ITV

Tag: Debt Reduction

  • Bharti Airtel prepays Rs 3,626 crores to clear 2016 spectrum liabilities

    Bharti Airtel prepays Rs 3,626 crores to clear 2016 spectrum liabilities

    MUMBAI: Imagine the weight of debt lifting off your shoulders-the sheer relief, the freedom, and the excitement of a stronger financial footing.

    Now, picture that feeling at a corporate scale.

    Bharti Airtel, India’s telecom giant, has just experienced that moment of exhilaration.

    Today, by prepaying Rs 3,626 crore to the Department of Telecom, settling its spectrum dues from 2016, Airtel has hit a major financial milestone. The move isn’t just about clearing debts—it’s a bold stride in optimising its fiscal health and saying goodbye to high-cost liabilities, all while strengthening its financial backbone.

    The company has prepaid a total of Rs 28,320 crores in spectrum liabilities during this calendar year, clearing dues that carried interest rates exceeding 8.65 per cent. The prepayment demonstrates Airtel’s commitment to improving its balance sheet and strengthening its financial flexibility.

    In June, the Sunil Mittal-promoted telecom operator prepaid all its deferred liabilities for spectrum acquired in the 2012 and 2015 auctions, where interest rates were higher at 9.75 per cent and 10 per cent. The prepayment for these auctions amounted to Rs 7,904 crore. Earlier in the year, Airtel had also prepaid Rs 8,325 crore to the government, clearing part of its deferred liabilities for the spectrum acquired in the 2015 auctions. In 2015, Airtel secured 111.6 MHz of spectrum for Rs 29,130.20 crore, with an upfront payment of Rs 7,832.58 crore, as per the auction rules at that time.

  • PVR Inox Q2 FY25 results show mixed performance amid strategic changes

    PVR Inox Q2 FY25 results show mixed performance amid strategic changes

    Mumbai: PVR Inox has reported its Q2 FY25 financial results, indicating a quarter of mixed performance as the company navigates post-pandemic recovery and strategic adjustments. Revenue reached Rs 16.2 billion, marking a 36.2 per cent increase quarter-over-quarter (QoQ), though it declined 18.9 per cent year-over-year (YoY). This growth was driven by a resurgence in Hindi films and improved footfall, which rose 27.6 per cent QoQ, although occupancy rates remained below pre-covid levels.  

    The company’s EBITDA stood at Rs 4.7 billion, down 32.2 per cent YoY but up significantly by 90.6 per cent QoQ, with a post-IndAS EBITDA margin of 29.5 per cent. However, net losses persisted at Rs 0.1 billion for Q2 FY25, compared to a Rs 1.7 billion loss in Q1 FY25. Average ticket prices (ATP) and spend per head (SPH) showed growth, increasing 9.4 per cent and 2 per cent QoQ, respectively, signalling steady progress despite challenges.  

    The balance sheet reflects a cautious but optimistic outlook. Total borrowings declined from Rs 17.9 billion in FY23 to Rs 17.2 billion in FY24, indicating the company’s efforts to reduce debt. Free cash flow turned positive, helping to stabilise liquidity, and cash reserves grew from Rs 3.3 billion to Rs 3.9 billion over the same period. However, with profit margins still tight and interest expenses continuing to rise, sustained improvement in box office performance and cost management will be essential to achieve profitability.  

    Looking ahead, PVRInox anticipates strong performance during the festive season, driven by major releases such as “Singham Again”, “Pushpa 2,” and “Bhool Bhulaiyaa 3”. The company remains optimistic about reaching a 32 per cent occupancy rate in Q3, supported by a robust content lineup.