Zee Ent climbs 2% ahead of Q2 results; brokerages expect double-digit growth in profit

Shares of Zee Entertainment Enterprises (ZEEL) climbed over 2 percent on BSE on October 17 ahead of the company’s September quarter earnings.

Most brokerages expect the company to report double-digit growth in the second-quarter profit, driven by lower tax expenses, despite margin pressure and slow revenue growth.

Kotak Institutional Equities, Sharekhan and Motilal Oswal expect second-quarter profit growth in the range of 20-30 percent compared to the year-ago. Last month, the government had cut the corporate tax rate by 10 percent to revive earnings and economy.

The stock corrected 22 percent during the quarter ended September 2019 and fell 45 percent year-to-date amid debt concerns and corporate governance issues.

Revenue growth for the quarter is expected to be around 6 percent due to a slowdown impact on the advertising segment, but domestic subscription revenue is likely to be in double-digit.

Utilisation of cash and cash generation in the first half of FY20, progress on the promoter stake sale, domestic advertising revenue and subscription revenue would be the key things to watch out for when ZEEL reveals his Q2 scorecard.Shares of Zee Entertainment traded 1.17 percent higher at Rs 262.80 on BSE around 1140 hours IST.

Source: Moneycontrol

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