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ZEEL Q2 profit rises 7% YoY to Rs 413 crore, misses estimates on one-time loss

Analysts in an ETNow poll had projected a net profit of Rs 481 crore.|
Updated: Oct 17, 2019, 08.17 PM IST
The company reported a one time loss of Rs 170.62 crore in Q2FY20.
Zee Entertainment (ZEEL) on Thursday posted a 6.87 per cent year-on-year rise in consolidated net profit at Rs 413.23 crore for the quarter ended September 2019.

It had reported a net profit of Rs 386.67 crore in the corresponding quarter last year.

Analysts in an ETNow poll had projected a net profit of Rs 481 crore.

Consolidated revenue of the company jumped 7.40 per cent YoY to Rs 2,122 crore during the quarter under review. EBITDA advanced 2.50 per cent YoY to Rs 692.90 crore.

Earnings Report Card:
Profit Rs 413 cr Up 7%
Revenue Rs 2,122 cr Up 7%
Ebidta Rs 693 cr Up 2.5%
All figures are on YoY basis

Subscription revenue and revenue from other sales and services increased 18.96 per cent and 10.66 per cent YoY, respectively.

Consolidated advertisement revenue of Zee Entertainment increased 1.16 per cent YoY to Rs 1,224.66 crore during the quarter under review against Rs 1,210.60 crore in the same period last year.

The company also reported a one time loss of Rs 170.62 crore in Q2FY20.

Zee said that in an earlier year, it had given an Inter-corporate Deposit (ICD) aggregating Rs 15,000 lakh.

On account of delays in recovery of the amount, the ICD was assigned to certain related parties, to secure payment of Rs 17,062 lakhs (including accrued interest up to the date of assignment), and since, there are further delays in receiving payment from these related parties, during the quarter ended September, the amount has been provided for and disclosed as 'exceptional item'.

Separately, the company had a fixed deposit with a bank of Rs 20,000 lakhs. During the quarter under review, the bank has prematurely, unilaterally adjusted the amount of the fixed deposit, which was maturing on 10 September 2019, against the dues of certain related parties.

Subsequently, these related parties have reimbursed the amounts to the company to the tune of Rs 13,330 lakhs before September 30 2019 and Rs 6,670 lakhs after the quarter end.

"The company is in the process of investigating, seeking legal advice on the appropriate action to be taken as well as compliance with statutory and legal requirements."

The standalone statement of cashflow approved by board but not by auditors.
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