GTPL Hathway-Recent run-up leaves limited room for upsides, ICICI Securities

GTPL reported mixed Q2FY22 results.

• Core (Ex-EPC) revenue grew 18.6% YoY to | 589.8 crore, driven by sharp jump of ~50% YoY in broadband revenues to | 100.6 crore owing to addition of 45,000 subscribers and 36% YoY growth in cable placement/carriage revenues at | 180 crore
• EBITDA was at | 135.5 crore with margins at 22.7%, flattish YoY
• Reported PAT was at | 47.5 crore, down 4.5% YoY, owing to writeback of insurance claim of | 12.4 crore

Key triggers for future price performance

• The pace of broadband segment expansion both in terms of existing markets and new market entry
• Change in pricing share between LCOs and GTPL, currently lower than peer
• Implementation and impact of NTO 2, which will have an impact on the overall channel pricing for broadcasters and, thus, their strategy ahead will impact distribution/placement for GTPL

BCS Bureau