Zee Entertainment extends post-result slide

Zee Entertainment Enterprises lost 1.75% to Rs 394.75 at 11:11 IST on BSE, with the stock extending Friday's slide triggered by the company reporting weak Q3 December 2015 results.

Meanwhile, the S&P BSE Sensex was down 20.26 points or 0.08% at 24,434.78.

On BSE, so far 70,000 shares were traded in the counter as against average daily volume of 1.06 lakh shares in the past one quarter. The stock hit a high of Rs 401.20 and a low of Rs 378.10 so far during the day. The stock had hit a 52-week low of Rs 299.65 on 15 May 2015. The stock had hit a 52-week high of Rs 440.30 on 21 October 2015. The stock had outperformed the market over the past one month till 15 January 2016, sliding 1.36% compared with Sensex's 3.42% fall. The scrip had also outperformed the market in past one quarter, declining 3.99% as against Sensex's 9.46% fall.

The large-cap company has equity capital of Rs 96.04 crore. Face value per share is Rs 1.

Shares of Zee Entertainment Enterprises have declined 5.06% in two trading sessions from a recent high of Rs 415.80 on 14 January 2016 after the company announced weak Q3 December 2015 results during market hours on Friday, 15 January 2016. The stock had declined 3.37% to settle at Rs 401.80 on Friday, 15 January 2016.

Zee Entertainment Enterprises' consolidated net profit fell 10.9% to Rs 275 crore on 17% growth in net sales to Rs 1595.08 crore in Q3 December 2015 over Q3 December 2014. A sharp fall in non-operational income led to decline in the bottom line. Non-operational income fell 63.9% to Rs 28.98 crore in Q3 December 2015 over Q3 December 2014.

In a post-result conference call, Zee Entertainment Enterprises' management had said that it expects the company's earnings before interest, taxation, depreciation and amortization (EBITDA) margin would see a fall of 50 to 100 basis points for the current financial year (FY 2016) compared to FY 2015. This means that the margins are expected to improve during the fourth quarter. Zee's EBITDA margin dropped 240 basis points to 25.4% for the 9-month period ended 31 December 2015 from 27.8% for 9-month period ended 31 December 2014. The EBITDA margin expanded 110 basis points to 27% in Q3 December 2015 from 25.9% in Q3 December 2014.

Zee Entertainment Enterprises is one of India's leading television media and entertainment companies. It is amongst the largest producers and aggregators of Hindi programming in the world, with an extensive library housing over 210,000 hours of television content.

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