Why GTPL Hathway share price closed 20% higher today
BusinessToday.In July 11, 2019
GTPL Hathway share price closed higher today after the digital cable television and broadband services provider reported strong earnings for the quarter ended June 2019. GTPL Hathway share price ended 20% or 10.80 points higher at 64.80 on BSE. GTPL Hathway share price rallied 20 percent intraday after the company reported a 121% rise in June quarter profit at Rs 29.4 crore compared to Rs 13.37 crore reported in the same period last fiscal.
The stock opened with a gain of 18.43% at 63.95 level. Later it was stuck at the upper circuit of 64.80. There were only buyers and no sellers for the stock on BSE.
The microcap stock has lost 30% during the last one year and fallen 28.87% since the beginning of this year. Revenue from operations rose 50 percent to Rs 445.5 crore with subscription business logging 47 percent growth year-on-year in Q1.
The company said it added 2,40,000 new home pass and 15,000 net broadband subscribers and 10,000 FTTX subscribers (67% of net addition) during Q1 FY20. Data consumption per customer rose to 120 GB per month as on June 2019 compared to 38 GB per month in March 2017. Data consumption increased three times over two years.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) increased 38 percent to Rs 115.6 crore compared to year-ago.
Commenting on performance, Anirudhasinhji Jadeja, Managing Director at GTPL Hathway said, "Q1FY20 was the first full quarter with New Tariff Order (NTO), which has led to significant growth in subscription revenue. Subscription revenue grew by 47% on a y-o-y basis. Overall, our first quarter performance was in line with our expectation and we see our next three quarters equally exciting. With NTO being stabilised, our focus on taking FTTH to more and more homes, re-launching industry's first dual service product 'GTPL GIGAHD' to convert current customers along with adding new customers and concurrently launching hybrid set top box will help us to converge linear TV viewing with OTT usage. We will further increase the pace of growth momentum towards CATV and Broadband business in FY 2019 - 20."