Cable TV
Financial books of some Kolkata MSOs should be audited: Analysts
KOLKATA: At a time when some multi-system operators (MSOs) in Kolkata are stuck in a legal battle with the government authorities over non-payment of taxes, city-based analysts feel that the financial books of some MSOs should be duly audited.
“Some MSOs should be audited by the authorities as non-payment of taxes is causing loss to the state as well as central exchequer,” says a cable TV analyst Mrinal Chatterjee.
Last year, in August 2013, Kolkata-based MSO Kolkata Cable & Broadband Pariseva Ltd (KCBPL) managing director Bijoy Kumar Agarwal was arrested for evading service tax payment to the tune of Rs 5.52 crore. Agarwal was arrested during a raid conducted by the service tax officials probing the alleged financial irregularities of the MSO.
Says a local cable operator (LCO), “All these years, it was the LCOs who were held responsible for all the deeds and misdeeds. Now digitisation has helped in unfolding the truth that even the MSOs are resorting to unfair means to do their business. The government authorities must look into the matter seriously.”
Trouble for operators in Kolkata seems to be intensifying. Before it was the Telecom Regulatory Authority of India (TRAI) and now they are being closely monitored by the tax inspectors, police authorities and even the judiciary.
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.
