Buzzing stock: GTPL Hathway jumps 19 per cent intraday

One of India’s leading digital cable TV & broadband service provider, GTPL Hathway jumped nearly 19 per cent in today’s trading session and made an intraday high of Rs 138.90 on BSE.

The company’s consolidated revenue for the quarter Q2FY21 came in at Rs 575.64 crore as against Rs 608.99 crore in the corresponding quarter last year, registering a 5.5 per cent YoY decline.

EBITDA for the quarter grew by 8.5 per cent YoY to Rs 129.91 crore with a corresponding margin expansion of 291 bps. EBITDA margin for the quarter stood at 22.6 per cent. PAT for the quarter came in at Rs 50.34 crore, with a YoY increase of 42.6 per cent.

On the debt front, the company’s net debt stands at Rs 70.1 crore as of September 2020 as against Rs 127.9 crore in March 2020 and Rs 217.8 crore in September 2019.

Under the cable television (CATV) segment, the successful implementation of the new tariff order (NTO) in India has opened avenues for expansion in the existing markets and lifted entry barriers in untapped markets.

Under the broadband business, the company added 2,10,000 new home-pass and 80,000 net broadband subscribers in Q2FY21, including 40,000 FTTX subscribers. GTPL is in a sweet spot for converting its strong existing CATV subscriber base of 10.41 million households into its broadband subscribers directly or through operators.

Under its EPC business, as of Q2FY21, the company completed ~14,250 kms T&D of the total ~17,000 kms T&D target.

The company is a leading wireline broadband service provider in Gujarat with a 67 per cent market share and 24 per cent market share in West Bengal. It also has a significant presence in Maharashtra, Andhra Pradesh, Telangana & Assam.