CRISIL 'AA' for HT Media's Rs 250 cr NCDs
CRISIL has assigned AA/Positive to HT Media Ltd's Rs 250 crore non-convertible debentures and reaffirmed P1+ rating on the Rs 20 crore commercial paper programme.
By INDIATIMES NEWS NETWORK |
MUMBAI: CRISIL has assigned AA/Positive to HT Media Ltd’s Rs 250 crore non-convertible debentures and reaffirmed P1+ rating on the Rs 20 crore commercial paper programme.
CRISIL’s ratings reflect the strong position of the company’s flagship English daily, Hindustan Times, in the Delhi market and national capital region, and the established position of its Hindi daily, Hindustan.
The rating is further driven by HT Media’s robust financial risk profile and operating efficiencies. However, these rating strengths are partially offset by the expected pressure on HT Media’s operating margins following the launch of Hindustan Times’ Mumbai edition in July 2005, and the company’s recent entry into the business newspaper (Mint) and radio businesses. The operating margins remain susceptible to fluctuations in newsprint prices and economic cycles.
CRISIL has taken a consolidated view of Hindustan Times Ltd (HTL), HT Media, and its subsidiaries. Hindustan Times is the second-largest English newspaper in the country, in terms of both circulation and readership, with an average daily circulation of 1.14 million as per Audit Bureau of Circulation (for July-December 2006 period) and readership of 3.33 million as per Indian Readership Survey 2007.
As on March 31, 2007, HT Media had a high net worth of Rs 728 crore, a comfortable gearing of 0.25 times, and cash and liquid investments of Rs 340 crore.
The company registered a strong growth of 27 per cent in revenue in 2006-07 (April-March) with margins improving to 16.1 per cent, from 3.3 per cent in 2003-04, as the media business was transferred to HT Media from HTL with effect from July 1, 2003.
CRISIL’s ratings reflect the strong position of the company’s flagship English daily, Hindustan Times, in the Delhi market and national capital region, and the established position of its Hindi daily, Hindustan.
The rating is further driven by HT Media’s robust financial risk profile and operating efficiencies. However, these rating strengths are partially offset by the expected pressure on HT Media’s operating margins following the launch of Hindustan Times’ Mumbai edition in July 2005, and the company’s recent entry into the business newspaper (Mint) and radio businesses. The operating margins remain susceptible to fluctuations in newsprint prices and economic cycles.
CRISIL has taken a consolidated view of Hindustan Times Ltd (HTL), HT Media, and its subsidiaries. Hindustan Times is the second-largest English newspaper in the country, in terms of both circulation and readership, with an average daily circulation of 1.14 million as per Audit Bureau of Circulation (for July-December 2006 period) and readership of 3.33 million as per Indian Readership Survey 2007.
As on March 31, 2007, HT Media had a high net worth of Rs 728 crore, a comfortable gearing of 0.25 times, and cash and liquid investments of Rs 340 crore.
The company registered a strong growth of 27 per cent in revenue in 2006-07 (April-March) with margins improving to 16.1 per cent, from 3.3 per cent in 2003-04, as the media business was transferred to HT Media from HTL with effect from July 1, 2003.
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