Himachal MSO Good Media News records 54% increase in net profit for FY18

MUMBAI: Himachal Pradesh-based multi system operator (MSO) Good Media News’ FY18 net profit has increased 54% to Rs 71 lakh from Rs 46 lakh in the previous fiscal. The MSO’s revenue has jumped10% to Rs 17.49 crore from Rs 15.89 crore.

The company’s long-term bank facilities were assigned its ‘B/Stable’ rating by Crisil. According to the rating agency, 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.

Crisil noted that the company’s financial risk profile is constrained by the modest net worth of Rs 3.30 crore and total outside liabilities to the adjusted net worth ratio (TOLANW) of 3.55 times as on 31 March.

The capital structure is expected to remain modest over the medium term low accretion to reserves and moderately high dependence on external debt, respectively.

It also noted that the Indian cable television distribution industry is highly fragmented and intensely competitive. Apart from a large number of unorganised cable operators, the company also faces competition from Direct to Home (DTH) service providers.

The promoters of Good Media News have over three decades of experience in the cable television industry. Further, in order to support the liquidity, the promoters have extended an unsecured loan. Over the medium term, promoter experience will help the company in maintaining its business risk profile.

The company was formed in 2001 by Mukesh Malhotra to provide cable TV service in Himachal Pradesh. It has around 150 local offices across the state.