Dish TV shares were rallying in trade just days after the company's short term bank facilities were downgraded to 'default' rating after the company defaulted on a payment.
Anil Dua, group CEO, Dish TV throwing more light on the development, said, “There has been a downgrade on the short-term bank facility on account of delay in a Rs 250 crore short-term loan. This is temporary and it is because of bunching of some payments."
"We have already paid Rs 850 crore in the last 8 months including interest and principal. We will be paying another Rs 600 crore in these six months including this Rs 250 crore delayed payment. Everything will be paid by March,” he added.
“Currently we have debt including bank guarantee and letter of credit (LCs) of around Rs 2,500 crore and will be paying about Rs 600 crore by March-end. So we will be at the debt of less than Rs 2,000 crore and our EBITDA is more than Rs 2,000 crore, so we are quite comfortable,” he said.
“We will be paying about Rs 800 crore or so next year as well. So we will be quite comfortable. Mostly, the repayments will be done by internal accruals but the company is also in touch with our banking partners to get alternate credit facilities to finance our regular capex so that we can normalise the utilisation of a cash flow towards the debt repayment,” said Dua.
They expect our revenues and EBITDA to be on the expected lines, he said, adding that they should do over Rs 6,000 crore of revenues and over Rs 2,000 crore of EBITDA. Therefore, EBITDA margins would improve as seen in the last quarter.
Dua stated that they would be making all payments on schedule including the Rs 250 crore delayed payment. We will be paying around Rs 600 crore in these six months. We have already paid about Rs 850 crore. So everything will be on schedule.
"All payments to banks, to suppliers, to content providers, to broadcasters will be on time. We will be making substantial payment this year as well as next year and we expect to be comfortable at the end of March 2020, with our debt obligation being lower than our planned EBITDA for the year,” Dua said.