Q3FY21 Company update - GTPL Hathway - ICICI Direct

GTPL Hathway (GTPL) reported a robust Q3FY21 operating performance. Ex-EPC revenues were at Rs. 544.6 crore, up 24.8% YoY. Revenues at Rs. 647.2 crore were down 4% YoY as EPC revenues for Q3FY21 were lower at Rs. 102.6 crore. Subscription and broadband revenues were at Rs. 271.8 crore and Rs. 77.8 crore, respectively. Reported EBITDA increased 15.9% YoY to Rs. 141 crore. EBITDA margins at 21.8%, were up 374 bps YoY as Q3FY20 had higher proportion of EPC revenue. Core EBITDA was up 27% YoY to Rs. 133.7 crore with margins at 24.5%, up 40 bps YoY. PAT at Rs. 45.2 crore, was up 36.8% YoY.

Valuation & Outlook

GTPL's resilient operating performance has been a result of solid traction in broadband segment. We remain constructive on the company given the superior financial metric with leadership in its key markets. The company's consistent debt reduction provides comfort and expansion in newer markets with stronghold in Gujarat provides growth opportunities. We rollover our valuations and maintain BUY rating. We value the company at Rs. 175/share (previous TP: Rs. 150), implying target multiple of 8x FY23E core earnings.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_GTPLHathway_CoUpdate_Jan21.pdf

Shares of GTPL Hathway Ltd was last trading in BSE at Rs.134.2 as compared to the previous close of Rs. 139.05. The total number of shares traded during the day was 12162 in over 342 trades.

The stock hit an intraday high of Rs. 143.8 and intraday low of 132. The net turnover during the day was Rs. 1656533.

Source : Equity Bulls

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