Cable TV
Maharashtra to rope in private parties to collect entertainment tax from cable ops
In an effort to increase entertainment tax collections from cable operators, the Maharashtra government has announced that it will collect duty on cable television through public auction from 2002-03.
State finance minister Jayant Patil, while presenting the state’s budget yesterday said: “Given the constraint of manpower, entertainment duty payable on all cable connections cannot be collected. Therefore, with a view to reduce expenditure on recovery and to increase revenue, I propose to collect entertainment duty on cable television by public auction from the financial year 2002-03. The Bombay Entertainments Duty Act, 1923 will be amended suitably.”
This is yet another attempt by the state government to bring tax collection in line with the actual number of cable connections. Maharashtra is estimated to have crossed 6 million cable TV homes but government records reveal only 2.5-2.6 million connections.
The govenment will auction the right for collecting taxes to private parties for recognised territories, it has been reported. The chosen party will collect tax from the local cable operator. However, as bidding cannot be done without adequate research the government is hoping that the private party’s effort would make tax collections truer to the actual number of cable connections.
Cable operators see this as another move that could adversely impact the cable television industry in the state and complain that it appears to support broadcasters.
Meanwhile, in a related move, Patil further announced in his budget that he would be revising rates of entertainment duty leviable on discotheques and would include sponsorship amount of fashion shows and other events in the tax base. For this proposal also, the Bombay Entertainment Duty Act will require amendment.
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.
