Dish TV India , a prominent player in the Indian direct-to-home (DTH) television market, has been slapped with fines totaling Rs 11.38 lakh by the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) for non-compliance with board composition regulations. The penalties highlight ongoing governance challenges faced by the company.

Regulatory Non-Compliance and Penalties

According to communications received by Dish TV from both stock exchanges, the company has been fined for violating Regulations 17(1) and 19(1)/(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These regulations pertain to the composition of the Board of Directors and the Nomination and Remuneration Committee.

The fines imposed by each exchange are as follows:

Dish TV is required to pay the total fine of Rs 11.38 lakh, including GST, within 15 days of receiving the notice.

Company's Response

In its disclosure to the stock exchanges, Dish TV attributed the non-compliance to shareholders not approving the appointment of directors, stating that this situation was beyond the control of the Board or the Company. Despite this explanation, the company has confirmed that it will be making the payment of the fines as levied.

Ongoing Governance Challenges

This is not the first time Dish TV has faced such penalties. The company has been subject to similar fines in previous years for the same compliance issues, indicating persistent challenges in meeting regulatory requirements.

Currently, Dish TV's board consists of seven members, including Executive Director-Chairperson-CEO Manoj Dobhal and four independent directors. However, the company has been grappling with board-level disputes among promoters, with shareholders previously rejecting multiple proposals, including director appointments and re-appointments, in extraordinary general meetings.

Ownership Structure and Disputes

The governance issues at Dish TV are further complicated by its ownership structure and past disputes:

• The promoter group led by Subhash Chandra holds approximately 4% stake in the company.
• YES Bank, formerly the largest shareholder with a 24.2% stake, has been involved in disputes with the promoter group over board reconstitution.
• Recently, YES Bank sold its entire stake to JC Flowers Asset Reconstruction, potentially altering the dynamics of corporate control.

As Dish TV navigates these regulatory challenges and ownership transitions, the company faces the task of addressing its governance issues to ensure compliance with SEBI regulations and to restore investor confidence.

The stock exchanges have advised Dish TV to inform its promoters about the non-compliance and to discuss the matter at the next board meeting. The company is expected to report the board's comments back to the exchanges, as it works towards resolving these persistent regulatory issues.

Dish TV India , a leading direct-to-home (DTH) television service provider, has released its financial results for the fourth quarter, revealing a mixed performance with a narrowed loss but declining revenue and EBITDA.

Financial Performance

Net Loss

Dish TV India reported a consolidated net loss of ₹402.20 crore for Q4, showing a significant improvement from the ₹1,989.70 crore loss recorded in the same quarter of the previous year. This represents a substantial reduction in losses year-over-year, indicating some progress in the company's financial health.

Revenue

Despite the improvement in net loss, Dish TV India faced challenges on the revenue front. The company's total operating revenue for Q4 stood at ₹343.70 crore, down 15.55% from the corresponding quarter of the previous year. Subscription revenue, a key metric for the company, declined by 16.82% to ₹295.90 crore.

EBITDA

Dish TV India reported a significant decrease in its Q4 EBITDA, which fell by 41.10% to ₹97.30 crore. This decline in EBITDA indicates pressure on the company's operational efficiency and profitability.

Management Changes

In a significant development, the company has elevated Manoj Dobhal to the position of Chairman of the Board. This change in leadership may bring new strategies and direction to the company as it navigates through its current challenges.

Outlook

Dish TV India's financial results reflect the ongoing challenges in the DTH industry, including intense competition from over-the-top (OTT) streaming platforms and changing consumer preferences. The company's ability to narrow its losses year-over-year is a positive sign, but the declining revenue and EBITDA trends suggest that Dish TV India may need to focus on strategies to boost subscriber growth and explore new revenue streams to improve its financial performance in the coming quarters.

As the company navigates through these challenges under new leadership, investors and industry observers will be closely watching Dish TV India's efforts to stabilize its revenue, improve EBITDA, and return to profitability in the competitive television services market.