January 23, 2017 / 15:37 IST
HMVL’s 3QFY17 EBITDA declined 32% YoY to INR 409m (v/s est. of INR 522m), led by a double whammy of demonetization-led ad pain and nine-month adjustment for net charges paid to its carved-out multimedia content management arm HTDSL. Consequently, reported EBITDA/PAT were lower INR 0.17b/ INR 11.1b. PAT of INR 438m (-7.5% YoY) was largely in line with our estimate. Revenue declined 4% YoY to INR 2.3b.
Outlook
We marginally cut our EPS estimates for FY17/FY18/FY19 and expect EPS CAGR of 10.5% over FY16-19, led by CAGR of 9%/6% in ad/circulation revenue. HMVL trades at 9.1x FY18E EPS/8.1x FY19E EPS. Maintain Buy with a TP of INR 355 based on 11x Dec 2018 EPS.
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