A thread on how Deccan Chronicle Holdings Ltd went towards bankruptcy:
How off balance sheet liabilities can destroy investors wealth over time
1.DCHL started newspaper publishing business in 1938 with weekly Deccan Chronicle followed by daily Deccan Chronicle in 1947
#investing
How off balance sheet liabilities can destroy investors wealth over time
1.DCHL started newspaper publishing business in 1938 with weekly Deccan Chronicle followed by daily Deccan Chronicle in 1947
#investing
2. Over the years company went on to emerge as leading English daily newspaper in Hyderabad & AP.
3. Company run by T. Venkatarram Reddy (Chairman) & T. Vinayaka R Reddy (MD).
4. Company had a successful IPO in late 2004 raising 149 crore.
3. Company run by T. Venkatarram Reddy (Chairman) & T. Vinayaka R Reddy (MD).
4. Company had a successful IPO in late 2004 raising 149 crore.
5. In 2005 DCHL acquired majority stake in Asian Age for 17 crore.
6. In 2006 acquired 100% stake in Odyssey India Ltd. (Chain of Bookstores) at 61 crore
7. In 2008 bought Hyderabad IPL franchise for USD 107 millions (421 crore)
6. In 2006 acquired 100% stake in Odyssey India Ltd. (Chain of Bookstores) at 61 crore
7. In 2008 bought Hyderabad IPL franchise for USD 107 millions (421 crore)
8. Odyssey India & Deccan Chargers #Financial performance not encouraging.
9. Company is running the show on newspaper business with revenue & PAT CAGR of 40% & 57% respectively over FY04 to 10 with ROCE of 27% pre-tax.
9. Company is running the show on newspaper business with revenue & PAT CAGR of 40% & 57% respectively over FY04 to 10 with ROCE of 27% pre-tax.
10. During FY11 company reported weak earning PAT down by 38% (cited reason of political uncertainty)
11. In Jul-12 promoters disclosed they had pledge 54% of DCHL shareholding, with MD N. K. Krishnan resignation it becomes clear that there were serious issues in the company.
11. In Jul-12 promoters disclosed they had pledge 54% of DCHL shareholding, with MD N. K. Krishnan resignation it becomes clear that there were serious issues in the company.
12. In early 2013 company reported its FY12 earning with loss of 1040 crore, with declaring 4000 crore of debt, A 5x increase since FY11. Bringing all off balance sheet liabilities on the books.
13. In Jan-13 DCHL shares were suspended from trading, by that time it has lost 97% of #investor wealth from its peak Mar-10.
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