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Financial Management
Term 2
A Project Report on Media Sector Companies

Section B
Group No. 4B
Team Members
S. No Name Roll No.
1 Nilay Krishna 160091
2 Nitish Raj 160092
3 Saurabh Kumar 160093
4 Priyanka Sinha 160094
5 Rajan Kumar Jha 160095
6 Ranjeet Kumar Singh 160096
7 Raushan Kumar Singh 160097
8 Ravi Kumar 160098
9 Ravish Kumar Singh 160099
10 Ritin Raj 160100

Submitted To

Prof Sriranga Vishnu

Finance And Accounting (F&A) CIMP Patna,
Bihar (800001)

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Table Of Content

S. No Content Page No

1 Overview of the Media Industry 3

2 About The Selected Media Companies 4

3 Rationale Behind Selecting The Specific Companies 4

4 Cross Sectional Ratio Analysis

I. Liquidity Ratio 5
II. Turnover Ratio 6
III. Leverage Ratio 7
IV. Profitability Ratio 8
5 Comparison 9
6 References 10

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Overview of the Media Industry

The media industry encompasses various forms of communication and entertainment,

including television, radio, print publications, digital platforms, and social media
networks.

 Key Characteristics:
a) Diverse Platforms: Media companies operate across a wide range of platforms to
reach audiences, from traditional mediums such as TV and radio to digital platforms
like websites and mobile apps.
b) Content Diversity: The industry produces a wide range of content, including news,
entertainment, sports, documentaries, and educational programs, catering to diverse
audience preferences and demographics.
c) Technological Advancements: Technological innovations have transformed the
media landscape, enabling the creation, distribution, and consumption of content
through digital platforms, streaming services, and mobile devices.
d) Global Reach: With the rise of the internet and digital media, media companies can
reach global audiences, breaking down geographical barriers and expanding their
reach beyond traditional markets.

 Impact on Society:
a) The media industry plays a critical role in shaping public opinion, influencing cultural
trends, and facilitating dialogue on important issues.
b) It provides a platform for diverse voices and perspectives, fostering informed debate
and democratic participation.
c) However, it also faces challenges such as misinformation, content moderation, and
privacy concerns, which require careful regulation and oversight.

 In conclusion, the media industry is undergoing rapid transformation, driven by

technological advancements, changing consumer behaviour, and regulatory dynamics.
Understanding these trends is essential for media companies to adapt their strategies,
innovate their business models, and thrive in an increasingly competitive and complex
environment.
About The Selected Media Companies

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1. Zee Media Corporation Ltd is a leading Indian news organization with a

diverse portfolio of news channels and digital platforms. Despite facing challenges
like decreasing promoter holding, it maintains a strong brand presence and wide
reach.

2. Network 18 Media & Investments Ltd is India's most diversified media

conglomerate, operating across various content genres and platforms. It includes
brands like CNBC TV18, News18 India, and Colours. Recent strategic partnerships
and business consolidations demonstrate its commitment to enhancing its position in
the media industry.

3. Hindustan Media Ventures Ltd focuses primarily on the printing and

publication of newspapers, with its flagship brand being "Hindustan." It holds a
significant position in various states and operates other niche brands. Despite
challenges in the print media industry, it remains a key player with a focus on
delivering quality content.

Rationale Behind Selecting The Specific Companies

The rationale behind selecting these specific companies includes:

a) Diversity of Media Segments: Each company represents different segments of the
media industry, allowing for a comprehensive analysis.
b) Market Presence and Influence: These companies hold significant market share and
influence within their respective segments.
c) Financial Performance and Stability: Despite challenges, the selected companies
have demonstrated stability over time.
d) Strategic Initiatives and Growth Prospects: Each company has undertaken
initiatives for expansion and growth.
e) Relevance to Industry Trends and Developments: The companies are positioned to
capitalize on key industry trends.
 In conclusion, the selection of these companies for analysis is based on their market
presence, financial stability, strategic initiatives, and relevance to industry trends.
Analysing them will provide valuable insights into the dynamics of the media industry
and factors driving their success and growth.

Cross Sectional Ratio Analysis

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1. Liquidity Ratio

A. Current Ratio

ZEE MEDIA NEWS18 MEDIA HINDUSTAN MEDIA

0.62 2.93 1.41

1. Zee Media Corporation Ltd

 Analysis: Shows potential difficulty meeting short-term obligations with
current assets alone.
2. Network 18 Media & Investments Ltd
 Analysis: Demonstrates strong liquidity position, with ample current assets to
cover short-term liabilities.
3. Hindustan Media Ventures Ltd
 Analysis: Indicates healthy liquidity position, though not as high as Network
18 Media.

B. Quick Ratio

ZEE MEDIA NEWS18 MEDIA HINDUSTAN MEDIA

0.62 1.84 1.34

1. Zee Media Corporation Ltd

 Analysis: Indicates potential difficulty meeting short-term liabilities with
liquid assets alone.
2. Network 18 Media & Investments Ltd
 Analysis: Demonstrates strong liquidity position, with ample liquid assets to
cover short-term liabilities.
3. Hindustan Media Ventures Ltd
 Analysis: Indicates a reasonably strong liquidity position, with sufficient
liquid assets to cover short-term liabilities.

2. Turnover Ratio
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A. Asset Turnover Ratio

ZEE MEDIA NEWS18 MEDIA HINDUSTAN MEDIA

0.78 0.54 0.33

1. Zee Media Corporation Ltd

 Analysis: Zee Media generates 0.78 units of revenue for every unit of assets,
indicating efficient asset utilization compared to its peers.
2. Network 18 Media & Investments Ltd
 Analysis: Network 18 Media generates 0.54 units of revenue for every unit of
assets, indicating lower asset turnover compared to Zee Media.
3. Hindustan Media Ventures Ltd
 Analysis: Hindustan Media Ventures generates 0.33 units of revenue for every
unit of assets, indicating the lowest asset turnover among the three companies.

B. Inventory Turnover Ratio

ZEE MEDIA NEWS18 MEDIA HINDUSTAN MEDIA

2.32 0.01 4.58

1. Zee Media Corporation Ltd

 Analysis: Zee Media has an inventory turnover ratio of 2.32, indicating that it
sells and replenishes its inventory approximately 2.32 times within the period,
showcasing efficient inventory management.
2. Network 18 Media & Investments Ltd
 Analysis: Network 18 Media's inventory turnover ratio is exceptionally low at
0.01, suggesting slower inventory turnover and potentially inefficient
inventory management compared to its peers.

3. Hindustan Media Ventures Ltd

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Analysis: Hindustan Media Ventures demonstrates a high inventory turnover ratio of 4.58,
implying that it sells and replenishes its inventory approximately 4.58 times within the
period, showcasing efficient inventory management.

3. Leverage Ratio

A. Debt to Equity Ratio

ZEE MEDIA NEWS18 MEDIA HINDUSTAN MEDIA

0.55 0.28 0.11

1. Zee Media Corporation Ltd

 Analysis: Zee Media has a debt-to-equity ratio of 0.55, indicating that it relies
moderately on debt financing to fund its operations compared to its equity.
2. Network 18 Media & Investments Ltd
 Analysis: Network 18 Media demonstrates a lower debt to equity ratio of
0.28, suggesting a lower reliance on debt financing and a relatively stronger
equity position compared to Zee Media.
3. Hindustan Media Ventures Ltd
 Analysis: Hindustan Media Ventures has the lowest debt to equity ratio of
0.11, indicating a conservative approach to debt financing and a stronger
reliance on equity financing for its operations

B. Debt to Profit Ratio

ZEE MEDIA NEWS18 MEDIA HINDUSTAN MEDIA

-2.65 -2.34 -3.31

1. Zee Media Corporation Ltd

 Analysis: Zee Media's debt to profit ratio is -2.65, indicating that its debt is
substantially higher than its profit, which may raise concerns about its ability
to service its debt obligations from its profit.
2. Network 18 Media & Investments Ltd

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 Analysis: Network 18 Media's debt to profit ratio is -2.34, suggesting a

similar situation to Zee Media, where the level of debt is significantly higher
than the profit generated.
3. Hindustan Media Ventures Ltd
 Analysis: Hindustan Media Ventures has the highest debt to profit ratio of -
3.31, indicating a comparatively higher level of debt relative to its profit,
potentially raising concerns about its debt servicing ability.

4. Profitability Ratio

A. Return on Asset (ROA) Ratio

ZEE MEDIA NEWS18 MEDIA HINDUSTAN MEDIA

-4.36% -0.14% -1.88%

1. Zee Media Corporation Ltd:

 Analysis: Zee Media's ROA ratio is -4.36%, indicating that it generated a
negative return on its assets, which may suggest inefficiencies in asset
utilization or profitability issues.
2. Network 18 Media & Investments Ltd:
 Analysis: Network 18 Media's ROA ratio is -0.14%, also showing a negative
return on assets, albeit to a lesser extent than Zee Media, indicating potential
profitability challenges.
3. Hindustan Media Ventures Ltd:
 Analysis: Hindustan Media Ventures' ROA ratio is -1.88%, demonstrating a
negative return on assets, indicating challenges in generating profits from its
assets.

B. Return on Equity (ROE) Ratio

ZEE MEDIA NEWS18 MEDIA HINDUSTAN MEDIA

-10.6% -2.21% -2.67%

1. Zee Media Corporation Ltd

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 Analysis: Zee Media's ROE ratio is -10.6%, indicating a negative return on

equity, which suggests that the company's shareholders experienced a loss on
their investments.
2. Network 18 Media & Investments Ltd
 Analysis: Network 18 Media's ROE ratio is -2.21%, also showing a negative
return on equity, though to a lesser extent than Zee Media, implying lower
losses relative to equity investment.
3. Hindustan Media Ventures Ltd
 Analysis: Hindustan Media Ventures' ROE ratio is -2.67%, demonstrating a
negative return on equity, indicating shareholder losses, albeit slightly higher
than Network 18 Media.

Comparison and Contrast of Selected Companies'

Performance Based on Assessed Ratios

In evaluating the performance of Zee Media Corporation Ltd, Network 18 Media &
Investments Ltd, and Hindustan Media Ventures Ltd based on the assessed ratios, several key
similarities and differences emerge:

1. Liquidity Position
 Similarity: Zee Media and Hindustan Media Ventures have lower liquidity
ratios, while Network 18 Media demonstrates stronger liquidity.
 Difference: Network 18 Media exhibits significantly better liquidity, ensuring
comfortable coverage of short-term liabilities.
2. Asset Utilization
 Similarity: All companies show low asset turnover, indicating suboptimal
asset utilization.
 Difference: Hindustan Media Ventures shows slightly better asset utilization
compared to Zee Media and Network 18 Media.
3. Leverage and Debt Management
 Similarity: Zee Media and Hindustan Media Ventures maintain moderate
debt-to-equity ratios.
 Difference: Network 18 Media has a lower debt-to-equity ratio, reflecting a
more conservative debt management approach.
4. Profitability

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 Similarity: All companies exhibit negative returns on assets and equity.

 Difference: Zee Media and Hindustan Media Ventures face more significant
profitability challenges compared to Network 18 Media.
5. Inventory Management
 Similarity: Zee Media and Hindustan Media Ventures show efficient
inventory turnover.
 Difference: Network 18 Media has a lower inventory turnover ratio,
indicating potential inefficiencies.
6. Overall Financial Performance
 Similarity: All companies encounter challenges in profitability and asset
utilization.
 Difference: Network 18 Media's stronger liquidity and conservative debt
management position it more favourably in the market.
In conclusion, while all three companies face similar industry challenges, differences in
liquidity, leverage, and inventory management contribute to variations in their overall
financial performance and competitive positioning within the media industry.

References

1. https://zeemedia.in/investorinfo?q=annual
2. https://www.nw18.com/annualReport
3. https://www.hmvl.in/annual-report.html
4. https://www.screener.in/

Thank You

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