Marans ask Sun TV board to cap pay for current financial year at FY18 level

Kalanithi Maran
Sun TV promoter Kalanithi Maran and his wife Kauvery Kalanithi have written to the board of the company to cap their compensation for 2018-19 at the same level as the last fiscal year.  

Though their letter does not mention the amount, analysts and internal sources said the total payout to the couple, among the highest-paid executives in the country, would be Rs 1.75 billion. By limiting their compensation, the couple would forgo Rs 350 million, according to analysts’ projection of Sun TV’s profits this fiscal year.

The decision to reduce their pay coincided with the doubling of the quarterly dividend to Rs 5 a share. 

Sun TV pays out dividends every quarter. This year, dividend outflow could be Rs 9.6 billion. Maran has 75 per cent of the company’s shares.

For the quarter ended June 2018, Sun TV’s revenue was up 42 per cent at Rs 11.2 billion, from Rs 7.86 billion for the corresponding quarter of the previous fiscal year. Advertising revenue grew at 20 per cent to Rs 3.62 billion for the quarter. 

Analysts are optimistic about the company’s prospects, on the backdrop of the expected boom in subscription growth because of digitisation and advertisement revenue growth, especially from new channel launches. Besides, the company’s revenue from the Indian Premier League also increased substantially.

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