Deccan Chronicle posts Rs.1,040 cr loss

Deccan Chronicle Holdings Limited's total income fell by 63 per cent to Rs 149 crore for the quarter under review, compared to Rs 238 crore in the second quarter last year. File photo: P.V. Sivakuamr

Media house Deccan Chronicle Holdings Limited (DCHL) has reported a loss of Rs.1,040.41 crore during the 18-month period ending September 30, 2012, against a profit of Rs.162.58 crore reported during the year ended March 2011. In a filing to the bourses, the company said some lenders had also initiated legal actions/winding-up petitions for recovery of loans at different forums and classified the financial facilities extended to the DCHL as non-performing assets.

Deccan Chronicle Holdings Limited posted a loss of Rs.100.05 crore during the quarter ended September 30, 2012, on account of increased finance costs and decline in revenues. The company had reported a profit of Rs.21.09 crore during the corresponding period of the previous financial year.

Sequentially, DCHL has , however, narrowed down its losses from Rs.166.24 crore during the first quarter of the current financial year.

Income from operations during the quarter was Rs.149.16 crore (Rs.238.24 crore), marking an over 35 per cent drop.

DCHL filed its results with the stock exchanges on Tuesday, a day ahead of the January 23 deadline set by the National Stock Exchange for suspension, until further notice, of trading of equity shares on the capital market segment for non-compliance with certain provisions of the listing agreement.

The company had, however, not made any provision for accrued and unpaid interest as it was negotiating with banks for restructuring its liabilities.

While promoters offered their shares as collateral security to some of the lenders for extending financial assistance, some of them invoked the pledge and appropriated the same against the dues payable.

As a result, promoters’ shareholding reflected in the depository reduced from 73.83 per cent to 38.4 per cent at the end of the second quarter. The company’s fixed assets include tangible asset under development (brand) amounting to Rs.2,905.31 crore and the liabilities include an amount of Rs.3,987.5 crore to lenders as a result of restructuring of operations and ‘recast’ of financial statements.