In Thursday’s trading session, shares of one of the leading digital cable television service providers, specialising in delivering a wide range of services, including cable television, broadband internet, and digital entertainment solutions, jumped up to17 percent following Q3 results anticipation and plans to invest Rs.1,000 crores in HITS services
Price action
With a market capitalization of Rs. 1,530.06 crores on Thursday, the shares of GTPL Hathway Limited were trading at Rs. 150 up by 17 percent making a high of Rs. 157.99 per share compared to its previous closing price of Rs. 135.09 per share.
What Happened
GTPL Hathway Limited, specializing in delivering a wide range of services including cable television, broadband internet, and digital entertainment solutions, gained ahead of the anticipation of its Q3 earnings, which are set to be announced today.
In the second quarter, GTPL Hathway reported a 61.8 percent year-on-year decline in net profit, falling to Rs 13.7 crore for Q2, compared to Rs 35.9 crore last year. However, the company’s revenue grew by 9.8 percent, reaching Rs 856 crore, up from Rs 779 crore in the same period last year.
GTPL Hathway also recently announced an investment of Rs 100 crore in its upcoming Headend in the Sky (HITS) service, set to launch in the first quarter of FY26. The service will support up to 900 television channels, and the company plans to leverage HITS as a key driver for future subscriber growth. The Ministry of Information and Broadcasting (MIB) granted the company its HITS license on Friday.
About the company
GTPL Hathway Limited is a leading cable television and broadband service provider in India, offering customers access to a wide variety of television channels across different languages and genres. The company specializes in delivering a range of services, including cable television, broadband internet, and digital entertainment solutions.
GTPL Hathway’s expertise lies in offering bundled services that combine cable TV with broadband internet, catering to the evolving entertainment and connectivity needs of modern consumers. With a focus on digital innovation, the company has introduced advanced features such as high-definition TV and on-demand content.
Upcoming Projects
GTPL Hathway is preparing for its Headend in the Sky (HITS) project to improve service availability in rural and cable-dark areas. Additionally, the company plans to introduce new offerings via the GTPL Buzz app, including gaming and OTT content, to enhance customer retention and reduce churn.
Future Outlook
GTPL Hathway’s management has revised its revenue guidance for FY ’25, expecting a 12 percent to 15 percent increase, down from the previous 20 percent due to weaker Q2 performance. The company aims to add 100K to 120K new broadband subscribers annually, targeting a total of 1.5 million broadband subscribers in the next 4-5 years. GTPL Hathway also plans a total capex of Rs. 350 crores for the year, with Rs. 200 crores allocated for Cable TV and Rs. 150 crores for Broadband
Financials
The company’s revenue rose by 9.12 percent from Rs 789.98 crore to Rs 862.03 crore in Q2FY24-25. Meanwhile, Net profit declined from Rs 34.22 crores to Rs 12.78 crore during the same period.
Key Financial ratios
GTPL Hathway Limited has an Return on Equity (RoE) of 5.6 percent and a Return on Capital Employed (RoCE) of 8.21 percent. Furthermore, the company’s debt-to-equity ratio is 0.28.
Written by Sridhar J
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