May 15, 2015
Mumbai
Brahmaputra Tele Productions Private Limited
 
Rating Reaffirmed
 
Total Bank Loan Facilities Rated Rs.200 Million
Long Term Rating CRISIL B/Stable (Reaffirmed)
(Refer to Annexure 1 for Facility-wise details)

CRISIL's rating on the long-term bank facilities of Brahmaputra Tele Productions Pvt Ltd (BTPPL) continues to reflect BTPPL's large working capital requirements and modest scale of operations in the competitive television broadcasting industry. These rating weaknesses are partially offset by the extensive experience of BTPPL's promoters in the television broadcasting industry.

Outlook: Stable

CRISIL believes that BTPPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' in case of significant improvement in its revenue and accruals or better working capital management, leading to improvement in its financial risk profile, especially liquidity. Conversely, the outlook may be revised to 'Negative' in case of a further decline in BTPPL's accruals, a stretch in its working capital cycle, or a large debt-funded capital expenditure (capex), weakening its liquidity.
 
Update
BTPPL's operating income is estimated to have remained muted in 2014-15 (refers to financial year, April 1 to March 31), with revenue estimated at Rs.191 million. Muted revenue growth is because of limited scale up of its newly launched 'Jonak' channel. However, its operating income is expected to improve over the medium term on account of expected improvement in performance from Jonak channel. The company's operating margin is likely to remain moderate over the medium term. BTPPL's working capital requirement continues to remain large, with stretched receivables. BTTPL's liquidity continues to be stretched, marked by high bank limit utilisation, large term debt obligation vis-à-vis cash accruals, and sizeable debt-funded capex plans. Its financial risk profile remains moderate, marked by low gearing below 1 time and comfortable debt protection metrics.

About the Company

BTPPL, originally incorporated in 2001 as Jaintia Ispat Pvt Ltd (JIPL) in Assam, is promoted by the Jaiswal family. JIPL was later renamed as Tsang-Po Smelter Pvt Ltd in 2003 and as BTPPL in 2006. BTPPL currently runs a 24-hour free-to-air (FTA) satellite news channel, DY365, in Assamese. The company also launched an FTA general entertainment channel, Jonak, in October 2014.

Annexure 1 - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Million) Rating Facility Amount (Rs.Million) Rating
Cash Credit 20 CRISIL B/Stable Cash Credit 20 CRISIL B/Stable
Proposed Long Term Bank Loan Facility 96 CRISIL B/Stable Proposed Long Term Bank Loan Facility 96 CRISIL B/Stable
Term Loan 84 CRISIL B/Stable Term Loan 84 CRISIL B/Stable
Total 200 -- Total 200 --
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May 15, 2015

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