GTPL Hathway - Q1FY21 Company Update - ICICI Securities

GTPL Hathway (GTPL) reported steady Q1FY21 results on the operating front. The topline was at Rs. 495.5 crore, up 11.2% YoY. Ex-EPC, revenues were at Rs. 465.2 crore, up 21.3% YoY. Subscription and broadband revenues were at Rs. 265.3 crore and Rs. 52.7 crore, respectively. EPC revenues for Q1FY21 were lower at Rs. 30.3 crore due to disruptions caused by lockdown. Reported EBITDA increased 14.5% YoY to Rs. 122.2 crore. Core EBITDA was up 21.7% YoY to Rs. 119.6 crore. EBITDA margins were at 24.7%, up 70 bps YoY given the lower margin profile of EPC project. Core margins were reported at 25.7%. PAT was reported at Rs. 40.9 crore, up 38.8% YoY.

Valuation & Outlook

GTPL's performance was resilient in tough times capitalising on growth opportunities, especially in the broadband segment. It remains our preferred pick in the cable space given the superior financial metric vis-à-vis peer amid strong leadership in key markets. Consistent debt reduction is a positive and geographical expansion in newer markets provides visibility for long term growth. We maintain our BUY rating and value it at Rs. 95/share, implying target multiple of 6.5x FY22E earnings.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_GTPLHathway_CoUpdate_Jul20.pdf

Shares of GTPL Hathway Ltd was last trading in BSE at Rs.76.7 as compared to the previous close of Rs. 77.4. The total number of shares traded during the day was 109397 in over 1294 trades.

The stock hit an intraday high of Rs. 81.25 and intraday low of 74.5. The net turnover during the day was Rs. 8731001.

Source : Equity Bulls

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