Motilal Oswal Financial Services

13 November 2020

2QFY21 Results Update | Sector: Media

Sun TV Network

Estimate changes

TP change

Rating change

Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

12M Avg Val (INR M)

SUNTV IN

394

174.6 / 2.3

520 / 260

-8/-30/-24

1124

CMP: INR443

TP: INR530(+20% )

Buy

EBITDA supported by lower opex; Subscription

revenues trend higher



Financials & Valuations (INR b)

FY20 FY21E FY22E

Y/E March

Sales

34.0 32.0 37.7

EBITDA

22.4 21.4 25.5

Adj. PAT

13.7 14.0 16.2

EBITDA Margin (%)

65.7 66.9 67.7

Adj. EPS (INR)

34.8 35.5 41.1

EPS Gr. (%)

-1.7

2.0 15.8

BV/Sh. (INR)

142.7 149.3 161.6

Ratios

Net D:E

-0.6

-0.7

-0.8

RoE (%)

24.8 24.3 26.4

RoCE (%)

24.9 24.4 26.5

Payout (%)

82.9 81.3 70.2

Valuations

P/E (x)

12.7 12.5 10.8

P/B (x)

3.1

3.0

2.7

EV/EBITDA (x)

6.6

6.5

6.4

Div. Yield (%)

5.6

Shareholding pattern (%)

As On

Sep-20

Jun-20

Promoter 75.0

75.0

DII

5.3

5.6

FII

10.9

10.3

Others

8.9

9.1

FII Includes depository receipts

Sun TV’s 2QFY21 revenue recovered with 2% YoY decline (in-line) v/s 45%

decline in 1QFY21. This was attributed to stronger ad revenues and resilient

subscription revenues. EBITDA grew 7% (5% above est.) with cost

rationalization.

We have revised up our FY21E EBITDA by 7% on lower-than-estimated cost

in 2QFY21. Our FY22E revenue/EBITDA estimates are largely maintained; we

factor in 11%/14% growth over FY20. Revival in earnings and a low

valuation make it attractive. Maintain Buy.

SUN TV’s 2QFY21 revenues declined 2.3% YoY to INR7.6b (in-line), v/s 45%

decline in 1QFY21. Advertisement revenue recovered – down 29% v/s 67%

in 1QFY21; subscription revenue grew 14%.

Production costs / Employee expenses were down 35%/3% YoY, while SG&A

was up 8% YoY. This led to an overall 17% drop in opex v/s est. opex decline

of 13%.

Thus, EBITDA grew 7% YoY to INR5b (5% beat), supported by a reduction in

operating costs and marginally better-than-expected revenue; EBITDA

margins stood at 66.4% (up 580bps YoY).

Other income came in at INR516m (down 29% YoY). Subsequently, net

profit fell 6% YoY to INR3.5b (20% beat).

Sun TV generated strong INR8b cash from operations in 1HFY21.

Furthermore, its liquidity position remains strong as the company has net

cash of INR35.9b.

Revenue:

Advertisement revenue has picked up to 80% of pre-COVID levels

in Oct’20. However, de-growth is expected in FY21 given weak recovery

from regional customers. Subscription revenue should grow in the double

digits even excluding contribution from OTT subscriptions.

IPL:

Profit from the event should be significantly lower YoY due to a change

in the title sponsor (INR125m loss), lost ticket revenue (INR250–300m), and

higher operational expense as the tournament took place in the UAE.

Content focus:

The current focus remains on the pipeline of eight

blockbusters (INR3–4b cost), scheduled to be released over the next 12

months, along with the revamping of TV content. After this, the

management would focus on Sun Next original content.

OTT:

Original content production has been delayed due to movie line-ups.

However, the target is to annually invest INR2b in OTT from FY22. The

platform is expected to clock higher revenues given strong subscriber

traction and demand on telco/other OTT platforms.

Revenue down 2.3% YoY (in-line); EBITDA up 7% YoY (5% beat)



Sep-19

75.0

8.1

8.5

8.4

Highlights from management commentary



Research Analyst: Aliasgar Shakir

(Aliasgar.Shakir@motilaloswal.com)

Suhel Shaikh

(Suhel.Ahmad@MotilalOswal.com) |

Anshul Aggarwal

(Anshul.Aggarwal@motilaloswal.com)

Investors are advised to refer through important disclosures made at the last page of the Research Report.

Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Sun TV Network

Valuation and view



Subscription growth has remained steady in the last few quarters despite the

lockdown, while ad revenues are recovering gradually. We expect subscription

revenue to grow in the double digits in FY22E, while ad revenues should revive

as the market recovers.

Sun TV has a strong liquidity position, with INR35.9b net cash. This should help

the company maintain a stronger position in the current lockdown crisis and aid

strong investments in the Sun NXT platform.

The valuation has shrunk significantly from >25x two years back v/s prevailing

P/E of 11x. This is due to weak earnings on the back of dilution in viewership and

limited focus on the digital platform Sun NXT. However, recent strong

commentary on a TV content revamp and a strong funnel of movie content

could aid earnings revival.

We expect FY22 revenue/EBITDA to grow 11%/14% over FY20 on the back of an

improving macro environment, coupled with a revamp in content addition.

Sun TV trades at FY21E/FY22E P/E of 12.5x/10.8x. We value Sun TV at FY22E P/E

of 13x to arrive at TP of INR530. Maintain Buy.

(INR m)

Est Var

(%)

-4

516

-35

-20

Standalone – Quarterly Earnings Model

Y/E March

Revenue

10,804

YoY Change (%)

-3.6

Total Expenditure

3,975

EBITDA

6,829

YoY Change (%)

-7.1

Depreciation

1,585

Interest

Other Income

567

PBT

5,791

Tax

1,972

Rate (%)

34.1

Reported PAT

3,819

YoY Change (%)

-6.7

E: MOFSL Estimates

Key Performance Indicators

Y/E March

FY20

7,739

3.3

3,052

4,687

-15.4

1,444

721

3,945

280

7.1

3,665

4.3

8,150

-9.9

2,346

5,804

-13.0

1,436

636

4,985

1,250

25.1

3,735

6.3

7,352

-17.3

2,317

5,035

-17.2

2,328

570

3,259

759

23.3

2,500

-11.7

6,061

-43.9

1,896

4,165

-39.0

1,455

1,086

3,779

951

25.2

2,828

-25.9

FY21

7,562

-2.3

2,541

5,020

7.1

913

516

4,607

1,148

24.9

3,459

-5.6

3QE

9,717

19.2

3,620

6,097

5.0

1,207

317

5,187

1,305

25.2

3,882

4.0

4QE

8,670

17.9

2,528

6,141

22.0

1,313

301

5,104

1,284

25.2

3,820

52.8

FY20

34,044

-7.1

11,684

22,361

-12.8

6,793

2,489

17,979

4,261

23.7

13,718

-1.7

FY21E

32,009

-6.0

10,586

21,423

-4.2

4,888

2,220

18,678

4,688

25.1

13,989

2.0

FY21E

7,425

-4.1

2,646

4,778

1.9

1,394

488

3,852

969

25.2

2,883

-21.3

FY20

3,370

3,450

410

3,973

1,680

2,290

4,383

-94

7,739

60.6

51.2

47.4

3,410

3,460

410

4,119

2,050

2,070

4,529

161

8,150

71.2

61.4

45.8

2,910

2,950

410

3,988

1,930

2,050

4,398

7,356

68.5

44.6

34.0

1,210

1,260

378

4,423

2,260

2,160

4,801

6,061

68.7

62.6

46.7

FY21

3QE

3,069

3,122

373

4,472

2,050

2,422

4,845

1,750

9,717

62.7

53.6

40.0

4QE

3,348

3,397

371

4,673

2,193

2,483

5,044

228

8,670

70.8

59.2

44.1

FY20

FY21E

Revenue Breakup

Advertising

Broadcasting

Total Advertising & Broadcasting

International subscription

Domestic Subscription

- Domestic Cable

- DTH

Total Subscription revenue

Films, IPL and Others

Total

Production Costs (%)

EBITDA Margin (%)

EBIT Margins (%)

PAT Margins (%)

E: MOFSL Estimates

3,682

100

3,782

410

3,969

1,690

2,280

4,379

2,643

10,804

63.2

53.8

35.3

2,400

2,450

370

4,270

1,950

2,320

4,640

471

7,562

66.4

61.1

45.7

13,369

270

13,639

1,640

15,622

7,350

8,690

17,262

2,719

33,620

65.7

53.0

40.3

10,027

203

10,229

1,492

17,838

8,453

9,385

19,330

2,450

32,009

66.9

58.6

43.7

13 November 2020

Sun TV Network

Exhibit 1: Valuation based on FY22 EPS

Particulars

EPS (INR)

PE multiple (x)

Target Price (INR)

CMP (INR)

Upside (%)

FY22

530

443

20%

Source: Company, MOFSL

Exhibit 2: SUNTV: 1-year forward P/E band

P/E (x)

35.0

30.0

25.0

20.0

15.0

10.0

5.0

0.0

Avg (x)

Max (x)

Min (x)

+1SD

-1SD

32.5

24.0

19.2

14.3

9.0

11.2

Source: Company, MOFSL

2QFY21 earnings call highlights

OTT and content



Current focus on blockbuster pipeline:

The current focus remains on the

pipeline of eight blockbusters, scheduled to be released over the next 12

months. Furthermore, there are two upcoming releases on Diwali, of which one

is a low-budget project. After the scheduled releases have happened, the

management would focus on Sun Next original content.

TV shows pipeline:

It is revamping three shows to drive viewership in the Tamil

market, which should bring back viewership to 45–50%. Furthermore, it has a

strong pipeline of shows in all of its markets, so non-performing shows could be

replaced. Only 20% of Tamil content is a private production, while the rest was

produced in-house.

Content rights:

Management sells content rights to cover production cost and

gain slight margins, while it retains digital and broadcasting rights to attain

healthy RoCE on investment.

Capex:

It is looking at the current run-rate of OTT revenue; management is

confident of investing INR2b in OTT annually, without seeing any impact on

profitability. However, this cost should go up when the company completely

transitions to digital. Furthermore, management should spend INR3–4b on eight

blockbuster movies over the next 12 months.

OTT revenue outlook:

OTT is one of the fastest revenue drivers. Management is

looking to move from a flat fee structure to per subscriber with telcos.

Original content:

Sun TV is looking to make 40–50 movies for OTT, post which it

would focus on web series. Management expects to launch the first original web

series by 1Q/2QFY22.

13 November 2020

Sun TV Network



OTT subscription:

Currently, Sun Next has 18m active users; the majority of

these are from tie-ups with other players. Hence, organic users account for a

fraction of the total. Subscription charges are INR50/month in India and much

higher in Singapore/Malaysia. In the long run, the management is looking to

make OTT a pure-play subscription model.

Subscription business



Revenue:

DTH revenue declined QoQ due to the monetization of the digital

rights of movies in the last quarter. Cable revenue is not expected to grow, but

DTH should show double-digit growth within the next one year. Overall,

subscription revenue should grow in the double digits, excluding OTT

subscription revenue.

NTO 2.0 impact:

Sun TV would see marginal impact if NTO 2.0 is implemented.



Revenue outlook:

Advertisement revenue has seen sharp recovery, with 80% of

pre-COVID levels achieved in Oct’20. However, the management expects de-

growth in FY21.

Segmental breakup:

Of the total advertisement revenue, national/regional

advertisers contributed 95%/5% in 2QFY21 (historically, regional advertisers

have contributed 33%); FMCG forms 65% of the national advertisers.

IPL



Profit from the event should be significantly lower YoY due to a change in the

title sponsor (INR125m loss), lost ticket revenue (INR250–300m), and higher

operating expenses as the tournament took place in the UAE.

Others



Amortization guidance:

This should be INR3b for FY21; however, it could

increase if a blockbuster releases around Pongal.

Receivables:

To maintain its conservative approach, Sun TV has recognized

provision of INR90m for receivables. However, there is no issue with the quality

of receivables (there were issues with some DTH players, but the company

received the entire dues).

Revenue split:

Advertisement and Broadcasting / International / DTH / Cable /

IPL / Film revenue for 2QFY21 stood at

INR2,450m/INR370m/INR2,320m/INR1,950m/INR450m/INR20m.

13 November 2020

Sun TV Network

Exhibit 3: Quarterly Performance (INR m)

INR m

Revenue

Operating expenditure

EBITDA

EBITDA margin (%)

Depreciation & amortization

EBIT

Interest

Other income

PBT

Tax

Effective tax rate (%)

PAT

Adjusted PAT

Revenue Breakup

Advertising

Broadcasting

Total Advertising & Broadcasting

International subscription

Domestic Subscription

- Domestic Cable

- DTH

Total Subscription revenue

Films, IPL and Others

Total

2QFY20

7,739

3,052

4,687

60.6

1,444

3,243

721

3,945

280

7.1

3,665

2QFY20

3,370

3,450

410

3,973

1,680

2,290

4,383

-94

7,739

1QFY21

6,061

1,896

4,165

68.7

1,455

2,710

1,086

3,779

951

25.2

2,828

1QFY21

1,210

1,260

378

4,423

2,260

2,160

4,801

6,061

2QFY21

7,562

2,541

5,020

66.4

913

4,108

516

4,607

1,148

24.9

3,459

2QFY21

2,400

2,450

370

4,270

1,950

2,320

4,640

471

7,562

YoY%

-2.3

-16.7

7.1

583bps

-36.8

26.6

-21.2

-28.5

16.8

310.4

1783bps

-5.6

YoY%

-28.8

-37.5

-29.0

-9.8

7.5

16.1

1.3

5.9

-602.3

-2.3

QoQ%

24.8

34.0

20.5

-232bps

-37.2

51.6

-11.9

-52.5

21.9

20.8

-24bps

22.3

QoQ%

98.3

0.0

94.4

-2.1

-3.4

-13.7

7.4

-3.3

94,140.0

24.8

2QFY21E

7,425

2,646

4,778

64.4

1,394

3,384

488

3,852

969

25.2

2,883

v/s est (%)

1.8

-4.0

5.1

203bps

-34.5

21.4

-19.8

5.7

19.6

18.5

-24bps

20.0

2QFY21E

v/s est (%)

2,528

-5.0

-40.5

2,612

-6.2

390

-5.0

4,424

-3.5

2,134

-8.6

2,290

1.3

4,813

-3.6

7,425

1.8

Source: MOFSL, Company

Exhibit 4: Operating expense breakup (INR m)

Operating Cost

Production cost

Employee cost

Other exp

Total Operating expenses

2QFY20

1551

748

753

3,052

1QFY21

671

731

495

1,896

2QFY21

1,002

724

815

2,541

YoY%

-35.4

-3.3

8.3

-16.7

QoQ%

49.5

-1.0

64.8

34.0

2QFY21E

v/s est (%)

1,318

-24.0

726

-0.3

602

35.3

2,646

-4.0

Source: MOFSL, Company

Exhibit 5: Estimate change summary

FY21E

Revenue (INR b)

Old

Actual/New

Change (%)

EBITDA (INR b)

Old

Actual/New

Change (%)

EBITDA margin (%)

Old

Actual/New

Change (bp)

PAT (INR b)

Old

Actual/New

Change (%)

Adj. EPS (INR)

Old

Actual/New

Change (%)

32.0

0.2

20.1

21.4

6.8

62.7

66.9

418.2

12.5

14.0

11.5

31.8

35.5

11.5

FY22E

38.6

37.7

-2.3

26.0

25.5

-1.9

67.5

67.7

24.0

16.5

16.2

-1.5

41.7

41.1

-1.5

Source: MOFSL, Company

13 November 2020

Sun TV Network

Exhibit 6: Sun TV viewership falling in Tamil genre (weekly)

Sun TV

STAR Vijay

60%

40%

20%

KTV

Zee Tamil

Exhibit 7: Gemini TV stands fourth in Telugu genre (weekly)

Gemini TV

Zee Telugu

33%

30%

27%

24%

21%

18%

15%

ETV Telugu

STAR Maa

2018

2019

2020

2018

2019

2020

Source: BARC, MOFSL

Exhibit 8: Surya TV slips to fourth in Malayalam genre

(weekly)

Asianet

Surya TV

60%

45%

30%

15%

2018

2019

2020

Exhibit 9: Udaya TV slips to fourth in Kannada genre

(weekly)

Colors Kannada

Udaya TV

40%

30%

20%

10%

2018

2019

2020

Flowers TV

Mazhavil Manorama

Star Suvarna

Zee Kannada

Source: BARC, MOFSL

Story in charts

Exhibit 10: Standalone revenue down 2.3% YoY

Revenue (INR b)

EBITDA margin (%)

Source: MOFSL, Company

13 November 2020

Sun TV Network

Exhibit 11: Trend in revenue mix (%)

12.0

9.0

6.0

3.0

0.0

Ad & Broadcast

International sub

Domestic Cable

DTH

Films and others

-3.0

Source: MOFSL, Company

Exhibit 12: Ad revenue trend

Advertising revenue (INR b)

16 16

2 -6 -3

-7

-7 -4

22 26 20

YoY growth (%)

Exhibit 13: Broadcasting revenue trend

Broadcast revenue (INR b)

0 2 -1

-11-14

-8

-7

-7 -14

-29

-15

-8

YoY growth (%)

-10

-13

-21-20-23

-27

-32

-67

-38

-50-53

-50

-72-69

Source: MOFSL, Company

Exhibit 14: Cable revenue trend

Cable revenues (INR b)

YoY growth (%)

13 17

0 5

28 24

Exhibit 15: DTH revenue trend

DTH revenues (INR b)

13 16 14 15 11

15 12

-5

-11

-5

YoY growth (%)

9 8

10 10

Source: MOFSL, Company

13 November 2020

Sun TV Network

Exhibit 16: SUNTV: Snapshot (INR b)

Particulars

- Ad revenue (INR b)

YoY growth (%)

- Broadcast revenue (INR b)

YoY growth (%)

Ad and broadcast revenue (INR b)

YoY growth (%)

- DTH revenue (INR b)

YoY growth (%)

- Cable revenue (INR b)

YoY growth (%)

- International revenue (INR b)

YoY growth (%)

Total Subscription revenue (INR b)

YoY growth (%)

Films, IPL and other revenue (INR b)

YoY growth (%)

Total Revenue (INR b)

YoY growth (%)

EBITDA

YoY growth (%)

EBITDA margin (%)

Revenue mix (%)

Ad and broadcast revenue

Subscription revenue

- DTH

- Analog

- International

Films, IPL and other revenue

Domestic revenue

International revenue

FY16

12.1

1.1

-3

13.2

5.9

2.3

1.4

9.6

1.2

24.0

17.0

70.8

FY17

11.7

-3

1.0

-8

12.7

-4

6.6

2.9

1.7

11.2

1.7

25.6

17.4

67.9

FY18

13.1

0.9

-16

14.0

7.5

3.9

1.7

-3

13.1

1.6

-7

28.6

19.6

68.5

FY19

14.3

0.7

-13

15.0

8.6

4.6

1.8

15.0

6.6

318

36.6

25.6

70.0

FY20

13.4

-6

0.3

-64

13.6

-9

8.7

7.4

1.6

-8

17.3

2.7

-59

34.0

-7

22.4

-13

65.7

FY21E

10.0

-25

0.2

-25

10.2

-25

9.4

8.5

1.5

-9

19.3

2.5

-10

32.0

-6

21.4

-4

66.9

FY22E

12.5

0.2

12.7

10.3

9.3

1.5

21.1

3.8

37.7

25.5

67.7

Source: MOFSL, Company

13 November 2020

Sun TV Network

Financials and valuations

Standalone - Income Statement

Y/E March

Total Income from Operations

Change (%)

Production Costs

Employees Cost

Other Expenses

Total Expenditure

% of Sales

EBITDA

Margin (%)

Depreciation

EBIT

Int. and Finance Charges

Other Income

PBT bef. EO Exp.

EO Items

PBT after EO Exp.

Total Tax

Tax Rate (%)

Reported PAT

Adjusted PAT

Change (%)

Margin (%)

Standalone - Balance Sheet

Y/E March

Equity Share Capital

Total Reserves

Net Worth

Total Loans

Deferred Tax Liabilities

Capital Employed

Gross Block

Less: Accum. Deprn.

Net Fixed Assets

Capital WIP

Total Investments

Curr. Assets, Loans & Adv.

Account Receivables

Cash and Bank Balance

Loans and Advances

Curr. Liability & Prov.

Account Payables

Other Current Liabilities

Provisions

Net Current Assets

Appl. of Funds

E: MOFSL Estimates

FY15

22,431

7.0

1,692

2,037

2,558

6,288

28.0

16,143

72.0

5,878

10,265

879

11,114

3,746

33.7

7,369

2.8

32.9

FY16

23,952

6.8

1,815

2,359

2,818

6,992

29.2

16,961

70.8

4,850

12,110

1,075

13,164

180

13,344

4,646

34.8

8,698

8,581

16.4

35.8

FY17

25,583

6.8

2,165

2,563

3,485

8,213

32.1

17,370

67.9

3,911

13,458

1,456

14,903

5,109

34.3

9,794

14.1

38.3

FY18

28,625

11.9

2,862

2,941

3,227

9,030

31.5

19,595

68.5

4,397

15,198

1,397

16,584

5,654

34.1

10,930

11.6

38.2

FY19

36,633

28.0

4,202

3,006

3,781

10,990

30.0

25,643

70.0

6,467

19,176

2,200

21,359

7,411

34.7

13,949

27.6

38.1

FY20

34,044

-7.1

5,456

2,924

3,304

11,684

34.3

22,361

65.7

6,793

15,567

2,489

17,979

4,261

23.7

13,718

-1.7

40.3

FY21E

32,009

-6.0

3,839

2,924

3,823

10,586

33.1

21,423

66.9

4,888

16,536

2,220

18,678

4,689

25.1

13,989

2.0

43.7

(INR m)

FY22E

37,678

17.7

4,991

3,216

3,965

12,172

32.3

25,506

67.7

6,483

19,023

2,700

21,645

5,446

25.2

16,199

15.8

43.0

(INR m)

FY22E

1,970

61,700

63,670

851

64,522

41,372

37,210

4,162

663

37,783

26,403

10,736

10,919

4,733

4,489

1,342

2,901

246

21,914

64,522

FY15

1,970

31,827

33,797

221

34,018

38,306

27,563

10,743

6,936

18,224

6,835

6,904

4,480

1,890

375

1,448

16,334

34,018

FY16

1,970

33,206

35,176

219

35,396

15,418

7,089

8,330

8,508

20,980

7,329

7,877

5,763

2,428

383

1,906

139

18,552

35,396

FY17

1,970

38,247

40,218

556

40,773

19,203

8,183

11,021

14,540

17,924

7,238

7,385

3,292

2,726

497

2,034

195

15,198

40,773

FY18

1,970

44,430

46,401

770

47,170

22,972

12,579

10,393

442

24,121

16,949

10,084

3,071

3,791

4,734

577

4,000

157

12,215

47,170

FY19

1,970

52,435

54,405

1,056

55,461

28,402

19,046

9,356

133

30,505

20,700

10,790

4,709

5,199

5,233

1,986

3,073

174

15,468

55,461

FY20

1,970

54,271

56,241

851

57,092

33,372

23,909

9,463

663

29,490

23,552

13,100

5,288

5,164

6,074

2,771

3,094

209

17,477

57,092

FY21E

1,970

56,880

58,850

851

59,702

37,372

30,727

6,645

663

37,783

18,425

9,120

5,271

4,021

3,814

1,140

2,465

209

14,611

59,702

13 November 2020

Sun TV Network

Financials and valuations

Ratios

Y/E March

Basic (INR)

EPS

Cash EPS

BV/Share

DPS

Payout (%)

Valuation (x)

P/E

Cash P/E

P/BV

EV/Sales

EV/EBITDA

Dividend Yield (%)

FCF per share

Return Ratios (%)

RoE

RoCE

RoIC

Working Capital Ratios

Fixed Asset Turnover (x)

Asset Turnover (x)

Inventory (Days)

Debtor (Days)

Creditor (Days)

Leverage Ratio (x)

Current Ratio

Net Debt/Equity

Standalone - Cash Flow Statement

Y/E March

OP/(Loss) before Tax

Depreciation

Interest & Finance Charges

Direct Taxes Paid

(Inc)/Dec in WC

CF from Operations

Others

CF from Operating incl EO

(Inc)/Dec in FA

Free Cash Flow

(Pur)/Sale of Investments

Others

CF from Investments

Issue of Shares

Inc/(Dec) in Debt

Interest Paid

Dividend Paid

Others

CF from Fin. Activity

Inc/Dec of Cash

Opening Balance (excl other bank bal)

Other bank balance

Closing Balance (incl other bank bal)

FY15

18.7

33.6

85.8

11.3

69.5

23.7

13.2

5.2

7.2

10.0

2.5

17.8

22.5

22.6

34.2

0.6

0.7

111

9.6

-0.4

FY16

21.8

34.1

89.3

15.5

84.3

20.3

13.0

5.0

6.9

9.7

3.5

22.4

24.9

40.3

1.6

0.7

112

8.6

-0.5

FY17

24.9

34.8

102.1

10.0

48.4

17.8

12.7

4.3

6.2

9.2

2.3

23.5

26.0

46.7

1.3

0.6

103

6.6

-0.5

FY18

27.7

38.9

117.7

10.0

43.4

16.0

11.4

3.8

5.4

7.9

2.3

21.5

25.2

25.3

52.2

1.2

0.6

129

3.6

-0.6

FY19

35.4

51.8

138.1

12.5

40.8

12.5

8.6

3.2

4.0

5.7

2.8

31.2

27.7

63.2

1.3

0.7

108

4.0

-0.6

FY20

34.8

52.0

142.7

25.0

82.9

12.7

8.5

3.1

4.3

6.6

5.6

24.2

24.8

24.9

56.9

1.0

0.6

140

3.9

-0.6

FY21E

35.5

47.9

149.3

25.0

81.3

12.5

9.2

3.0

4.3

6.5

5.6

44.4

24.3

24.4

65.8

0.9

0.5

104

4.8

-0.7

FY22E

41.1

57.6

161.6

25.0

70.2

10.8

7.7

2.7

4.3

6.4

5.6

36.6

26.4

26.5

91.4

0.9

0.6

104

5.9

-0.8

(INR m)

FY22E

21,645

6,483

-5,446

-1,654

21,106

-2,700

18,406

-4,000

14,406

2,700

-1,300

-78

-11,379

-11,457

5,649

4,007

1,263

10,919

FY15

11,120

5,878

-3,761

-1,174

12,080

-673

11,407

-4,375

7,033

-169

-440

-4,983

-18

-6,331

-6,348

338

6,492

6,904

FY16

13,163

4,850

-4,550

-260

13,225

-665

12,560

-3,713

8,847

213

-93

-3,592

-20

-7,352

-7,372

1,597

3,932

2,346

7,875

FY17

14,904

3,911

-4,877

-14

13,934

-1,027

12,907

-3,658

9,249

-4,774

1,301

-7,132

-10

-4,743

-4,753

1,022

5,529

833

7,385

FY18

16,584

4,397

-5,409

-1,086

14,497

-1,059

13,438

-4,977

8,460

-9,083

1,403

-12,658

-11

-4,743

-4,754

-3,969

6,551

488

3,071

FY19

21,359

6,467

-7,226

-848

19,769

-1,997

17,772

-5,479

12,293

-5,654

482

-10,651

-17

-5,939

-5,955

1,164

2,583

962

4,708

FY20

17,989

6,793

-4,254

-2,618

17,988

-1,885

16,103

-6,579

9,524

1,091

1,814

-3,675

-291

-11,877

-12,151

278

3,747

1,263

5,288

FY21E

18,678

4,888

-4,689

2,848

21,802

-2,220

19,582

-2,070

17,513

-8,293

2,220

-8,143

-78

-11,379

-11,457

-17

4,025

1,263

5,271

13 November 2020

Sun TV Network

Explanation of Investment Rating

Investment Rating

Expected return (over 12-month)

BUY

>=15%

SELL

< - 10%

NEUTRAL

< - 10 % to 15%

UNDER REVIEW

Rating may undergo a change

NOT RATED

We have forward looking estimates for the stock but we refrain from assigning recommendation

*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within

following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.

Disclosures

The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).

Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the

Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial

products. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are

available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a

registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and

National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National

Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance

Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.

Details of associate entities of Motilal Oswal Financial Services Limited are

available on the website at

http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf

MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and

buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other

compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have

any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the

specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even

though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report

MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report

should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific

merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the

website at

https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx

A graph of daily closing prices of securities is available at

www.nseindia.com, www.bseindia.com.

Research Analyst views on Subject Company may vary based on Fundamental

research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated

from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.

Regional Disclosures (outside India)

This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability

or use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.

For Hong Kong:

This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong

Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst

Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of

research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity

to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these

securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not

located in Hong Kong & are not conducting Research Analysis in Hong Kong.

For U.S.

Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under

applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers

Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any

brokerage and investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is

intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as

"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which

this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration

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Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-

dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this

chaperoning agreement.

The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.

registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public

appearances and trading securities held by a research analyst account.

For Singapore

In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets

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in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”,

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inform MOCMSPL.

Specific Disclosures

1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.

2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company

3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months

4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report

5 Research Analyst has not served as director/officer/employee in the subject company

6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months

7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months

8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months

9 MOFSL has not received any compensation or other benefits from third party in connection with the research report

10 MOFSL has not engaged in market making activity for the subject company

13 November 2020

Sun TV Network

********************************************************************************************************************************

The associates of MOFSL may have:

- financial interest in the subject company

- actual/beneficial ownership of 1% or more securities in the subject company

- received compensation/other benefits from the subject company in the past 12 months

- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the

specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even

though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.

- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months

- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the

company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)

- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.

The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report

Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not

consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from

clients which are not considered in above disclosures.

Analyst Certification

The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the

research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.

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This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and

may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent

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instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as

customers by virtue of their receiving this report.

Disclaimer:

The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or

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in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.

The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment

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expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade

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the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and

should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make

modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from

time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to

perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a

separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of

information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or

may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,

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all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost

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The person accessing this information specifically agrees to exempt MOFSL or any of its

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misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,

expenses that may be suffered by the person

accessing this information due to any errors and delays.

Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;

Website

www.motilaloswal.com.CIN

no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,

Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.

Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:

INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company

Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth

Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is

a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.

Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.

Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no

assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance

Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.

* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National

Company Law Tribunal, Mumbai Bench.

13 November 2020