Gujarat Digi Com Private Limited and Hathway Cable and Datacom, is a main provincial multi-framework administrator (MSO) in India, offering digital TV and broadband administrations. It is the number 1 MSO in Gujarat, with a piece of the pie of 67% of satellite TV endorsers in 2015, representing around 3.7 million of 5.6 million digital TV family units in Gujarat. It is the number 2 MSO in Kolkata and Howrah in West Bengal, with a piece of the overall industry of 24% of satellite TV supporters in this market in 2015, representing around 0.7 million of 3.0 million digital TV family units in Kolkata and Howrah. Gujarat is a vital market for supporters and promoters as it added to in excess of a 5% viewership share on an all-India premise and over 8% of the Hindi talking market in India in 2015. The organization gives satellite TV signs to supporters either straightforwardly or through subsidiary LCOs.
The organization was joined in August 2006 by promoters Aniruddhasinhji Jadeja and Kanaksinh Rana, through the combination of link benefit organizations in Ahmedabad and Vadodara. In October 2007, Hathway gained a half offer of business. In the course of recent years, the organization has become both naturally, through the development of administrations, and inorganically, through acquisitions, joint endeavors or by going into appropriate to utilize concurrences with other littler territorial MSOs, neighborhood link administrators (LCOs) and free administration administrators (ISOs).
As of January 31, 2017, the company’s advanced satellite TV administrations achieved 189 towns crosswise over India, incorporating towns in Gujarat, West Bengal, Maharashtra, Bihar, Assam, Jharkhand, Madhya Pradesh, Telangana, Rajasthan and Andhra Pradesh. As of January 31, 2017, it has seeded around 6.55 million set best boxes (STBs) and had roughly 5.69 million dynamic computerized link endorsers. Since March 31, 2015, it expanded the quantity of paying HD supporters from 0.02 million to 0.06 million as of January 31, 2017.
The organization likewise gives broadband administrations basically in the province of Gujarat and had built up a home go of around 1.05 million family units. As of January 31, 2017, the organization had 2,28,217 broadband supporters in light of the quantity of broadband endorsers of auxiliary GTPL Broadband Private Limited. The broadband business was exchanged to GTPL Broadband Private Limited with impact from April 1, 2016. The organization as of now offers different bundles to broadband administrations supporters that range from one month to a year and at rates extending from Rs 600 for 512 kbps to Rs15135 for 4 Mbps
The company’s essential wellspring of incomes for link administrations is membership salary got from supporters and situation/carriage wage got from carriage expenses payable by telecasters for conveying their stations and arrangement charges payable by supporters for setting their stations on a favored station number or position. As of January 31, 2017, it presented to 285 dish India standard definition stations, 158 provincially transmitted standard definition stations, 32 container India top quality stations and 39 territorially transmitted top notch stations on its advanced link stage.
It likewise possessed and worked 27 channels offering restricted substance created for the states in which it communicate, including a scope of religious and social substance, film, music and instructive channels. It additionally has the privilege to put the Gujarat News station on its system, which is delivered by assemble organization Gujarat Television Private Limited. It delivers its own substance and furthermore offers outsider substance on its neighborhood channels to guarantee that it has a reasonable blend of substance that interests to a scope of socio-economics.
The organization has finished take off of STBs in Phase I, Phase II and Phase III regions and is working towards finishing the take off of STBs in Phase IV regions. The advanced administrations’ stage is upheld by claimed intercity and intra-city optical fiber link organize, which, as of January 31, 2017, crossed roughly 5,406 kilometers (on a merged premise), and the fiber arrange rented to organization, which spread over around 3,615 kilometers (on an independent premise).
GTPL Hathway: IPO Highlights
Sector | Entertainment |
Fresh shares offer size (in Rs crore) | 240 |
Price Band (Rs) | 167-170 |
No. of fresh shares on offer at Rs 167 per share(crore) | 1.44 |
No. of fresh shares on offer at Rs 170 per share (crore) | 1.41 |
Offer for share sales (in crore) | 1.44 |
Offer for share sales size at Rs 167 per share (in Rs crore) | 240.48 |
Offer for share sales size at Rs 170 per share (in Rs crore) | 244.8 |
Total issue size (Rs crore) | 480-485 |
Post issue equity at Rs 167 per share(Rs crore) | 112.72 |
Post issue equity at Rs 170 per share(Rs crore) | 112.46 |
Post-issue promoter and promoter group stake at Rs 167 per share (%) | 73.56% |
Post-issue promoter and promoter group stake at Rs 170 per share (%) | 73.72% |
Issue open date | 21 June 2017 |
Issue close date | 23 June 2017 |
Listing | NSE & BSE |
Rating: | 35/100 |
GTPL Hathway: Consolidated Financials
Particulars | 1403(12) | 1503(12) | 1603(12) | 1612(09) |
Net Sales | 526.65 | 617.64 | 738.45 | 651.93 |
OPM (%) | 19.9 | 22.8 | 21.1 | 24.7 |
OP | 104.74 | 141.03 | 155.56 | 161.13 |
Other Income | 2.16 | 9.56 | 7.76 | 11.54 |
PBDIT | 106.91 | 150.59 | 163.32 | 172.66 |
Interest | 39.67 | 41.32 | 45.04 | 44.49 |
PBDT | 67.23 | 109.27 | 118.28 | 128.17 |
Depreciation and Amortization | 71.52 | 83.68 | 103.83 | 101.33 |
PBT before EO | -4.29 | 25.58 | 14.46 | 26.85 |
EO | 0.00 | 0.00 | 0.00 | 0.00 |
PBT after EO | -4.29 | 25.58 | 14.46 | 26.85 |
Tax | 4.21 | 10.11 | 10.21 | 9.17 |
PAT | -8.50 | 15.47 | 4.24 | 17.68 |
Share of associate and JV | 0.04 | 0.01 | 0.36 | -1.37 |
MI | -2.88 | 2.97 | -1.51 | -5.10 |
Net Profit | -5.58 | 12.51 | 6.10 | 21.40 |
EPS (Rs)* | # | 1.1 | 0.5 | 2.5 |
EPS (Rs)** | # | 1.1 | 0.5 | 2.5 |
* Annualised on post-issue Equity of Rs 112.72 crore; Face value Rs 10 (issue price Rs 167) ** Annualised on post-issue Equity of Rs 112.46 crore; Face value Rs 10 (issue price Rs 170) EPS excludes EO (extra ordinary items) and relevant tax Figures in crore Source-Capitaline corporate database |
GTPL Hathway: Breakup of revenue
Particulars | 1403(12) | 1503(12) | 1603(12) | 1612(09) |
Subscription Income | 234.78 | 299.91 | 336.00 | 324.45 |
ISP Access Revenue | 17.94 | 33.55 | 73.00 | 93.11 |
Placement / Carriage Income |
242.25 | 248.53 | 266.71 | 171.33 |
Activation Charges (STBs) |
19.49 | 26.02 | 44.16 | 50.51 |
Equipment lease & rent income |
3.54 | 1.67 | 4.19 | 1.46 |
Profit on sale of STBs | 0.65 | 0.01 | 3.27 | 1.53 |
Other operational income |
8.00 | 7.96 | 11.15 | 9.53 |
Net Sales | 526.64 | 617.64 | 738.48 | 651.93 |
Figures in crore Source-Capitaline corporate database |
KPIs for digital cable television services
KPI | FY14 | FY15 | FY16 | As of January 31, 2017 |
Towns serviced | 64 | 74 | 146 | 189 |
STBs seeded | 2.97 mn | 3.35 mn | 5.42 mn | 6.55 mn |
Active STBs | 2.67 mn | 2.84 mn | 4.68 mn | 5.69 mn |
Paying subscribers | 2.32 mn | 2.29 mn | 3.40 mn | 4.73 mn |
Primary subscribers | 0.12 mn | 0.12 mn | 0.15 mn | 0.15 mn |
Secondary subscribers | 2.55 mn | 2.72 mn | 4.53 mn | 5.54 mn |
Primary ARPU | Rs 200.32 | Rs 237.5 | Rs 241.67 | Rs 252.30 |
Secondary ARPU | Rs 70.89 | Rs 90.66 | Rs 76.58 | Rs 72.92 |
Primary Subscribers are active STBs with end customers/users that are billed directly by the Company Secondary Subscribers are active STBs with end subscribers that are billed through LCO Source-Capitaline corporate database |
KPIs for broadband service offering
KPI | FY14 | FY15 | FY16 | As of January 31, 2017 |
Total homes passed | 0.33 mn | 0.50 mn | 0.84 mn | 1.05 mn |
Average monthly data usage per user |
35000 MB | 38000 MB | 39000 MB | 34420 MB |
Subscribers | 0.05 mn | 0.09 mn | 0.17 mn | 0.23 mn |
ARPU | Rs 395.79 | Rs 422.58 | Rs 454.83 | Rs 472.17 |