MUMBAI: Credit rating agency CRISIL has upgraded the TV Today Network’s, a subsidiary of Living Media India Limited, long-term bank ratings as the parent company becomes debt-free.
Aroon Purie founded Living Media India Limited (LMIL) had reported a net loss of Rs 6 crore for fiscal 2019, repaid its debt after getting an interim dividend from its arm TV Today Network (TVTN).
According to a press release on BSE, the TV Today Network said: “The rating agency has upgraded its rating on the long-term bank facilities of the company to CRISIL AA/Stable from CRISIL AA-/ Stable.”
LMIL had a debt of Rs 64 crore as of 31 March 2019 and received an interim dividend of Rs 68 crore in November 2019, which helped the company to become debt-free as of 24 December 2019.
Meanwhile, TVTN has also mentioned in its statement that the rating agency has retained the short-term rating of the company at CRISIL A1+.
According to CRISIL, the regular dividend income from TVTN may offset the weak operating performance of the publishing business. It believes LMIL will continue to benefit over the medium term from healthy financial flexibility being the holding company of TVTN
LMIL, a publication house, was founded in 1975. It earns revenue from its own publications (India Today and Business Today). It owns India’s largest magazine distribution network. The Aditya Birla Group acquired a stake in LMIL in July 2012 and currently owns 41.5%.
The India Today group, also founded in 1975, has diverse business interests, including magazines, TV channels such as Aaj Tak, India Today Television, Tez, and Dilli Aaj Tak, it also has a newspaper on its name called Mail Today, a classical music label (Music Today), and book publishing and printing.
