Himachal MSO GMN posts net profit of Rs 50 lakh in FY17

MUMBAI: Himachal Pradesh-based multi system operator (MSO) Good Media News’s (GMN) net profit for FY17 has remained flat at Rs 50 lakh. In the previous fiscal, the MSO’s net profit remained the same at Rs 50 lakh.

The company’s revenue increased 7% to Rs 16 crore from Rs 15 crore in the year ago period. GMN’s PAT margins for FY17 stood at 2.9% as against 3% in the previous fiscal.

GMN was formed in 2001 to carry out cable TV operations in Himachal Pradesh. The company was set up by Mukesh Malhotra. GMN’s registered office is in Himachal with around 150 local offices across the state.

Crisil had recently reaffirmed its rating on the long-term bank facilities of GMN at ‘CRISIL B-/Stable’. The total bank facilities rated are Rs 11 crore.

According to Crisil, the rating reflects modest net worth and leverage, and intense competition and susceptibility to adverse regulatory changes.

These rating weaknesses are partially offset by extensive promoter experience and their funding support.

The rating agency noted that GMN’s financial risk profile is constrained by a modest net worth of Rs 2.59 crores as on 31 March 2017.

GMN is an established cable television service provider, and the largest multiple service operator, in Himachal Pradesh with a market share of around 70%, rest are all small unorganised players and direct to home (DTH) players.

The promoters of GMN have over three decades of experience in the cable television industry, which has helped GMN in diversifying to newer geographies like rural and remote areas of Himachal Pradesh apart from urban cities and towns.

Further, in order to support the liquidity, they have extended an unsecured loan of Rs 2 crore which has been treated as debt.

Over the medium term, promoter experience is most likely to help the company in maintaining its business risk profile, the rating agency noted.

The MSO was recently in the news after the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) had ordered the attachment of its movable and immovable properties for flouting the tribunal’s orders repeatedly.

The tribunal had also stated that the MSO cannot alienate or part with any of those properties nor shall it create any encumbrance over those properties. It had also allowed Taj Television disconnect signals to the MSO.

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