Raj Television Network Limited

Brickwork Ratings reaffirms the ratings for the Bank Loan Facilities of Rs.39.78 Crs. of Raj Television Network Limited

Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(03 May 2021)
Fund Based 35.62 39.78 Long Term BWR BB+/Stable
BWR BB + /Stable
Grand Total 35.62 39.78 (Rupees Thirty Nine Crores and Seventy Eight lakhs Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
Note: Rating Advisory issued on 04 May 2022


The reaffirmation of the ratings of Raj Television Network Limited ('RTNL' or the 'Company') factors the three decade-long experience of the company and its promoters in the south Indian television industry, adequate back-end infrastructure in the form of production facilities, studios and related in-house facilities. The rating also factors in the established presence and brand image in the Tamil broadcasting industry in South India. However, the rating is constrained by the continuing average financial risk profile of the company, working capital intensity, and susceptibility of advertisement revenue-driven business profile to cyclicality in advertising spends by corporates. The rating also factors in the intense competition due to entry of many new channels coupled with the emergence of alternative content delivery platforms, such as digital media, resulting in fragmentation of the viewership.

The ‘Stable’ outlook indicates a low likelihood of rating change over the medium term. Brickwork Ratings believes that RTNL’s business and financial risk profile will be maintained over the medium term. The outlook may be revised to positive, incase of significant growth in scale of operations, higher profitability and significant reduction in the working capital cycle resulting in an improved financial risk profile. The outlook may be revised to Negative if lower than expected revenue or profitability, deterioration in the debt protection metrics, any significant and unanticipated capex or weakening gearing adversely impacting the financial risk profile.


Credit Strengths:

Credit Risks:


For arriving at its ratings, Brickwork Ratings has applied its rating methodology as detailed in the Rating criteria below (hyperlinks provided at the end of this rationale). The Company does not have any subsidiary as on 31Mar2022.






RTNL’s liquidity continues to be stretched in the near term, factoring the ~95% utilisation of the working capital limits for the last six months and the elongated receivable cycle of ~300 days during the last two fiscals. The net cash accruals of Rs.7.25 crs in FY22 was inadequate to cover the debt obligations of ~Rs.12 crs in FY22. The shortfall has been met by timely infusion of promoter funds on as and when required basis. The net cash accruals are projected to increase significantly to Rs.17 Crs in FY23 which shall be adequate to cover the debt obligation of Rs.6.10 Crs. The same trend is expected to continue for FY24 with cash accrual adequate to cover the debt obligation of ~Rs.8.00 Crs. The liquidity of the company is supported by the cash and cash equivalents of ~Rs.2.53 Crs as on 31Mar2021 and the position as on 31 Mar 2022 stood at Rs.2.48 Crs. BWR also notes that the company has been sanctioned an additional WCTL limit of Rs.3.06 Cr under the GECL 1.0 extension scheme to meet the operating liabilities which is expected to provide liquidity support in the short term


The Raj Television Network Limited  ("RTNL") is a BSE and NSE listed company incorporated on June 3, 1994 under erstwhile Companies Act 1956. The company is one of the largest Television satellite broadcasters in south India. RTNL was promoted by Mr. Raajhendhran with his three brothers in 1994. Prior to the incorporation, the promoters were in the business of movie production under the brand name of "Raj Video Vision" since 1983 .

The company undertakes several production projects with the right mix of self-produced and outsourced productions. With self-produced content, the company gets complete right over the content and can build its own intellectual property base.

Raj TV currently operates 12  Television channels in five languages including Tamil, Telugu, Kannada, Malayalam and Hindi. The  Channel offers a right mix of movies, serials, debates, cultural, educational, cookery, handicrafts and religious programs.

Raj TV, Raj Music Tamil, Raj Digital Plus, Raj Music Kannada & Raj News Kannada, Raj Music Telugu & Raj News Telugu, Vissa-Telugu, Raj Pariwar-Hindi, Raj Music Malayalam & Raj News Malayalam, Raj Movies Tamil, Raj Nagaichuvai, Raj TV Asia are the channels operated by Raj Television Network.

The company has a library of ~1300 films ranging in different languages with subscribers of ~200 lakhs as on 31Mar2022.

Key Parameters Units FY 21-22
FY 20-21
Operating Revenue Rs.Crs. 69.26 78.31
EBITDA Rs.Crs. 11.69 12.85
PAT Rs.Crs. 1.09 0.13
Tangible Net Worth Rs.Crs. 78.23 77.22
Total Debt/TNW Times 0.39 0.45
Current Ratio Times 2.26 1.78

The terms of sanction include standard covenants normally stipulated for such facilities

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating (2022) 2021 2020 2019
Type Tenure Amount
Rating Date Rating Date Rating Date Rating
Fund Based LT 39.78
BWR BB+/Stable
BWR BB+Stable
BWR BBStable
BWR BBB- Stable
Grand Total 39.78 (Rupees Thirty Nine Crores and Seventy Eight lakhs Only)
Rating Advisory, as on 04May2022

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Priyanka RS

Rating Analyst Board : +91 044 24663326 priyanka.rs@brickworkratings.com

Saakshi Kanwar

Senior Manager Ratings saakshi.k@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Raj Television Network Limited
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Canara Bank Corporate LoanSanctioned 3.58 _ 3.58
2 Canara Bank Cash CreditSanctioned 13.00 _ 13.00
3 Canara Bank GECLSanctioned 4.15 _ 4.15
4 Canara Bank GECLSanctioned 1.36 _ 1.36
5 Canara Bank GECLSanctioned 3.05 _ 3.05
6 Canara Bank Term LoanSanctioned 4.64 _ 4.64
7 State Bank Of India (SBI) Term LoanProposed 10.00 _ 10.00
Total 39.78 0.00 39.78
TOTAL (Rupees Thirty Nine Crores and Seventy Eight lakhs Only)
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