GTPL Hathway stock slips over 2% after Q1FY25 profit more than halves

So far this year, the stock of this digital cable TV services slipped over 11 percent, as compared to 11 percent rise in the benchmark Nifty 50 index

Shares of GTPL Hathway declined over 2 percent to Rs 167 per share on July 12 after the company's net profit declined 60.2 percent year-on-year (YoY) to Rs 14.3 crore in the June ended quarter (Q1FY25).

So far this year, the stock of this digital cable TV services slipped over 11 percent, as compared to an 11 percent rise in the benchmark Nifty 50 index. Earlier, GTPL Hathway had hit a 52-week high of Rs 217 per share on January 10, 2024.

Catch all the market action on our LIVE blog

GTPL Hathway's total income jumped 9 percent YoY to Rs 850 crore in Q1FY25 as compared to Rs 780 crore a year back, supported by higher broadband connections. The company's total expenditure also increased by 12 percent YoY to Rs 730 crore in the June-ended quarter.

Meanwhile, its earnings before interest, tax, depreciation, and amortisation (EBITDA) declined by 4 percent YoY to Rs 120 crore in Q1FY25 versus Rs 125 crore in Q1FY24.

As of the June-ended quarter, active subscribers reached 9.6 million, up 5,50,000 on a YoY basis, while subscription revenue increased by 7 percent YoY. The increase in broadband subscribers also jumped by 70,000 YoY, whereas average data consumption saw a 13 percent YoY rise.

Commenting on Q1 results, Anirudhsinh Jadeja –Managing Director, GTPL Hathway said, "The company gave a consistent performance for the quarter driven by focus on operational efficiency and rising subscribers’ traction in the Cable TV segment aided by sporting events such as IPL and Cricket World Cup. The recent round of price hikes announced by all major telcos make the prospect of private wireline broadband at home even more appealing thus making our offering in the broadband segment even more competitive."

Moving forward, the management targets 180 million households and broadband connections of 150 million. "Broadband subscribers have grown at a CAGR of 26 percent from FY20-24 and growth will be further accentuated by adopting B2B model for growth in broadband," they stated in their investor presentation.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.