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JP Morgan gives overweight status to Zee scrip
MUMBAI: A JP Morgan Asia Pacific Research report dated 28 April 2003 has stated that Zee Telefilms has reported good 4QFY03 numbers and that advertising revenues performed in line with expectations in a tough environment, while subscription revenues continued to show strong growth.
Overall, the report adds that the earnings momentum will continue to be strong, especially on the pay revenue front, and there might be some positive surprises on the ad revenues front. JP Morgan has reiterated its “Overweight” status rating on the stock at the Rs 70 level.
The JP Morgan report appreciates the strict cost control measures implemented by the company – especially the sharp decline in the programming and employee costs. Additionally, the JP Morgan analysts are happy with the fact that the company has paid off Rs 1.13 billion of debt, which led to a reduction in finance costs.
The JP Morgan report says that there has been a significant reduction in the debtor days, which currently stands at around 155 days, and expects it to come down to 140 by 1QFY04.
The report mentions that the stock has fallen by 19.5 per cent in the past three months, contrary to expectations. However, JP Morgan analysts believe that the result vindicates their stance of strong fundamental growth.
The 4QFY03 earnings will set pace for further earnings momentum, says the report. It adds that the outlook for the company looks strong and the near-term triggers are positive – as the negative impact of the World Cup is over. The new programme launches are stabilising and getting better TRPs. Lastly, CAS should be a long term positive for the stock.
The following are some excerpts from the JP Morgan report on Zee results:
Advertising Revenues: In Line with Expectations
The advertising revenues were in line with estimates, down 20 per cent Y/Y. However, the company has seen a pick up in the revenues after the World Cup. JP Morgan analysts are modeling in a 6.5 per cent growth in FY04 ad revenues, compared to a 10-15 per cent growth for C&S ad revenues.
The analysts believe that there could be upside to the numbers. Additionally, it is likely that one sees an end to the Y/Y drop in advertising revenues going forward and that will set pace for earnings growth.
Subscription Revenues: Growth Continues
The subscription revenues continued on the strong growth path and were also in line with estimates. The international and domestic pay revenues rose by 37 per cent and 17 per cent respectively on a sequential basis. The international subscriber base grew to 800,000, while the domestic connectivity rose to 4.6 million from 4.5 million in 3QFY03.
Debtor Days: Down to 155 Currently
Debtor days came down to 170 days in 4QFY03 from 184 days in 3QFY03. Management also mentioned that it is currently around 155 days and they expect it to go down to 140 by the end of the 1QFY04 as their ageing profile has improved significantly.
Operating Costs: Under Strict Control
There was strict cost control exercised by the company. The total expenses (ex-Padmalaya) dropped 11 per cent Q/Q. This is attributable to a drop in the programming and transmission cost and also in the employee cost. The new programmes launched by the company cost significantly lower than earlier programmes.
Additionally, the lowering of employee cost due to decrease in employees, which the management had talked about in 3QFY03, is showing through.
Finance Cost: Rs 1.13 billion Repaid
The company paid back long-term debt of around Rs1.13 billion. This led to a significant reduction in the finance cost. Additionally, the appreciation of the rupee also led to some benefits in finance cost. The management stated that they are going to reduce the debt by another Rs1 billion in 1QFY04E.
Tax Rate: Impact of Higher International Revenues
There was a reduction in the effective tax rate to 21 per cent from 27 per cent. Management stated that this was primarily due to strong growth in international revenues, which enjoyed a tax holiday. With faster growth of international revenues, JP Morgan analysts might see the tax rates settling down at lower levels.
Write-off from Education Business
The company took a one-time write-off of Rs 386.1 million. This was primarily due to assets in the education business and some inventories.
Overall, Good Results
JP Morgan analysts believe that the market will likely receive these results positively. The analysts are impressed by the cost control measures that have been taken by management.
Revenues have also performed in line with estimates, in the time of the World Cup. Additionally, the analysts believe that the market has not factored in the impact of the result as some details were awaited before the closing of markets. The stock has fallen by 19.5 per cent over the past three months, contrary to expectations. The result vindicates the stance of strong fundamental growth. The 4QFY03 earnings will set pace for further earnings momentum.
NEW DELHI: Hamdard Laboratories gathered a cross-section of India’s achievers in New Delhi on Friday, handing out the Hakeem Abdul Hameed Excellence Awards to figures who have left their mark across healthcare, education, sport, public service and the arts.
The ceremony, attended by minister of state for defence Sanjay Seth and senior officials from the ministry of Ayush, celebrated individuals whose work blends professional success with a sense of public purpose. It was as much a roll call of achievement as it was a reminder that influence is not measured only in profits or podiums, but in people reached and lives improved.
Among the headline awardees was Alakh Pandey, founder and chief executive of PhysicsWallah, recognised for turning affordable digital learning into a mass movement. On the sporting front, Arjuna Awardee and kabaddi player Sakshi Puniya was honoured for her contribution to the game and for pushing women’s participation onto bigger stages.
The cultural spotlight fell on veteran lyricist and poet Santosh Anand, whose songs have echoed across generations of Hindi cinema. At 97, Anand accepted the honour with characteristic humility, reflecting on a life shaped by perseverance and hope.
Healthcare honours spanned both modern and traditional systems. Manoj N. Nesari was recognised for strengthening Ayurveda’s place in national and global health frameworks. Padma shri Mohammed Abdul Waheed was honoured for his research-backed work in Unani medicine, while padma shri Mohsin Wali received recognition for his long-standing contribution to patient-centred care.
Education and social development also featured prominently. Padma shri Zahir Ishaq Kazi was honoured for decades of work in education, while former Meghalaya superintendent of Police T. C. Chacko was recognised for public service. Goonj founder Anshu Gupta received an award for his dignity-centred rural development initiatives, and the Hunar Shakti Foundation was honoured for empowering women and young girls through skill development.
The Lifetime Achievement Award went to former IAS officer Shailaja Chandra for her long career in public healthcare and governance, particularly in the traditional systems under Ayush.
Speaking at the event, Hamdard chairman Abdul Majeed said the awards were a tribute to those who combine excellence with empathy. “These awardees reflect Hakeem Sahib’s belief that healthcare, education and public service must ultimately serve humanity,” he said.
Minister Seth struck a forward-looking note, saying India’s young population gives the country a unique opportunity to become a global destination for learning, health and wellness by 2047.
The ceremony also featured the trailer launch of Unani Ki Kahaani, an upcoming documentary starring actor Jim Sarbh, set to premiere on Discovery on 11 February.
Instituted in memory of Unani scholar and educationist Hakeem Abdul Hameed, the awards have grown into a national platform that celebrates those building a more inclusive and resilient India. For one evening at least, the spotlight was not just on success, but on service with substance.
