{"id":131203,"date":"2022-07-18T12:20:08","date_gmt":"2022-07-18T16:20:08","guid":{"rendered":"https:\/\/44.250.171.167\/?p=131203"},"modified":"2022-10-06T04:37:42","modified_gmt":"2022-10-06T08:37:42","slug":"gtpl-hathway-ltd-q1-fy-2023-research-tear-sheet","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/gtpl-hathway-ltd-q1-fy-2023-research-tear-sheet\/","title":{"rendered":"GTPL Hathway Ltd Q1 FY 2023 Research Tear Sheet"},"content":{"rendered":"\n

GTPL Hathway is a\u00a0cable TV distribution and High-speed Broadband Services provider\u00a0 for 15+ years in India. It provides services to 1,200 towns across 19 States, including Gujarat, West Bengal, Maharashtra, Goa, Bihar, Uttar Pradesh, Madhya Pradesh, Jharkhand, Rajasthan, Odisha, Assam, Tripura, Meghalaya, Manipur, Nagaland, Telangana, Andhra Pradesh, Tamil Nadu and Karnataka. It connects 11 million + Households. It was set up in 2006.The company has its headquarters in Ahmedabad. It is the No 1 MSO in India. It ranks 1st in Gujarat and 2nd in West Bengal. It ranks 6th in the Private Wireline Broadband Player in India and No 1 in Gujarat. It has also expanded its footstep in North-East.<\/p>\n\n\n\n

As on June 30, 2022 the company has 8.40 million Active Digital Cable TV Subscribers and 8, 45,000 Broadband Subscribers and a Broadband Homepass of 4.85 million. GTPL has 33,500+ Business Partners , 200+ Broadcasters, 1,500+ Enterprise Clientele and 25+ Government Projects in their pipeline.<\/p>\n\n\n\n

Business Strategies<\/u><\/strong>– The Company has obtained some major strategies. In the past 6 years the company has generated free cash flow. It is a debt free company. For last 6 years the company has obtained a positive PAT. It is consistent in dividend payout policy. 40% dividend has been paid out for FY22. The compound annual growth rate in Revenue is 22% and EBITDA\u00a0 is 24% for last 6 years. The company has expanded its footprint into New Markets through acquisition and consolidation. It has initiated GPON infrastructure to provide High Speed, High Volume Broadband Services and enhance digital infrastructure implementation capabilities.<\/p>\n\n\n\n

Service Line<\/u><\/strong>– The two main services provided by GTPL Hathaway include Cable TV and Broad Band. The Cable TV service provides access to different channels which includes GTPL music, GTPL action, GTPL box, GTPL Bhakti, GTPL Cinema, Sindhi TV, GTPL Gujarati, GTPL Malhar, GTPL Gold, GTPL Retro, KATHA\u00a0 GTPL Music\u00a0 and GTPL Dayro. It provides Digital Cable TV services available by connecting existing cable to a set-top box. Customers can access a wide range of channels across genres. They can select packages and a-la-carte channels to suit your viewing requirements. It helps access GTPL local channels and city specific channels. GTPL HD offers you advanced High Definition picture quality for your HD TVs. GTPL HD provides\u00a0 75+ High Definition channels including the most popular channels in Hindi & English GEC, Hindi & English Movies, Sports, Infotainment, Lifestyle & Music. GTPL is No. 6 in Private Wireline Broadband players. It provides High Speed Broadband up to 200 Mbps. It provides Uninterrupted connectivity through GPON Technology.<\/p>\n\n\n\n

For Q1 FY 23 the Consolidated Subscription revenue from cable TV increased by 3% Y-o-Y. Standalone Subscription revenue increased by 4% Y-o-Y\u00a0 to \u20b9 1,903 million. Paying subscribers are 7.80 million; increased by 500k Y-o-Y. GTPL has widened its presence in new markets through organic and inorganic routes. In case of broadband the active subscribers stood at 845k, with the addition of 155k in Y-o-Y. Home passes increased 750k Y-o-Y and stood at 4.85 million. The Average data consumption per user per month\u00a0 has increased by 17% Y-o-Y to 260 GB.<\/p>\n\n\n\n

Financial Snapshot (<\/u><\/strong>\u20b9 \u00a0million)<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The Consolidated Revenue has increased by 10% Y-o-Y to \u20b9 6,454 million. Subscription Revenue has grown 3% Y-O-Y to \u20b9 2,727 million. Broadband Revenue has increased 24% Y-O-Y to \u20b9 1,139 million. EBITDA stood at \u20b9 1,354 million and PAT is \u20b9 433 million. Broadband subscribers grew by 1,55,000 Y-o-Y and by 29,000 Q-o-Q. Total active broadband subscribers reached 8,45,000 and Homepasses reached 4.85 million.<\/p>\n\n\n\n

Analysis of Strength, Weakness, Opportunity and Threat<\/u><\/strong><\/p>\n\n\n\n

Strength- It is a well known brand in cable TV and broadband. It successfully captured the Indian market. It has a wide range of product mix. The product mix has helped the company to diversify the revenue stream beyond Services sector and Broadcasting & Cable TV segment. It has a strong record of diversifying product based on customer preference.<\/p>\n\n\n\n

Weakness- Many policies implemented by government on cable TV business which is hampering the revenue to some extent. The company needs to build a platform model that can integrate suppliers, vendors and end users.<\/p>\n\n\n\n

Opportunities- With the increase of online services GTPL Hathway  will also provide new offerings to the customers in Broadcasting &the Cable TV industry. The company has a very good reputation among the customers. This would definitely help to enhance the total revenue.<\/p>\n\n\n\n

Threat- There is always a threat from new competitors who are entering the market. The major concern of this industry is price and diversification. The lower price will help the company to gain more and more customers, but this may impact the revenue. Economic turbulence, government intervention, inflation  and COVID-19 have impacted the industry as a whole.<\/p>\n\n\n\n

Industry Analysis \u2013<\/u><\/strong>The Indian broadcasting and cable TV market is expected to reach USD 19.06 Billion in FY2026.The major factors contributing to this growth include favorable regulations, technological advancements and growing investment opportunities in the broadcasting and cable TV market. Moreover the demand for TV sets has greatly increased in the rural areas and people in the rural areas are more interested in viewing cable TVs. It has been observed that the introduction of 4G and 5G has driven the growth of India broadcasting and cable TV market by FY2026.<\/p>\n\n\n\n

Stagnation of the Cable TV Industry in India<\/u><\/strong>– The cable TV operators in India have faced a tough time. The industry suffered when the Government of India mandated the use of set top boxes. So as per the research report submitted by the Broadcast Audience Research Council, the demand for television sets has increased in India but cable homes in India have fallen. Moreover the OTT platforms and Free Dish are capturing customers. So the cable operators are looking at new ways to grow.<\/p>\n\n\n\n

Effect of Pandemic on the Broadband Industry in India<\/u><\/strong>– The Broadband Industry is expected to grow $243 million by 2024. The Pandemic in India has given a boost to the number of users using fixed-line broadband. The reason behind such growth is inclination of people towards work from home. Most of the industries are referring work from home so the demand for broadband has greatly increased. Moreover, people are accessing uninterrupted OTT platforms with the help of broadband. The demand for broadband connections are increasing steadily and the demand for internet is also increasing. So it is evident that it will become a part of essential service and need.<\/p>\n\n\n\n

Peer comparison<\/u><\/strong><\/p>\n\n\n\n

Company<\/td>PE Ratio<\/td>PB Ratio<\/td><\/tr>
GTPL Hathway Ltd<\/td>8.7<\/td>1.54<\/td><\/tr>
Hathway Cable and Datacom Ltd<\/td>22.33<\/td>0.7<\/td><\/tr>
DEN Networks Ltd<\/td>9.25<\/td>0.54<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

If we make a peer comparison basis on the ratios we will find that GTPL Hathway will be more preferable for investment. If we analyse the P\/E ratio and the P\/B ratio of these three companies,the companies with least P\/E ratios is more preferable as it is  better for both the business and potential investors.<\/p>\n\n\n\n

Major Achievements<\/u><\/strong><\/p>\n\n\n\n

The company has been recognized by dun &bradstreet and has ranked #364  in terms of Net Profit. It has ranked #410 in terms of Revenue. It has ranked #444 in terms of Net worth.<\/p>\n\n\n\n

Why GTPL is Successful<\/u><\/strong><\/p>\n\n\n\n

At present the wireline broadband customer in India is around 19 million and it is expected to grow 50 million in coming years. Compared to other countries like America or Europe, we are lacking much behind. Even in this scenario GTPL is successful because it has offered high speed broadband service at a competitive price. It has launched an unlimited Data plan with a speed of 100 Mbps just at Rs 649 so today GTPL Hathway has become the number 1 provider for internet in Gujrat and other cities.<\/p>\n\n\n\n

To thrive in this market in future GTPL Hathway is constantly investing in the latest technologies, upgrading skills of its employees, updating the system of operation and expanding the territorial boundaries. With all these GTPL Hathway has successfully conquered the market and achieved customer satisfaction.<\/p>\n","protected":false},"excerpt":{"rendered":"

GTPL Hathway is a\u00a0cable TV distribution and High-speed Broadband Services provider\u00a0 for 15+ years in India. It provides services to 1,200 towns across 19 States, including Gujarat, West Bengal, Maharashtra, Goa, Bihar, Uttar Pradesh, Madhya Pradesh, Jharkhand, Rajasthan, Odisha, Assam, Tripura, Meghalaya, Manipur, Nagaland, Telangana, Andhra Pradesh, Tamil Nadu and Karnataka. It connects 11 million […]<\/p>\n","protected":false},"author":1796,"featured_media":58681,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6352,9908],"tags":[8225,8592],"class_list":["post-131203","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-research-summary","category-research-tear-sheet","tag-broadcasting","tag-cable"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":128429,"url":"https:\/\/alphastreet.com\/india\/gtpl-hathway-q4-fy-2022-research-tear-sheet\/","url_meta":{"origin":131203,"position":0},"title":"GTPL Hathway Q4 FY 2022 Research Tear Sheet","author":"sreerupa","date":"April 11, 2022","format":false,"excerpt":"GTPL Hathway is a\u00a0cable TV distribution company in India. It provides digital cable television services in 169 towns. It was set up in 2006.The company has its headquarter in Ahmedabad, India. It mainly deals with Cable television, Broadband Internet, Digital voice and Home networking. The stocks are traded both on\u2026","rel":"","context":"In "Research Summary"","block_context":{"text":"Research Summary","link":"https:\/\/alphastreet.com\/india\/category\/research-summary\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":154906,"url":"https:\/\/alphastreet.com\/india\/gtpl-hathway-ltd-q2fy24-23-fall-in-profits\/","url_meta":{"origin":131203,"position":1},"title":"GTPL Hathway Ltd Q2FY24; 23% fall in Profits","author":"Hardik Bhandare","date":"October 16, 2023","format":false,"excerpt":"GTPL was established in 2006, by Mr. Anirudhsinhji Jadeja, Mr. Kanaksinh Rana, and other MSOs, such as Gujarat Telelink Pvt Ltd. 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Revenue grew 19% YoY to INR7,900 million. Consolidated EBITDA was INR1,351 million with 17.1% margin. Profit after tax stood at INR344 million. 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