Dish TV halves debt in FY22

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Despite the year-long struggle between Dish TV promoter Jawahar Goel and YES Bank, the satellite TV service provider nearly halved its debt in fiscal 2022. According to Dish TV’s annual report for In FY22, the company focused on deleveraging its balance sheet for the fourth consecutive year and paid off ₹434.3 crore of debt in FY22. The company currently has an overall debt of 375, ₹6 crore. It started the 2021 financial year with an aggregate debt of ₹809.9 crore. Therefore, in fiscal year 2022, the company reduced its debt by 53%.

corporate war

It comes even as YES Bank and Dish TV wage a corporate war over unpaid dues from Dish’s promoters, the Essel Group. The exact amount of debt payable to YES Bank was not disclosed in the annual report. During a previous interaction with Activity area in March, Essel Patriarch Subhash Chandra noted that the company’s debt to its lenders was around ₹350 crore. The bank had provided Essel Group companies with a loan of ₹5,270 crore, against a pledge of Dish TV shares in 2016.

At present, the bank has a 25% stake in the company worth ₹700 crore. In a recent win for YES Bank, Jawahar Goel, brother of Subhash Chandra, agreed to step down from the board at the company’s AGM on September 26.

The satellite TV service provider slowly acquiesced to YES Bank’s demands from September 5, 2021. Earlier this month, Dish also agreed to appoint three of the seven independent directors, proposed by YES Bank in the letter from the September 5. Thus, YES Bank has approved Girish Paranjpe, Arvindnachya Chandranachya and Madan Mohanlal Verma to join Dish’s Board of Directors.

The company’s losses widened in their concrete efforts to repay debt. The loss for FY22 was ₹1,867 crore, in comparison, the company’s loss for FY21 was ₹1,189.8 crore. To optimize costs, the company reduced expenses by 6% in FY22.

Published on

September 05, 2022

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