Dish TV, India’s largest direct-to-home service provider, is set to turn net-profit positive this fiscal on the back of subscriber growth and improvement in average revenue per user (Arpu).
The company’s ability to generate good free cash flow will help it achieve this feat.
Suresh A Mahadevan and Varun Ahuja, analysts, UBS Securities India, said in a company note that Dish TV had already generated Rs 60 crore of free cash flow (FCF) in the first nine months of fiscal 2013. “We believe the company will continue to generate FCF and expect it to generate FCF of around Rs 100 crore in fiscal 2014. Further, we expect the company to turn net income positive from fiscal 2014,” the analysts said.
The said FCF generation coupled with net income breaking even is likely to drive a re-rating.
Source: Digitisation to help Dish TV post a net profit this fiscal - Money - DNA
The company’s ability to generate good free cash flow will help it achieve this feat.
Suresh A Mahadevan and Varun Ahuja, analysts, UBS Securities India, said in a company note that Dish TV had already generated Rs 60 crore of free cash flow (FCF) in the first nine months of fiscal 2013. “We believe the company will continue to generate FCF and expect it to generate FCF of around Rs 100 crore in fiscal 2014. Further, we expect the company to turn net income positive from fiscal 2014,” the analysts said.
The said FCF generation coupled with net income breaking even is likely to drive a re-rating.
Source: Digitisation to help Dish TV post a net profit this fiscal - Money - DNA
