Cable TV
SITI Networks’ transformation begins with slashing of bloated workforce
MUMBAI: The breeze of change is being felt at the Essel Group-owned SITI Networks. Work is on to claw the 13-million subscriber base strong MSO – which has estimated accumulated losses of Rs 650-odd million – back to profitability. And, the Essel group chairman Subhash Chandra is relying on the chief transformation officer Rajesh Sethi to do the job.
According to an industry observer: “All the major publicly-listed MSOs have to spruce up and streamline their operations keeping in mind the digitisation of cable TV. Almost all the companies’ financials are in a bit of a mess. Some more, some less. Siti Networks is no different. Hence, Sethi has his task cut out for him.”
The SITI Networks scrip – like other listed cable TV companies – has been languishing at its lowest – somewhere in the Rs 22-25 range, after reaching a 52 week high of Rs 41.35, and in the Rs 30 range for the past two years.
Amongst the first things Sethi decided to do after agreeing to take up Subash Chandra’s challenge is making presentations to investors overseas, admitting that mistakes have happened in the past, assuring them that he is seeking to rectify them with the backing of the promoters.
“Subhashji is very passionate about TV distribution and he wants to really get the company on track,” says Sethi.
Sethi has earned his stripes by building Ten Sports as a brand (before the Goel family finally sold its sports TV channel network to Sony earlier this year), and later looking after the distribution of the Zee group channels. He was then asked to take over SITI Networks’ management as CEO & ED but he preferred the title of chief transformation officer.
Sethi has been instrumental in roping back former Airtel hand Sanjay Berry as chief financial officer, who rejoined the company on 1 September. Berry had joined SITI Networks for a brief stint of three months earlier this year.
“We are committed to getting things in order,” says Sethi. “It will take time, but we will do it. People, processes and product are what we are focusing on.”
Sethi has spent the past few months reviewing SITI Networks’ operations. And his discovery was that the company had a bloated workforce: 3,500 employees, and 500 field offices – 22 in Delhi alone.
Hence, last week, he wielded the axe on headcount. Close to 670 employees were issued pink slips, with three months severance pay. Almost 100 of those asked to go were in administration. “Cost-cutting is imperative,” says Sethi. “These were people who were hired over the years, and they were there.”
Sethi points out that he has retained most of the sales force of SITI Network. “We have to keep the money coming in,” he says, with a smile.
What next? “Get the basics of business right. And, take up initiatives that bring in revenue,” he says.
That should give a lot more confidence to SITI Networks’ shareholders and investors.
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MUMBAI: When margins wobble, liquidity talks and in Q3 FY25-26, cash did most of the talking. Den Networks Limited closed the December quarter with consolidated revenue of Rs.251 crore, marginally higher than the previous quarter but down 4 per cent year-on-year, even as profitability stayed resilient on the back of strong cash reserves and disciplined cost control.
Subscription income softened to Rs.98 crore, slipping 3 per cent sequentially and 14 per cent from last year, while placement and marketing income offered some cheer, rising 15 per cent quarter-on-quarter to Rs.148 crore. Total costs climbed faster than revenue, up 7 per cent QoQ to Rs.238 crore, driven largely by higher content costs and operating expenses. As a result, EBITDA dropped sharply to Rs.13 crore from Rs.19 crore in Q2 and Rs.28 crore a year ago, pulling margins down to 5 per cent.
Yet, the bottom line refused to blink. Profit after tax stood at Rs.40 crore, up 15 per cent sequentially and only marginally lower than last year’s Rs.42 crore. A healthy Rs.57 crore in other income helped cushion operating pressure, keeping profit before tax at Rs.48 crore, broadly stable quarter-on-quarter despite the tougher cost environment.
The real headline-grabber, however, sits on the balance sheet. The company remains debt-free, with cash and cash equivalents swelling to Rs.3,279 crore as of December 31, 2025. Net worth rose to Rs.3,748 crore, while online collections accounted for 97 per cent of total receipts, underscoring strong cash discipline across operations, including subsidiaries.
In short, while Q3 showed signs of operating strain, the financial backbone remains solid. With zero gross debt, steady profits and a formidable cash war chest, the company enters the next quarter with flexibility firmly on its side proving that in uncertain markets, balance sheet strength can be the best growth strategy.
