Hathway Cable Q3 consolidated net profit down at Rs 62.72 cr
The company's broadband business returned to profitability with an operating profit of Rs 14.92 crore as against a loss of Rs 5.82 crore
Cable and broadband service provider Hathway Cable and Datacom has declared a consolidated net profit of Rs 62.72 crore for the quarter ended 31st December 2020 compared to Rs 68.18 crore in the corresponding quarter of the previous fiscal.
Revenue from operations saw a marginal dip at Rs 442.26 crore from Rs 450.82 crore in Q3 FY20. Total expenses stood at Rs 411.26 crore for the quarter as against Rs 473.11 crore. Pay channel cost was up at Rs 145.06 crore from Rs 139.56 crore.
The company's broadband business returned to profitability with an operating profit of Rs 14.92 crore as against a loss of Rs 5.82 crore. Revenue from broadband business jumped to Rs 158.69 crore from Rs 143.20 crore a year ago.
The operating profit from the cable television business almost halved to Rs 16.50 crore from Rs 33.04 crore. Revenue from the segment declined to Rs 283.57 crore from Rs 307.62 crore.
In the notes to results, the company said that it continued to operate and provide services to its customers without any disruptions subsequent to the outbreak of Coronavirus (COVID-19) and the consequential lockdown across the country. However, it added that disruptions to businesses worldwide and economic slowdown may have its eventual impact on the Group.
"A definitive assessment of the impact is not possible in view of the highly uncertain economic environment and the scenario is also evolving. The Group has evaluated its liquidity position and of recoverability and carrying values of its assets and have concluded that no material adjustments required at this stage in the financial results," the company stated.
During the Quarter, the company had received Show Cause cum Demand Notices ("SCNs) from the Department of Telecommunications (DoT), Government of India for the financial years 2006-07, 2007-08 and 2008-09 towards ISP license fees aggregating to Rs. 376.40 crore, which includes penalty and interest thereon.
The company has responded to DoT contesting their inclusion of Cable TV revenue in arriving at Adjusted Gross Revenue (AGR) for calculation of Licence Fee payable by the Company under the ISP Licence in these SCNs.
Based on the opinion of legal experts, the company is confident that it has good grounds on merit to defend itself in the above matter. Accordingly, the company is of the view that no provision is necessary in respect of the aforesaid matter in the financial results.
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