has raised fresh debt to meet the increased requirement of working
capital and support its investments. "Net debt levels increased
substantially to Rs 6.6 billion at the 9-month period of FY'09
compared to negative net debt levels at FY'08," Fitch said.
the positive note, however, is the possible gain of advertising
revenues from the upcoming elections and the budget coverage after
the new government is formed.
has also been actively undertaking cost cutting measures across
its businesses, which along with the one-time nature of some of
Web18's losses due to initial launch expenses and charging off
development costs, could help stem operating losses. In addition,
TV18 has put on hold its earlier investment/expansion plans into
new businesses such as print media, which could reduce the extent
of negative free cash flows to be funded through FY'10,"
of benefits from the company's ongoing operational initiatives,
coupled with a revival in advertising revenues materially benefiting
credit metrics could lead to the outlook being revised back to
stable, as could material reductions in net debt levels through
equity infusions and/or monetisation of equity stakes in subsidiaries/group
companies," the ratings agency added.
promoters pledge 34.6% stake