SITI Networks Reports ₹3,125 Crore Revenue in Q1 FY 2024-25, Posts ₹477 Crore Net Loss Amid Ongoing Insolvency Process

Noida, India – January 29, 2025​

SITI Networks Limited (NSE: SITINET, BSE: 532795) has announced its financial results for the first quarter (Q1) of FY 2024-25, highlighting continued revenue generation, cost challenges, and ongoing insolvency resolution proceedings.

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Key Financial Highlights (Consolidated Results, Q1 FY 2024-25 vs Q1 FY 2023-24)​

• Total Revenue: ₹3,125.69 crore, down 3.7% YoY from ₹3,244.15 crore.
• Net Loss: ₹477.37 crore, compared to a net loss of ₹971.09 crore in Q1 FY24.
• Pay Channel Costs: ₹1,991.84 crore, slightly down from ₹2,087.67 crore in Q1 FY24.
• Finance Costs: ₹239.13 crore, compared to ₹273.89 crore in Q1 FY24.
• Depreciation & Amortization: ₹343.87 crore, lower than ₹741.44 crore in Q1 FY24.
• Total Expenses: ₹3,597.70 crore, compared to ₹4,228.07 crore in Q1 FY24.
• Earnings Per Share (EPS): (₹0.55), compared to (₹1.11) in Q1 FY24.

✔ Despite revenue stability, SITI Networks remains under financial distress with a negative net worth and high liabilities.

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Corporate Insolvency Resolution Process (CIRP) Update​

• SITI Networks is undergoing CIRP as per an order from the National Company Law Tribunal (NCLT), Mumbai, dated February 22, 2023.
• Resolution Professional (RP) overseeing the process: Mr. Rohit Mehra.
• Total financial creditor claims submitted: ₹12,060.33 crore (₹11,292.66 crore admitted).
• Operational creditors' claims: ₹19,834.60 crore (₹7,066.86 crore admitted, ₹3,391.56 crore admitted contingently).

✔ A final resolution plan is yet to be approved, leaving the company’s future uncertain.

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Segmental Performance​

✔ Cable TV & Broadband Services:

• Revenue decline due to shifting consumer preferences & competition from OTT platforms.
• Subscription revenue impacted by non-payment disputes with broadcasters.

✔ Debt & Financial Liabilities:

• Outstanding borrowings classified as Non-Performing Assets (NPA).
• Legal disputes with lenders over loan settlements & interest payments.

✔ Regulatory & Legal Challenges:

• Litigation with Zee Entertainment Enterprises Limited (ZEEL) over past dues.
• Pending court cases related to past management practices & asset disputes.

✔ Business Continuity Risks:

• Negative working capital & liquidity constraints affecting operations.
• Dependence on CIRP outcome to determine business survival.

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Market Outlook & Future Considerations​

SITI Networks’ future depends on:
✔ Successful implementation of a debt resolution plan under CIRP.
✔ Potential strategic investors or financial restructuring.
✔ Cost rationalization & efficiency improvements in operations.
✔ Exploring new revenue streams beyond traditional cable TV services.

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Conclusion​

SITI Networks continues to operate amid financial difficulties, with high debt, ongoing legal disputes, and an uncertain future under insolvency resolution. The company’s revenue remains stable, but cost pressures & financial liabilities pose significant challenges. Investors and stakeholders are awaiting clarity on the resolution process before assessing long-term prospects.