GTPL Hathway, the leading MSO in terms of subscribers in India, saw its revenues growing by 9.7% YoY in the December 2021 quarter. The drivers of the revenue growth for the company were the broadband and cable business. The core revenue grew by 9.7% YoY to Rs 597.2 crore, in which the broadband revenues growth was 35% YoY to Rs 105.4 crore along with the new 30,000 subscriber addition and 13.4% growth in cable placement/carriage revenues at Rs 185.9 crore. Profit after tax (PAT) for the company stood at Rs 54.6 crore, up 21% YoY.
Broadband to be Key Growth Driver for GTPL Hathway: ICICI Direct Research
According to a recent report from ICICI Direct Research, broadband to be the key growth driver of business for GTPL Hathway. The pace of broadband expansion both in the existing as well as new markets will determine how fast the company is growing. Further, in the cable TV business, the implementation of the New Tariff Order (NTO) 2.0 will have an implication on the financials of GTPL Hathway. During Q3, due to the festive season, the addition of new subscribers slowed a little, but the company is positive about regaining the speed for adding new subscribers in the near future. The capex of the company during the December 2021 quarter was Rs 75 crore. Out of this, Rs 32 crore was for broadband, and the remaining Rs 43 crore was for cable. Further, in Gujarat, GTPL Hathway launched the hybrid box (single package including broadband, cable, and OTT) in Q3. The management said the response for this service has been positive, and thus the company is planning to offer the same service in other states of the country as well. ICICI Direct Research has maintained a Hold rating for the stock of the company and set a target price of Rs 290 over the 12 months period. GTPL Hathway is trading at Rs 269.05, up by 1.97% at the time of writing.
