Almost in defiance, Dish TV is the top gainer on the BSE since morning. From Friday’s close of Rs.12.56, the stock opened a tad lower at Rs.12.51 but from there, it surged to its 15% UC at Rs.14.44. It’s 52-week high is at Rs.42.55 and low at Rs.10.35.

CARE Rating downgraded the company’s rating for short term bank facilities aggregating Rs 850 crore from CARE A4+ to CARE D.

The revision in the rating assigned to the bank facilities of Dish TV India (DTIL) takes into account default in payment of short term loan due on 28 November 2019.

CARE in its rationale has taken into consideration the default by Dish TV India Limited in payment of its short-term loan amounting to Rs.250 crore.

Dish TV has been drawing on its internal cash accruals to fund its capital expenditure for more than 6 quarters now. In addition, the Company has also serviced its debt and interest obligations, on a consolidated level, to the tune of Rs.850 crore in the current fiscal. Debt and interest payment obligations falling due after the particular incident of non-service have also been fulfilled on time.

The company’s deferral to service the loan amount is due to bunching of repayment obligations and utilization of funds for other business requirements including, both capital expenditure and payment of operating liabilities to broadcasters and suppliers. The default in debt repayment was thus a result of a temporary cash shortfall due to peak payment commitments to suppliers.

Dish TV while being cautious about its cash expenditures also remains optimistic about improvement in its liquidity situation going forward. The Company is in touch with its banking partners and hopes to get alternate credit facilities to finance its regular capex so as to normalize the utilization of its cash flow towards debt repayment.