GTPL Hathway Ltd
NSE:GTPL
| US |
|
Johnson & Johnson
NYSE:JNJ
|
Pharmaceuticals
|
| US |
|
Estee Lauder Companies Inc
NYSE:EL
|
Consumer products
|
| US |
|
Exxon Mobil Corp
NYSE:XOM
|
Energy
|
| US |
|
Church & Dwight Co Inc
NYSE:CHD
|
Consumer products
|
| US |
|
Pfizer Inc
NYSE:PFE
|
Pharmaceuticals
|
| US |
|
American Express Co
NYSE:AXP
|
Financial Services
|
| US |
|
Nike Inc
NYSE:NKE
|
Textiles, Apparel & Luxury Goods
|
| US |
|
Visa Inc
NYSE:V
|
Technology
|
| CN |
|
Alibaba Group Holding Ltd
NYSE:BABA
|
Retail
|
| US |
|
3M Co
NYSE:MMM
|
Industrial Conglomerates
|
| US |
|
JPMorgan Chase & Co
NYSE:JPM
|
Banking
|
| US |
|
Coca-Cola Co
NYSE:KO
|
Beverages
|
| US |
|
Target Corp
NYSE:TGT
|
Retail
|
| US |
|
Walt Disney Co
NYSE:DIS
|
Media
|
| US |
|
Mueller Industries Inc
NYSE:MLI
|
Machinery
|
| US |
|
PayPal Holdings Inc
NASDAQ:PYPL
|
Technology
|
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
142.61
210.7
|
| Price Target |
|
We'll email you a reminder when the closing price reaches INR.
Choose the stock you wish to monitor with a price alert.
|
|
Johnson & Johnson
NYSE:JNJ
|
US |
|
|
Estee Lauder Companies Inc
NYSE:EL
|
US |
|
|
Exxon Mobil Corp
NYSE:XOM
|
US |
|
|
Church & Dwight Co Inc
NYSE:CHD
|
US |
|
|
Pfizer Inc
NYSE:PFE
|
US |
|
|
American Express Co
NYSE:AXP
|
US |
|
|
Nike Inc
NYSE:NKE
|
US |
|
|
Visa Inc
NYSE:V
|
US |
|
|
Alibaba Group Holding Ltd
NYSE:BABA
|
CN |
|
|
3M Co
NYSE:MMM
|
US |
|
|
JPMorgan Chase & Co
NYSE:JPM
|
US |
|
|
Coca-Cola Co
NYSE:KO
|
US |
|
|
Target Corp
NYSE:TGT
|
US |
|
|
Walt Disney Co
NYSE:DIS
|
US |
|
|
Mueller Industries Inc
NYSE:MLI
|
US |
|
|
PayPal Holdings Inc
NASDAQ:PYPL
|
US |
This alert will be permanently deleted.
GTPL Hathway Ltd
You don't have any saved screeners yet
Ladies and gentlemen, welcome to the Q4 and FY '22 Results Conference Call of GTPL Hathway hosted by Emkay Global Financial Services.
We have with us today from the management, Mr. Anirudhsinh Jadeja, Promoter and Managing Director; Mr. Rajan Gupta, Chairman and non-Executive Director; Mr. Piyush Pankaj, Business Head, CATV and Chief Strategy Officer; and Mr. Anil Bothra, chief Financial Officer. [Operator Instructions] Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Naval Seth from Emkay Global Financial Services. Thank you, and over to you, sir.
Thank you, [ Faizan ]. Good evening, everyone. I would like to welcome the management and thank them for this opportunity. I shall now hand over the call to the management for the opening remarks. Over to you, Anu, for your opening remarks.
Thank you, Naval. Good evening, everyone. A warm welcome to all of you to the conference call of GTPL Hathway Limited to discuss the financial and operational performance of quarter 4 and annual FY 2022. I hope you and family are all keeping safe, and I pray for their well-being.
I'm glad to inform that Board has recommended a dividend of 40% per share for FY '20, '22. With that, I hand over to Mr. Piyush Pankaj, who can take you through the business and financial aspect of the company.
Thank you, Mr. Jadeja. Good evening, everyone. I hope all of you are safe and healthy. As you are aware, GTPL Hathway is one of the few consistently profit-making cable TV and broadband company in India. I am happy to share with you that GTPL Hathway has become the #1 MSO as per TRAI's performance indicators report.
In the last 6 years, our CATV subscriber base has grown sharply by 2.3x to 8.40 million. And for FY '22, it has grown by 5%. Our broadband subscriber base has grown by 4.8x in the last 6 years to 816,000 with an addition of 181,000 active subscribers in FY '22.
Some of our key achievements for FY '22 includes, we are #1 MSO in India. We are #1 broadband player in Gujarat. We expanded our presence in 4 new states and we continue to enjoy net debt-free status in FY '22.
Let me now share the performance highlights for quarter 4 FY '22 and annual FY '22. In the CATV segment, our active subscribers stood at 8.40 million as of March 31, '22. GTPL digital CATV services reached around 1,200 towns is spread across 19 states in India. The company is expanding aggressively in Maharashtra, Andhra Pradesh, Telangana, Tamil Nadu and the North-eastern states.
GTPL CATV platform services own and operate 40-plus channels across multiple genres. For FY '22, we increased our active and paying subscriber base by 400,000 and 300,000, respectively. The CATV industry offers an underlying growth opportunity for an organized seasoned player like GTPL Hathway. Our CATV business expansion will gain momentum with organic and inorganic growth in the coming quarters.
The launch of GTPL Genie, our hybrid Android TV set-top box offering -- which bundles the convenience of live TV channels and OTT apps at attractive rates will further help us capture valid share of our customer base, increasing applications of Internet and communication services and increasing connectivity in urban and rural areas of India are expected to further consolidate our presence across India.
In the broadband segment, we added 830,000 new home parks in FY '22 and taking the total Home-Pass as on March 31, '22 to 4.70 million. During the period, GTPL added 181,000 active subscribers, taking the total active subscribers count to 860,000 as of March 31, 2020. The broadband ARPU for FY '22 increased to INR 5 Y-o-Y to INR 450 per month as of 31st March 2022.
The average data consumption per customer stands at 256 GB per month as of March 31, up by 24% -- 21% Y-o-Y.
Let us now move to our financial performance. The consolidated results, excluding EPC for annual -- during FY '22, total revenue grew by 12% Y-o-Y to INR 24,154 million. the CATV subscription revenue stood at INR 10,753 million. The broadband revenue surged by 46% Y-o-Y to INR 4,075 million led by healthy subscriber additions. EBITDA increased by 4% Y-o-Y to INR 5,677 million.
For quarterly results, during quarter 4 FY '22, total revenue grew by 4% Y-o-Y to INR 6,209 million. The CATV subscription revenue stood at INR 2,695 million. The broadband revenue increased by 34% Y-o-Y to INR 1,098 million.
The consolidated results, including EPC are -- for annual during FY '22, total revenue stood at INR 34,567 million. EBITDA for FY '22 stood at INR 5,701 million, with a margin of 23%. PAT stood at INR 2,006 million, up by 6% Y-o-Y. For quarterly results, during quarter 4 FY '22, total revenue stood at INR 6,278 million. EBITDA stood at INR 1,400 million with a margin of 22% and PAT stood at INR 552 million.
The stand-alone results, excluding EPC are, for annual during FY '22, the revenue increased by 7% Y-o-Y to INR 15,264 million. EBITDA, INR 3,268 million with an EBITDA margin of 21%. The stand-alone results, including EPC are, for annual during FY '22 revenue stood at INR 15,677 million. EBITDA stood at INR 3,292 million with an EBITDA margin of 21%. PAT for FY '22 stood at INR 1,380 million, an increase of 4% Y-o-Y.
This is out from my side. Thank you, everyone, for your attention. We can now begin with the questions and answers session.
[Operator Instructions] The first question is from the line of Pratiksha Daftari from Aequitas Investment.
So my first question was on the new product that we have launched, GTPL Genie, so what kind of cannibalization do we expect in this product? And if you could also explain about the strategy with geographies, have we targeted this and how do we plan to scale this product up?
So Pratiksha, cannibalization, it is not going to cannibalize our product because if my current subscriber is going into this product, they have going to become more sticky and we are going to get more revenues. So the cannibalization is not there in this product. We are -- we did it for attracting the new customers and upgrading our existing customers to this new product.
Right now, we have launched it in the 6 states which is Gujarat, Rajisthan; Maharashtra, Goa; Andhra Pradesh; and Telangana. In the next phase, we are going to increase it to all over India, which is very soon by end of April. It is going to be all over India launch. And the target is that we are going to target Phase I and Phase II cities first and then go into the Phase III and Phase IV cities subsequently.
Okay. Can you elaborate a little bit about the response of this product so far? How many of our existing users have upgraded to this? How many new users have we got, especially in our home markets like Gujarat and the like?
It's too early to give a trend on this. Yes, we are getting a lot of queries. The product is going out of sales very fast, which we are seeing. But right now, giving any trend on this is a bit early for us. Let's wait for the next quarter. We will give you the right trend at that point of time, which will be more logical and more dispersible for the analysts.
All right. And so this quarter, we've seen some subscriber addition in the cable TV business, does this include any inorganic growth here? Or this was purely organic?
Yes. It includes inorganic and organic. As we said after NTO, that the growth will come from inorganic and organic. The first year of NTO has gone into stabilizing the industry and everything. And as we were getting ready for doing the acquisitions and going for inorganic, the COVID hit in March 2020, and we are not able to do any inorganic growth.
So from this quarter, we have started -- so this is inorganic and organic booked.
Do we have any pipeline for inorganic growth, any budget that we have allocated or any other opportunities on dashboard?
Opportunities are there. We are evaluating those. And as the more and more opportunity will come as we are seeing. We will do the acquisitions at the appropriate time after all the evaluations and all. And if you want, we can take it off-line if we require any specific opportunities you want to talk about.
Perfect. Just one last question. If you could give the CapEx budget for the next year is that -- and if you could elaborate on that.
Yes. So this year, we did the CapEx of INR 363 crores which is -- which includes INR 180 crores of CATV CapEx and INR 183 crores of broadband CapEx. Next year, we are keeping the target of INR 450 crores for the CapEx on which around INR 180 crores is going to be the cable CapEx. Rest is going to be the broadband CapEx.
The next question is from the line of Dixit Doshi from Whitestone Financial Advisors.
Sir, my first question is regarding this new product, GTPL Genie. So in our website, I saw only this package of package pricing of INR 460, where OTT plus only free-to-air channels available. So for other, let's say, OTT plus paid channel, what is the package prices?
So that is also the other package prices with HD package also we have declared in the website. It's available is close to around INR 650 plus tax.
Three packages we have declared. One is FDA. One is with the -- all Hindi band and 1 is with the full HD band. And the difference of pricing is around INR 100 in each.
Okay. Okay. Now coming to -- so in this package, in the initial phase, are we going to make any loss or reduction in the margin? Or the deals with the OTT players is such that we will not take any margin in this business?
No, we are taking margin also or as a [Foreign Language].
We are going to maintain our EBITDA -- we are going to maintain our EBITDA in this business.
Okay. We are going to maintain our EBITDA. Okay. And this does not include the Internet, right? They have to take separately?
So we have offered include broadband also broadband, cable TV and OTTs. So right now, we have offered CATV plus -- cable TV plus OTT. The new products, which is broadband plus OTT, plus combining all together CATV plus broadband plus OTT, which we are launching very soon.
Okay. So that will be obviously higher package rises because broadband will also be included?
Yes.
Okay. Now coming to this quarter results. So if I see our segment-wise revenue and TBT breakup, in both the cases, like cable TV and Internet, there was margin reduction. So any particular reason?
A few things we have to consider that one is your activation revenue because the deferred revenue is going away on the -- in there. That's why you will see that the activation revenue has come down by around INR 34 crores in the whole year.
And the second is your EPC revenue because EPC project was onetime project, which has been completed. So you will see that the EPC project revenue has come down. And because of that, you will see that there is some margin shrinkage on overall, but we are very hopeful that, that will come back as we go forward.
Okay. So basically, excluding the EPC from Q3 to Q4, our activation revenue was also same. But still, our profit has come down by almost 7%, 8% in cable.
Yes, that is -- there is some year-end adjustments which happen. As you know, as the annual comes, then we have to go for some impairments of your investments and everything comes into the play. That's why you have seen a bit of slippage in the margin, which will come back in quarter 1, quarter 2 quarter 3. Onetime cost, which has come into it.
Okay. And in terms of -- in broadband also revenue has gone up, but our profitability has come down quarter-on-quarter.
Yes. So there are some onetime items, which has come into play because of being the annual visits on the quarter 4. So if you compare Y-o-Y -- year-to-year, you will see that there is a growth in the broadband, good growth in the broadband. But because of annual quarter 4, always, you will see that trend, that quarter 4, it comes down a bit because of annual provisions.
Okay. Is it fair to assume that annual whatever the margins are there, that margin are maintainable?
Yes. That margin will -- it's going to grow now the margins. As the situation is now normal, the COVID is almost ended and all the economy and everything has become normal. So we are hopeful that the margin will grow from here onwards.
Okay. Now my next question is in broadband business, this year, we have done fantastic numbers. So how do you see customer addition in FY '23 as well? Is there any scope of further increase or we will be able to maintain this 180,000 per year?
Yes, Piyush, I'll take forward this. So gentlemen, essentially, if you see last 2 years, okay, GTPL aggressive growth in broadband active base that has been led by doing more and more fiber to Home-Pass as well as increasing penetration, okay? .
Having said that, there are 2 more clear opportunities which are there, further increase in Home-Pass penetration, okay? Because as you just gave figures, we are still sub-20%, in terms of penetration, which means we can further increase with the increasing relevance of high-speed fiber broadband. There is a sales scope for increasing further penetration in the Home-Pass as okay? There is a clear opportunity.
And priorly, as you all know, GTPL has been a large fiber project and our fiber has been taken to all district-level towns and all Tehsil-level towns, okay? And now we have to launch broadband there.
Okay. So potentially, frankly, among us, we have just started. It will all depend upon management ability to keep on doing more Home-Pass and keep on increasing further penetration and also going to this next level towns, okay? And I think which current confidence level is very, very high. And we, of course, have to ensure we keep on executing it the way we have done in the last 2 years.
Okay. And if I'm not wrong, this is what we have done in the last 2 years is mainly through our own network. And now we are also planning to do it through our channel -- our partners also LCU in Jharkhand state. So how do you see that also ramping up going forward?
The broadband through partners, we have already launched, and we are progressing well. Already, we have made good road path in Andhra Pradesh, Telangana, Maharashtra, Bihar and Jharkhand states. And we are progressing well. We are hopeful that this segment, B2B segment of broadband is going to add business and value and numbers all through in our broadband business. And we are looking forward that we are going to get good numbers and expand all over India through this business model.
Okay. One last bookkeeping question in then I'll join in the queue. So in this -- once we do it through partner broadband, we'll be recording INR 450 ARPU and then we'll pay the share to the partner or we will record the revenue net of partner share?
No, no. This is, I'd say, accounting, yes, because GTPL is going to do the billing to the customer. So we are going to get 100% revenue and out of 100%, whatever share we have to provide to the partners will share as a cost.
This is the operator. Sorry to enter up to Mr. Doshi, may we request that you return to the question queue?
[Operator Instructions] The next question is from the line of Amit Doshi from Care PMS.
Yes. Thank you. Sir, you mentioned that this new product, Genie also has an option of that Internet service as well as the cable TV and OTT bundle so just to understand, so whenever this revenue through G&A would come, so what do we buy for CATV in this segment of cable TV and Internet separately? Or how would it account for in this segment result that we see on a quarterly basis?
Right now, we have an -- first, we have to understand that GTPL Genie is the product, which is the hybrid box, which is a CATV product, which is CATV plus all imminent OTTs, which we are providing, which we have launched right now. The revenue of this all will come into the CATV business straightway.
Yes, we are going to launch, as we mentioned that there is going to be a broadband plus OTT product, which all the revenue will come into the broadband business. And there is going to be the third product, which is a combination of CATV plus OTT plus broadband. Here, CATV plus OTT will come into the CATV business and broadband will go into the broadband business.
Okay. So second and third is yet to be launched. The second part and the third part, which you mentioned...
That's right. That's what I mentioned that we are going to launch very shortly.
Okay. Okay. Okay. And currently, just if you were to tell, how many number of users there will be Genie users from whatever you have launched till date?
Right now, it is very early, Amit, as I said earlier also that we will give you all the primes in next quarter or we can't touch base offline also on this. But we want to disclose all the trends next quarter. I'll just see that we have seen the -- a lot of queries and a lot of interest, which is coming on. The product is going out the cells very fast. And -- but exact trends and all the analysis and all, we would like to provide next quarter.
Okay. Okay. Okay. Fine. Second question is related to this earlier participant was talking about margins. So I think I also by the point that the margin independent of -- excluding EPC project as well as not only quarter-on-quarter, year-on-year, the margins have reduced.
Now you mentioned during the discussion, there is some sort of a onetime adjustment that was done in the Internet segment. So can you just slightly clarify what could that be? And what kind of amounts that are involved. So we kind of taken judgment as to what are the sustainable profitability figures. The reason is because your 30% subscribers have increased and not only that, the ARPU also increased. So logically, the EBITDA of Internet segment should have been far more higher. So just trying to reconcile the difference.
So there is a onetime hit which we have taken on the insurance side, as you know, and that's more on the conservative accounting on a -- we are hopeful or we are very confident that the recovery will happen. Already, we are in touch with the insurance company for doing that. But as already around 1.5 years has gone for recovery of that -- which we applied for the recovery. And our -- for doing the conservative accounting, we have taken the hit of insurance on that.
Okay. So can you quantify the amount?
INR 12 crores is the amount in the corporate business.
So that's all taken in Q4, is it?
Yes, some in Q3 come in Q4. Mostly in Q4.
[Operator Instructions] The next question is from the line of Dixit Doshi from Whitestone Financial Advisors.
Sir, in our last con call, you mentioned that starting first April, we may look at increasing our share against the MSO share in the cable TV business. Have we done that?
No, Dixit. We are waiting for NTO to come as NTO 2.0 will come at that point of time as we have to change the -- we might have to change the packages and all. So we are waiting for that as right now until there that can come in July or August as per we try last date given. So we are waiting for that.
Earlier, it was for 1st April.
Earlier, it was for 1st April, which has been extended to July -- June right now and expect it to start in July or August.
Okay. And sir, just to understand it better. So we have been talking this for last 2, 3 years. And then obviously, the COVID has come and the NTO 1 has come, but after 2.5 years, do you feel that we will be able to do that increase in the share because -- or do you feel that MSOs are -- LCOs might not like it?
We are confident that we will...
Now, almost from 3 years, they are used to with the higher share. So how do you see?
No, we are confident that we can increase, yes. The increase has to happen with the changes in all our packages. And if it is happening industry-wise, it will help us.
Okay. Okay. And last thing from my side, any update on the AGR issue?
AGR issues, Rajan?
Nothing, I don't have any additional update as of now.
Yes, yes. So right now, AGR as issues, no update is there. We are waiting for the dates of the court and...
But one order has come.
One order has come for the Netmagic which is -- which is very positive for the whole industry that we have similar to what treatment has been given to the place is the same equipment has to be given to other players also.
But still, we are waiting for the final order to come and which is going to help us. But it's a very positive development for the whole industry that the court has said that we are at par -- we have to be treated at par with the PSOs.
The next question is from the line of Gautami Desai from Chanakya Capital Services.
In this in the past, but I think we've been saying that because of COVID, we are losing some cable TV customers, especially the commercial ones. So would you like to share some trend? Like are the same customers coming back or anything else you want to share in terms of trend? That is one trend I want to know and another is also some trend on the broadband churn. Is it reducing? Increasing? how it has been? So that is my one question. And another question is that how is inflation treating you? I mean how is the inflation treating GTPL in terms of are you facing the -- it could be anything would be rate inflation or bandwidth costs or anything else that you feel it's happening on the inflation on GTPL?
So, Gautami. Commercial customer, as I said that around 7.5 lakhs we lost when the COVID started and around 4 Lakhs has come back on that. Still, we are seeing that trend back every quarter, around 20,000, 30,000 subscribers are coming back from that. The same subscriber, which we are talking about there and can that are coming. But the rate of driving of customers is declining, you can say. As earlier, it was higher. Now it is a bit lower. It's like 30,000 average for this quarter, the last quarter, it was 20,000, 25,000, between that. So that's the case in the commercial side.
Second, you talked about the year of broadband. We have seen over the years that churn has come down. And the trend is showing that it is coming down as we are increasing more and more FTTX subscriber base. We have seen that churn is getting [indiscernible]. It's not like year trends of 28%, 30%. Now it has come down to around 20%, somewhere.
Rajan, can you take back the churn part?
Yes, Piyush. The -- essentially, I think there are 2 things happening, as you just mentioned, is the improvement of our service okay, through launch of FTTX in most of the Home-Pass as well as, I think, in general, a lot of software upgradation, the way call center rates, the kind of support the consumer has given on various of the digital platform, et cetera, okay?
But parallelly industry competition level does remain high. And that's the reason whatever churn you just told, I mean, that's also relatively high. While it has come down from earlier, okay?
So I think churn because of customer proposition, that has improved a lot. But competition intensity in the market, that's already quite high. And that's there for quite some time. And so that's where -- it's better from earlier, but this is where we are.
Okay. Yes. And my next question on inflation.
Yes. Inflation, I will say, the general inflation is there in the admin cost, you can talk about salary employee costs and how they are there. On operating costs, we talked about bandwidth and all as more and more volume of bandwidth is required. So we are negotiating well and bringing down the bandwidth costs a bit. But as more volume is required, so you will see there is an increase in the bandwidth cost on the overall in our P&L. But if we talk about per GP cost, it is coming down.
[Operator Instructions] The next question is from the line of Miten Lathia from Fractal Capital Investments.
I was wondering if you have broken out the geographical split of the 4.7 million on Home-Pass that we have on broadband?
Yes. So Miten, mostly, it is in Gujarat, which you can see around 95% is in Gujarat. 5% is on the 6 cities, which we've mentioned every time that's Pune, Nagpur, Hyderabad, Jaipur, Patna and Varanasi.
Is it possible because no or broadband strategy is sort of also through partners, is it possible for us to do some sort of a geographical split going forward on the broadband side? That will be very useful.
Yes, point taken, Miten, as we progress, we will start introducing geographical-wise subscriber base.
Great. And if you could just give some specifics about -- is the Q4 adjustment increase about debtors? Or is it about something else and which makes the Q4 number not comparable with the Q3 number?
It's insurance, Miten.
That is -- I understand. So normally, on going forward on a Q4 also, we should not have one-offs, right?
Yes, that's right.
The next question is from the line of [ Hiten Boricha ] from [ Joinder Capital ].
Sir, most of my questions have already been answered. I have only one question. Are we giving any guidance on the revenue and margins for the existing FY '23 year?
The guidance is just that we are going to maintain our CAGR, 100 basis points here and there. But we are going to maintain our CAGR in both revenue and EBITDA. That's the way. And after 2 years, we are getting a clean year now, and we look forward to aggressive growth in both the businesses in this financial year.
[Operator Instructions] And there are no further questions from the participants. I now hand the conference over to Mr. Nachiket Kale from Orient Capital.
Thank you, and over to you, sir. Hi, good evening. Thanks, everybody, for joining us on the call. We at Orient Capital, our Investor Relations advisers to GTPL Hathway. So I'd like to thank -- I'd like to thank everybody once again, the management, the participant, analysts and the investors, and we look forward to having continuous engagement with all the market participants. For any queries, please feel free to contact myself or my colleague, Bhavin Soni. Our contact details are available on the presentation. And again, I'd like to thank the management for their time, and thank you, everybody, for being on the call.
Thank you.
Thank you.
Thank you.
Thank you. Ladies and gentlemen, on behalf of Emkay Global Financial Services, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.