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-CARE keeps rating on India TV Interactive Media's long-term bank facilities at BB+.

BANKING AND CREDIT NEWS-March 7, 2011--CARE keeps rating on India TV Interactive Media's long-term bank facilities at BB+(C)2011 M2 COMMUNICATIONS

7 March 2011 - India's CARE on Friday reaffirmed the rating on India TV Interactive Media Pvt Ltd's long-term bank facilities at BB+.

The agency issued the following press release:


Facilities/Instruments Amount (Rs. crore) Ratings Remarks

Long-term Bank Facilities 29.70 (enhanced from 24.00) 'CARE BB+' (Double B Plus) Reaffirmed

Total Facilities 29.70

Rating Rationale

The rating continues to be constrained by sluggish scaling up of revenues from Value Added Services (VAS) operations reflected by weak performance in the first half year, small scale of operations, high dependence on revenue from lease rentals from a group company and increased competition from other established players in the VAS segment. However, the above weaknesses are partially offset by the experience of the promoters, completion of the first phase of the project without significant time overrun and achievement of financial closure for the second phase of the project.

Going forward, timely commissioning of the entire project within the estimated cost and improvement in performance of Mobile Value Added Services (MVAS) operations would remain the key rating sensitivities.

Company Profile

Incorporated in August 2008, ITIM is a subsidiary company of Independent Media Pvt. Ltd., (IMPL), which has been promoted by Mr. Rajat Sharma and Ms. Ritu Dhawan.

ITIM has set up a state-of-art studio/office facility at Noida, UP for providing basic and VAS in the telecom industry such as setting up subscriber network, mobile television, Internet Protocol Television (IPTV), Interactive Voice Response (IVR), Web TV, Video Streaming and Web sites and other interactive multimedia products, E-Commerce applications and services etc. The company has set up its state-of-the-art broadcast centre infrastructure for leasing out studios, office space, teleport services, etc. to its group companies and other production houses.

The revised project cost is Rs.48 cr which increased on account of change in project scope. The financial closure for the entire project has already been achieved. The entire project is expected to be completed by March 2011. Till January 11, 2011, ITIM has availed total debt of Rs.25.30 crore.

In the first six months of operations for the period ending September 2010, ITIM achieved a turnover of Rs.1.02 crore from VAS operations and Rs.0.40 cr from lease rentals.

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Publication:M2 Banking & Credit News (BCN)
Date:Mar 7, 2011
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