Hathway plans to deleverage books by Rs 500 cr through equity infusion, cash generation
MUMBAI: Hathway Cable and Datacom plans to deleverage its books by Rs 500 crore by March 2020. Of the Rs 500 crore, the promoters will infuse Rs 350 by way of equity while the balance Rs 150 crore will come through cash generated from operations.
As on 31 March, the company’s total debt stood at Rs 1,617 crore and its net debt-to-equity ratio stood at 1.23.
“We have made a plan to deleverage the company by Rs 500 crore by March 2020. Of the Rs 500 crore, the promoters will bring Rs 350 crore by way of equity and long-term unsecured loan while the additional Rs 150 crore will be from cash that will be generated from operations,” Hathway Cable and Datacom MD Rajan Gupta told reporters.
Gupta further informed that of the Rs 350 crore from promoters, Rs 100 crore has already come in July another Rs 100 crore will come by 10 August and balance Rs 150 crore will be happening by March 2020.
He also informed that the company is working on upgrading its subscribers to above 40 Mbps speed. The company 800,000 broadband customers, as of 31 March. About 10% of its total consumer base is on less than 40 Mbps broadband speeds.
“We are actively pushing them for upgrading, but if they don’t fit in our strategic framework (by FY19-end), then we will be left with no option but to drop them,” he said.
He noted that the consumer usage has gone up to 110 GB per user per month from 35 GBs two years ago which is far less than the global usage of 250 to 300 GBs per user per month.
“With Internet speeds increasing at a faster pace, we should be witnessing 100 Mbps to 200 Mbps as the base speeds within the next couple of years,” said Gupta.
He also said that the company would be able to offer 200 Mbps speeds to its consumers by FY21.