Chennai-based broadcasting company Sun TV has reported a 12.4 per cent dip in its net profit for the first quarter ended June 30, 2012.
The Kalanithi Maran promoted company reported a net profit of Rs 164.31 crore for the quarter ended June 30, 2012, down 12.4 per cent from Rs 187.62 crore registered during the same period last year.
For the year ending March 31, 2012, the net profit stood at Rs 694.65 crore, Sun TV said in a filing to the BSE.
Income from operations for the first quarter ended June 30, 2012 also slipped to Rs 425.75 crore against Rs 453.99 crore registered during the same period last year.
For the year ended March 31, 2012, income from operations stood at Rs 1,757.37 crore.
The board has declared a 50 per cent interim dividend of Rs 2.50 per share.
The company said against the total projected utilisation of Rs 572 crore from the IPO funds, Rs 355.77 crore was utilised towards capitalisation of subsidiaries.
It said Rs 127.12 crore was used towards launch of new channels, purchase of new equipment and upgradation of existing equipment. For construction of the corporate office, Rs 62.34 crore was utilised.
The balance proceeds, after meeting IPO expenses, pending utilisation have been invested in fixed deposits with banks, it said.
Shares of Sun TV stood at Rs 270.20 apiece, down 0.59 per cent over the previous close in the afternoon BSE.
The company in a statement said reduction in revenues was largely an outcome of the fall in cable revenues in Tamil Nadu. However, subscription revenue would start increasing from August 1 in view of the agreement executed with the State Government promoted Arasu Cable TV, it said.
Recently, Sun TV entered into an agreement with the Tamil Nadu Arasu Cable TV Corporation to enable availability of its channels on all cable television distribution system run by Arasu Cable across Tamil Nadu with immediate effect.