GTPL Hathway - Company Update - ICICI Securities

GTPL Hathway (GTPL) reported a strong Q2FY21 operating performance. Ex-EPC revenues were at Rs. 497.3 crore, up 10.4% YoY. Revenues at Rs. 575.6 crore, were down 7.1% YoY as EPC revenues for Q2FY21 were lower at Rs. 78.3 crore due to disruptions. Subscription and broadband revenues were at Rs. 267.7 crore and Rs. 67 crore, respectively. Reported EBITDA increased 8.7% YoY to Rs. 129.9 crore. EBITDA margins at 22.6%, were up 328 bps YoY as Q2FY20 had higher proportion of EPC revenue. Core EBITDA was up 15% YoY to Rs. 124.3 crore with margins at 25%, up 100 bps YoY. PAT at Rs. 45.1 crore, was up 56.3% YoY.

Valuation & Outlook

GTPL's operating performance continues to remain strong, especially in broadband segment, which reported solid traction. We remain constructive on the company given the superior financial metric vis-à-vis peer amid leadership in key markets. The company had indicated to be a net debt free company by end of FY21E and expansion in newer markets with stronghold in Gujarat provides growth opportunities. We maintain our BUY rating and value it at Rs. 150/share, implying target multiple of 9x FY22E core earnings.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_GTPLHathway_CoUpdate_Oct20.pdf

Shares of GTPL Hathway Ltd was last trading in BSE at Rs.127.1 as compared to the previous close of Rs. 126.2. The total number of shares traded during the day was 80819 in over 1876 trades.

The stock hit an intraday high of Rs. 130.1 and intraday low of 120. The net turnover during the day was Rs. 10048841.

Source : Equity Bulls

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