Release Date: October 10, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- GTPL Hathway Ltd (BOM:540602, Financial) reported a 9% year-over-year increase in total revenue, reaching INR 8,620 million for the quarter.
- The company maintained a stable broadband ARPU at INR 460, with average data consumption per month increasing by 13% year-over-year to 350 GBs.
- GTPL Hathway Ltd (BOM:540602) added 50,000 new broadband subscribers, marking a 5% year-over-year increase in its active subscriber base.
- The company's balance sheet remains healthy with a net debt to equity ratio of 0.1x as of September 30, 2024.
- GTPL Hathway Ltd (BOM:540602) is actively pursuing growth in the B2B broadband segment, particularly in Delhi, UP, and Behanna, which could lead to further subscriber additions.
Negative Points
- The cable TV segment experienced a decline in subscribers due to higher churn rates, attributed to the absence of major events and adverse weather conditions.
- Short-term borrowings increased, leading to higher interest expenses and impacting PAT growth.
- The broadband segment's margins have decreased due to a higher rate of subscriber additions in the lower-margin B2B segment.
- The company faced challenges in customer retention, with churn rates increasing during periods without major events.
- GTPL Hathway Ltd (BOM:540602) lowered its revenue growth projection for the year from 20% to around 15% due to a weaker-than-expected Q2 performance.
Q & A Highlights
Q: Can you say how much of the subscriber addition in broadband have been through the B2B route in this quarter?
A: Piyush Pankaj, Head - Investor Relations: In this quarter, out of the total subscriber addition of 10,000, 2,000 were B2C and 8,000 were B2B subscribers. Currently, 100,000 of the total 1.04 million subscribers are B2B.
Q: What led to the decrease in Cable TV subscribers compared to the previous quarter?
A: Piyush Pankaj, Head - Investor Relations: The quarter faced challenges due to no major events and extended rain and floods, leading to higher churn than expected. However, we are optimistic about recovery, as seen with a 70,000 increase in subscribers in the first 10 days of October.
Q: Can you explain the rise in short-term borrowings despite healthy cash levels?
A: Saurav Banerjee, Chief Financial Officer: The increase in short-term borrowings is due to higher utilization of overdraft facilities for vendor payments and advances related to the HIS project. These are expected to taper down over the next couple of quarters.
Q: What are the steps being taken to convert a higher percentage of Homepass to company subscriber base?
A: Piyush Pankaj, Head - Investor Relations: We are focusing on expanding our reach and improving service offerings to convert more Homepass into active subscribers. The infrastructure is ready to connect subscribers within 24 to 48 hours.
Q: What is the revenue and margin guidance for FY '25 and FY '26?
A: Piyush Pankaj, Head - Investor Relations: We expect a 12% to 15% increase in total revenue, aiming to surpass last year's EBITDA of INR 511 crores. We aim to maintain an operating margin of 24%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
