The year in review has been truly a watershed year for your Company the Industry aswell as the Indian economy. Momentous changes have been ushered in. which augur well forvalue creation at all levels in our field of operations.
First and foremost your Company took the lead to trigger consolidation in the DTHindustry by announcing the intended merger (subject to regulatory approvals) with Videocond2h Limited thus forming one of the largest pay TV platforms in the world. The mergedentity will have the scale sweep and momentum to reshape the Indian distribution industryas well as provide a secure roadmap for sustained unlocking of value for its stakeholders.We have always been the pioneers in the spaces we operate in and this first consolidationin the DTH space reinforces our leadership and commitment to redefine our business toenhance value for our stakeholders.
The industry witnessed the introduction of transformative regulations by the TRAIwhich for the first time seeks to genuinely empower customers in an open and transparentmodel which will seek to do away with the anomalies of the present system of tradebetween broadcasters platforms and consumers in a manner which will be truly beneficialto all players in the industry. Dish TV wholeheartedly welcomes the initiative by TRAI andbelieves this will lead to smooth and accelerated growth for the industry. For Dish TVthis move will be value accretive and will help improve the profitability of the Companyas well as provide transparency and freedom of choice to its valued customers.
At the macro event the demonetization exercise has given a huge fillip to the digitaltransactions ecosystem which is hugely accretive for the DTH industry which relies on 100%prepaid and electronic recharge model. The more people adopt electronic payment modes themore your Company benefits as it reduces the inefficiencies costs and lost revenues dueto delayed recharges. This again is a fundamental change in the transaction model whichwill provide a significant boost to both the topline as well as bottom line of yourCompany in the years to come.
The introduction of GST was another watershed event which is significantly accretivefor your Company. Apart from immediate reduction in the rates of taxation for your Companyby the subsumption of entertainment tax. the Company also benefits from the elimination ofSpecial Additional Duty on imported CPE's and also in the significant overall ease oftransactions that the GST regime brings to the table. This will also increase the overallproductivity as the transactions operate largely and primarily through the single windowof GST instead of the multiple and complex state and central levy system currently inoperation.
Operationally your Company did face some temporary headwinds in Q3 and Q4 TY 2017 dueto the impact of demonetization however with the long term benefits of these changesoutlined above far outweigh any short term blips and the results thereto will need to beviewed through that lens.
Notwithstanding these headwinds your Company made significant progress adding 2.6million subscribers during the year ending the year with 15.5 million net subscribers.The topline was recorded at Rs.30M.4 crores and your Company generated a PAT of Rs.109.3crores remaining profitable for the third consecutive year. Your company remains the mostprofitable player in the Indian Industry.
We are extremely excited about the future with our consolidated entity bringing thesynergies and scale of being one of the largest pay TV platform in the world we remainequally excited with the opportunities thrown at us by virtue of the changing regulatorylandscape in India as well as the changing macroeconomic dynamics in India. There hasnever been a better time for all of these to fall in place and we look forward to theopportunities as well as challenges to unlock greater and greater value for all of ourinvestors employees partners and other stakeholders.
Jawahar Lai Goel
Chairman & Managing Director.