - | 2.4x | 0.9x | 1.3x | 1.4x |
| |
|---|
| Median (10 companies) | 0.2x | 2.4x | 1.6x | 1.2x | 1.4x |
|---|
| Balaji Telefilms ($BALAJITELE) | -2.4x | -1.3x | - | -1.7x | -2.8x |
