Mumbai: GTPL Hathway saw 12 per cent growth in revenues at Rs 24,154 million and four per cent increase in EBITDA (earnings before interest, tax, depreciation and amortisation) to Rs 5,677 million year-on-year in FY22. The company expects to maintain this growth rate for the current financial year i.e., FY23.
“The guidance is just that we are going to maintain our compound annual growth rate (CAGR), 100 basis points here and there but we are going to maintain our CAGR in both revenue and EBITDA that’s the way as we look forward to our aggressive growth in both the businesses in this financial year,” said GTPL Hathway Ltd business head – CATV and chief strategy officer Piyush Pankaj during an investor call held recently.
GTPL Hathway closed the year 2021 becoming the largest multi-system operator in the country with its cable TV (CATV) subscriber base growing to 8.40 million as per Telecom Regulatory Authority of India’s (Trai) performance indicator report. “Our CATV subscriber base has grown sharply by 2.3 times in the last six years and for FY2022 it has grown by five per cent,” observed Pankaj.
The company lost 7.5 lakh commercial customers when Covid-19 pandemic started and has seen the return of four lakh customers since then. The rate of returning customers has slowed down from 20-25 lakh in the last quarter to 20K average during the fourth quarter FY22.
The majority of the company’s cable TV subscriptions come from the Gujarat market which has 95 per cent share with the remaining five per cent spread across markets such as Pune, Nagpur, Hyderabad, Jaipur, Patna and Varanasi.
“Our CATV business expansion will gain momentum with organic and inorganic growth in the coming quarters,” said Pankaj. “After the new tariff order (NTO) , we said that growth will come from inorganic and organic. The first year of NTO has gone into stabilising the industry. Just as we were getting ready for acquisitions and going organic, Covid hit us in March 2020 and we were not able to do any inorganic growth. So, from this quarter onwards we have started both inorganic and organic growth.”
The company’s capex for FY22 was Rs 363 crore which includes Rs 180 crore of CATV capex and Rs 183 crore of broadband capex. “Next year we are keeping the target of Rs 450 crore for the capex on which around Rs 180 crore is going to be cable capex and rest is going to be the broadband capex,” said Pankaj.