BENGALURU: Hinduja Ventures Ltd (HVL) reported higher revenue from operation and lower losses for its digital platform operator subsidy and media and entertainment segment IndusInd Media & Communications Ltd (IndusInd Media, IMCL) for the year ended 31 March 2019 (FY 2019, year under review) as compared to the previous year FY 2018. HVL reported 10.5 percent increase in revenue for IMCL FY 2019 at Rs 703.0429 crore as compared to Rs 636.3938 crore in the previous fiscal. IMCL operating loss for the year under review was lower at Rs 335.2821 crore as compared to Rs 391.0445 crore in FY 2018.
Company speak
HVL sees a bright outlook as also value creation for the media segment.
In its business update, HVL says that it has a significant investment in the media and entertainment segment through its investments in its subsidiary IMCL which it claims is one of the leading digital platform operators (DPO) and the only company in the country to have a dual delivery platform through cable and Head End in the Sky (HITS) technologies. HVL adds that the industry has seen a completely different and positive business model emerge in the last four months through the implementation of the new tariff order notified by the Telecom Regulatory Authority of India (TRAI). Success would be measured based on a successful implementation of the new tariff order.
HVL reveals that IMCL has successfully implemented the new tariff order the implementation of which order commenced on February 1st 2019. This implementation saw IMCL progressively and systematically converting close to 100 percent 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, avers HVL. 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. IMCL is investing in technology, processes and systems to further improve viewership experience, revealed HVL.
HVL further avers that it is committed to creating value for its investments in the media business and is examining various opportunities of consolidation of the business to create value to all stakeholders.
HVL Numbers
HVL on a consolidated basis reported revenue of Rs 710.58 crore for the financial year ended March 31, 2019 as against a revenue of Rs 864.06 crore for FY 2019. For the year ending March 31, 2019 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 for the previous financial year.
On a standalone basis, HVL reported a loss of Rs 23.17 crore for the year ended March 31, 2019 as against a profit of Rs 265.51 crore arising mainly due to INDAS mark to market adjustments for the year ended March 31, 2018.
