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Hathway Cable & Datacom LtdQ1 FY17

Hathway Cable & Datacom Ltd Q1 FY17 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹9.95P/E: 23.9Market Cap: ₹1.8K CrSector: Entertainment

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

No

Order

N/A

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 2
  • Broadband revenue grew 61% YoY in Q1 FY17, with current subscriber base at 715,000 (consolidated) and 500,000 (standalone).
  • Broadband home passes have reached 3.6 million, with ongoing network expansion in key markets like Delhi, Calcutta, and Indore.
  • Broadband ARPU increased from Rs. 700 to Rs. 724; new consumers have Rs. 830 ARPU, indicating continued ARPU growth.
  • Cable TV digital subscriber base crossed 11 million with 600,000 additions in the quarter; 90% digitization achieved across 12.3 million universe.
  • Phase III cable TV ARPU targeting increase from Rs. 25 to Rs. 50-60 by end of FY17.
  • Phase I ARPU expected to increase from Rs. 105 to Rs. 115; Phase II ARPU Rs. 5-7 lower than Phase I.
  • Hathway Connect implementation and revised packaging expected to drive ARPU growth.
  • Broadband profitability targets a payback period of within 2 years for investments.
  • No immediate broadband fund-raising planned; fully funded currently.

See what Hathway Cable & Datacom Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

No
- Hathway Cable & Datacom Limited is currently fully funded for their broadband business; all fund requirements are arranged. - There are no plans to raise funds for broadband in the near future. - GTPL, a subsidiary, has a funding requirement to reduce debt and for expansion plans (Phase-III, Phase-IV, and broadband). - GTPL has obtained board approval to explore various funding options including a planned IPO. - The GTPL IPO process is underway with filing of DRHP and expected to be completed around Q4 FY17. - Hathway plans to offer 9 million shares from its investment in GTPL as part of the IPO. (Information from Pages 20, 26, and 27)

See what Hathway Cable & Datacom Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes
  • Current CAPEX for FY17 standalone business is Rs. 90 crores:
  • - Rs. 60 crores allocated for broadband
  • - Rs. 30 crores allocated for CATV (Cable TV)
  • GTPL, a subsidiary, is planning expansion in Phase-III, Phase-IV, and broadband, driving its funding requirement.
  • Hathway has no current plan for fund-raising for broadband in the near future; funding requirements are arranged.
  • Total gross borrowings stand at Rs. 1600 crores (standalone) and Rs. 2105 crores (consolidated).
  • GTPL is exploring IPO as a strategic move to reduce debt and fund expansion.
  • Key investments include rollout of Hathway Connect platform to improve packaging, billing, and collections.

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Margin guidance

Category 3
  • Broadband business revenue grew 61% YoY in Q1 FY17; expansion and ARPU increase continue, indicating strong growth potential.
  • Broadband ARPU increased from Rs. 700 to Rs. 724; new consumers have Rs. 830 ARPU, supporting improved profitability.
  • Payback period for broadband investments targeted within 2 years, indicating disciplined profitability approach.
  • Phase III digital cable TV ARPU expected to increase from Rs. 25 to Rs. 50-60 by FY17 end, signaling revenue growth.
  • Phase I ARPU targeted at Rs. 115, Phase II at Rs. 108 by FY17 end, driven by revised packaging and Hathway Connect implementation.
  • Broadband subscriber base growing rapidly, with 715,000 consolidated subscribers and 3.6 million homes passed.
  • Management expects improved ARPUs and margins in CATV business with expanded phase III digitization and Hathway Connect.
  • Overall gross revenue increased 17% YoY to Rs. 302 crores in Q1 FY17, evidencing earnings growth momentum.

Order book

The provided transcript from the Hathway Cable & Datacom Q1 FY17 call does not explicitly mention specific details about the current or expected order book or pending orders. The focus is mainly on ARPU convergence across phases, broadband subscriber base, revenue sharing with LCOs, content costs, and broadband expansion plans. Key related points: - Phase-III expansion is ongoing with partial payments started; standalone subscriber base mentioned. - No direct data on order book or pending orders provided. - GTPL subsidiary plans to raise funds via IPO for debt reduction and Phase-III/IV and broadband expansion. - Funding for broadband is currently arranged, with no near-term plans for further fund-raising. Thus, no explicit information is available in this transcript about current or expected order book or pending orders.

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