GTPLNSEQ4 FY2022April 11, 2022

GTPL Hathway Limited

4,891words

88turns

8analyst exchanges

5executives

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Management on call

Naval Seth

EMKAY GLOBAL FINANCIAL SERVICES LIMITED

Anirudhsinh Jadeja

PROMOTER & MANAGING DIRECTOR, GTPL HATHWAY LIMITED

Rajan Gupta

CHAIRMAN & NON-EXECUTIVE DIRECTOR, GTPL HATHWAY LIMITED

Piyush Pankaj

BUSINESS HEAD - CATV & CHIEF STRATEGY OFFICER, GTPL HATHWAY LIMITED

Anil Bothra

CHIEF FINANCIAL OFFICER, GTPL HATHWAY LIMITED

Key numbers — 40 extracted

40%

and I pray for their well-being. I am glad to inform you that board has recommended a dividend of 40% per share for FY2022. With that, I hand over to Mr. Piyush Pankaj, who can take you through the

2.3x

erformance indicators report. In the last six years our CATV subscriber base has grown sharply by 2.3x to 8.40 million and for FY2022 it has grown by 5%. Our Broadband subscriber base has grown by 4.8

8.40 million

ce indicators report. In the last six years our CATV subscriber base has grown sharply by 2.3x to 8.40 million and for FY2022 it has grown by 5%. Our Broadband subscriber base has grown by 4.8x in last 6 ye

our CATV subscriber base has grown sharply by 2.3x to 8.40 million and for FY2022 it has grown by 5%. Our Broadband subscriber base has grown by 4.8x in last 6 years to 816k with an addition of 181k

4.8x

.3x to 8.40 million and for FY2022 it has grown by 5%. Our Broadband subscriber base has grown by 4.8x in last 6 years to 816k with an addition of 181k active subscribers in FY22. Some of our key ac

4.70 million

nd segment we added 830k new home pass in FY22 taking the total home pass as on March 31, 2022 to 4.70 million. During the period GTPL added 181k active subscribers. Taking the total active subscribers count

Rs.5

l active subscribers count to 816k as on March 31, 2022. The broadband ARPU for FY22 increased by Rs.5 Y-o-Y to Rs.450 per month as on March 31, 2022. The average data consumption per customers stands

Rs.450

ribers count to 816k as on March 31, 2022. The broadband ARPU for FY22 increased by Rs.5 Y-o-Y to Rs.450 per month as on March 31, 2022. The average data consumption per customers stands at 256 GB per mo

21%

The average data consumption per customers stands at 256 GB per month as on March 31, 2022 up by 21% Y-o-Y. Let us now move to our financial performance. The consolidated results excluding EPC for

12%

performance. The consolidated results excluding EPC for annual during FY22 total revenue grew by 12% Y-o-Y to Rs.24,154 million. The CATV subscription revenue stood at Rs.10,753 million. The broadba

Rs.24,154 million

The consolidated results excluding EPC for annual during FY22 total revenue grew by 12% Y-o-Y to Rs.24,154 million. The CATV subscription revenue stood at Rs.10,753 million. The broadband revenue surged by 46% Y-

Rs.10,753 million

FY22 total revenue grew by 12% Y-o-Y to Rs.24,154 million. The CATV subscription revenue stood at Rs.10,753 million. The broadband revenue surged by 46% Y- o-Y to Rs.4,075 million led by healthy subscribers additio

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Guidance — 20 items

Pratiksha Mehta

“So what kind of self cannibalization do we expect in this product and if you could also explain about the strategy with geographies have we targeted this and how do we plan to scale this product up.”

Piyush Pankaj

“In the next phase we are going to increase it to all over India which is very soon by end of April, it is going to be all over India launch and the target is that we are going to target phase one and phase two cities first and then go into the phase three and phase four cities subsequently.”

Piyush Pankaj

“Let us wait for the next quarter, we will give you the right trend at that point of time, which will be more logical and more discernible for the analysts.”

Pratiksha Mehta

“Just one last question if you could give the Capex budget for the next year is that and if you could elaborate on that.”

Piyush Pankaj

“Next year we are keeping the target of 450 Crores for the capex on which around 180 Crores is going to be the cable Capex rest is going to be the broadband Capex.”

Dixit Doshi

“So that will be obviously higher package prices because broadband will also be included.”

Piyush Pankaj

“Few thing we have to consider that one is your activation revenue because that deferred revenue is going away on the Ind AS that is why you will see that the activation revenue has come down by around 34 Crores in the whole year and the second is your EPC revenue because EPC project was one time project which has been completed.”

Piyush Pankaj

“So you will see that the EPC project revenue has come down and because of that you will see that there is some margin shrinkage on overall, but we are very hopeful that, that will come back as we go forward.”

Piyush Pankaj

“So we are hopeful that the margin will grow from here on.”

Dixit Doshi

“Now my next question is in broadband business this year we have done a fantastic number so how do you see customer addition in FY23 as well is there any scope of further increase or we will be able to maintain this 180k per year.”

Q&A — 8 exchanges

Good evening, Sir, Pratiksha here. My first question was on the new product that we have launched GTPL Genie. So what kind of self cannibalization do we expect in this product and if you could also explain about the strategy with geographies have we targeted this and how do we plan to scale this product up.

Piyush Pankaj

Cannibalization, it is not going to cannibalize our product because if my current subscriber is going into this product they are going to become more sticky and we are going to get more revenues. So the cannibalization is not there in this product we did it for attracting the new customers and upgrading our existing customers to this new product. Right now, we have launched it in the six states which is Gujarat, Rajasthan, Maharashtra, Goa, Andhra Pradesh, and Telangana. In the next phase we are going to increase it to all over India which is very soon by end of April, it is going to be all ov

Thanks for the opportunity. Sir, my first question is regarding this new product GTPL Genie. So in our website I saw only this package pricing of Rs.460 where OTT plus only free-to-air channels are available. So for other let us say OTT plus a paid channel what is the package prices.

Anirudhsinh Jadeja

So that is also the other package prices with HD package also we have declared in the website. It is available, it is close to around Rs.650 plus tax. So three packages we have declared, one is with FTA, one is with the full Hindi pack, and one is with the full HD pack and the difference of pricing is around Rs.100 in each. Now coming to, so in this package, in the initial phase are we going to make any loss or reduction in the margin or the deals with the OTT players is such that we will not take any margin hit in this business. No, We are going to maintain our EBITDA in this business also. O

Yes, thank you. Sir, you mentioned this new product genie also has option of that internet service as well as the cable TV and OTT bundled. So just to understand so whenever this revenue through genie would come so what you would bifurcate in this segment of cable TV and internet separately or how would it account for in this segmented result that we see on a quarterly basis.

Piyush Pankaj

First we have to understand that GTPL genie is the product which is the hybrid box which is a CATV product, which is CATV plus all embedded OTTs which we are providing which we have launched right now. The revenue of this all will come into the CATV business straight away we are going to launch as we mentioned that there is going to be a broadband plus OTT product where all the revenue will come into the broadband business and there is going to be the third product which is combination of CATV plus OTT plus broadband here CATV plus OTT will come into the CATV business and broadband will go int

Thanks for the opportunity again. Sir, in our last con call you have mentioned that starting 1st April we may look at increasing our share against the MSO share in the cable TV business have we done that.

Piyush Pankaj

No Dixit. We are waiting for NTO-2 come as NTO-2 will come at that point of time as we might have to change the packages and all. So we are waiting for that as right now it is there that it can come in July or August as per we will try the last date given. So we are waiting for that earlier it was 1st April which has been extended to June right now I am expected to start in July or August for that. And just to understand it better so we have been talking this for last two, three years and then obviously the COVID has come and the NTO-1 has come but after two and a half years do you feel that w

In the past three or four quarters I think we have been saying that because of COVID we are losing some cable TV customer especially the commercial ones. So would you like to share some trend like are the same customers coming back or anything else you want to share in terms of trend that is one trend I want to know and another is also some trend on the broadband churn is it reducing, increasing how it has been so that is my one question and another question is that how is inflation treating you I mean how is inflation treating GTPL in terms of are you facing the, it could be anything, it coul

Piyush Pankaj

Commercial customer as I said that around 7.5 lakhs we lost when the COVID started and around 4 lakhs has come back on that still we are seeing that trend that every quarter around 20k, 30k subscribers are coming back from that. The same subscriber which you are talking about that has gone that are coming but the rate of joining of customers is declining you can say as earlier it was higher now it is like 20k average for this quarter, last quarter it was 20- 25 between that only. So that is the case in the commercial side, second you talk about the churn of broadband we have seen over the year

I was wondering if we have broken out the geographical split of the 4.7 million home pass that we have on broadband.

Piyush Pankaj

Yes, so mostly it is in Gujarat which is say around 95% it is in Gujarat, 5% is on the six cities, which we mentioned every time that is Pune, Nagpur, Hyderabad, Jaipur, Patna and Varanasi. Is it possible because now our broadband strategy is sort of also through partners is it possible for us to do some sort of a geographical split going forward on the broadband side that would be very useful. Your point taken Miten as we progress we will start introducing geographical wise subscriber base. Great and if you could just give some specifics about is the Q4 adjustment entries about debtors or is

Good evening. Sir, most of my questions have already been answered. I have only one question. Are we giving any guidance on revenue and margins for the existing FY23.

Piyush Pankaj

The guidance is just that we are going to maintain our CAGR, 100 basis points here and there but we are going to maintain our CAGR in both revenue and EBITDA that’s the way as we look forward to our aggressive growth in both the businesses in this financial year. Okay thank you Sir.

Hi! Good evening, thanks everybody for joining in on the call. We at Orient Capital are investor relations advisors to GTPL Hathway. I would like to thank everybody once again the management, the participants, the analysts, and the investors, and we look forward to having continuous engagement with all the market participants. For any queries, please feel free to contact myself or my colleague Bhavin Soni, our contact details are available on the presentation and again I would like to thank the management for their time and thank you everybody for being on the call.

Management

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Speaking time

Piyush Pankaj

Dixit Doshi

Moderator

Amit Doshi

Pratiksha Mehta

Miten Lathia

Rajan Gupta

Gautami Desai

Anirudhsinh Jadeja

Hiten Boricha

Opening remarks

Naval Seth

Thank you Faizan. Good evening, everyone. I would like to welcome the management and thank them for this opportunity. I shall now hand over the call to the management for the opening remark, over to you Anu bhai for your opening remarks.

Anirudhsinh Jadeja

Thank you Navalji. Good evening everyone, a warm welcome to all of you to the conference call of GTPL Hathway Limited to discuss the financial and operational performance of Q4 and annual FY22. I hope you and your family are all keeping safe and I pray for their well-being. I am glad to inform you that board has recommended a dividend of 40% per share for FY2022. With that, I hand over to Mr. Piyush Pankaj, who can take you through the business and financial aspects of the company.

Piyush Pankaj

Thank you Mr. Jadeja. Good evening everyone, I hope all of you are safe and healthy. As you are aware GTPL Hathway is one of the few consistently profit-making cable TV and broadband company in India. I am happy to share with you that GTPL Hathway has become the number 1 MSO in India as per TRAI’s performance indicators report. In the last six years our CATV subscriber base has grown sharply by 2.3x to 8.40 million and for FY2022 it has grown by 5%. Our Broadband subscriber base has grown by 4.8x in last 6 years to 816k with an addition of 181k active subscribers in FY22. Some of our key achievements for FY22 includes: we are number one MSO in India, we are number one broadband player in Gujarat, we expanded our presence in four new states, and we continue to enjoy net debt free status in FY22. Let me now share the performance highlights for quarter 4 FY22 and annual FY2022. In the CATV segment, our active subscribers stood at 8.40 million as on March 31, 2022. GTPL'S digital CATV serv

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