KOLKATA: Slowly and gradually, step by step, Zee Entertainment Enterprises Ltd (ZeeL) is inching towards getting back its old glory under the 4.0 vision set out by its MD & CEO Punit Goenka last year. The financials it has declared for the just concluded third quarter ended 31 December 2020 reveal that clearly. For starters, compared to street expectations of a marginal growth in net profit to around Rs 354 crore (Rs 348.60 crore in Q3 the previous year), the entertainment major reported a healthy bottom line of Rs 398.01 crore. Under a revised plan, it is also bringing down receivables from group companies slowly.

While the outstanding of former group associate Dish TV has been a major concern for the company as well as investors, it has come down to Rs 4.6 billion at the end of Q3 FY20-21, a ZeeL spokesperson said in an earnings call yesterday. At the end of FY20 that figure was Rs 5.84 billion, which came down to Rs 4.98 billion at the end of Q2.

On the other hand, ZeeL had provisioned for Siti Networks' dues in its Q2 statement. Said Goenka on the Q2 earnings call: “Further on account of accelerated payment grievance by some of the lenders due to delay in restructuring by Siti Networks and their failure to negotiate extended repayment plans, the company has provided for an extra liability of Rs 97 crore as of 30 September 2020. The provisions have been taken as a provisional measure and the company will take necessary efforts  to recover this due.”

Overall, the company has backed Siti Networks’ loans to the tune of Rs 202.8 crore.

ZeeL, meanwhile, has collected the receivables relating to the revenue accounted for the nine months ended 31 December 2020 and as a matter of abundant caution has also provided for the overdue trade receivables from Siti Networks as at 31 December 2020 aggregating to Rs 81.20 crore. ZeeL has moved the MSO to cash-carry model and since April 2020 it has had no current outstanding.  

Overall, Goenka is optimistic about erstwhile group companies paying back whatever is due to ZeeL. Goenka said during the call that he expects Dish TV to clear all its dues by September 2021, if the overall economic and country’s situation is normal. He added that even if a grace period is allowed a  majority of the amount will come back around that time.

He pointed out Dish TV’s improved position in the Q2 earnings call itself. The DTH operator reported a consolidated net profit of Rs 86.41 crore for the period ended 31 December 2020 as against a net loss of Rs 66.77 crore in the same quarter a year ago.

The stock market reacted well to the news from ZeeL with the stock ending 2.19 per cent up to Rs 249.40. Its 52 week high stands at Rs 261, with the low at Rs 114.