IMCL expects to be PAT positive from FY20 thanks to TRAI tariff order implementation
MUMBAI: Hinduja Ventures Ltd-owned distribution platform operator (DPO) IndusInd Media & Communications Limited (IMCL) expects to be PAT positive from the year 2019-20 thanks to the implementation of the new tariff order (NTO).
The company’s projection is based on the operations in the first few months of the operation of the new tariff order. IMCL is the only DPO to have a dual delivery platform through cable and Head End in the Sky (HITS) technologies.
HVL noted that the TV distribution sector has seen a completely different and positive business model emerge in the last four months through the implementation of the NTO notified by the Telecom Regulatory Authority of India (TRAI).
It also stated that the success would be measured based on the successful implementation of the NTO. IMCL, it stated, has successfully implemented the NTO the implementation of which commenced on 1st February.
IMCL, the company said, has progressively and systematically converted close to 100% of its customer base to the new regime without compromising on its prepaid collection process.
“This could not have happened without a happy customer base, robust backend systems, and committed resources. Based on the operations in the first few months of the operation of the new Order, IMCL expects to be PAT positive from the year 2019-20,” HVL said.
It further stated that IMCL is investing in technology, processes, and systems to further improve the viewership experience.
HVL on a consolidated basis reported a revenue of Rs. 710.58 crore for the financial year ended 31st March as against a revenue of Rs. 864.06 crore for the financial year ended March 2018.
The company reported a consolidated loss of Rs. 339.89 crore arising mainly due to INDAS mark to market adjustments as against a consolidated loss of Rs. 54.54 crore in the previous fiscal.
On a standalone basis, the company reported a loss of Rs. 23.17 crore in FY19 as against a profit of Rs. 265.51 crore arising mainly due to INDAS mark to market adjustments in FY18
The HVL Board has considered and recommended a dividend of 175 % on the face value of Rs. 10/- per share translating into Rs. 17.50/- per share for the financial year 2018-19 subject to the approval of the Members at the ensuing Annual General Meeting of the company.