GTPL Hathway Ltd (GTPL) Q1 FY23 Earnings Concall Transcript

GTPL Hathway Ltd (NSE: GTPL) Q1 FY23 Earnings Concall dated Jul. 17, 2023

Corporate Participants:

Anirudhsinh Jadeja — Managing Director

Piyush Pankaj — Business Head CATV and Chief Strategy Officer

Analysts:

Pulkit Chawla — Emkay Global Financial Service — Analyst

Gaurav — Private Investor — Analyst

Saket Kapoor — Kapoor & Company — Analyst

Ranjit Zaveri — Private Investor — Analyst

Rahul Shah — Private Investor — Analyst

Rammanohar Reddy — Private Investor — Analyst

Rikesh Parikh — Rockstud Capital — Analyst

Ketan Athale — Global Capital — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to Q1 FY ’24 Results Conference Call of GTPL Hathway hosted by Emkay Global Financial Services. We have with us today, Mr. Anirudhsinh Jadeja, Promoter and Managing 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 now hand the conference over to Mr. Pulkit Chawla from Emkay Global Financial Service. Thank you, and over to you, Mr. Chawla.

Pulkit Chawla — Emkay Global Financial Service — Analyst

Thank you, Nirav. Good evening, everyone, and welcome to the Q1 FY ’24 GTPL Hathway earnings call. I’d like to take this opportunity to welcome the management.

Without any further delay, I shall now hand over the call to the management for their opening remarks. Over to you, gentlemen. Thank you.

Anirudhsinh Jadeja — Managing Director

Thank you, Pulkit. Good evening, everyone. A warm welcome to everybody to earnings call of GTPL Hathway to discuss financial performance of quarter one FY 2024.

Before we start with the quarterly highlights, I would like to invoke the memory of late Mr. Bharat B. Chovatia, the Independent Director of our company, who unfortunately passed away on 5th June. As chartered accountant, he served the company well as member of Audit Committee. All of us at GTPL will miss his presence and guidance.

GTPL Hathway continues to be a largest MSO in the country and largest digital cable TV and broadband player in Gujarat. In this quarter, the company strengthened its footprint in existing market of Maharashtra and Karnataka by strategically acquiring 34.34% of Metro Cast, an independent MSO operating in this market. A further subscription of 15.76% of Metro Cast share will be completed by December 2023, taking the aggregate stake at 50.10%.

I will now hand over the call to Mr. Piyush Pankaj, who will take you through the quarterly business and financial performance of the company.

Piyush Pankaj — Business Head CATV & Chief Strategy Officer

Thank you, Mr. Jadeja. Good evening, everyone. The company has recorded its highest ever quarterly revenues. Our KPIs have also increased both on quarterly and yearly basis. Our active digital cable TV subscriber base as on 30th June 2023 stands at 9.05 million. On a Y-o-Y basis, the increase in active subscribers is 650,000.

In the broadband business, we have added 115,000 new subscribers, an increase of 14% on a Y-o-Y basis. Homepass stands at 5.40 million as on 30th June 2023, of which 75% are available for FTTX conversion. Homepass grew by 550,000 on a Y-o-Y basis.

The broadband ARPU for quarter 1 FY ’24 stands at INR460, an increase of INR10 on Y-o-Y basis. The average data consumption per customer per month stands at 310 GB, a 19% increase Y-o-Y.

On a consolidated level, excluding EPC contract, in quarter one FY ’24, revenue grew by 21% Y-o-Y to INR7,806 million. The digital cable TV subscription revenue is at INR2,981 million, up by 9% Y-o-Y and 8% Q-o-Q. We saw double-digit yearly growth in our broadband segment, increasing by 13% Y-o-Y. The broadband revenue is at INR1,292 million.

The consolidated EBITDA is at INR1,258 million with an EBITDA margin of 16.1%. PAT for quarter one FY ’24 is at INR360 million. The stand-alone revenue, excluding EPC for quarter one FY ’24 is at INR5,118 million, an increase of 25% Y-o-Y and 13% Q-o-Q. EBITDA stands at INR697 million and PAT for quarter one FY ’24 stands at INR230 million.

This is all from my side. Thank you, everyone. We can now begin with question-and-answer session.

Questions and Answers:

Operator

Thank you very much. [Operator Instructions] The first question is from the line of Gaurav [Phonetic], an Individual Investor. Please go ahead.

Gaurav — Private Investor — Analyst

Hello, am I audible?

Operator

Yes, you are.

Anirudhsinh Jadeja — Managing Director

Yeah, Gaurav. Please go ahead.

Gaurav — Private Investor — Analyst

Sir, first of all, congratulations for the results and this is my first time meeting online. And sir, I have a question regarding results of annual year, financial year ’23. And my first question is that [Foreign Speech]. Thank you, sir.

Anirudhsinh Jadeja — Managing Director

Last year expenses, as you simply said that we are going for the expansion. Because of that, if you see, there is a increase in the expenses side, mainly in the admin and the infrastructure side, which we did. Apart from that, there is some onetime in the quarter four, which we have already saved at around INR15 crores to INR16 crores, onetime expenses, which we have taken. Because of those expenses, we have seen that there is a gap between revenue and expenses in FY ’23. I will say that if you can see our last investor script — transcript, you will get to know the exact differences which we have discussed in our last call in April. So that’s the case.

Coming on second, Gaurav, on the AGR cases, as you know that we have explained about this in AGR cases, there is no movement in AGR in both the cases. First is — just to give you the explanation that the first is related to cable TV revenues before FY ’16, the — because the license of broadband were same in the GTPL Hathway and FY ’16, that the subsidiary had been created broadband and the license had to conclude there and this license has been abolished. So DoT has put that demand after taking the — our cable TV revenue also for the AGR as a miscellaneous revenue, which is, I think, already that case is going on. This is an industry problem. I will say the whole industry, they have issued the — this demand and the whole industry is striking on that. And already lot of explanation has been given there related with the telecom, the PSUs and everything. So that’s the first thing but no movement has happened on those cases in the last quarter.

The second case is in the licenses, for that we — for the broadband company, which is on the single usages of Internet companies. And there also, there is no movement. Still the case is going on into the courts. So we can’t comment much on this. We are waiting and we are very positive. According to us, you can see that we are very positive that those cases — those demands will be taken off. We have not received any demand in the second case. But yes, we have gone ahead ourselves and given the disclosure for the better communication to the investor and for the company.

Gaurav — Private Investor — Analyst

Sir, regarding the issue number one also INR10 crore case, and what is the ratio of the amount? Like INR975 crores amount is there. What is the ratio like related to cable TV and related to Internet? Can we have some figure regarding ratio in this?

Anirudhsinh Jadeja — Managing Director

No, no, we don’t have any figure on that. It’s INR975 crores, which their demand is given — add-on demand which they have given. So that is the case.

Gaurav — Private Investor — Analyst

Okay, okay. Thank you, sir.

Operator

Thank you. [Operator Instructions] The next question is from the line of Saket Kapoor [Phonetic] from Kapoor & Company [Phonetic]. Please go ahead.

Saket Kapoor — Kapoor & Company — Analyst

[Foreign Speech].

Anirudhsinh Jadeja — Managing Director

Yes, Saket. Go ahead.

Saket Kapoor — Kapoor & Company — Analyst

Sir, firstly, sir, if you could explain slide number 22, wherein you have given the revenue breakup for the — for all the vertical, subscription income CAT, broadband, placement, carriage, activation, other operating income and other income. If you could give us some color on the factors that drive these segments. And how are they likely to shape up for the current year?

Anirudhsinh Jadeja — Managing Director

So subscription income CATV is mainly the CATV incomes, which we are getting it from our subscriber financials. So that is the CATV revenue — direct CATV revenue. Broadband ISP revenue is from the broadband subscribers, which we are getting it. Placement, carriage and marketing incentive is mainly we are getting it for — from the broadcasters for the carriage and placement and marketing incentives, which we are getting it from the broadcaster side. Activation revenue, it’s from the — when we are activating the first time, we get the activation and installation income, so for the new subscribers. Those revenues are coming from there. Other operating income consists of your advertisement income, your EPC income, that is more of an O&M income and all. And other income is more or less like a onetime income, which is interest and others, which is coming there in the other income.

Here, we are going to look at that subscription income broadband and placement and carriage income is the main revenue source for the company. And there, you will see that, always the growth will come on those three lines, which will drive the company’s revenues.

Saket Kapoor — Kapoor & Company — Analyst

Sir, when we look at this number on a Q-on-Q basis, would — is it the growth in the subscriber base that is only — that’s the key reason for the 8% growth in the subscription and 18% growth for the placement and carriage? I just would like to understand the factors and how are — what kind of growth numbers are we going to see on the sequential quarter going ahead?

Anirudhsinh Jadeja — Managing Director

See, I always explain in the call that whenever you are talking about placement and marketing incentive income, it should relate into the pay channel cost because both are coming from the broadcasters. One is income of ours and one is expense for us. So whenever you’re going to analyze this, you do pay channel cost minus placement, carriage and marketing incentive and see the margin on that basis — the gross margin on that basis. Means subscription income CATV plus placement, carriage, market incentive minus pay-channel cost, which is your gross margin. And that gross margin has to be maintained. So you have to look into that basis.

Broadband, as you know, broadband is a totally different business and broadband ISP is going to have their own growth based on their volume and value on the broadband side. Same subscription income CATV is depending upon the volume and value, both. But this time, basically, the growth for subscription side in cable TV, especially for new tariff order implementation effective 1st of April, right? Because of that, this 8% to 9% subscription income [Indecipherable], not for subscriber base. Subscriber base, more or less, here and there, 50,000. Major growth is for the NTO 3 implementation there. [Speech Overlap].

Piyush Pankaj — Business Head CATV & Chief Strategy Officer

We implemented NTO 3 and the effect this quarter is of around two months for that. Still the full effect of NTO 3 implementation you will witness in quarter two.

Saket Kapoor — Kapoor & Company — Analyst

So just to sum up, sir, this subscription income on the cable TV front, there is a — it will be appearing again and that would be more substantiated as a full quarter — for the next quarter itself. This impact will be on a full fledged full quarter basis. This is only subjected to two months for this quarter.

Anirudhsinh Jadeja — Managing Director

Yes, [Foreign Speech]. But yes, quarter two will be completely full.

Saket Kapoor — Kapoor & Company — Analyst

[Foreign Speech]. That will give us the real picture. That is what…

Anirudhsinh Jadeja — Managing Director

That’s right. [Foreign Speech]. That is the net cost, we will say, which is to monitor and subscription income CATV to be monitored.

Saket Kapoor — Kapoor & Company — Analyst

Right, sir. Sir, if we look at your — the growth in the CATV business, which you have outlined, what kind of capex are we going to do in terms of the structured cables [Indecipherable] I think so, that is the key component laying off when you are acquiring new geographies or even when you are penetrating into new areas? So what kind of capex in the structured cable segment or FTTH are we going ahead with for this year?

Anirudhsinh Jadeja — Managing Director

Yeah. We have already given the guidance for the full year capex last time. It was like INR450 crores, we are going to do the capex. And out of that, around INR250 crores is in the broadband and INR200 crores is going to be in the cable side. This quarter, we did around INR99 crore of capex, of which INR50 crores of capex is the broadband and INR49 crores is of the CATV.

Saket Kapoor — Kapoor & Company — Analyst

And for the CATV, it is the structured cables only — the FTTH and the structured cables are the same?

Anirudhsinh Jadeja — Managing Director

Yes, mainly for that.

Saket Kapoor — Kapoor & Company — Analyst

And sir, how many vendors do we have for the same, from which we are sourcing these structured cables?

Anirudhsinh Jadeja — Managing Director

You are talking about vendors for CATV business or for the broadband?

Saket Kapoor — Kapoor & Company — Analyst

Yes, yes, both, sir, both the areas. For CATV as well as broadband.

Anirudhsinh Jadeja — Managing Director

We have vendors for different equipment. For…

Piyush Pankaj — Business Head CATV & Chief Strategy Officer

Different, different like Nokia, like Juniper, like — in cable TV like Nagra, like Changhong, like [Indecipherable], Verimatrix, different, different.

Saket Kapoor — Kapoor & Company — Analyst

Sir, for the cable segment, domestically, where are we sourcing and for the OFC also?

Anirudhsinh Jadeja — Managing Director

It’s like Sterlite — you’re talking about the fiber?

Saket Kapoor — Kapoor & Company — Analyst

Yes, sir. Optic fiber cable as well as structured cables for the cable TV business.

Anirudhsinh Jadeja — Managing Director

Sterlite is the main. Sterlite is there, Polycab is there. Birla, Sterlite, Polycab, all are there.

Saket Kapoor — Kapoor & Company — Analyst

All right, sir. Sir, I’ll come in the queue for follow-up and thank you, sir.

Operator

Thank you. [Operator Instructions] Next question is from the line of Ranjit Zaveri [Phonetic], an Individual Investor. Please go ahead.

Ranjit Zaveri — Private Investor — Analyst

Yea. Hi, sir.

Anirudhsinh Jadeja — Managing Director

Hi, Ranjit.

Ranjit Zaveri — Private Investor — Analyst

Hi. Sir, I have a question on the new tariff order. Sir, how it will affect our top line as well as pay channel cost? And will we fully pass on the rising channel MRP to our customers?

Anirudhsinh Jadeja — Managing Director

See NTO 3, we have started implementing from April onwards. And we have seen that there is a increase at the customer level also, LCO level also. Around 15% increase had happened at the customer level and 7% to 8% has happened at the LCO level. That’s just the average which has happened. And so that we have seen, it has gone very smooth. We have got the experience of NTO 1 implementation, and we have put into that base. And there is no chaos, very smoothly all the implementation has happened. All the increase in the prices and all have been taken well by the customers and by the LCOs. So it’s a smooth implementation which is good.

Ranjit Zaveri — Private Investor — Analyst

Okay, sir. And my second question is regarding the INR1,400 crore [Phonetic] capex. Will it primarily be infrastructure upgradation in both cable TV and ISP side? And how it will help us counter high customer attrition seen in the industry?

Anirudhsinh Jadeja — Managing Director

So in cable TV, primarily it’s because of the set top box procurement. And the broadband is more on a FTTH for new — what — going forward, we are installing only FTTH customers. So majorly, it’s like last mile equipment of that and fiber and back end like core upgradation [Technical Issues] for that.

Ranjit Zaveri — Private Investor — Analyst

Okay. Thank you, sir.

Anirudhsinh Jadeja — Managing Director

Thank you. [Operator Instructions] The next question is from the line of Rahul Shah [Phonetic], an Individual Investor. Please go ahead.

Rahul Shah — Private Investor — Analyst

Thank you for the opportunity. As regards to improving subscriber base, how much of it going forward will be natural and how much of it be through acquisitions and consolidation of smaller MSOs and LCOs?

Anirudhsinh Jadeja — Managing Director

Yeah. So as we said that on the strategic side, we are focusing on both. Yes, from — you can see from quarter three FY ’22, FY ’23, we have started doing the acquisitions, and that is one of the focus which we have said earlier that consolidation of industry is required and for upgrading the customers also for the quality label upgradation and everything, and we are going ahead and doing that. Yes, we are keeping the target in such a way that 50% should come from the acquisition and 50% should come through the organic increase in our current markets. So that’s the way we are working towards that. And already, that is getting reflected in our numbers. Last Y-o-Y, we have increased our sub base by 650,000. And we are looking forward that, that trend will continue, and it will increase up to that, on a Y-o-Y basis, it should be 1 million somewhere.

Rahul Shah — Private Investor — Analyst

Okay. Thank you, sir.

Operator

Thank you. The next question is from the line of Rammanohar Reddy [Phonetic], Individual Investor. Please go ahead.

Rammanohar Reddy — Private Investor — Analyst

Hello.

Anirudhsinh Jadeja — Managing Director

Hi, Rammanohar.

Rammanohar Reddy — Private Investor — Analyst

Hi, sir. Just, this is where the question — Metro Cast subscribers of 4.5 lakhs, those numbers are included in the 8.3 lakhs or still those numbers are not included?

Anirudhsinh Jadeja — Managing Director

No, those are not included because we have concluded our acquisitions on 30th June evening, and that’s why we have not taken the profit and loss account also, consolidating that. That all will come in the quarter two. And in the numbers also, that will come into the quarter two in the consolidation. So all the consolidation will start — line-to-line consolidation will start from quarter two on the Metro Cast.

Rammanohar Reddy — Private Investor — Analyst

And I have another question that’s — during the last call that we discussed that operating income will be around INR600 crores. So this quarter, I think company made around INR126 crores. Still, are you on track to reach the INR600 crores?

Anirudhsinh Jadeja — Managing Director

Come again, come again, your question, Rammanohar?

Rammanohar Reddy — Private Investor — Analyst

Operating income — expected income will be around INR600 crores as per the last time that — whereas the company is expecting. So current quarter, we made around INR125 crores. So still, do you think — because income went up around 11%, but I think still operating income is somewhat lower this quarter. So still, are you going to make up that by next three quarters?

Anirudhsinh Jadeja — Managing Director

Yeah, yeah. As we see that the implementation of NTO 3 has happened and still the full effect of that has not come. The cost side, the full effect has already come. On the revenue side, still the full effect has to come. And some of the markets, we have implemented the NTO 3 very late, that is in June. For those market, the old implementation will come. So that way, I will say that, yes, we are on the path of what we have said, and we should achieve that.

Rammanohar Reddy — Private Investor — Analyst

And I think even operating administrative expenses also are not coming down actually. I think last quarter, Q3, I think they went up drastically — Q3 of FY ’23. Still every quarter, they are going up. Is there any other reason other than — because you said that I think we are setting up new business and all those things, so those things are coming up. So is it possible to — for those expenses to come down, other operating administrative and selling expenses?

Anirudhsinh Jadeja — Managing Director

Yeah, that is going to come down. If you see this quarter, it is 4% high. And if you step up about from INR168 crore to INR174 crore, around INR6 crore has gone up. But yes, we are putting those things there which I — that cost should not increase, and it should be at this level somewhere so that we can increase the market.

Rammanohar Reddy — Private Investor — Analyst

Okay, sir. Thanks from my side. Thank you.

Operator

Thank you. [Operator Instructions] Next follow-up question is from the line of Saket Kapoor from Kapoor & Company. Please go ahead.

Saket Kapoor — Kapoor & Company — Analyst

Yes, sir. Sir, if you could explain to us this Metro Cast transaction slightly more in retail, wherein you did mention about the first payment of INR25 crore and then to subscribe to some — in view of the transfer of set top box? So how does this all work? And I think so 34% is what it is as on June, and then it will move up to 50%. So if you could explain to us the entire transaction and how have you valued Metro Cast in terms of the subscriber base and the assets that we have acquired?

Anirudhsinh Jadeja — Managing Director

So I have already given that in the presentation that currently, Metro Cast has 4.5 lakhs subscribers, spanning in Karnataka and Maharashtra and Goa market. And they are mainly higher in the Karnataka market. We have acquired 34.34% at INR25 crores. You can get the equity value straightly on that way. And we are supplying the boxes of around INR23 crores to them for getting the 50.1%. So this is the purchase and that is the subscription, the INR23 crores is the subscription. And through that, we are getting the 50.1% stake in Metro Cast, and Metro Cast will become a subsidiary of GTPL Hathway on that way. So that’s just the whole sum-up of the transaction.

Saket Kapoor — Kapoor & Company — Analyst

Sir, in terms of this transfer of set top box, can you explain the process? I didn’t get that one, sir.

Anirudhsinh Jadeja — Managing Director

So the first INR25 crore is the purchase from, let’s say, a holder of Metro Cast, the rest INR23 crore of equipment — set top box we’ll provide to Metro Cast, which will in the lieu of getting the — around 15% to 16% equity in the company.

Saket Kapoor — Kapoor & Company — Analyst

Okay. And sir, what is the current market share of Metro Cast in the geographies that we’re operating? I think that Karnataka is the main market for them.

Anirudhsinh Jadeja — Managing Director

Yeah. Karnataka is the main market where they have around 300-plus — 300,000-plus subscriber base.

Saket Kapoor — Kapoor & Company — Analyst

So what is their current market share?

Anirudhsinh Jadeja — Managing Director

450,000 subscriber base.

Saket Kapoor — Kapoor & Company — Analyst

[Foreign Speech].

Anirudhsinh Jadeja — Managing Director

The Karnataka market, if we talk about, there are around 5 million — more than 5 million subscriber base. Out of that, 300,000 is with Metro Cast. But they are into the strategic area, and they are dominating on those areas. There’s no competition on those areas. So that is like, some of the pockets of Karnataka, they are dominating.

Saket Kapoor — Kapoor & Company — Analyst

And sir, when we look at your depreciation and amortization expense, there is a part of it that, that is actual cash burning in terms of the set top box that get, I think so, the losses of they getting redundant. So what should be the amount that we should be consuming in, in terms of this INR35 crores quarterly run rate that we have?

Anirudhsinh Jadeja — Managing Director

No, there is no set top box getting redundant. You can say the churn is happening on that way. Churn is happening. Again, we are adding it, we are distributing the boxes also for the ground. All those things are going on. And right now, as per the policy, which is the industry policy, the ATF [Phonetic] is the depreciation, straight-line method of the set top box, which is going on. So whatever boxes which company has procured before 2015, that has already got depreciated fully. The rest is on the verge of depreciation. So which is like — every year, you are getting one year back, so next year [Indecipherable] going to be 2015, the boxes which were procured in 2015 are depreciated fully, plus whatever be the boxes which we are tracking, which has started happening, those boxes are already getting out of the [Technical Issues]. So those are not a part of the depreciation and all, they are fully depreciated. So that’s just the policy on which we are working. And I think that the whole industry, which is working on those policies. So that is the case.

Saket Kapoor — Kapoor & Company — Analyst

Sir, you mentioned about the capex in both the segments. So that is the incremental capex or is it the maintenance capex? What portion is towards maintaining the current infrastructure and how much is about deepening of the network?

Anirudhsinh Jadeja — Managing Director

Yes, that’s just I’ve given the figure earlier, that right now, it’s 15% to 16% is our churn, based on that around INR50 crores to INR60 crores going into the maintenance capex right now of INR200crores, and which we are reducing with the time as we are retrieving more and more boxes from the ground. So yes, around INR50 crore to INR60 crore is going into the maintenance capex, you can say, where we are maintaining the customer base — the same customer base. The rest is going into the acquiring the more and more customers. So that is there.

Saket Kapoor — Kapoor & Company — Analyst

Sir, I was also looking for the number for the laying of cable. How much is about the — is towards maintenance capex for cables and how much is towards the new geographies where we are not present and laying of new cables? Can we differentiate between the two?

Anirudhsinh Jadeja — Managing Director

Maintenance — if you talk about the maintenance of the cable, the cable cutting is happening and we are replacing it with — that is coming into the straight way into the opex. When we are laying a new cable, new areas and all, that is coming into the capex. So that is, you can say, the whole capex part, so that is hardly around 5% to 7%, which is on the cable basis.

Saket Kapoor — Kapoor & Company — Analyst

The operation — the maintenance capex, 5% to 7%.

Anirudhsinh Jadeja — Managing Director

That’s right, 5% to 7% is there.

Saket Kapoor — Kapoor & Company — Analyst

Okay, sir. And sir, we are always hearing this technological advancement that is happening in the space where we operate. So what is the thought process of the management going ahead? How could technology take over things the way today, OF — optic-fiber to wireless and then to this satellite part being into play? So what should investors read into this? How are technological advancements a threat to the business model going ahead? And…

Anirudhsinh Jadeja — Managing Director

We believe on one thing that — and that’s what we are working on. But we believe that fixed wireline, whether it is cable side or whether it is broadband side, it’s going to remain there. Till date, the most robust technology, which has been proven for the broadband is FTTH and that is the fiber one, that whole thing is going on the fiber, and that is the most robust thing. Satellite technology, your wireless technology on the broadband, which is through 5G and all, it’s still that has to be tested fully, and that to be — that has to be tested fully in the Indian environment. And Indian environment we have to see because everywhere, it’s not the — all over India, if we talk about, hardly 10% of India has high light wavelength, 90% of India has — don’t have the high light wavelength. There you require more of the fiber to go into the home rather than going into the wireless and all because the spread out is very high. So we believe that fiber is going to remain there, and that’s what we are working on.

Piyush Pankaj — Business Head CATV & Chief Strategy Officer

Any technology, whether it is a 5G, whether it’s an air fiber, anyway, backbone has to be a fiber. It’s a proven technology, it’s — backbone [Foreign Speech].

Operator

Thank you Very much. Sorry to interrupt you, Saket. I’ll request you to join the queue again for a follow-up question. The next question is from the line of Rikesh Parikh from Rockstud Capital. Please go ahead.

Rikesh Parikh — Rockstud Capital — Analyst

Yeah. Thanks for the opportunity. I just wanted to understand this new NTRO [Phonetic], which — the full benefit by when we can expect and how can we see the impact from the ARPU for the full year if one has to look into it?

Anirudhsinh Jadeja — Managing Director

So basically, [Foreign Speech]. Quarter two will be completely full realization for NTO 3 implementation.

Rikesh Parikh — Rockstud Capital — Analyst

[Foreign Speech]. Can we look at it, INR475, INR480 kind from INR460?

Anirudhsinh Jadeja — Managing Director

I think as I understand, [Foreign Speech].

Rikesh Parikh — Rockstud Capital — Analyst

Okay. [Foreign Speech].

Anirudhsinh Jadeja — Managing Director

We have to see the cable TV ARPU, which is around INR122, INR123. There, you have to see that.

Rikesh Parikh — Rockstud Capital — Analyst

Second, sir, relating to [Foreign Speech]?

Anirudhsinh Jadeja — Managing Director

Can you repeat the question, please? Sorry?

Rikesh Parikh — Rockstud Capital — Analyst

[Foreign Speech] March ’22, it will be around INR292 crores.

Anirudhsinh Jadeja — Managing Director

If you talk about receivables has gone up to INR481 crores. March, it was at INR292 crores. So it has grown by INR189 crores, but that is mainly due to the broadcasters receivables, which is around INR190 crores, which has to come in…

Piyush Pankaj — Business Head CATV & Chief Strategy Officer

Both receivable and payable growth.

Anirudhsinh Jadeja — Managing Director

Yeah, receivable and payable, both as we have implemented in NTO 3, the usual three months has gone up to around five months right now, on the receivable side and payable side. Payable side is more on the marketing — receivable side is more of placement, carriage and marketing and payable side is the — more on the pay channel cost. So both has gone up in this quarter. As you see, this is cyclical. Always, you will see that the trade receivables and trade payables, because of the broadcasters, increases in quarter one and quarter two and start declining from quarter three and quarter four. By quarter four, again, you achieve that 90 days credit, which is there [Indecipherable].

Rikesh Parikh — Rockstud Capital — Analyst

And sir, last question, last quarter — means last year, because of Deloitte, we had a return of some INR19 odd crores — INR18 crores, INR19 crores. So any recovery out of the [Indecipherable] we held?

Anirudhsinh Jadeja — Managing Director

No, that will come, but this quarter, no recovery has come from there.

Rikesh Parikh — Rockstud Capital — Analyst

No recovery. Okay then. But we actually hope for this. Okay. Thank you, that’s it from my side.

Operator

Thank you. The next question is from the line of Ketan Athale [Phonetic] from Global [Phonetic] Capital. Please go ahead.

Ketan Athale — Global Capital — Analyst

Hello. Thank you for the opportunity. I just wanted to know, effective tax rate going ahead.

Unidentified Speaker —

So effective tax rate would be around 26.2% and that we will — actually going forward in Q2, Q3, Q4, we will try to maintain.

Ketan Athale — Global Capital — Analyst

Okay. And for FY ’25 also, if you can.

Unidentified Speaker —

The same rate, actually, we are targeting. Probably, we are going to — if suppose we are going for RTU assets, to that extent, actually, it will vary. Otherwise, it will remain in the same range.

Ketan Athale — Global Capital — Analyst

Okay. Thank you. That’s it from my side.

Operator

Thank you. [Operator Instructions] The next follow-up question is from the line of Rammanohar Reddy, an Individual Investor. Please go ahead.

Rammanohar Reddy — Private Investor — Analyst

Any reason for delay in AGM this year?

Anirudhsinh Jadeja — Managing Director

No reason for that, but we wanted to do it earlier, but as you know that Mr. Chovatia, our honorable Director has demised and then the new director has to come into the Board and instate. So that’s why we have delayed it a bit right now.

Rammanohar Reddy — Private Investor — Analyst

Okay, sir. That’s from my side. Thank you, sir.

Operator

Thank you. [Operator Instructions] The next follow-up question is from the line of Saket Kapoor from Kapoor & Company. Please go ahead.

Saket Kapoor — Kapoor & Company — Analyst

Yes, sir. [Foreign Speech], fiberization is the key and it has to go through the — backbone is the fiber. So sir, going ahead, [Foreign Speech], especially to increase the fiber count, just to compete with them in terms of providing the broadband services, what kind of other — I mean, have we factored in this 5G rollout going ahead in terms of the capex we are going for the broadband? And how are we going to showcase our products when 5G broadband services comes into play? There will be a real comparison between the broadband services provided by us and the telcos in the 5G format?

Anirudhsinh Jadeja — Managing Director

Saket, you are right that there is a lot of analysis on this, on air fiber versus fiber versus satellite and everything. And [Technical Issues].

Saket Kapoor — Kapoor & Company — Analyst

Sir, I can’t hear you. Hello? Your line dropped.

Anirudhsinh Jadeja — Managing Director

If you want, we can have one-to-one chat on this, and I’ll give you this. I think I have given you, the last call with you, some of the aspects, I will give you more. But how we are looking forward and how it is going to expand, what are the pros and cons with the technologies. Okay?

Saket Kapoor — Kapoor & Company — Analyst

Thanks. I’ll get back to you through the IR team.

Anirudhsinh Jadeja — Managing Director

Sure, sure, sure, Saket. Look forward to it. Thank you.

Saket Kapoor — Kapoor & Company — Analyst

Thank you, sir, and all the best.

Operator

Thank you. [Operator Instructions] The next follow-up question is from the line of Rammanohar Reddy, an Individual Investor. Please go ahead.

Rammanohar Reddy — Private Investor — Analyst

Sir, are we — is company reaching out to existing cable customers because many customers might be having different broadband or other things. As far as I’m concerned, I’m not using cable TV for the last five years, even my family members and other things, because I think — because the technology — the persons who has Internet connection, who are — who knows something, who can operate TV and other things, definitely, they won’t prefer cable TV as such, because the cost is — there is not much cost difference, right? Because basically, if you go for broadband, you will get Internet, while if you go for cable TV, just, okay, only this — it’s not on-demand and other things. So are you reaching to the existing — because always you are saying that there is a 9 million customer, there is a potential to convert those customers to broadband — to your customers. But there is no guarantee. Those customers might be already having broadband connections. So how you are reaching the customers and then saying that why not from GTPL? Are people who are — who maybe — or you can educate or — is there any effort from company side to resource customers?

Anirudhsinh Jadeja — Managing Director

Hi, Ram. Ram, see, the wired broadband, we call it a [ start-up-stry ] as a industry, as you know that right now, there’s 35 million homes have wired broadband out of 350 million, which is like a 10%, 11% — 10% hardly for a country like India. If you compare it with the other countries, which has more than 50%, we talked about China, Eurozone [Phonetic], more than 65%, U.S. and other countries, which has already 72% [Phonetic] 75% on the fiber. So India still has a lot to go. Yes, you are right. But still, if you talk about Internet customers, it’s like 672 million, India is showing right now. But those are more of mobile — on the mobile side on the Internet, which is like a low Internet.

As the country is going more and more on digital and everything is happening on the digital and then the requirement of higher bandwidth, higher speed is going to be there. And there, we are going to see that part which fiber broadband will bring it. And yeah, I guess you can say it like three years back, the fiber broadband that were 20 million now it has gone up to 35 million, and we are hopeful that in the next five years, it’s going to close to 100 million, somewhere. And so that’s — we are looking forward into the — this thing.

You talk about our 9 million subscriber base in the cable side, if I talk about around 35% or 30%, 33% is in the Phase I and Phase 2 market, which is more of a capital market and metro market, 65% market is in the rural market, Phase 3 and Phase 4, where still the penetration of broadband is very low. And there, the opportunity comes for us to bring those — all our customers into the real broadband, which is the fiber zone. So we are looking forward to that, and we are working towards that, that how we can bring those customers into the broadband because already we have those relationships…

Rammanohar Reddy — Private Investor — Analyst

Sorry. Just my concern is, okay, we may miss those existing customers to our competitors. So you are not taking any initiative urgently because those 9 million customers may not come to GTPL. Even if we get some 2 million, 3 million, that is well and good. So that is — just I wanted to point out to the management so that you can take action.

Anirudhsinh Jadeja — Managing Director

That is the prayer [Phonetic], Ram. But the cable will remain the same. That’s not a problem because the cable still we have close to around — if you see the pay TV customers in cable and satellite homes put together, still it’s almost 120 million households versus wireline broadband is only 35 million homes.

Rammanohar Reddy — Private Investor — Analyst

Okay, sir. Thank you. Thank you from my side.

Operator

Thank you. [Operator Instructions] The next follow-up question is from the line of Saket Kapoor from Kapoor & Company. Please go ahead.

Saket Kapoor — Kapoor & Company — Analyst

Anu ji, you mentioned about that the fiber story plays out in the rural more and in cities where there are less high-rise buildings. So what do you want to convey there? Do the high-rise buildings and the complex — the fiberization, the fiber to home does not reaches the home in the fiber format? What were you trying to explain us?

Anirudhsinh Jadeja — Managing Director

Saket, the fiber to broadband, fiber to home, everywhere we will be negotiating.

Saket Kapoor — Kapoor & Company — Analyst

But the comparison you were making, sir, between the low-rise and the high-rise buildings. So what were you trying to explain?

Anirudhsinh Jadeja — Managing Director

No, low-rise, high-rise, it’s more of like concentration of customers we are talking about. See, in India, if you go to the rural, the concentration of customer is not there, it’s far, far, far. In the urban, we will say there’s a concentration of customers. So from that way we are talking about on the concentration of customers in India.

Saket Kapoor — Kapoor & Company — Analyst

The cost is also going to go down with more concentration of customers, when you build the infrastructure once and then the revenue starts building up every month. So the cost also goes down considerably in a complex or a high-rise, the number of customers are more.

Anirudhsinh Jadeja — Managing Director

Yes, you are right. And we have to put a lot of efforts to put the quality on there. So that is there. So both are — that’s why I said, let’s have a discussion one-to-one.

Saket Kapoor — Kapoor & Company — Analyst

Fine, sir.

Anirudhsinh Jadeja — Managing Director

A lot of aspects that we have to discuss on those things.

Saket Kapoor — Kapoor & Company — Analyst

Okay, sir.

Anirudhsinh Jadeja — Managing Director

Okay, great.

Saket Kapoor — Kapoor & Company — Analyst

That’s all from my side. Thank you.

Anirudhsinh Jadeja — Managing Director

Thank you.

Operator

Thank you. [Operator Instructions] As there are no further questions, I now hand the conference over to the management for closing comments.

Anirudhsinh Jadeja — Managing Director

Thank you. I would like to express my thanks to every participant to take their time out to attend the call. We will work hard to ensure the company will continue its journey of sustainable growth in the upcoming quarters as well. For any queries, please feel free to connect with Orient Capital, which is our Investor Relations advisor. Thank you once again. Good evening.

Operator

[Operator Closing Remarks]