Sun TV Network's Q2 FY25 financials show mixed results, MarketsMOJO advises 'Hold' stance

Sun TV Network, a largecap company in the TV broadcasting and software industry, recently declared its financial results for the quarter ending September 2024. The company has received a ‘Hold’ call from MarketsMOJO, indicating a neutral stance on the stock.

According to the financials, Sun TV Network has seen a negative performance in the quarter, with a score of -12 compared to -2 in the previous quarter. However, there are some positive aspects to the company’s financials. The operating cash flow for the year is the highest at Rs 2,137.41 crore and has been growing consistently over the past three years. This indicates that the company has been able to generate higher cash revenues from its business operations.

On the other hand, there are some areas that are not working in favor of Sun TV Network. The profit before tax less other income (PBT) for the quarter has fallen by -32.65% year on year, while the net sales and profit after tax (PAT) have also seen a decline of -10.86% and -11.9% respectively. This trend is expected to continue in the near term.

The company’s non-operating income, which is 33.43% of the PBT, is a cause for concern as it indicates a high reliance on non-business activities. The earnings per share (EPS) for the quarter is also at its lowest in the last five quarters, indicating a decline in profitability and lower returns for shareholders.

Additionally, the company’s cash and cash equivalents have also seen a decline in the last six half-yearly periods, indicating a deteriorating short-term liquidity. The non-operating income for the quarter is at its highest in the last five quarters, which may not be sustainable in the long run.

Overall, Sun TV Network’s financial performance for the quarter has been negative, with some positive and negative aspects. Investors are advised to hold their position on the stock, as recommended by MarketsMOJO.