On Y-o-Y basis, for the quarter ended March 2015, operating revenues grew 18% at Rs 754.72 crore. The company added 4.04 lakh subscribers taking the subscriber base at 12.9 million (net). The Subscription revenue was at Rs 682.8 crore (up by 24%), lease rental at Rs 17 crore and carriage at 31 crore. OPM inclined by 916 bps at 29.4% due to decrease programming cost, other operating cost and other expenditure. The company tuned positive at PAT level to Rs 35.01 crore against loss of Rs 149.05 crore in the corresponding quarter a year back.

Standalone Performance

Quarterly Performance (Sequential)

For the quarter ended March 2015, operating revenues grew by 6% at Rs 754.72 crore. The company added 4.04 lakh subscribers taking the subscriber base at 12.9 million (net). ARPU for the quarter increased from Rs 177 to Rs 179. Churn rate was at 0.7% p.m.

OPM inclined by 262 bps at 29.4% due to overall expenses. As a % of adjusted sales, there was decline in purchase of traded goods by 40 bps to 0.1%, programming cost by 20 bps to 27.5% and selling and distribution expenses by 150 bps to 14.3%. As a result, the operating profit inclined by 16% to Rs 221.90 crore.

Other income decreased by 11% to Rs 13.66 crore. Interest cost declined by 5% at Rs 45.54 crore while depreciation & amortization charge decreased by 4% at Rs 155.01 crore. The company tuned positive at PAT level to Rs 35.01 crore against loss of Rs 2.87 crore a quarter back.

For the quarter ended March 2015, operating revenues grew 18% at Rs 754.72 crore. The company added 4.04 lakh subscribers taking the subscriber base at 12.9 million (net).

The Subscription revenue was at Rs 682.8 crore (up by 24%), lease rental at Rs 17 crore and carriage at 31 crore.

OPM inclined by 916 bps at 29.4% due to decrease programming cost, other operating cost and other expenditure. As a % of adjusted sales, there was decline in programming cost by 420 bps to 27.5%, other operating cost by 220 bps to 10.8% and other expenditure by 380 bps to 4.2%. As a result, the operating profit inclined by 72% to Rs 221.90 crore.

Other income decreased by 32% to Rs 13.66 crore. Interest cost increased by 40% at Rs 45.54 crore while depreciation & amortization charge increased 4% at Rs 155.01 crore.

There was prior period item for Q4 FY14 of Rs 116.37 crore which was not there in Q4 FY15.The company tuned positive at PAT level to Rs 35.01 crore against loss of Rs 149.05 crore in the corresponding quarter a year back.

For the year ended March 2015 performance

The operating revenues grew 11% at Rs 2781.64 crore.

The Subscription revenue was at Rs 2545 crore, Lease rental at Rs 81 crore, teleport was at Rs 21 crore, bandwidth revenue at Rs 81 crore, and ad revenue at Rs 42 crore & other revenue at Rs 8 crore.

OPM inclined by 148 bps to 26.4% mainly due to decline in programming cost. The operating profit increased by 17% to Rs 735.46 crore.

Other income has decreased by 17% to Rs 54.68 crore. Interest cost increased by 32% at Rs 175.38 crore. Depreciation & amortization charge increased 3% at Rs 613.75 crore.

There was prior period item for FY14 of Rs 116.37 crore which was not there in FY15. The company tuned positive at PAT level to Rs 1.01 crore against loss of Rs 154.21 crore last year.

For the year ended March 2015 - consolidated performance

The operating revenues grew 11% at Rs 2781.64 crore. OPM inclined by 148 bps to 26.4%. The operating profit increased by 17% to Rs 733.11 crore.

Other income has decreased by 2% to Rs 63.50 crore. Interest cost increased by 32% at Rs 175.41 crore. Depreciation & amortization charge increased 3% at Rs 613.84 crore. PBT turned positive to Rs 7.36 crore against loss of Rs 41.19 crore in last year.

There was prior period item for FY14 of Rs 116.37 crore which was not there in FY15. The tax out go stood at Rs 4.22 crore. The company tuned positive at PAT level to Rs 3.14 crore against loss of Rs 157.61 crore last year.

The Company's net-worth as at 31 March 2015 is eroded by its accumulated losses. However, the management has prepared the financial results assuming that the Company will continue as a going concern considering that the Company has adequate resources in the form of operating cash flows, sanctioned credit facilities from lenders and bank deposits to adequately meet its obligations.

The Company's DTH license was valid upto 30 September 2013. During the year 2013-14, the Company received a demand notice from the Ministry of Information and Broadcasting ('MIB') where under a demand of Rs 624.2 crore (including interest) has been raised towards the DTH License Fee has been stayed by TDSAT and now the matter in relation to the license fee is pending before Supreme Court.

During the previous quarter, the company has utilized Rights Issue proceeds of Rs 150 crore.

During the quarter ended 30 June 2014, the Company had revised the useful lives of its fixed assets to comply with the requirements as mentioned under Schedule H of the Companies Act, 2013. Accordingly, frie depreciation expense for the quarter ended 31 March 2015 is higher by Rs 1.22 crore and 31 December 2014 is higher by Rs 1.65 crore and year ended March 2015 is higher by Rs 6.91 crore. Similarly, in case of assets whose life has been completed as on March 31, 2014, the carrying value of those assets accounting to Rs 7.38 crore has been adjusted with the opening balances of retained earnings i.e. deficit in statement of profit and loss.

Dish TV recently transferred its non-core business (including set-top boxes, dish antenna and related services) to its wholly owned subsidiary viz. Dish Infra Services Private Limited (formerly known as Xingmedia Distribution Private Limited) on April 1, 2015 on a going concern basis. The company has clarified that it will be reporting consolidated quarterly financials going forward

Management Comments:

With a newly elected government at the centre, financial year 2015 started on a promising note. As the year progressed, industries across the spectrum had a positive rub-off as bottlenecks that had been restricting the free flow of resources got eased out. The result was an environment of general optimism that helped elevate the consumer sentiment after an elongated lull.

The DTH sector is a direct beneficiary of a positive consumer sentiment. Dish TV achieved a strong, sector leading, subscriber growth of 1.5 million net subscribers during the year. Fiscal 2015 also saw Dish TV swing to Net Profit, a first for any DTH company in India.

I congratulate the entire team at Dish TV for withstanding all odds and putting up a strong show against its worthy competitors in the Indian Pay-DTH sector. The team has delivered on a difficult mandate of growth with profitability, something which I believe is essential for any commerce to be sustainable. Through this milestone to the next and thereafter, Dish TV remains committed to outperform the industry growth rate and create shareholder value while continuing to entertain its subscribers with rich content and compelling value added services using updated modes of delivery.

It was around the same time last year that Dish TV launched a second brand, Zing, in the Indian DTH space. A resounding success, Zing cemented Dish TV's supremacy in the DAS Phase 3 & 4 markets with custom-made content, hardware and service packages for the regional audience

Fiscal 2015 was a satisfying year. Our single-minded devotion to being the leader in the DTH industry along with uncompromised financial discipline, enabled us to reach the net profitability milestone much ahead of our peers. I am glad to note that post a strong Q4 we have turned PAT positive both at the quarterly level as well as for the full year 2015. Dish TV recorded a net profit of Rs 35 crore for the quarter compared to Rs 149 crore loss during the same quarter last fiscal. Net profit for the full year was Rs 3.1 crore compared to a loss of Rs 157.6 crore in FY14.

During the quarter, we garnered net subscribers that were almost equal to the numbers during the festival quarter of October – December 2014. While Zing gained ground in Phase 3 & 4 markets, High–Definition (HD) driven sports offerings were the main-stay, in Rest of India, during the Cricket World Cup 2015.

As digitization spreads far and wide, we continue to believe that there is sufficient headroom to further explore price differentials between key urban markets and their rural counterparts. All pack prices, for new as well as existing subscribers of Dish TV, have been moved by Rs. 10 each in the 42 cities under Phase 1 & 2. We are confident that pack price hikes, higher HD uptake, as well as industry level developments such as initiation of packaging in cable will be key contributors to ARPU expansion going forward

Shareholding Pattern

The Promoters stake stood at 64.46% for March 2015. The Promoters have pledged 44.83% of the shares as % of total share holding of promoter and promoter group

Valuation

The stock is trading around Rs 97.50 on the bourses.