Sun TV

1QFY2011 Result Update | Media
July 29, 2010

Sun TV Network ACCUMULATE
CMP Rs454
Performance Highlights Target Price Rs518
Investment Period 12 Months
(Rs cr) 1QFY11 1QFY10 % yoy 4QFY10 % qoq Stock Info
Revenue 440.4 287.7 53.1 391.9 12.4 Sector Media
EBITDA 359.9 223.6 60.9 330.9 8.8 Market Cap (Rs cr) 17,891
OPM (%) 81.7 77.7 397bp 84.4 (271bp) Beta 0.6
PAT 171.0 119.8 42.7 165.1 3.6 52 Week High / Low 475/251
Source: Company, Angel Research
Avg. Daily Volume 86,712
We have tweaked our estimates marginally - 1) revenues largely unchanged as Face Value (Rs) 5
higher revenues from movies get offset by lower DTH subscriber addition this
BSE Sensex 17,992
quarter (~0.3mn) and lower ARPU of Rs36 (earlier estimate of Rs40), 2) increase
in operating margins to account for cost rationalisation and higher operating Nifty 5,409
leverage and 3) ~2–5% increase in earnings, consequent to both significant Reuters Code SUNTV.BO
revenue traction and operating margin expansion. We maintain an Accumulate Bloomberg Code SUNTV@IN
on the stock.

Strong results led by robust advertising and subscription revenue growth: Sun TV
reported robust 53% yoy top-line growth, led by 1) ~50% yoy growth in Shareholding Pattern (%)
advertising revenue, 2) ~84% yoy growth in DTH revenue and 3) ~42% yoy jump Promoters 77.0
in analogue revenue. In terms of earnings, Sun TV posted robust growth of
43% yoy on a recurring basis, despite spike in depreciation/amortisation expense MF / Banks / Indian Fls 4.6
(up 109% yoy) and 21% yoy decline in other income, aided by strong growth in FII / NRIs / OCBs 8.4
top-line and significant operating margin expansion to the tune of 397bp yoy, Indian Public / Others 10.0
driving a whopping 61% yoy growth in operating profit.

Outlook and Valuation: At the CMP of Rs454, the stock is trading at modest
valuations of 21x FY2012E EPS given robust 28% CAGR over FY2010-12E (less Abs. (%) 3m 1yr 3yr
than ~1x PEG). Moreover, we expect STNL's cash balance to increase to a
Sensex 2.8 18.6 18.1
whopping Rs12bn (~Rs31 per share) in FY2012E driven by strong rise in free
cash flow (almost tripling over FY2010-12E) on the back of strong earnings STNL 8.6 72.9 5.9
growth. Hence, we maintain Accumulate on the stock with a revised Target Price
of Rs518 (Rs497) based on 24x FY2012, 5% discount to its historical average P/E
of 25x to account for risks associated with high ARPUs in DTH subscription model
and 2) release/success of Endhiran (big budget production.

Key Financials (Consolidated)
Y/E March (Rs cr) FY2009 FY2010 FY2011E FY2012E
Net Sales 1,039 1,453 1,981 2,231
% chg 19.5 39.8 36.3 12.6
Net Profit 368 520 727 853
% chg 12.7 41.2 39.8 17.4
OPM (%) 70.9 75.1 77.5 78.1
EPS (Rs) 9.3 13.2 18.4 21.6
P/E (x) 48.6 34.4 24.6 21.0 Anand Shah
P/BV (x) 10.5 9.5 7.5 6.0 022 – 4040 3800 Ext: 334
RoE (%) 21.6 27.9 33.5 31.6 anand.shah@angeltrade.com

RoCE (%) 30.2 39.7 47.1 44.7
Chitrangda Kapur
EV/Sales (x) 16.9 12.1 8.9 7.9
022 – 4040 3800 Ext: 323
EV/EBITDA (x) 23.8 16.1 11.4 10.1
chitrangdar.kapur@angeltrade.com

Please refer to important disclosures at the end of this report 1

Sun TV Network|1QFY2011 Result Update

Exhibit 1: Quarterly Performance (Standalone)
Y/E March (Rs cr) 1QFY11 1QFY10 % yoy 4QFY10 % qoq FY2010 FY2009 % chg
Net Sales 440.4 287.7 53.1 391.9 12.4 1,395.0 1,008.2 38.4
Cost of Revenues 26.8 20.8 28.5 22.1 21.0 88.9 81.7 8.8
(% of sales) 6.1 7.2 5.6 6.4 8.1
Staff cost 39.9 31.1 28.6 16.7 139.2 116.0 102.0 13.7
(% of sales) 9.1 10.8 4.3 8.3 10.1
Other expenditure 13.9 12.2 14.0 22.2 (37.7) 79.6 52.9 50.4
(% of sales) 3.1 4.2 5.7 5.7 5.2
Total Expenditure 80.6 64.0 25.8 61.0 32.0 284.5 236.6 20.2
Operating Profit 359.9 223.6 60.9 330.9 8.8 1,110.6 771.6 43.9
OPM (%) 81.7 77.7 84.4 79.6 76.5
Depreciation & Ammortisation 114.7 55.0 108.7 84.8 35.2 285.4 184.9 54.4
EBIT 245.2 168.6 45.4 246.0 (0.3) 825.1 586.7 40.6
EBIT (%) 55.7 58.6 62.8 59.1 58.2
Interest 0.1 0.6 (77.8) 0.2 (39.1) 1.2 3.9 (69.2)
Other Income 11.3 14.2 (20.7) 8.5 33.3 42.5 83.3 (49.0)
PBT (excl. Ext Items) 256.3 182.2 40.6 254.2 0.8 866.4 666.1 30.1
Ext Income/(Expense) - - - - -
PBT (Incl. Ext Items) 256.3 182.2 40.6 254.2 0.8 866.4 666.1 30.1
(% of Sales) 58.2 63.4 64.9 62.1 66.1
Provision for Taxation 85.4 62.4 36.7 89.2 (4.3) 299.0 229.0 30.6
(% of PBT) 33.3 34.3 35.1 34.5 34.4
Recurring PAT 171.0 119.8 42.7 165.1 3.6 567.4 437.1 29.8
PATM (%) 38.8 41.6 42.1 40.7 43.4
Reported PAT 171.0 119.8 42.7 165.1 3.6 567.4 437.1 29.8
Equity shares (cr) 39.4 39.4 39.4 39.4 39.4
EPS (Rs) 4.3 3.0 4.2 14.4 11.1

Strong top-line growth led by spike in both advt. and subs. revenues

Sun TV reported robust 53% yoy top-line growth, led by: 1) ~50% yoy growth in
advertising revenue, 2) ~84% yoy/10% qoq growth in DTH revenue (6.3mn
subscriber base, Rs35–36 ARPU), and 3) ~42% yoy/9% qoq jump in analogue
revenue. Ad revenue grew largely on account of ad-rate hike absorption (blended
ad-rate hike of 5–33% taken across channels effective January 2010), better
inventory utilisation and increased traction from niche channels (kids/comedy)
launched in 1QFY2010. While analogue subscription revenue registered robust
growth on account of renewed focus of the management in terms of distribution and
incremental revenue traction from Malyalam channels (turned pay effective April
2010), DTH revenue registered strong yoy growth due to higher subscriber base
(increased to 6.3mn, incremental growth of 0.3mn qoq) and yoy increase in ARPUs
(revised bouquet rates due to addition of new channels, flat qoq at Rs35-36).

July 29, 2010 2


Exhibit 2: Top-line growth trend
500 440 60
450 395 392
400 50
53
350 320
276 288 46 40
300 271
238 42

(Rs cr)
224

(%)
250 30
35
200
29 20
150 24
22
100 10
50 12
10
- -

1QFY09

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11
Top-line (LHS) YoY growth (RHS)


Exhibit 3: Revenue Breakup
Y/E March (Rs cr) 1QFY11 1QFY10 % yoy 4QFY10 % qoq
Advt. Income 222 149 49.5 222 -
Broadcast Fee 35 30 15.7 36 (3.3)
Program License Inc (Int Rev) 16 14 15.9 15 9.6
Subs Income - Analogue 51 36 41.7 47 9.4
Subs Income - DTH 68 37 83.8 62 9.7
Others (Incl Movies) 48 22 118.2 10 380.0
Total Revenues 440 288 53.0 391 12.4

Exhibit 4: Revenue Growth trend

250 222

200
(Rs cr)

150 132

100
68
51
50 31 37 35
11 12 16
-
Advertisement Analog Subs. DTH Subs. International Subs. Broadcast fees
1QFY09 2QFY09 3QFY09 4QFY09 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11


July 29, 2010 3


Recurring earnings growth robust, despite jump in D&A expense

In terms of earnings, Sun TV posted a robust growth of 43% yoy to Rs171cr (Rs120cr)
on a recurring basis, despite depreciation/amortisation expense increase by
109% yoy (the management has indicated an amortisation expense of ~Rs99cr out
of which Rs42cr expense is incurred on movies) and 21% yoy decline in other income
to Rs11cr (Rs14cr), aided by significant operating margin expansion and strong
growth in top-line.

Cost rationalisation and higher operating leverage aid OPM expansion

At the operating level, Sun TV posted a 397bp yoy expansion, driving a whopping
61% yoy growth in operating profit to Rs360cr (Rs224cr), aided by cost
rationalisation initiatives undertaken by the company and higher operating leverage.
The cost of revenues (down 116bp yoy to Rs27cr), staff cost (down 173bp yoy to
Rs40cr) and other expenses (down 108bp yoy to Rs14cr) declined. Moreover, the
incremental growth in advertisement revenue, contributing ~51% to the total
revenues, was largely on account of the ad-rate hike, which directly reflected in the
margins (due to no costs attached).

Exhibit 5: Earnings flat qoq (~4%), record jump yoy Exhibit 6: Director draws the entitled ~10% of PBT
200 50.0 100.0 81.6 77.7 84.4 81.7
75.5 74.1 74.3 76.0 79.1
150 40.0 80.0
30.0 60.0
(Rs cr)

(%)

100
(%)

20.0 40.0
50 10.0 11.0 10.8 10.8 10.0
20.0 9.5 9.5 9.2 9.1
4.3
- - -
1QFY09

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

1QFY09

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11
PAT (LHS) YoY growth (RHS) OPM Staff cost (% of sales)

Source: Company, Angel Research Source: Company, Angel Research

July 29, 2010 4


Investment Arguments

STNL ad revenues to outpace regional advt., we peg 21% CAGR: During
FY2010-12E, we peg STNL’s standalone ad revenues CAGR at 21%, ahead of
14% CAGR in regional advertising during the period, driven by:
1) absorption of rate hikes (5-33% hike in ad rates across channels effective Jan,
2010), 2) increased traction from niche kids/comedy channels launched in
1QFY2010, and 3) strong focus of management on utilising inventory during
off-peak hours and new weekend programming.

Multiple levers led by DTH to drive 37% CAGR in pay revenues: During
FY2010-12E, we expect STNL to register a robust 37% CAGR in its overall
subscription revenues aided by: 1) strong 50% CAGR in DTH revenues on the
back of 28% CAGR in DTH subscribers and rise in ARPU to Rs36 (due to revised
bouquet rates at Rs52/month as reported in 4QFY2010), and 2) 20% CAGR in
analogue revenues aided by restructuring of distribution business and
Malayalam channels (Surya TV, Kiran TV) turning pay effective April 1, 2010.

Radio to reach near break-even at operating level by FY2012E: On a
consolidated basis (Kal and SAFM), we expect the radio subsidiaries to report
top-line CAGR of 22% during FY2010-12E to Rs84cr (Rs56cr) driven by: 1)
uniform brand identity of the radio channels to Red FM, will act as an effective
tool for marketing the stations with agencies and customers, and 2) Red FM has
announced an increase in its ad rates by 12-15% effective June 2010.

Sun Pictures - Betting big on the ‘big budget movie’: Sun Pictures is expected to
release Endhiran (estimated budget for the movie is over Rs100cr) in
2HFY2011E in three languages, viz. Tamil, Telegu and Hindi. We expect the
movie to register returns of 20-25% at EBIT level. For FY2011E, we estimate that
the revenues from movie distribution for STNL (including release of Endhiran) will
grow at 196% yoy to Rs200cr (Rs67.5cr) and then taper down to Rs135cr in
FY2012E, as the effect of revenue traction from Endhiran wanes.

Outlook and Valuation

We have tweaked our estimates marginally - 1) revenues largely unchanged as
higher revenues from movies get offset by lower DTH subscriber addition this quarter
(~0.3mn) and lower ARPU of Rs36 (earlier estimate of Rs40), 2) increase in
operating margins to account for cost rationalisation and higher operating leverage
and 3) ~2–5% increase in earnings, consequent to both significant revenue traction
and operating margin expansion.

Exhibit 7: Change in estimates
Parameter Old Estimate New Estimate % chg
(Rs cr) FY11E FY12E FY11E FY12E FY11E FY12E
Revenue 1,978 2,217 1,981 2,231 0.1 0.7
OPM (%) 75.7 76.1 77.5 78.1 185bp 203bp
EPS (Rs) 18.1 20.7 18.4 21.6 2.1 4.5

We believe higher valuations of STNL are justified given its: 1) strong earnings
CAGR of 28% over FY2010-12E, 2) dominant leadership in 3 out 4 lucrative
southern markets, 3) strong group strength and presence across media value
chains, 4) unique-low cost business model and 5) significant reduction in losses
in radio subsidiaries. Hence, we maintain an Accumulate on the stock, with a
revised Target Price of Rs518 (Rs497), based on 24x FY2012E EPS of Rs21.6.

July 29, 2010 5


During FY2010-12E we have modeled in 23.9%, 26.3% and 28.1% CAGR in
top-line, core EBIT (post amortisation), and earnings respectively, for STNL.
Moreover, we expect STNL’s cash balance to swell to Rs12bn (~Rs31per share)
in FY2012E driven by strong rise in free cash (almost tripling over FY2010-12E)
on the back of strong earnings growth and hence, expect STNL’s RoE to sustain
to ~28–31% levels and RoIC to rise to 57% (36%).

Exhibit 8: Key Assumptions-Consolidated Revenue
(Rs cr) FY09 FY10 FY11E FY12E CAGR #
Advertising Revenue 606 845 1,027 1,229 20.6
YoY Growth % 27.4 39.5 21.5 19.7
Broadcasting 573 789 958 1,145 20.5
YoY Growth % 22.7 37.7 21.5 19.5
Radio 33 56 69 84 21.9
YoY Growth % 272.6 69.6 21.9 21.9
Broadcast Fee 130 134 149 157 8.0
YoY Growth % 3.8 3.0 11.0 5.1
Subscription 269 394 592 696 32.9
YoY Growth % 0.6 46.5 50.2 17.6
Analogue 131 157 212 227 20.4
YoY Growth % (40.2) 19.6 35.1 7.4
DTH 84 183 324 410 49.7
YoY Growth % 748.5 117.9 77.0 26.7
Program Licence 54 54 56 58 3.6
YoY Growth % 41.2 0.7 3.7 3.5
Movies 28 67 200 135 41.4
YoY Growth % - 139.1 196.3 (32.5)
Other Sales 6 9 8 8 (0.6)
YoY Growth % - 46.3 (3.8) 2.7
Net Sales 1,039 1,450 1,976 2,225 23.9
YoY Growth % 19.5 39.5 36.3 12.6
#
Source: Company, Angel Research; Note: denotes CAGR for FY2010-12E period

July 29, 2010 6


Exhibit 9: Peer Valuation
Company Reco Mcap CMP TP Upside P/E (x) EV/Sales (x) RoE (%) CAGR #
(Rs cr) (Rs) (Rs) (%) FY11E FY12E FY11E FY12E FY11E FY12E Sales PAT
Sun TV Accum. 17,891 454 518 14.0 24.6 21.0 8.9 7.9 33.5 31.6 23.9 28.1
Zee Ent^ Neutral 14,277 295 - - 19.5 16.1 - - 14.4 15.7 21.4 27.6
Source: Company, Angel Research, Note: #denotes CAGR for FY2010-12E, ^Zee Entertainment figures are consensus estimates from Bloomberg

Exhibit 10: Angel v/s Consensus estimates
Top-line (Rs cr) FY2011E FY2012E EPS (Rs) FY2011E FY2012E
Angel estimates 1,981 2,231 Angel estimates 18.4 21.6
Consensus 1,821 2,088 Consensus 17.3 20.7
Diff (%) 8.7 6.8 Diff (%) 6.4 4.3

Exhibit 11: STNL trading below its 3yr avg P/E of 25x Exhibit 12: STNL’s 3yr avg Prem over Sensex at 44%

55.0 250%
50.0
45.0 200%
40.0
35.0 150%
30.0
25.0 100%
20.0
15.0 50%
10.0
5.0 0%
Jul-06
Oct-06

Jul-07
Oct-07

Jul-08
Oct-08

Jul-09
Oct-09

Jul-10
Apr-06

Apr-07

Apr-08

Apr-09

Apr-10
Jan-07

Jan-08

Jan-09

Jan-10

Jan-07

Jan-08

Jan-09

Jan-10
Jul-06
Oct-06

Jul-07
Oct-07

Jul-08
Oct-08

Jul-09
Oct-09

Jul-10
Apr-06

Apr-07

Apr-08

Apr-09

Apr-10
Source: Company, Angel Research; Note: Blue-line denotes 3yr avg P/E Source: Company, Angel Research; Note: Blue-line denotes 3yr avg Prem

Exhibit 13: STNL & ZEEL trading at similar 1yr Fwd P/E Exhibit 14: STNL trades at 3yr avg Prem of 9% to ZEEL

55.0 BSE Sensex Sun TV Zee Ent 95%

45.0 75%

35.0 55%

35%
25.0
15%
15.0
-5%
5.0
-25%
Jul-06
Oct-06
Jan-07

Jul-07
Oct-07
Jan-08

Jul-08
Oct-08
Jan-09

Jul-09
Oct-09
Jan-10

Jul-10
Apr-06

Apr-07

Apr-08

Apr-09

Apr-10

Oct-06
Jan-07

Oct-07
Jan-08

Oct-08
Jan-09

Oct-09
Jan-10
Apr-06

Apr-07

Apr-08

Apr-09

Apr-10
Jul-06

Jul-07

Jul-08

Jul-09

Jul-10

Source: Company, Angel Research Source: Company, Angel Research, Note: Blue-line denotes 3yr avg Prem

July 29, 2010 7


Profit & Loss Statement (Consolidated)
Y/E March (Rs cr) FY2008 FY2009 FY2010 FY2011E FY2012E
Gross sales 870 1,039 1,453 1,981 2,231
Less: Excise duty - - - - -
Net Sales 870 1,039 1,453 1,981 2,231
Total operating income 870 1,039 1,453 1,981 2,231
% chg 28.3 19.5 39.8 36.3 12.6
Total Expenditure 272 303 362 445 489
(Inc)/Dec in stock in trade - - 4 6 6
Cost of Production 77 111 119 135 145
Staff Cost 96 116 134 199 225
Power & Fuel 7 14 14 16 18
Others 93 62 91 89 94
EBITDA 598 737 1,091 1,535 1,742
% chg 27.5 23.3 - - 13.5
(% of Net Sales) 68.7 70.9 75.1 77.5 78.1
Depreciation& Amortisation 124 220 321 459 479
EBIT 474 516 770 1,077 1,263
% chg 34.4 - - - -
(% of Net Sales) 54.4 49.7 53.0 54.4 56.6
Interest & other Charges 16 14 5 2 2
Other Income 56 67 35 39 44
(% of PBT) 10.8 11.7 4.4 3.5 3.3
Share in profit of Associates 1.1 0.2 0.8 1.0 1.2
Recurring PBT 513 569 800 1,113 1,305
% chg 32.6 10.9 40.5 39.2 17.2
Extraordinary Expense/(Inc.) - - - - -
PBT (reported) 513 569 800 1,113 1,305
Tax 201 229 299 401 463
(% of PBT) 39.2 40.3 37.4 36.0 35.5
PAT (reported) 312 340 501 713 841
Add: Share of associates - - - - -
Less: Minority interest (MI) (14) (28) (18) (13) (10)
PAT after MI (reported) 327 368 520 727 853
ADJ. PAT 327 368 520 727 853
% chg 32.8 12.7 41.2 39.8 17.4
(% of Net Sales) 37.6 35.4 35.8 36.7 38.2
Basic EPS (Rs) 8.3 9.3 13.2 18.4 21.6
Fully Diluted EPS (Rs) 8.3 9.3 13.2 18.4 21.6
% chg 32.8 12.7 41.2 39.8 17.4

July 29, 2010 8


Balance Sheet (Consolidated)
SOURCES OF FUNDS
Equity Share Capital 197 197 197 197 197
Preference Capital - - 88 88 88
Reserves& Surplus 1,252 1,505 1,689 2,176 2,764
Shareholders Funds 1,449 1,702 1,973 2,461 3,048
Minority Interest 60 38 37 37 37
Total Loans 69 72 0 0 0
Deferred Tax Liability 1 26 34 34 34
Total Liabilities 1,580 1,838 2,045 2,532 3,119
APPLICATION OF FUNDS
Gross Block 1,019 1,491 1,888 2,247 2,567
Less: Acc. Depreciation 474 677 990 1,449 1,929
Net Block 545 815 898 798 638
Capital Work-in-Progress 222 157 315 247 257
Goodwill - - - - -
Investments 180 181 228 328 528
Non Current Assets 8 23 30 35 40
Current Assets 880 881 1,035 1,469 2,050
Cash 430 365 437 704 1,226
Loans & Advances 192 274 266 327 335
Other 258 241 332 439 489
Current liabilities 256 219 461 345 393
Net Current Assets 624 662 574 1,124 1,657
Misc Exp 0 0 0 0 0
Total Assets 1,580 1,838 2,045 2,532 3,119

Cash Flow Statement (Consolidated)
Profit before tax 513 569 800 1,113 1,305
Depreciation 124 220 321 459 479
Change in Working Capital (93) 56 (109) (160) (48)
Interest / Dividend (Net) (32) (26) (29) (37) (41)
Direct taxes paid 213 202 281 401 463
Others 54 (14) 24 (15) 4
Cash Flow from Operations 354 604 726 959 1,236
Inc./ (Dec.) in Fixed Assets (392) (494) (554) (291) (329)
Inc./ (Dec.) in Investments (180) (0) (47) (100) (200)
Cash Flow from Investing (572) (494) (602) (391) (529)
Issue of Equity 76 6 107 13 10
Inc./(Dec.) in loans (49) (4) (73) (4) (3)
Dividend Paid (Incl. Tax) (46) (184) (115) (345) (231)
Interest / Dividend (Net) 17 8 29 35 39
Cash Flow from Financing (1) (174) (53) (301) (185)
Inc./(Dec.) in Cash (220) (64) 71 267 522
Opening Cash balances 649 430 365 437 704
Closing Cash balances 430 365 437 704 1,226

July 29, 2010 9


Key Ratios
Y/E March FY2008 FY2009 FY2010 FY2011E FY2012E
Valuation Ratio (x)
P/E (on FDEPS) 54.8 48.6 34.4 24.6 21.0
P/CEPS 51.2 43.9 30.4 22.0 18.9
P/BV 12.4 10.5 9.5 7.5 6.0
Dividend yield (%) 0.6 0.6 1.7 1.1 1.3
EV/Sales 20.2 16.9 12.1 8.9 7.9
EV/EBITDA 29.3 23.8 16.1 11.4 10.1
EV / Total Assets 11.1 9.5 8.6 6.9 5.6
Per Share Data (Rs)
EPS (Basic) 8.3 9.3 13.2 18.4 21.6
EPS (fully diluted) 8.3 9.3 13.2 18.4 21.6
Cash EPS 8.9 10.3 14.9 20.6 24.0
DPS 2.5 2.5 7.5 5.0 5.8
Book Value 36.8 43.2 47.8 60.2 75.1
Dupont Analysis
EBIT margin 54.4 49.7 53.0 54.4 56.6
Tax retention ratio 0.6 0.6 0.6 0.6 0.6
Asset turnover (x) 1.1 0.8 0.9 1.0 0.9
RoIC (Post-tax) 35.3 24.6 28.5 33.3 33.8
Cost of Debt (Post tax) 0.1 0.1 0.1 9.1 9.3
Leverage (x) 0.8 0.4 0.2 0.0 0.0
Operating RoE 63.7 33.3 33.7 33.4 33.9
Returns (%)
RoCE (Pre-tax) 33.1 30.2 39.7 47.1 44.7
Angel RoIC (Pre-tax) 59.2 45.7 57.6 74.8 88.2
RoE 23.6 21.6 27.9 33.5 31.6
Turnover ratios (x)
Asset Turnover 0.9 0.7 0.8 0.9 0.9
Inventory / Sales (days) 0.1 0.0 0.7 0.6 0.7
Receivables (days) 108.1 84.7 82.7 80.2 79.3
Payables (days) 14.7 16.1 9.6 8.2 8.0
Work. cap. ex-cash) (days) 81.5 104.2 34.5 77.5 70.5
Solvency ratios (x)
Net debt to equity 0.4 0.4 0.0 0.0 0.0
Net debt to EBITDA 0.1 0.1 0.0 0.0 0.0
Interest Coverage 29.8 37.4 155.9 538.3 631.5

July 29, 2010 10


Research Team Tel: 022 - 4040 3800 E-mail: research@angeltrade.com Website: www.angeltrade.com

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redistributed or passed on, directly or indirectly.
Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or
other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in
the past.
Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
connection with the use of this information.
Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the
latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have
investment positions in the stocks recommended in this report.

Disclosure of Interest Statement SUN TV Network
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No

Note: We have not considered any Exposure below Rs 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns) : Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
Reduce (-5% to 15%) Sell (< -15%)

July 29, 2010 11

Sun TV

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