With the deadline for the third and fourth phases of cable television digitisation set for the end of this year, SITI Cable said it would look only at profitable growth.

The company expects to add six million subscribers to its consumer base this fiscal and also plans to roll out broadband in key markets.

As of March 31, the cable TV company said it had touched the four million digital subscriber mark.

Acquisitions “We have leadership positions in the Northern and Eastern regions of the country. We will continue to strengthen our presence in these regions as we digitise subscribers under Phase III and IV. At the same time, we will strengthen our presence in new States, such as Andhra Pradesh, Karnataka, Kerala, Bihar, Odisha among others,” said VD Wadhwa, CEO of SITI Cable.

Wadhwa said the company was clear that it would only look at profitable growth. “Growth for the sake of growth is not our purpose, as we don’t have to show growth in subscribers just for increase in valuations,” he added.

The company is also open to acquiring smaller players to acquire new subscribers “in certain regions, which are remote and retaining subscribers is not commercially viable for us. We will instead look at acquiring new customers in more lucrative markets,” he said.

Expansion plans SITI Cable will require about ₹1,200 crore for its expansion plans for digitisation. The company’s promoters recently pumped in ₹243 crore for expansion.

“The additional funds that we require are likely to come through a combination of increased promoter funding and internal accruals. We are open to introducing a strategic investor at a later date,” he added.

Wadhwa said the company had already started package-wise or gross billing and collections in phase 1 markets. “I expect gross billing and collections to stabilise in Phase II gradually. June onwards, I expect internal cash flow to improve significantly,” he added.

International investors Despite the first two phases of digitisation being complete, the cable sector has not yet attracted significant investments from international players.

Wadhwa believes while investors have been observing the Indian market, they are not yet comfortable with investing in the cable sector.

He said the industry was expected to attract investments only when gross billings and collections stabilise and the average revenue per user rises.

Meanwhile, the company is set to roll out broadband in key markets.

“We will be launching broadband in the Northern region, starting from Delhi, during this quarter. We have already launched broadband in the East,” added Wadhwa.

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