Q4FY21 Company Update - GTPL Hathway - ICICI Direct

GTPL Hathway (GTPL) reported a robust operating performance in Q4FY21. Revenues at Rs. 748.7 crore were down 14.2% YoY. However, ex-EPC, revenues were at Rs. 560.1 crore, up 18.2% YoY, led by growth broadband and placement income. Subscription and broadband revenues were at Rs. 266.5 crore and Rs. 81.7 crore, respectively. Reported EBITDA increased 2.4% YoY to Rs. 116.4 crore. EBITDA margins at 15.5% were down 180 bps YoY post increase in operating expenses. Core EBITDA was up 1.5% YoY to Rs. 102.5 crore with margins at 18.3%, down 300 bps YoY. Subsequently, PAT was at Rs. 56.9 crore against net loss of Rs. 13.6 crore in Q4FY20.

Valuation & Outlook

GTPL's strong operating performance has been a result of remarkable growth in the broadband segment. We remain constructive on the company given the superior financial metrics with leadership in its key markets. The company has achieved net debt free status in FY21 and has declared dividend of Rs. 4/share in FY21. We revise our estimates slightly downwards post reduced activation income and management commentary on margins. We believe a strengthened balance sheet warrants higher valuations and raise our target multiple. We maintain BUY rating with a revised target price of Rs. 165/share (previous TP: Rs. 175) at 10x FY23E EPS.

Shares of GTPL Hathway Ltd was last trading in BSE at Rs.132.05 as compared to the previous close of Rs. 137. The total number of shares traded during the day was 35995 in over 1208 trades.

The stock hit an intraday high of Rs. 141.65 and intraday low of 128. The net turnover during the day was Rs. 4901018.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_GTPLHathway_CoUpdate_Apr21.pdf

Source : Equity Bulls

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