DTIL, is India’s first direct to home (DTH) company to launch its service in 2003. Effective March 22, 2018, Videocon d2h Limited has been amalgamated with and into Dish TV
India, with October 01, 2017 being the appointed date. The combined entity has a subscriber base of 23.94 million as on September 30, 2019 with a market share of 35% in the DTH segment.
The tax outgo remained higher in six months ended September 2019 (H1FY20) owing to a lower MAT credit entitlement, which in turn led to a net loss of Rs.131.79 crore as against net profit of Rs 45.21 crore in H1FY19.
There has been further significant decline in the market capitalization of the company and high level of pledging of the promoter holding. As on September 30, 2019, out of the total promoter holding of 55.27% in DTIL, 94.60% has been pledged.
The ratings assigned to bank facilities of DTIL continue to take into account substantial provision made by DTIL(consolidated) towards license fee costs, which upon materialization would necessitate incremental debt funding, under the current scenario of reduced financial flexibility of Zee group.
Furthermore, the ratings takes into account currency risk associated with procurement of Consumer Premise Equipment’s (CPE) and the increasing competition faced both from peers and allied technology platforms, CARE added.