GTPL Hathway shares tumble 12% on Q4 loss

Shares of GTPL Hathway plunged over 12% in intraday trade on Monday after internet and digital cable TV services provider reported disappointing earnings in the March quarter. The smallcap company released its earnings report for the quarter ended March 2023, posting a consolidated net loss of ₹11.75 crore as compared to consolidated net profit of ₹54.47 crore in the corresponding period last year. The board of the company also recommended a dividend of 40% or ₹4 per share for the financial year.

Reacting to Q4 earnings, GTPL Hathway shares opened 6.9% lower at ₹105.12 against the previous closing price of ₹112.90 on the BSE. During the session, the stock shed 12.3% to hit an intraday low of ₹99 amid surge in volume trade. As many as 76,000 shares changed hands over the counter as compared to two-week average volume of 7,539 scrips on the BSE.

The smallcap stock currently trades 6% higher than its 52-week low of ₹93.5 touched on March 28, 2023. It hit a 52-week high of ₹206.85 on April 18, 2022. The counter has tumbled 48% in a year, while it lost 33% in the past six months. In the calendar year 2023, it has fallen 25%, while it dropped marginally by 1% in a month. In the last one week, the stock has dipped 6%.

GTPL Hathway shares were hammered on Monday after the company posted a surprise loss in March quarter of 2022 amid a sharp rise in expenses, which surged 24.3% year-on-year (YoY) to ₹692.9 crore. However, consolidated total revenue rose 13% year-on-year to ₹701.7 crore in Q4FY23, compared to ₹627.8 crore in the same period last year.

On the operational front, EBITDA dived 20.6% YoY to ₹111.2 crore from ₹140 crore in the year-ago period. The EBITDA margin declined to 15.9% versus 22.5% in the year ago period.

Segment wise, revenue from digital cable TV rose 2% YoY to ₹275.3 crore, while broadband business posted a YoY growth of 14% to ₹124.6 crore in Q4 FY23.

For the full financial year, the profit declined to ₹114.5 crore as compared to ₹200.6 crore in the year ago period. The total revenue climbed 12% to ₹2,714 in FY23 versus ₹2,415.4 in FY22.

As of March 31, 2023, total active subscribers for broadband stood at 920K, a growth of 104K YoY. The digital cable TV subscribers grew by 550K YoY to reach 8.95 million, while it increased footprint in 3 new states – Delhi, Haryana, and Uttarakhand. Its broadband ARPU increased by ₹10 annually to ₹460 in FY23.

Anirudhsinh Jadeja, Managing Director GTPL Hathway said, “I am glad to report yet another year of consistent growth in our broadband and digital cable TV business. GTPL continues to be the largest MSO in the country, as well as in Gujarat and the largest Broadband player in Gujarat. The company has further strengthened its presence across all other markets, especially in the southern states. We continue to expand our presence in the Digital Cable TV market and have entered the states of New Delhi, Haryana & Uttarakhand.”

“Our broadband business continues to show healthy growth, both in terms of subscribers and ARPU. Our focus and commitment to expand the Broadband business is expected to achieve the desired results in the coming years,” said Jadeja.

 “We continue to remain focused on the ever-evolving customer demands and to provide them with unique products and services,” he added.

GTPL Hathway is India’s largest MSO providing digital cable TV services and is the 6th largest private wireline broadband service provider in India. The company is the largest digital cable TV and wireline broadband service provider in Gujarat & is a leading digital cable TV service provider in West Bengal. As on March 31, 2023, the company has approximately 8.95 million active digital cable TV subscribers and 9,20,000 broadband subscribers and a broadband homepass of about 5.30 million.