Cable TV and broadband service provider Hathway Cable and Datacom today said it is planning to deleverage its books by Rs 500 crore by March 2020.
The company's total debt stood at Rs 1,617 crore as on March 31, and its net debt-to-equity ratio stood at 1.23.
"We have made a plan to deleverage the company by Rs 500 crore by March 2020," Hathway Cable and Datacom managing director Rajan Gupta told reporters.
"Of the Rs 500 crore, the promoters will bring Rs 350 crore by way of equity and long-term unsecured loan. In fact, Rs 200 core is coming between July and August this year and the balance Rs 150 crore will happen over a period of time," Gupta said adding that the additional Rs 150 crore will be from cash that will be generated from operations.
Recently, the company raised funds to the tune of up to Rs 100 crore by way of preferential share allotment.
It is also working on upgrading its subscribers to above 40 mbps speed.
Gupta said about 10 per cent of its total consumer base of eight lakh (as on March 31) subscribers is on less than 40 mbps broadband speeds.
"We are actively pushing them for upgrading, but if they don't fit in our strategic framework (by FY19-end), then we will be left with no option but to drop them," he said.
The consumer usage has gone up to 110 GBs per user per month from 35 GBs two years ago. Global usage, however, is 250 to 300 GBs per user per month, he added.
"With Internet speeds increasing at a faster pace, we should be witnessing 100 mbps to 200 mbps as the base speeds within the next couple of years," said Gupta.
He added the company would be able to offer 200 mbps speeds to its consumers by FY21.
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