Companies & Sectors
Dish TV Q1 net loss narrows to Rs30.4 crore on better ARPU

Dish TV is still in the red due to intensive competition, weak rupee and higher ad spend. However, its average revenue per user –ARPU has seen improvement

Dish TV’s net loss, for the first quarter of the 2013-14 fiscal, was narrowed down to Rs30.4 crore compared to Rs32.3 crore in the corresponding quarter last fiscal. According to the filing on Bombay Stock Exchange (BSE), the direct-broadcast satellite service provider’s reported net worth as at 30 June 2013 is eroded by its accumulated losses. Intensive competition, weak rupee and increased advertisement spend were culprits.

 

Subhash Chandra, chairman, Zee group (promoter of Dish TV) said, “Too much focus on box seeding has diluted the addressability part of the digitization mandate. In such a scenario, Dish TV’s focus on quality additions is a counter-intuitive move, which has started delivering encouraging results. The first quarter saw the company deliver strong free cash flows while maintaining healthy customer retention and investing in brand equity,”

 

The company's first quarter operating revenues stood at Rs578.4 crore, recording 11.2% growth over the corresponding period last fiscal, helped by lower subscription acquisition cost and higher average revenue per user.

 

During the quarter, Dish TV’s average revenues per user (ARPU) increased 5.1% to Rs165, and subscriber acquisition cost (SAC) is pegged at Rs1,828 for the June 2013 quarter, when compared to Rs1,996 in the immediately preceding quarter. It added 0.2 million subscribers in the June quarter.

 

With a sustained focus on strengthening the balance sheet, Dish TV looks forward to retiring a significant portion of its outstanding debt of Rs750 crore through the current fiscal.

 

Commenting on the persistent weakness in the rupee and its impact on the financials, Jawahar Goel, managing director of Dish TV said, “A flagging rupee has been an industry wide concern since some time now. To contain further widening of gap between the cost of the consumer premises equipment (CPE) and amount realized from the customer due to rupee depreciation, Dish TV initiated an acquisition price hike of Rs250 on 4th July. Sensing the need, other players in the DTH industry followed suit within the next few days.”

 

Dish TV added 5 new HD channels with effect from April, 2013. With this addition, Dish TV offers the highest number of 25 HD channels and 17 HD services on its platform.

 

On Friday, Dish TV shares tumbled 8.2% to Rs52.35 on the BSE, while the benchmark Sensex finished marginally down at 19,748.

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GAIL India Q1 net profit falls 28.7% on higher costs, tax

Higher spot LNG volume, increase in production and sale of petrochemicals help GAIL India achieve higher revenues. However, profit suffered due to higher raw material prices, depreciation and salaries

GAIL (India) Ltd reported a 28.7% lower first quarter net profit to Rs808 crore as against Rs1,134 crore mainly due to higher higher-than-expected subsidy burden as well as raw material prices which rose 76.2% while depreciation also came in higher by 33%.
 

During the quarter to end-June GAIL’s depreciation expenses increased 29.4% to Rs281 crore, whereas the tax rate stood at 34% compared with 32.7%, same period last year. Consequently, its net profit decreased by 28.7% to Rs808 crore.

 

The company registered an increase of 16% in turnover (net of excise) to Rs12,856 crore as against Rs11,089 crore same quarter of the previous year. The increase in revenues was mainly due to higher sale of spot LNG volume, increase in production and sale of petrochemicals.
 

During the quarter, revenues from natural gas trading increased 20% to Rs11,059 crore as against Rs9,242 crore, while its revenues from natural gas transmission increased by 9% to Rs999 crore from Rs915 crore, a year ago period.
 

GAIL’s revenues from petrochemicals business increased 92% to Rs1,103 crore as against Rs574 crore in the corresponding quarter of the previous year.
 

The net revenue from LPG and other liquid hydrocarbons business during the first quarter of the current financial year stood at Rs1,004 crore as against Rs1,072 crore in the corresponding quarter of previous year while the revenue from LPG transmission business was Rs94 crore as against Rs114 crore in the corresponding period.
 

On Friday, GAIL India closed 2.9% down at Rs318.95 BSE, while the 30-share Sensex ended marginally down at 19,748.

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Hindustan Unilever sees market growth slowing in near term

The fast moving consumer goods company reported a fall in net profit due underlying volume growh of 4% in the domestic market. According to Harish Manwani, chairman, there are near term concerns for HUL particularly around slowing market growth

Hindustan Unilever, one of India's leading fast moving consumer goods company reported 23.4% decline in its first quarter net profit to Rs1,019 crore. This was due to significant exceptional income generated in from the sale of properties during the quarter last year.

 

Harish Manwani, chairman of HUL, said, “While there are near term concerns particularly around slowing market growth, we are confident of the medium to long term growth prospects of the FMCG sector and our strategy of driving growth and profitability through innovation and operational excellence.”

 

Net sales grew 7% during the quarter ended 30 June 2013 to Rs6,687.5 crore compared with Rs6,250.15 crore during the corresponding quarter last year, driven by growth in foods and domestic consumer business.

 

During the quarter, HUL’s domestic consumer business grew competitively at 7% with 4% underlying volume growth ahead of market. The home and personal care division grew 5.9% while foods business grew 12.5%.

 

Soaps and detergents grew 8%, which saw broad based growth; personal products grew 2% in a slowing market; beverages grew 16%, helped by acceleration in tea segment; packaged foods grew 5%, driven by Kissan & Knorr Soups. Higher competition drove up advertising & promotion slightly up to Rs70 crore, up 20 basis percentage points, in the quarter.

 

Hindustan Unilever closed Friday 3.4% down at Rs663 on the BSE, while the benchmark Sensex ended the day marginally down at 19,748.

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COMMENTS

Harikrishnan Nair

4 years ago

Hindustan Unilever, one of India's leading fast moving consumer goods company reported 23.4% decline in its first quarter net profit to Rs1,019 crore.

This was due to significant exceptional income generated in from the sale of properties during the quarter last year.

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