Equity Research

October 26, 2018 INDIA

BSE Sensex: 33690
Dish TV BUY
ICICI Securities Limited Maintained
is the author and
distributor of this report Share pledge and Jio concerns take center stage Rs37
Reason for report: Q2FY19 result review and earnings revision
Media Dish TV Q2FY19 performance was weak, with ARPU declining 3.3% QoQ to Rs207
and subscriber additions of a mere 200k. We had questioned the sustainability of
ARPU in the previous quarter, but were negatively surprised by subscriber
Target price Rs71 additions and lack of merger synergy playing out meaningfully. While we are
hopeful of merger synergies materialising, the recent news of Reliance Industries
Earnings revision acquiring majority stake in Hathaway Cable and Datacom and Den Networks,
(%) FY19E FY20E raises competitive intensity in the sector. We cut our ARPU growth estimates for
Sales ↓ 0.6 ↓ 4.0
EBITDA ↓ 0.6 ↓ 4.0 the sector to factor-in the competition. Our revised DCF-based target price for
EPS ↓ 1.5 ↓ 12.7 Dish TV stands at Rs71, which implies an EV/EBITDA valuation of 7x FY19E. We
however feel the high pledging of Dish TV shares at 83.86% of promoter holding
Target price revision
Rs71 from Rs93 is an overhang and the company’s decision to give out dividend of Rs0.5/ share
instead of reducing debt was unwarranted.
Shareholding pattern
Mar Jun Sep  Weak ARPU and net subscriber addition performance: Subscription revenue
’18 ’18 ’18
Promoters 31.5 36.4 60.8
declined 2.4% QoQ (I-Sec: +2.1%) leading to 3.7% degrowth in the topline. ARPU
Institutional declined 3.3% sequentially to Rs207 (I-Sec: Rs216) and the management attributed
investors 30.5 15.9 13.3
MFs and UTI 4.0 2.5 1.4 it to dilution of sport packages as there were no major sport events in Q2FY19. Net
FIs/Insurance 0.4 0.1 0.2 subscriber addition stood at 200k (vs 325k in Q1FY19) in a seasonally weak
FIIs 11.1 13.3 11.7
Others 38.0 47.7 25.9 quarter, while monthly churn remained flat QoQ at 1%. Net subscriber addition for
Dish TV is in line with the 133k net subscriber addition for Airtel Digital TV (Airtel) in
Price chart Q2FY19; however, ARPU for Airtel grew 1.3% QoQ. Dish TV management
maintained its guidance of 8% revenue growth in FY19 on the back of 1.3mn net
120
subscriber addition (led by festive season) and ARPU growth.
100
 No meaningful synergy benefit visible in Q2FY19: EBITDA declined 2.9% QoQ
80
(Rs)

to Rs5.4bn (I-Sec: Rs5.7bn) with the margin expanding slightly by 30bps to 33.9%
60 (I-Sec: 33.5%). Dish TV recorded forex loss of Rs210mn in Q2FY19 (which has
40 been included in admin expenses) due to sharp INR depreciation. Management is
20
confident of realising its guided synergy benefits and to exit FY19 with 35% EBITDA
margin. Management also highlighted that savings in finance cost (Rs750mn) and
Oct-18
Oct-15

Apr-18
Apr-16
Oct-16
Apr-17
Oct-17

lower STB cost (Rs1.1bn saving in FY19) are already being realised.
 Company to launch hybrid STBs and OTT platform: In order to fence-in its
subscribers in the face of increasing popularity of OTT platforms and online video
consumption, Dish TV is planning to launch hybrid STBs and an OTT platform.
Company is also contemplating partnership with ISPs to provide bundled services.

Market Cap Rs68.4bn/US$934mn Year to March FY17 FY18 FY19E FY20E

Reuters/Bloomberg DSTV.BO/DITV IN Revenue (Rs mn) 30,144 46,342 66,962 73,876
Shares Outstanding (mn) 1,841.3 Net Income (Rs mn) 1,150 (848) 3,588 6,413
52-week Range (Rs) 86/37 EPS (Rs) 1.1 (0.5) 1.9 3.5
Free Float (%) 35.8 % Chg YoY (55.1) NM NM 78.7
FII (%) 26.2 P/E (x) 68.6 NM 38.0 21.2
Research Analysts: Daily Volume (US$'000) 5,741 CEPS (Rs) 7.3 5.4 9.6 11.2
Vikash Mantri Absolute Return 3m (%) (47.1) EV/E (x) 14.8 11.6 6.9 5.8
vikash.mantri@icicisecurities.com Absolute Return 12m (%) (51.0) Dividend Yield (%) - - - -
+91 22 6637 7161
Sensex Return 3m (%) (8.3) RoCE (%) 26.1 5.4 8.4 11.0
Abhishek Bohara
abhishek.bohara@icicisecurities.com Sensex Return 12m (%) 3.2 RoE (%) 26.4 (2.3) 5.2 8.6
+91 22 2277 7637 Please refer to important disclosures at the end of this report
Dish TV, October 26, 2018 ICICI Securities
 xx
Table 1: Net subscriber addition for Dish TV largely in-line with Airtel Digital TV, while it lag on ARPU
performance in Q2FY19
Key Metrics Q4’16 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19
Net subs (mn)
Dish TV 14.5 14.9 15.1 15.3 15.5 15.7 15.9 16.1 23.0 23.3 23.5
Videocon D2H 11.9 12.3 12.5 12.8 12.9 13.0 13.3 13.4
Airtel Digital TV 11.7 12.1 12.4 12.6 12.8 13.3 13.5 13.9 14.2 14.6 14.8
Net sub add ('000)
Dish TV 508 402 259 204 165 186 188 250 301 200
Videocon D2H 590 430 230 250 140 130 210 160
Airtel Digital TV 619 424 256 183 228 499 207 416 230 479 133
Monthly churn (%)
Dish TV 0.7 0.7 0.8 0.8 0.9 1.0 0.8 0.8 1.0 1.0
Videocon D2H 0.6 0.5 1.0 0.9 0.9 1.3 0.6 1.0
Airtel Digital TV 0.8 0.8 1.2 1.3 1.2 0.9 1.4 1.2 1.1 0.7 1.3
ARPU (Rs/sub/month)
Dish TV * 174 165 162 151 134 148 149 144 201 214 207
Videocon D2H 214 211 209 205 196 198 212 208
Airtel Digital TV 229 233 232 232 228 228 233 233 228 229 232

Key P&L Items Q4’16 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Q3’18 Q4’18
Revenue (Rs mn)
Dish TV 7,994 7,786 7,793 7,480 7,086 7,389 7,486 7,408 15,324 16,556 15,943
Videocon D2H 7,715 7,633 7,762 7,774 7,549 7,726 8,346 8,337
Airtel Digital TV 7,840 8,369 8,545 8,735 8,657 8,974 9,369 9,642 9,585 9,924 10,242
Revenue growth YoY (%)
Dish TV 5.9 5.7 9.6 2.4 (6.3) (5.1) (3.9) (1.0) NM NM NM
Videocon D2H 23.4 15.2 12.5 6.3 (2.1) 1.2 7.5 7.2
Airtel Digital TV 23.5 22.2 20.9 17.7 10.4 7.2 9.6 10.4 10.7 10.6 9.3
EBITDA (Rs mn)
Dish TV 2,608 2,647 2,642 2,495 1,906 2,012 2,161 2,006 4,606 5,568 5,406
Videocon D2H 2,162 2,498 2,605 2,651 2,319 2,485 2,805 2,914
Airtel Digital TV 2,750 3,011 3,030 3,026 3,153 3,300 3,517 3,708 3,701 4,010 3,960
EBITDA margin (%)
Dish TV 32.6 34.0 33.9 33.4 26.9 27.2 28.9 27.1 30.1 33.6 33.9
Videocon D2H 28.0 32.7 33.6 34.1 30.7 32.2 33.6 35.0
Airtel Digital TV 35.1 36.0 35.5 34.6 36.4 36.8 37.5 38.5 38.6 40.4 38.7
* Note: ARPU before Q1FY17 not comparable due to accounting change
Note: Combined Dish TV and Videocon D2H numbers form Q4FY18
Source: Company data, I-Sec research

Other key highlights from conference call

 Management highlighted that synergy benefits are not directly visible due to mix of
cost items, merger accounting changes and ongoing new initiatives, however cost
savings are translating into increase in EBITDA margin to 34% vs 28% in FY18.
 Gross debt at Q1FY19-end stood at R25.5bn and net debt stood at Rs21.5bn with
average cost of fund at 8%. Company outlined plan to repay Rs5bn debt in
H2FY19 (Rs4.5bn debt repaid in H1FY19) and to be debt free in two years.
 Content cost stood at 35% of subscription revenue
 Capex for the quarter stood at Rs2.3bn and for Q1FY19 it was Rs1.9bn and
company guided for total capex of Rs8.5-9.0bn for FY19.
 Sharp net increase in working capital is due to advances to suppliers of consumer
premise equipment, OTT and networking equipment (Rs3.5bn).
 Current inventory of STBs (CWIP) stands at 0.85mn boxes amounting to Rs6.5bn
as at Q2FY19-end.
 Company is also planning to launch ‘SMRT Stick’ to convert CRT TV into Smart
TV.

2
Dish TV, October 26, 2018 ICICI Securities
Table 2: Q2FY19 result review
(Rs mn, year ending March 31)
% chg % chg
Rs mn I-SEC est Q2FY19 Q2FY18 Q1FY19 (YoY) (QoQ)
Subscription revenue 15,214 14,536 7,049 14,893 106.2 (2.4)
Total Income 16,907 15,943 7,486 16,556 113.0 (3.7)

Operating expenses 9,045 8,672 3,921 8,841 121.2 (1.9)

Personnel costs 592 626 366 577 71.1 8.5
Admin and other expense 1,606 1,238 1,038 1,571 19.3 (21.2)
Total expenses 11,243 10,537 5,325 10,989 97.9 (4.1)

EBITDA 5,664 5,406 2,161 5,568 150.2 (2.9)

EBITDA Margin (%) 33.5 33.9 28.9 33.6 504bps 28bps

Depreciation 3,680 3,675 1,899 3,608 93.6 1.9

EBIT 1,983 1,731 262 1,959 560.1 (11.7)

Interest & financial charges 1,331 1,592 611 1,775 160.5 (10.3)
Other Income 157 147 77 157 90.5 (6.7)
PBT 809 286 (272) 342 (205.3) (16.2)

Adjusted PAT 567 255 (161) 279 (258.5) (8.5)

ARPU (Rs/month/subs) 216 207 149 214 38.9 (3.3)

Net subscribers (mn) 23.6 23.5 15.9 23.3 48.1 0.9
Net subs addition ('000) 325 200 188 301 6.4 (33.6)
Note: YoY numbers are not comparable due to merger of Videocon D2H as of Oct’17
I-Sec est. does not include Videocon D2H numbers
Source: Company data, I-Sec research

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Dish TV, October 26, 2018 ICICI Securities

Estimates revision
We revised our ARPU and subscriber addition estimates to factor in competitive
intensity leading to downward earnings revision by 1.5% and 12.7% for FY19 and
FY20 respectively.
Table 3: Downward earnings revision
(Rs mn)
FY19E FY20E
Revised Earlier % chg Revised Earlier % chg
Revenues 66,577 66,955 (0.6) 70,600 73,538 (4.0)
EBITDA 22,103 22,229 (0.6) 24,045 25,045 (4.0)
PAT 3,625 3,681 (1.5) 5,498 6,299 (12.7)
Source: I-Sec research

Chart 1: Recommendation history

B H A B A R A B A R B H B H
130 B
120 A

110
100
90
(Rs)

80
70
60
50
40
30
Feb-11

Jul-12

Jul-14

Dec-17
Aug-11
Dec-11

Jan-13

Aug-13
Dec-13
Mar-14

Jan-15

Aug-15

Jun-16

Jan-17

Aug-17

Jun-18
Mar-12

Oct-12

Oct-14

Dec-15
Mar-16

Oct-16

Mar-18

Oct-18
May-11

May-13

May-15

May-17
B: BUY, H: HOLD, S: SELL and A: ADD
Note: The grey line indicates our target price
Source: I-Sec research

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Dish TV, October 26, 2018 ICICI Securities
Table 4: Quarterly summary data
(Rs mn, year ending March 31)
FY17 FY17 FY18 FY18 FY19
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Profit & Loss statement
DTH 7,448 7,070 6,385 28,366 7,047 7,185 14,430 14,334 44,063 15,489 14,982
Growth % QoQ (0.1) (5.1) (9.8) 3.1 10.4 2.0 100.8 (0.7) 55.4 8.1 (3.3)

Subscription revenue 7,288 6,921 6,205 27,696 6,917 7,049 14,430 13,771 42,167 14,893 14,536
Growth % QoQ 0.1 (5.0) (10.3) 4.1 11.5 1.9 104.7 (4.6) 52.2 8.1 (2.4)
ARPU (Rs) 162 151 134 149 148 149 201 214 207
Growth % QoQ -1.8% -6.5% (11.4) (1.2) 0.8 6.5 (3.3)
Net subscribers (mn) 15.1 15.3 15.5 15.6 15.7 15.9 23.0 23.0 23.3 23.5
Net sub adds (000s) 259 204 165 1,100 186 188 200 301 200

Rental revenue 40 29 20 150 20 16 363 1,225 250 220

Growth % QoQ (20.0) (27.5) (50.0) (63.0) - (20.0) 52.2 (31.1) (12.0)

Teleport services 50 60 55 1,000 60 55 60 1,375 55 57

Growth % QoQ - 20.0 10.0 (5.2) 9.1 (8.3) 30.0 (8.3) 3.1

Total Income 7,793 7,480 7,086 30,144 7,389 7,486 16,143 15,324 46,342 16,556 15,943
Growth % QoQ 0.1 (4.0) (5.3) (1.5) 4.3 1.3 115.6 (5.1) 53.7 8.0 (3.7)

Operating expenses 3,662 3,443 3,618 14,264 3,765 3,921 8,503 8,689 24,766 8,841 8,672
% of sales 47.0 46.0 51.1 47.3 51.0 52.4 52.7 56.7 53.4 53.4 54.4
Personnel costs 364 361 359 1,465 388 366 673 668 2,096 577 626
% of sales 4.7 4.8 5.1 4.9 5.3 4.9 4.2 4.4 4.5 3.5 3.9
Admin and other expense 401 378 502 3,108 1,224 1,038 1,989 1,960 6,208 1,571 1,238
% of sales 5.1 5.1 7.1 4.9 16.6 13.9 12.3 12.8 6.5 9.5 7.8
Selling and distribution
expenses 724 803 701 844
% of sales 9.3 10.7 9.9 10.3
Total expenses 5,151 4,985 5,180 20,414 5,377 5,325 11,165 11,317 33,181 10,989 10,537
% of sales 66.1 66.6 73.1 67.7 72.8 71.1 69.2 73.9 71.6 66.4 66.1

EBITDA 2,642 2,495 1,906 9,730 2,012 2,161 4,978 4,007 13,161 5,568 5,406
EBITDA Margin % 33.9 33.4 26.9 32.3 27.2 28.9 30.8 26.1 28.4 33.6 33.9

Depreciation 1,635 1,656 1,728 6,631 1,822 1,899 3,525 3,471 10,717 3,608 3,675
Interest & financial charges 554 591 573 2,239 590 611 1,434 1,329 3,964 1,775 1,592
Other Income 111 181 104 475 98 77 242 127 542 157 147
PBT 564 429 (291) 1,335 (302) (272) 261 (666) (979) 342 286

Tax (136) 162 (8) 242 (162) (93) 1,945 (1,849) (130) 87 89
Adjusted PAT 701 267 (413) 1,093 (117) (161) (1,638) 1,213 (750) 279 255
NPM % 71.0 (61.9) (5.8) 3.6 (1.6) (2.1) (10.1) 7.9 (1.6) 1.7 1.6
Growth % QoQ 9.0 3.6 (254.8) (57.4) (52.3) 37.8 918.8 (174.1) (181.4) (77.0) (8.5)

Operating metrics
Gross subscribers (mn) 23.3 23.9 24.4 24.6 25.1 25.6 46.7 47.7 48.6
Gross sub adds (000s) 615 612 581 2,604 654 567 996 902

Net subscribers (mn) 15.1 15.3 15.5 15.6 15.7 15.9 23.0 23.0 23.3 23.5
Net sub adds (000s) 259 204 165 1,100 186 188 301 200

Disconnects (000s) 356 408 416 1,504 468 379 695 702
Monthly Churn 0.8% 0.9% 0.9% 0.8% 1.0% 0.8% 1.0% 1.0%

ARPU (Rs) 162 151 134 148 149 201 214 207
Growth % QoQ -1.8% -6.5% -11.4% -1.2% 0.8% 6.5% -3.3%

Subscriber acquisition cost (Rs) 1,590 1,725 1,680 1,800 1,525 1,575 1,575
Growth % QoQ 9.6% 8.5% -2.6% 7.1% -15.3%
* ARPU is not comparable before Jun’16 due to accounting changes
Source: Company data, I-Sec research

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Dish TV, October 26, 2018 ICICI Securities
Table 5: Annual summary data
(Rs mn, year ending March 31)
FY13 FY14 FY15 FY16 FY17 FY18 FY19E FY20E
Profit & Loss statement
DTH 21,077 24,211 25,725 29,180 28,364 42,908 62,177 65,928
Growth % QoQ 10.9 14.9 6.3 13.4 (2.8) 51.3 41.1 6.0

Subscription revenue 19,228 22,681 24,499 28,276 27,696 42,167 59,257 62,783
Growth % QoQ 15.6 18.0 8.0 15.4 (2.0) 52.2 40.5 6.0
ARPU (Rs) 178 190 184 186 167 - 210 214
Growth % QoQ -1.0% 6.3% -3.0% 1.0% -10.0% 0.0% 2.0%
Net subscribers (mn) 10.6 11.4 12.9 14.5 15.5 23.0 24.0 24.8
Net sub adds (000s) 1,047 765 1,530 1,553 1,030 - 1,000 822

Rental revenue 1,597 1,169 810 406 142 216 2,000 2,100
Growth % QoQ (27.6) (26.8) (30.8) (49.9) (65.0) 52.2 63.2 5.0

Teleport services 320 496 810 1,055 1,058 1,500 2,400 2,472
Growth % QoQ (19.4) 55.3 63.2 30.2 0.3 41.8 74.5 3.0

Total Income 21,668 25,090 26,880 30,599 30,144 46,342 66,577 70,600
Growth % QoQ 10.7 15.8 7.1 13.8 (1.5) 53.7 43.7 6.0

Operating expenses 11,081 13,283 13,954 14,681 14,233 24,775 33,821 35,370
% of sales 51.1 52.9 51.9 48.0 47.2 53.5 50.8 50.1
Programming costs 6,525 7,784 8,008 8,555 9,177 9,951 22,969 24,113
% of DTH revenues 31.0 32.2 31.1 29.3 32.4 23.2 36.9 36.6
Personnel costs 822 892 1,018 1,229 1,440 2,096 2,796 2,936
% of sales 3.8 3.6 3.8 4.0 4.8 4.5 4.2 4.2
Admin and other expense 3,036 3,321 3,340 2,836 3,108 3,044 2,463 2,586
% of sales 4.0 5.1 4.4 4.9 4.9 6.8 3.7 3.7
Selling and distribution expenses 761 666 544 793 953 906 4,993 5,252
% of sales 14.0 13.2 12.4 9.3 10.3 6.6 7.5 7.4
Total expenses 15,874 18,849 19,548 20,350 20,358 33,181 44,473 46,555
% of sales 73.3 75.1 72.7 66.5 67.5 71.6 66.8 65.9

EBITDA 5,794 6,240 7,331 10,249 9,786 13,161 22,103 24,045

EBITDA Margin % 26.7 24.9 27.3 33.5 32.5 28.4 33.2 34.1

Depreciation 6,276 5,974 6,138 5,907 6,631 10,717 13,849 14,026

Interest & financial charges 1,284 1,328 1,754 2,087 2,239 3,964 4,400 3,960
Other Income 511 649 635 640 475 542 678 813
PBT (1,254) (412) 74 2,895 1,391 (978) 4,532 6,872

Tax 1 - 42 (4,029) 241 (130) 906 1,374

Adjusted PAT (1,255) (412) 31 2,564 1,150 (848) 3,625 5,498
Growth % QoQ (5.7) (67.2) (107.6) NM (55.1) (173.7) (583.5) 51.6
NPM % (5.8) (1.6) 0.1 8.4 3.8 (1.8) 5.4 7.8

Operating metrics
Gross subscribers (mn) 15.1 16.7 19.2 21.9 24.4 46.7 50.0 53.3
Gross sub adds (000s) 2,205 1,560 2,548 2,740 2,480 3,351 3,265

Net subscribers (mn) 10.6 11.4 12.9 14.5 15.5 23.0 24.0 24.8
Net sub adds (000s) 1,047 765 1,530 1,553 1,030 1,000 822

Disconnects (000s) 1,158 795 1,018 1,187 1,450 2,573 2,351 2,443
Monthly Churn 1.0% 0.6% 0.7% 0.7% 0.8% 0.8% 0.8% 0.8%

Blended ARPU (Rs) 178 190 184 186 167 210 214
Growth % QoQ -1.0% 6.3% -3.0% 1.0% -10.0% 2.0%
Source: Company data, I-Sec research

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 Dish TV, October 26, 2018 ICICI Securities

Financial summary
Table 6: Profit and Loss statement Table 9: Cashflow statement
(Rs mn, year ending March 31) (Rs mn, year ending March 31)
FY17 FY18 FY19E FY20E FY17 FY18 FY19E FY20E
Operating income (sales) 30,144 46,342 66,577 70,600 Operating Cashflow 8,596 11,910 16,797 18,710
of which DTH 28,364 44,063 62,177 65,928 Working Capital Changes 41 (333) (2,835) (199)
of which Teleport 1,058 1,375 2,400 2,472 (13,875
of which Others 722 904 2,000 2,200 Capital Commitments (9,488) (8,561) (11,292) )
Operating expenses 20,464 33,181 44,473 46,555 Free Cashflow (851) 3,015 2,671 4,636
EBITDA 9,680 13,161 22,103 24,045 Cashflow from Investing
% margins 32.1 28.4 33.2 34.1 Activities 1,287 690 678 813
Depreciation & Amortisation 6,908 10,717 13,849 14,026 Issue of Share Capital - - - -
Net Interest 2,292 3,964 4,400 3,960 Buyback of shares - - - -
Other Income 615 542 678 813 Inc (Dec) in Borrowings (872) (942) (3,154) (2,839)
Recurring PBT 1,095 (979) 4,532 6,872 Dividend paid - - (1,077) (2,573)
Add: Extraordinaries - - - - Extraordinary Items - - - -
Less: Taxes 274 (130) 906 1,374 Chg. in Cash & Bank balance (469) 2,708 (883) 38
- Current tax 982 23 906 1,374 Source: Company data, I-Sec research
- Deferred tax (708) (153) - -
Less: Minority Interest
Net Income (reported) 921 (750) 3,625 5,498 Table 10: Key ratios
Recurring net income 921 (750) 3,625 5,498 (Year ending March 31)
Source: Company data, I-Sec research FY17 FY18 FY19E FY20E
Per Share Data (Rs)
Table 7: Balance sheet Diluted Recurring EPS 0.9 (0.4) 2.0 3.0
Diluted Reported EPS 0.9 (0.4) 2.0 3.0
(Rs mn, year ending March 31) Recurring Cash EPS 7.3 5.4 9.5 10.6
FY17 FY18 FY19E FY20E Dividend per share (DPS) - - 0.5 1.2
Assets Book Value per share (BV) 3.6 36.5 37.9 39.5
Total Current Assets 6,775 12,170 14,143 14,848
of which cash & cash eqv. 2,922 5,630 4,747 4,785 Growth Ratios (% YoY)
Total Current Liabilities & Operating Income (1.5) 53.7 18.8 12.4
Provisions 25,116 51,159 51,267 51,826 EBITDA (5.6) 36.0 68.0 8.8
Net Current Assets (18,341) (38,989) (37,124) (36,978) Recurring Net Income (55.1) NM NM 51.6
Investments 1,648 1,500 1,650 1,815 Diluted Recurring EPS (55.1) NM NM 51.6
Net Fixed Assets 26,219 65,876 63,168 62,852 Diluted Recurring CEPS (7.6) (26.3) 75.3 11.7
of which
intangibles 1,028 22,757 22,810 22,877 Valuation Ratios (x)
Capital Work-in-Progress 5,796 6,781 6,475 6,669 P/E 68.6 NM 38.0 21.2
Goodwill - 62,754 62,754 62,754 P/CEPS 5.0 6.8 3.9 3.5
Total Assets 11,468 94,535 94,013 94,186 P/BV 10.2 1.0 1.0 0.9
EV / EBITDA 7.9 7.1 4.2 3.7
Liabilities EV / Operating Income 2.5 2.0 1.4 1.3
Borrowings 11,369 31,539 28,385 25,547 EV / Operating FCF 8.8 8.1 6.6 4.8
Deferred Tax Liability (5,117) (6,027) (6,027) (6,027)
Equity Share Capital 1,066 1,841 1,841 1,841 Operating Ratios
Face Value per share (Rs) 1.0 1.0 1.0 1.0 Raw Material/Sales (%) 0.4 0.3 0.6 0.6
Reserves & Surplus 2,992 65,700 68,248 71,173 SG&A/Sales (%) 11.0 7.2 8.0 8.0
Net Worth 3,970 67,361 69,909 72,834 Other Income / PBT (%) 56.2 (55.4) 14.9 11.8
Total Liabilities 11,468 94,535 94,013 94,186 Effective Tax Rate (%) 25.0 13.3 20.0 20.0
Source: Company data, I-Sec research NWC / Total Assets (%) (185) (47) (45) (44)
Inventory Turnover (days) 178 147 110 93
Table 8: Quarterly trend Receivables (days) 28 18 36 34
Payables (days) 37 47 54 52
(Rs mn, year ending March 31) Net D/E Ratio (x) 2.1 0.4 0.3 0.3
Dec-17 Mar-18 Jun-18 Sep-18
Net sales 16,143 15,324 16,556 15,943 Profitability Ratios (%)
% growth (YoY) 115.8 116.3 124.1 113.0 Recurring Net Income Margins 3.0 (1.6) 5.4 7.7
EBITDA 4,978 4,007 5,568 5,406 RoCE 21.8 5.1 7.6 9.3
Margin (%) 30.8 26.1 33.6 33.9 RoNW 23.7 (2.1) 5.3 7.7
Other income 242 127 157 147 Dividend Payout Ratio - - 25.4 40.0
Add: Extraordinaries - - - - Dividend Yield - - 1.4 3.2
Net profit (1,638) 1,213 279 255 EBITDA Margins 32.1 28.4 33.2 34.1
Source: Company data, I-Sec research Source: Company data, I-Sec research

7
 Dish TV, October 26, 2018 ICICI Securities

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