Companies & Sectors
Sun TV’s Q1 net profit flat due to higher operating cost of ‘Sunrisers Hyderabad’

While the company has fared well in its main business, it is has racked up huge operating expenses in running its IPL cricket team Sunrisers Hyderabad

Sun TV Network Ltd reported a flat first quarter net profit despite a 41% increase in its total revenues due to higher expenses of ‘Sunrisers Hyderabad’, its franchise in the Indian Premier League (IPL) cricket tournament.

For the quarter to end-June, the TV broadcaster said its net profit increased marginally to Rs164.44 crore from Rs164.31 crore while total revenues rose 41% to Rs601.9 crore driven by higher advertising, cable and direct-to-home revenues compared with same period last year.

For the April-June period, its subscription revenues continue to maintain a significant uptrend with cable TV revenues growing 38% and DTH revenues up 20% over the same period last year. Conversions from analog continued to be strong on the back of digitisation, which is going on. Advertising revenue was up 15% during the June 2013 quarter. Revenue from broadcasting, inclusive of advertising, stood at Rs503.31 crore while income from ‘Sunrisers Hyderabad’ franchise stood at Rs98.54 crore.

However, operating costs of the IPL franchise ‘Sunrisers Hyderabad’ ate up a chunk of the company’s revenue. While operating cost for the broadcasting division stood at Rs118.87 crore, the same was Rs129.33 crore for the IPL ‘Sunrisers Hyderabad’ and the division made an operating loss of Rs30.79 crore.

Sun TV has declared an interim dividend of Rs2.25 per share.

The company has stated what it has done with its IPO proceeds. In a statement to BSE, it said, “Against the total projected utilisation of Rs572 crore (net of issue expenses) from the initial public offering (IPO) funds, an amount of Rs355.77 crore has been utilised towards capitalisation of subsidiaries, Rs136.77 crore towards launch of new channels and purchases of new equipment and up-gradation of existing equipment and Rs62.34 crore towards construction of owned corporate office. The balance proceeds from the IPO after meeting the IPO expenses, pending utilisation have been invested in fixed deposits with banks.”

At 3.30pm Friday, Sun TV was trading 4.2% up at Rs425 on the BSE, while the benchmark Sensex was marginally down at 19,170.


Fund raising via QIP plunges 62% to Rs1,066 crore in June

The cumulative amount mobilised through QIP route during 2013-14 stood at Rs4,285 crore through 11 issues, as per SEBI data

Amid sluggish market conditions, fund raising by Indian companies through issue of shares to institutional investors plunged 62% to Rs 1,066 crore in June.


According to the latest data available with the market regulator Securities and Exchange Board of India (SEBI), funds garnered by companies declined to Rs1,066 crore through the QIP (qualified institutional placement) route in June after touching a three-month high in May.


This was 62% lower than Rs2,832 crore mopped up in May.


With the latest fund mop-up, the total capital raised via QIP has touched Rs11,436 crore since the beginning of 2013.


QIP is a capital raising tool whereby a listed firm can issue equity shares, fully and partly convertible debentures, or other securities that are convertible to equity shares to institutional investors.


“During June 2013, there were two QIP issues worth Rs1,066 crore in the market as compared to five QIP issues worth Rs2,832.6 crore in May 2013. The cumulative amount mobilised through QIP route during 2013-14 stood at Rs4,285 crore through 11 issues,” SEBI noted.


Experts said that fund raising through QIPs has slowed down in June due to sluggish market conditions.


“Most investors were reluctant to participate in QIPs since shares of many companies that made placements to institutional investors were trading below the issue price. Now, we are witnessing a renewed interest from investors, though a lot would depend on valuations,” an expert said.


The sharp decline in fund raising via QIP is coincided with an about 365 points or 1.84% plunge in the BSE’s benchmark Sensex during the month.


In 2012-13, firms garnered nearly Rs16,000 crore through issuance of shares to institutional investors against Rs2,163 crore garnered through QIPs in the previous fiscal.


The experts had attributed the seven-fold growth to the revival in the stock markets fortunes. In 2010-11, Indian firms garnered Rs25,850 crore cumulatively through 59 issues via QIP route.


2G spectrum case: SC issues notice to Unitech MD Sanjay Chandra

The CBI’s petition alleged that Chandra had approached the then CBI prosecutor AK Singh and tried to “materially interfere” with the prosecution and outcome of the trial

The Supreme Court today agreed to hear the CBI’s (Central Bureau of Investigation) plea for cancellation of bail granted to Sanjay Chandra, MD of Unitech, in 2G case for allegedly trying to “sabotage the trial” and issued a notice to him.


A Bench headed by justice GS Singhvi granted two weeks time to Chandra to file his response on the CBI’s petition alleging that he had misused the relief given to him by approaching the then CBI prosecutor AK Singh and trying to “materially interfere” with the prosecution in an “attempt to influence” the conduct and outcome of the trial.


The CBI has sought recall of the apex court’s 23 November 2011 order by which he was granted bail.


It has alleged that the conduct of Chandra was questionable during the period of bail as he was found holding discussion with the prosecutor about crucial witnesses.


“It is apparent the freedom granted to accused by means of enlargement from custody has been misused by him and that allowing him to continue unabated will be detrimental to the conduct of this trial and to the greater public interest,” CBI has said in its application.


His conversation with the prosecutor, who was removed from the case, reflected that the entire strategy of CBI in dealing with the case was compromised, the agency has said.


The probe agency said that it had registered a preliminary enquiry report which named Chandra and prosecutor Singh.


The investigation also suggested that the conversation took place between the two when the statement of crucial witness AK Srivastava, Department of Telecom’s former Deputy Director General (AS), was being recorded in the court, it has said.


The agency has also stated that the CFSL report has also confirmed that the recorded conversation was neither tampered with nor any editing was done and it was the voice of Chandra and Singh.


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