How has been the historical performance of H T Media?

Revenue and Profitability Trends

H T Media's net sales have experienced notable volatility over the past six years. After peaking above ₹2,100 crores in the fiscal year ending March 2020, revenues declined sharply to just over ₹1,100 crores in March 2021, reflecting the impact of market disruptions. Since then, the company has seen a gradual recovery, with net sales rising to approximately ₹1,805 crores by March 2025. Despite this rebound, the revenue levels remain below the pre-pandemic highs.

Operating profit margins excluding other income have mirrored this volatility, swinging from a positive 6.9% in March 2020 to negative margins in subsequent years, including a low of around -11.1% in March 2021. The company managed to return to a modest positive margin in March 2022 but again faced negative margins in the following years, indicating ongoing operational challenges.

Other income has consistently contributed positively, ranging between ₹150 crores and ₹236 crores annually, providing some cushion to operating results. Consequently, the operating profit including other income showed a peak of nearly ₹370 crores in March 2020 but declined sharply thereafter, with a modest recovery to ₹187 crores by March 2025.

Profit before tax and net profit figures have been particularly volatile. The company reported losses before tax in most years except for March 2022 and March 2025, where it posted modest profits. Net profit followed a similar pattern, with significant losses in the years following 2019, including a steep loss of over ₹345 crores in March 2020, before returning to a small positive net profit of ₹1.95 crores in March 2025. Earnings per share have reflected these swings, moving from negative double digits to a slight positive in the latest fiscal year.

Cost Structure and Expenditure

The company's expenditure profile shows significant costs related to raw materials and employee expenses. Raw material costs have fluctuated, peaking at over ₹770 crores in March 2019 before declining to around ₹414 crores in March 2025. Employee costs have steadily increased from approximately ₹330 crores in March 2021 to ₹444 crores in March 2025, reflecting possible expansion or wage inflation.

Other expenses have also risen, reaching nearly ₹980 crores in the latest fiscal year. Total expenditure excluding depreciation has generally tracked revenue trends but has often exceeded operating income, contributing to operating losses in several years.

Balance Sheet and Financial Position

On the balance sheet front, H T Media's total assets have gradually decreased from over ₹4,200 crores in March 2020 to approximately ₹3,774 crores in March 2025. Shareholders' funds have similarly declined from above ₹2,150 crores to around ₹1,666 crores over the same period. The company’s net block, representing fixed assets net of depreciation, has reduced from nearly ₹778 crores in March 2020 to ₹371 crores in March 2025, indicating asset depreciation or disposals.

Long-term borrowings have seen a downward trend from over ₹300 crores in March 2022 to about ₹95 crores in March 2025, suggesting efforts to deleverage. However, short-term borrowings remain substantial, hovering above ₹550 crores in the latest year. Total debt has decreased from over ₹620 crores in March 2020 to just above ₹500 crores in March 2025.

Current assets have increased to nearly ₹2,000 crores by March 2025, supported by rising current investments and sundry debtors. Net current assets have improved significantly from negative territory in earlier years to a positive ₹289 crores in the latest fiscal year, signalling better liquidity management.

Cash Flow and Liquidity

Cash flow from operating activities has been inconsistent, with positive inflows in some years and negative outflows in others. The latest fiscal year saw a positive operating cash flow of ₹56 crores, a recovery from negative cash flows in preceding years. Investing activities have generally generated positive cash inflows, notably ₹169 crores in March 2025, while financing activities have consistently resulted in cash outflows, reflecting debt repayments or other financing adjustments.

Overall, the company’s net cash position has fluctuated, ending with a closing cash and cash equivalent balance of ₹41 crores in March 2025, down from ₹67 crores the previous year.

Summary and Outlook

H T Media's historical performance reflects a company navigating significant headwinds, including sharp revenue declines and profitability pressures, particularly during the pandemic years. While recent years show signs of recovery in sales and operating profit, net profitability remains marginal. The company has taken steps to reduce long-term debt and improve liquidity, as evidenced by better net current assets and positive operating cash flows in the latest fiscal year.

Investors should note the volatility in earnings and margins, alongside the company's efforts to stabilise its financial position. The balance sheet shows a reduction in fixed assets and reserves, which may impact future growth potential. However, the improved cash flow and deleveraging efforts could provide a foundation for more sustainable performance going forward.

Overall, H T Media's financial history underscores the challenges faced by media companies in a rapidly evolving industry landscape, with recovery underway but cautious optimism warranted.

Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →