The funding will be done through internal accruals.
The company has fund flow from operations of Rs. 1,882.2 crore in FY2019 (based on abridged financials), aided by its strong accruals and moderate capex undertaken over the last several years.
ICRA said: “Going forward, STNL has capex plans of Rs.1,700.0 crore over FY2020-22, to be funded through internal accruals. The company’s liquidity position is expected to remain strong over the medium term, despite potential revenue impact during periods of economic slowdown.”
Sun TV saw strong revenue growth of 27.7% in FY2019 supported by healthy growth in subscription and advertisement revenues, and its margins remained strong at an OPM of 68.9% and NPM of 37.5%, aided by its scale, high bargaining power and nil debt position.
SUN TV now owns 32 channels in the four southern languages across various genres and one channel in regional entertainment category in Bangla. It also plans to increase its presence in the regional general entertainment space with the launch ‘Sun Marathi’ in FY2020.