Any current/future new fundraising through debt or equity?

The company has not provided specific details on any current or future fundraising through debt or equity in the transcript. Regarding the GTPL IPO, the management mentioned it is ongoing but could not share further details or timelines due to confidentiality. No comments were made on reasons for delay or progress related to the GTPL IPO. The management stated they are comfortable with the current cash flow situation, able to generate sufficient funds for debt repayment and capex. Existing borrowings have increased due to slow set-top box deployment in Phase-III areas, with hopes to accelerate

Any current/future capex/capital investment/strategic investment?

Hathway has deployed Rs175 crore capex in H1 FY17 standalone, with Rs130 crore in broadband and Rs45 crore in CATV. Majority of cable boxes were imported last year; current capex mainly for customs duty, maintenance, and small HD box imports. Continuing investment in broadband with focus on upgrading technology: launching DOCSIS 3.1 in South Bombay and GPON. Significant broadband capex is ongoing to improve service and expand offerings, aiming for higher ARPUs. GTPL plans aggressive deployment of GPON and DOCSIS 3 to increase ARPU. Investment in Phase-III markets started only recently, causing

Future growth expectations in sales/revenue/volumes?

The company is moving in a positive direction with strategies designed over the last 3-4 years starting to give results. (Page 19) Exciting growth expected due to regulatory changes and rising broadband demand. (Page 19) Broadband revenue increased by 67% YoY in Q2FY2017; broadband business showing strong quarter-on-quarter growth in ARPU, net adds, and profitability. (Page 4, 10) CATV subscription revenues grew 18% YoY in Q2FY2017. (Page 4) Expect to add 800,000 to 1 million set-top boxes in DAS-III and DAS-IV markets by March 2017. (Page 4) Broadband penetration in mature markets i

Future growth expectations in earnings/operating earnings/profits/EPS?

Management reassures confidence in current strategies, stating they are working and showing results (Page 19). Positive momentum expected from regulatory changes and increasing broadband demand (Page 19). Broadband ARPU has been increasing by about Rs20 per quarter over the last 8 quarters, indicating improving profitability (Page 10). Implementation of Hathway Connect has led to ARPU increase from Rs90 to Rs116 in Bengaluru, signaling potential for higher earnings as rollout matures (Page 6). EBITDA margin grew 12% YoY to Rs54.9 crore in Q2FY2017, reflecting operational improvement (Page 4).

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Hathway Cable & Datacom LtdQ3 FY16Entertainment

Hathway Cable & Datacom Ltd Q3 FY16 Earnings Call Analysis

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

Price: ₹11.7P/E: 23.8Market Cap: ₹2.0K CrSector: Entertainment

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→The company is moving in a positive direction with strategies designed over the last 3-4 years starting to give results. (Page 19)
→Exciting growth expected due to regulatory changes and rising broadband demand. (Page 19)
→Broadband revenue increased by 67% YoY in Q2FY2017; broadband business showing strong quarter-on-quarter growth in ARPU, net adds, and profitability. (Page 4, 10)
→CATV subscription revenues grew 18% YoY in Q2FY2017. (Page 4)
→Expect to add 800,000 to 1 million set-top boxes in DAS-III and DAS-IV markets by March 2017. (Page 4)
→Broadband penetration in mature markets is over 20%; management targets similar or higher penetration in new markets with a 30-month payback on ROI. (Page 11)
→Continuous investments in technology upgrades (e.g., DOCSIS 3.1, GPON) to improve service and retain customers. (Page 10)
→Confident to catch up on any short-term demonetization impacts and maintain growth trajectory. (Page 12)

Margin guidance

Category 3

→Management reassures confidence in current strategies, stating they are working and showing results (Page 19).
→Positive momentum expected from regulatory changes and increasing broadband demand (Page 19).
→Broadband ARPU has been increasing by about Rs20 per quarter over the last 8 quarters, indicating improving profitability (Page 10).
→Implementation of Hathway Connect has led to ARPU increase from Rs90 to Rs116 in Bengaluru, signaling potential for higher earnings as rollout matures (Page 6).
→EBITDA margin grew 12% YoY to Rs54.9 crore in Q2FY2017, reflecting operational improvement (Page 4).
→Anticipation of substantial growth in DAS-III and DAS-IV markets with expected addition of 800,000 to 1 million subscribers by March 2017 (Page 4).
→Despite competition, management remains confident growth in broadband and cable businesses will continue with focus on service upgrades and cost control (Page 10).
→No explicit forward-looking EPS guidance was provided; focus is on sustained positive trends and executing growth strategies (Page 19).

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Fundraise plans

→The company has not provided specific details on any current or future fundraising through debt or equity in the transcript.
→Regarding the GTPL IPO, the management mentioned it is ongoing but could not share further details or timelines due to confidentiality.
→No comments were made on reasons for delay or progress related to the GTPL IPO.
→The management stated they are comfortable with the current cash flow situation, able to generate sufficient funds for debt repayment and capex.
→Existing borrowings have increased due to slow set-top box deployment in Phase-III areas, with hopes to accelerate deployment after court restrictions removal.
→No explicit plans for new fundraising through debt or equity were disclosed as of the Q2FY17 call.

Order book

The transcript from Hathway Cable & Datacom's Q2FY17 concall does not provide any specific details regarding the current or expected order book or pending orders. The discussion primarily revolves around operational updates such as broadband and cable subscriber bases, inventory levels, regulatory framework, strategy on Hathway Connect implementation, and market dynamics including competitors and regulatory impacts. There is no mention or data related to order book status or pending orders in the provided transcript sections.

Capex plans

Yes

→Hathway has deployed Rs175 crore capex in H1 FY17 standalone, with Rs130 crore in broadband and Rs45 crore in CATV.
→Majority of cable boxes were imported last year; current capex mainly for customs duty, maintenance, and small HD box imports.
→Continuing investment in broadband with focus on upgrading technology: launching DOCSIS 3.1 in South Bombay and GPON.
→Significant broadband capex is ongoing to improve service and expand offerings, aiming for higher ARPUs.
→GTPL plans aggressive deployment of GPON and DOCSIS 3 to increase ARPU.
→Investment in Phase-III markets started only recently, causing increase in pay channel costs and capex.
→No specific new strategic investments disclosed; GTPL IPO/listing process ongoing but details confidential.
→Management confident in cash flow to cover capex and debt repayments for current and next financial year.

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