| Meterology Data Private Limited | ||||
| Rating reaffirmed at 'CRISIL A / Stable' | ||||
| Rating Action | ||||
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| Note: None of the Directors on CRISIL Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||
| 1 crore = 10 million | ||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale CRISIL Ratings has reaffirmed its 'CRISIL A/Stable' rating on the long-term bank facilities of Meterology Data Pvt Ltd (MDPL).
The rating continues to reflect the company’s comfortable business risk profile, being the sole entity carrying out metering operations for its parent, Broadcast Audience Research Council (BARC; ‘CRISIL A/Stable’), which is the only player in the TV viewership estimation business in India. The rating also factors in the support expected from BARC given the strategic importance and criticality of MDPL. These strengths are partially offset by high revenue concentration, given the single counterparty, and the modest financial risk profile of MDPL.
CRISIL Ratings has taken note of the recommendation paper by the Telecom Regulatory Authority of India on April 28, 2020, for the review of television audience measurement and ratings in India. The recommendations are being reviewed by the Ministry of Information and Broadcasting (MIB) in consultation with various stakeholders, and BARC has made the necessary representation to the ministry. The final guidelines, especially any that may impact the status of BARC as the sole provider of TV viewership measurement in India, will be a key rating sensitivity factor. |
Analytical Approach CRISIL Ratings has considered the standalone business and financial risk profiles of MDPL. The rating factors in the support expected from the parent, BARC, which has provided a proportionate guarantee for the debt raised by MDPL. BARC is involved in the daily business activities and provides managerial support to MDPL and will support the latter during exigencies and for timely servicing of debt considering its strategic importance to the parent’s operations. |
Key Rating Drivers & Detailed Description Strengths:
MDPL is the sole entity that installs and maintains measurement panels (also referred to as BAR-O-meters) for BARC as well as owns the BAR-O-meters. The panels take the sample set data from customers, which is processed for arriving at TV viewership estimation. Resultantly, the operations of MDPL are critical to the continued functioning of the parent.
The credit risk profile of MDPL is supported by the strong market position of BARC, which is the sole player in India providing independent TV viewership estimation. BARC's viewership ratings act as the benchmark for advertisement decisions. It uses superior watermarking technology and has adequate barometer count. High capital intensity and regulatory approvals act as strong entry barriers to the industry.
BARC’s strong market position and the criticality of MDPL to the operations of the parent should continue to support the credit risk profile of MDPL. Guidelines by the MIB impacting the status of BARC as the sole provider of TV viewership measurement in India will be monitorable.
MDPL receives regular managerial and advisory support from the senior management of BARC. The parent has also provided a proportionate bank guarantee (51% guarantee, in line with its shareholding) for the debt raised by MDPL and has expressed willingness to extend similar support in future. BARC has signed up an exclusive agreement with MDPL for the deployment, installation, and maintenance of meters.
Given the strategic importance and criticality of MDPL as the sole entity looking after BARC’s metering operations, the parent will likely continue to provide support when needed.
Weakness:
As its entire revenue accrues from BARC, MDPL is exposed to high customer concentration risk. The company has limited scope to expand its clientele given that BARC is the sole entity in the TV viewership estimation business in India. The revenue concentration risk is partially offset by BARC’s strong market position. However, any significant slowdown in panel addition leading to lower revenue will be a key monitorable. |
Liquidity: Adequate Liquidity will be supported by expected cash accrual of Rs 15-20 crore vis-à-vis debt obligation of around Rs 6 crore in fiscal 2023. Debt obligation and capex will be funded through internal accrual. |
Outlook Stable MDPL will continue to benefit from its status as the sole entity carrying out installation and maintenance of panels for BARC. |
Rating Sensitivity factors Upward factors
Downward factors
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About the Company MDPL deploys and maintains BAR-o-meters in 'panel households' to collect raw data on TV viewership for BARC. It was formed to integrate the services of BARC through additional infrastructure (manpower and devices) of Television Audience Measurement to meet the sample requirement of the government. As on March 31, 2023, BARC had a 51% stake in MDPL and TAM Media Research Pvt Ltd held the remaining.
MDPL has around 55,000 panels and 2500 OOH Meters collecting representative data from urban and rural corners of India. It uses indigenously manufactured sophisticated BAR-O-meters, beaming data through GSM (Global System for Mobile Communications) networks for real-time collection. A network of field staff, an array of electronic equipment, and a robust information technology backbone support the data collection.
About BARC BARC, set up in fiscal 2010 as a Section 8 firm, is an industry body that designs, commissions, supervises and owns TV audience measurement systems in India, and provides related services. It is promoted by three industry associations: IBDF, ISA, and AAAI, with shareholding of 60:20:20, respectively. BARC uses audio watermarking technology and has deployed ~59,000 BAR-O-meters. The entity is venturing into viewership estimation for digital platforms and is increasing the number of BAR-O-meters deployed. |
Key Financial Indicators– MDPL – CRISIL Ratings adjusted figures
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Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||
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Criteria Details
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