GTPL Hathway Limited — Q2 FY26

GTPL Hathway Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=2UxCCayOkVA Published: 7 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to GTPLways Q2 and H1 FY26 earning call conference call hosted by 0:10 10 seconds MK Global Financial Service Limited. As a reminder, all participant line will be in the listenon mode and there will be an opportunity for you to ask questions 0:19 19 seconds after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on 0:27 27 seconds your touchstone phone. I now hand the conference over to Mr. Prano Chhatria MK Global's Financial Service Limited. Thank you and over to you Mr. Shatria. 0:39 39 seconds Uh thank you so much. Uh good afternoon and everyone. I would like to welcome the management and thank them for this opportunity. We have with us today Mr. 0:48 48 seconds Aneruda Singh Jadea promoter and managing director. Mr. Pankage, business head and chief strategy officer and Mr. 0:56 56 seconds Soros banji chief financial officer. I shall now hand over the call to Mr. Anil Jeda for his opening remarks. Thank you 1:03 1 minute, 3 seconds and over to you sir GTLway to discuss the financial and 1:14 1 minute, 14 seconds operational performance of quarter 2 FI26. 1:18 1 minute, 18 seconds This quarter was marked by sustained our operational performance and reaffirmation of our leadership position in both digital cable TV and broadband 1:27 1 minute, 27 seconds services. As India's largest MSO, our focus continue to be on expanding our footprint, enhancing customer experience 1:36 1 minute, 36 seconds and delivering value through innovation and service excellence. In the digital cable TV segment, we mention our market 1:44 1 minute, 44 seconds share while continuing to upgrade infrastructure to support higher quality content delivery. On the broadband 1:51 1 minute, 51 seconds front, we continue to make progress in growing our subscriber base and deepening our presence in key market by 1:59 1 minute, 59 seconds offering high speeded affordable internet solution. 2:03 2 minutes, 3 seconds I now hand over to the Mr. Pangage to walk to the KPI for our Kbal TV and broadband segment and share insight of our achievement in the second quarter. 2:15 2 minutes, 15 seconds Thanks Mr. Jadea. Good evening everyone. 2:19 2 minutes, 19 seconds Let me start off by mentioning KPIs for both our business segments. First cable 2:26 2 minutes, 26 seconds TV segment. Our digital cable TV subscriber base as on 30th September 2025 2:34 2 minutes, 34 seconds stood at 9.50 million. Among the total subscriber base, paying subscribers 2:41 2 minutes, 41 seconds stood at 8.80 million. The total business partners count 2:47 2 minutes, 47 seconds stands at more than 48,000 plus and they remain key enablers of our quest on expanding our Pan India presence. 2:58 2 minutes, 58 seconds In the broadband business, the active subscriber base at the end of quarter stood at 1.05 million, adding 10,000 new 3:09 3 minutes, 9 seconds subscribers, which is an increase of approximately 1% on a YI basis. Home 3:16 3 minutes, 16 seconds park stood at 5.95 million as of 30th September 2025. 3:21 3 minutes, 21 seconds of all available home parks 75% are available for FTX 3:27 3 minutes, 27 seconds the broadband ARU for quarter 2 FY26 stood at INR 465 3:34 3 minutes, 34 seconds increased by INR5 as compared to last year quarter 2 average data consumption per month is 3:43 3 minutes, 43 seconds stood at 410 GB a 17% increase YI as part of our strategic road map. We 3:52 3 minutes, 52 seconds remain focused on both organic and inorganic opportunities to drive sustainable growth across our core 3:59 3 minutes, 59 seconds business segments. On the HT distribution update, we are gearing up to operate the platform in the third 4:06 4 minutes, 6 seconds quarter. This will further enhance our distribution capabilities and reach. We will share more details and commercial 4:14 4 minutes, 14 seconds rollout plans once the platform goes live. 4:19 4 minutes, 19 seconds Bundling cable broadband and OT offerings, expansion into new geographies and consolidating our presence in existing geographies 4:28 4 minutes, 28 seconds continues as planned with a clear objective of increasing our total addressable market and deepening our customer reach across India. 4:38 4 minutes, 38 seconds I will now hand over the call to Mr. 4:40 4 minutes, 40 seconds Sophani who will take you through the financial performance of the company. 4:45 4 minutes, 45 seconds Thank you Mr. P. Good evening to all the participants. For the quarter on a consolidated level, our total revenue 4:54 4 minutes, 54 seconds grew by 12% Y and 6% Q 5:00 5 minutes basis to INR 9649 million. Subscription revenue for Q2 FY26 is at INR 3024 5:10 5 minutes, 10 seconds million. The broadband revenue stood at INR1393 million and registered a growth of 2% on a yearly and sequential basis. 5:21 5 minutes, 21 seconds Consolidated AITA stood at INR 1101 million with an AITA margin of 11.4%. 5:29 5 minutes, 29 seconds Net profit for Q2 FY26 stood at INR 93 million. Our consolidated operating AITA 5:37 5 minutes, 37 seconds stood at INR 1016 million. in Q2 FY26 registering an operating margin of 22%. 5:46 5 minutes, 46 seconds On the standalone performance front, uh total revenue grew by a healthy 17% YI and 7% sequentially to INR 6402 million. 5:59 5 minutes, 59 seconds Subscription revenue saw a decrease of 3% QOQ and decreased marginally by 1% YI to INR 6:09 6 minutes, 9 seconds 2191 million. Standalone AITA stood at INR 593 million with an AITA margin of 9.3%. 6:18 6 minutes, 18 seconds The standalone net profit for Q2 FI26 stood at INR 54 million. Balance sheet 6:25 6 minutes, 25 seconds of the company remains healthy with the net debt to equity of 0.2 times as on 6:32 6 minutes, 32 seconds 30th September. Net cash flow from operations for half stood at a rubber and 129 1291 million. 6:42 6 minutes, 42 seconds I would now request the moderator to open the floor for the Q&A session. 7:11 7 minutes, 11 seconds Shall we begin with question and answer session? Yeah, please go ahead. 7:18 7 minutes, 18 seconds Thank you very much. We'll now begin with a question and answer session. 7:21 7 minutes, 21 seconds Anyone who wishes to ask a question may press star N1 on their touchstone telephone. If you wish to remove yourself from the question Q, you may 7:28 7 minutes, 28 seconds press star N2. Participants are requested to use headset while asking a question. 7:34 7 minutes, 34 seconds Ladies and gentlemen, we'll wait for a moment while the question Q assembles. 7:55 7 minutes, 55 seconds The first question is from the line of Mr. Rahan say from the asset manager. Please proceed. 8:15 8 minutes, 15 seconds Hello. 8:16 8 minutes, 16 seconds Yeah, you have your mouth is very very faint. Am I audible now? Yeah, go ahead. 8:24 8 minutes, 24 seconds Uh sir, I have two questions. First on the rec. So you have noticed a significant increase in recovery in pay this quarter. Will this be broadcast? So 8:33 8 minutes, 33 seconds we use this as one time working capital movement or something. What would be what would it going forward to help us see more? 8:42 8 minutes, 42 seconds Yeah. So see uh if you see the trend from last uh four to five years uh the 8:49 8 minutes, 49 seconds tread receivables and trade ribles both goes up in the middle of the year and again taper down at the end of the year. 8:57 8 minutes, 57 seconds So it's like a balloon which has been created or you can say X curve which has been created. It goes up will curve and 9:05 9 minutes, 5 seconds then go down again in the September in the March one. And this is because of the broadcasters because as you do the 9:13 9 minutes, 13 seconds deal with the broadcasters and uh you start uh paying the broadcaster broadcast channel cost and broadcasters 9:21 9 minutes, 21 seconds start paying you your marketing and incentive incomes. So both goes on pack. 9:28 9 minutes, 28 seconds So if whichever cost has increased your marketing and uh uh incentive receivables have increased also. So 9:37 9 minutes, 37 seconds these if you see there is a increase of around 400 cr both sides 46 and 434 cr one side and both are mainly 9:46 9 minutes, 46 seconds because of the broadcasters which you will find that it's better down in the map. You can see the trend from last five years. We will see the same trend. 9:56 9 minutes, 56 seconds Okay. Okay sir. Uh so just my second question is around the capacity addition. So like so broadband 10:05 10 minutes, 5 seconds subscriber addition have remained flat despite rising data consumption and average revenue per user. So what specific measures are you taking to 10:12 10 minutes, 12 seconds accelerate additions especially in like producing this side? 10:22 10 minutes, 22 seconds Yeah, broadband side if you say yes uh uh we we are in the B2C segment we are 10:30 10 minutes, 30 seconds in the Gujarat market and the market is still there are a lot of potential as we have the extraction rate of 17% right 10:38 10 minutes, 38 seconds now which has to go up with the time but yes you're right that uh last uh two 10:45 10 minutes, 45 seconds years is a bit limited for us because uh um because of intry of the big players 10:51 10 minutes, 51 seconds mainly the do and uh uh and then the air fiber technology which has come into the 10:59 10 minutes, 59 seconds play and has uh put our uh growth rate a bit slower on that but yes uh uh seeing 11:09 11 minutes, 9 seconds the synergy of wireless and wild as the wireless cost is increasing we are hopeful that the wide will not become as 11:17 11 minutes, 17 seconds you'll see that out of 350 million households only 44 million households in the wide right now. It has to go up to around 100 11:25 11 minutes, 25 seconds million in the next five years. So there is a lot of potential in the right but this is the temporary setback you can 11:34 11 minutes, 34 seconds see because uh everyone is uh new players are coming into the market and it goes a deep and 11:43 11 minutes, 43 seconds but still we are maintaining our subscriber base. We are not losing anything. uh that is the main thing at at this point of time because of the 11:51 11 minutes, 51 seconds competition and we are looking forward for expanding through our B2B model also and model also. So hopefully uh the will 12:00 12 minutes start seeing again we are uh back on the growth stage uh which was earlier 12:06 12 minutes, 6 seconds 2013 2024 uh 2023 2024. 12:12 12 minutes, 12 seconds So that's that's uh uh hope we can uh we are keeping it up and we are investing into the business and uh uh the potential is uh very good. 12:25 12 minutes, 25 seconds Okay. Thank you for clarification also and I'll jump in. 12:34 12 minutes, 34 seconds Thank you sir. Next question is from Adita Raal from Essential Research. 12:39 12 minutes, 39 seconds Please proceed with Yes. Am I a horrible? Yeah. Hello. 12:45 12 minutes, 45 seconds Uh my question is regarding your company's growth like given the continuous decline in paid postcoid uh 12:52 12 minutes, 52 seconds despite healthy revenue and subscriber growth, what concrete step is GTLH planning over the next 3 to 5 years to 13:00 13 minutes rebound profitability? Also can management fair specific financial and operational milestones including expected improvement in paid margins and 13:09 13 minutes, 9 seconds roe in light of rising cost and competitive pressures. 13:14 13 minutes, 14 seconds Um yeah rich there one thing I want to mention that uh the company is maintaining its margin operating margin 13:22 13 minutes, 22 seconds I'm talking about which is uh you can see in the uh in the slide operational performance 13:30 13 minutes, 30 seconds slide which is after the previous slide opt uh so there it is 22% margin which we are maintaining and the healthy 13:37 13 minutes, 37 seconds margin which we are maintaining so long uh yes you're right that uh This year also I'll see that here in the quarter 13:45 13 minutes, 45 seconds to quarter year to year we are down by 3 cr in our from 110 cr to 110 cr and this decline 13:53 13 minutes, 53 seconds is there from last four five quarters you can say in some quarter we have gone up some quarter we have gone down but we 14:00 14 minutes are remain at this uh this uh range only and the growth is not there in the 14:07 14 minutes, 7 seconds elevator side and all which we have seen but yes numbers are growing everything is growing So somewhere we have to work on two 14:15 14 minutes, 15 seconds things that how we can expand our reach and our uh uh footprint so that we can get more 14:24 14 minutes, 24 seconds numbers and second how can we uh conserve our cost and if you see that uh we have mentioned that we are launching 14:32 14 minutes, 32 seconds hidden in the sky uh technology uh platform and it is going to give us both 14:40 14 minutes, 40 seconds this uh uh benefit benefits that because uh we are going to have a all India footprint and uh uh we can start the 14:48 14 minutes, 48 seconds business very fast in any phase and uh so it's uh like reaches like 100% India which was not there right now and the 14:56 14 minutes, 56 seconds second is on the cost side yeah it is going to be the uh the delivery cost we are going to save in delivery cost so 15:04 15 minutes, 4 seconds already we have started taking the steps towards that where we can improve our margins and our uh tax uh uh as you know 15:14 15 minutes, 14 seconds that uh we have we have launching the we doing the layering of the services like uh we have launch the 15:23 15 minutes, 23 seconds cable entertainment the broadband uh that's TV everywhere that's OT that's gaming 15:31 15 minutes, 31 seconds uh all those things we are launching and doing the layering of the services of the customer and doing the combination of the services to the customer so all 15:38 15 minutes, 38 seconds the things will improve our retention and health uh in the market. If it's 15:45 15 minutes, 45 seconds talked about in MS society, we are the only one who is doing taking this type 15:50 15 minutes, 50 seconds of steps uh uh market and uh uh taking 15:56 15 minutes, 56 seconds this bold steps to uh uh that's that's the case. 16:06 16 minutes, 6 seconds Got it. Okay. Thank you. I got my answer. 16:14 16 minutes, 14 seconds Thank you sir. Next question is from the line of sidi from VR care advisor. Please proceed. 16:23 16 minutes, 23 seconds Hello sir. Am I audible? Yes. Yes. Yes. Uh thank you for the opportunity. 16:31 16 minutes, 31 seconds Uh so I actually wanted a fair bit of understanding on RPU. Are there any uh like differences in RPO between tier 16:38 16 minutes, 38 seconds one, tier 2 and tier three markets and how is the company approaching these variations? 16:46 16 minutes, 46 seconds Um see u what GCPL do that uh we provide 16:53 16 minutes, 53 seconds the uh packages. The packages are ranging from if they talk about from uh 17:02 17 minutes, 2 seconds for from 400 200 rupees to 400 rupees for the customer 450 rupees for the customer and it depends that uh 17:11 17 minutes, 11 seconds which customer is taking what it might be possible that a rud customer is also taking the package which is costing 250 17:18 17 minutes, 18 seconds or 500 or in urban also there are the where they can take 200 250 rupees 17:26 17 minutes, 26 seconds package but yes you are right generally what we are seeing that in parallel cities if we go for more higher packages 17:33 17 minutes, 33 seconds in average dietricities and dieticities that's the way it is so you will find that uh there are uh different and 17:41 17 minutes, 41 seconds you're right that one R2s are higher tire two moderate and three mainly in 17:47 17 minutes, 47 seconds the you will find that the Res are lower because they are often put back 17:54 17 minutes, 54 seconds got Awesome. Uh adding to that uh like how does ARU differ between new subscribers versus long-term subscribers? Are there any strategies to 18:04 18 minutes, 4 seconds increase ARU for the long-term subscribers? 18:07 18 minutes, 7 seconds No, it depends on the which market you are entering for the new customer. If I am the customer for Mumbai uh they are opting for higher packages. 18:17 18 minutes, 17 seconds If I'm going for the tactic there or I'm going for the glass score I will say then there you will find that they are 18:24 18 minutes, 24 seconds going for the moderate packages middle packages rather than the highest packages. So it's all different because uh uh I would say that like if you talk 18:33 18 minutes, 33 seconds about packages packaging if you go I'm going to the metro I'm seeing that take up is as as good as 30% very but if I'm 18:42 18 minutes, 42 seconds going into any towns there it is around 10% of the world so that's that's the way it is happening so we have to see 18:51 18 minutes, 51 seconds according to the market and accordingly we have to pick that uh one product we have to uh push 18:58 18 minutes, 58 seconds those market if a higher paying market then we have to push for uh bigger packages. If it's a middle uh town then we have to push for uh middle packages. 19:11 19 minutes, 11 seconds So that's that's the strategy on which we go that we have to see but yeah we give the promotions and all to the customers so that they can go from uh 19:20 19 minutes, 20 seconds lower packages to higher packages that those promotions we do uh we give them the eyeballs of different channels that 19:27 19 minutes, 27 seconds they can move to those higher packages channels and off all those efforts the crosselling and all upselling is 19:35 19 minutes, 35 seconds happening in the market acting in the Got it. 19:40 19 minutes, 40 seconds I have one more question. I actually wanted an update on Bharat Net project uh in terms of uh the law last call. You 19:48 19 minutes, 48 seconds had highlighted that some litigation issues are there. So any resolution on the same and any 19:56 19 minutes, 56 seconds already been uh uh again uh the hotel start 20:04 20 minutes, 4 seconds and uh uh we have to see India. So can't comment right now on those. So again that will happen. 20:18 20 minutes, 18 seconds Okay sir. Uh also uh any new tenders floated by the government like our bids uh since some listed companies do keep 20:25 20 minutes, 25 seconds announcing order. So yeah see we can't uh disclose that where we 20:34 20 minutes, 34 seconds are but yes once we get the successful bid we have to announce it in the in the 20:41 20 minutes, 41 seconds market. So we will do that. But yes uh we just assure you that yeah we are bidding uh wherever the tenders are 20:49 20 minutes, 49 seconds coming uh big tenders mortgages we are bidding for those and uh whatever we are winning we are announcing it in the market. 20:59 20 minutes, 59 seconds Okay sir got it. Thank you so much. I'm on the 21:07 21 minutes, 7 seconds Thank you. Ladies and gentlemen, to ask a question, please press star N1 on your phone. 21:20 21 minutes, 20 seconds The next question is from the line of Ritivora from SAS Capital. Please proceed ahead. 21:27 21 minutes, 27 seconds Hello, thank you for the opportunity. So I have a question that the subscription revenue has been seeing a marginal 21:35 21 minutes, 35 seconds decline on both a standalone and consolidated basis. So could you share your perspective on what led to this 21:42 21 minutes, 42 seconds decline and additionally are you expecting what are your expectations for subscription revenue over the next couple of quarters? 21:54 21 minutes, 54 seconds U see this quarter is uh I would say that if you see that uh we have 22:02 22 minutes, 2 seconds witnessed a higher churn the whole industry has witnessed a higher ching 25 uh mainly this quarter quarter two FM26 22:11 22 minutes, 11 seconds uh two things are there that uh one the quarter two is always uh not good for 22:18 22 minutes, 18 seconds the industry because of the rain and this time it was excessive rain all our country and uh because of that uh uh the 22:28 22 minutes, 28 seconds effort for uh new sales and retention hampled been hampered on that way. Uh the second thing is that uh quarter two 22:36 22 minutes, 36 seconds always uh uh big events like cricket or big sporting events is not happening in the quarter 22:44 22 minutes, 44 seconds two. So after IPL there was no big event and the big event it started as the TC 22:51 22 minutes, 51 seconds of September that took September and uh uh so the pain on both sides big event 22:58 22 minutes, 58 seconds and all was not there plus the whole uh rain and uh excessive rains and all that hampered our uh subscriber 23:07 23 minutes, 7 seconds uh base and if you see we have down by 100k this quarter from 9.6 6 million we 23:14 23 minutes, 14 seconds are at 9.5 million on our uh cable base and that has hampered us in the revenue 23:22 23 minutes, 22 seconds side also in the next 3 months and we are down by around uh uh 10 crores if you see from year to year is from 312 23:31 23 minutes, 31 seconds crores we are 302 crores and that is uh what is impacted them but yes uh this quarter has started very good as we know 23:39 23 minutes, 39 seconds that the uh lot of uh events are happening I think it India plus West India after the shut 23:48 23 minutes, 48 seconds up has happened and then Australia tour is there and uh uh the range effect has already has been gone and generally 23:56 23 minutes, 56 seconds quarter three and quarter four uh give us a boost and we take the number back. 24:02 24 minutes, 2 seconds So quarter two is uh always back from the uh from this basis and that's that's what happened in this quarter. That's 24:10 24 minutes, 10 seconds why we are down by around tangaroos in my which we are hopeful that we recovered in port. 24:20 24 minutes, 20 seconds Okay. And I have a further question that uh what are the sort of the early feedback and trends you are seeing in 24:28 24 minutes, 28 seconds the market from competitive broadband distribution methods in terms of air fiber and very recently satellite broadband. 24:38 24 minutes, 38 seconds Uh see air fiber is yes it is impacting because uh the share of net addiction 24:47 24 minutes, 47 seconds has gone down for every decision 24:56 24 minutes, 56 seconds but now it is dipping down the whole is dipping down now uh and again our medication is increasing 25:05 25 minutes, 5 seconds again coming back to We were almost to the satellite uh is still to be launched 25:14 25 minutes, 14 seconds and uh being that uh it is still not tested in the Indian market and uh the 25:21 25 minutes, 21 seconds equipment costs are high. uh so we have to see that how they they are going to give it to the customers whether it is 25:28 25 minutes, 28 seconds going to be the discount what is going to be their strategies of that because otherwise the cost of treatments are 25:36 25 minutes, 36 seconds very high in the satellite side right now so we have to wait for what impact satellite will give or whether it will give or not we are hopeful that 25:44 25 minutes, 44 seconds satellite will not hamper any growth from us here fiber already it's down so we are uh again comes back to the system. 25:56 25 minutes, 56 seconds Okay. Okay. And I have a last one more question that wise cable and air would 26:02 26 minutes, 2 seconds be superior to satellite but it one it's one to differentiate between the two that is the cable and the cable 26:10 26 minutes, 10 seconds broadband and the air fiber on metrics of speed convenience to setup and cost. So how would you describe the competitiveness there? 26:22 26 minutes, 22 seconds See competitiveness always uh cable is much bigger technology being on the if 26:29 26 minutes, 29 seconds you say if it is from the web or anything if you're streaming cable is a bigger technology on that it's the base 26:38 26 minutes, 38 seconds technology that we talking 26:54 26 minutes, 54 seconds I don't know what is happening everyone just become silent. 27:07 27 minutes, 7 seconds Uh can we move forward? 27:10 27 minutes, 10 seconds Yeah. I didn't you were not audible. Can you uh for the question? I I didn't get the answer. 27:18 27 minutes, 18 seconds No. Okay. 27:21 27 minutes, 21 seconds Can we talk uh later on this this question? Yeah. Yeah. Sure. Thank you. Yeah. 27:31 27 minutes, 31 seconds Thank you. Our next question is from the line of Wun Mishra from Vishwas PMS. Please proceeded. 27:38 27 minutes, 38 seconds Yeah. Hi sir. Thank you. Uh so I had a couple of questions. Uh so could you please shed management targeted a benchmark on the arpoo's like growth 27:46 27 minutes, 46 seconds over the next two to three years especially what level of improvement are we anticipating from the pricing strategy and how does this fit the 27:53 27 minutes, 53 seconds overall revenue growth through like uh bundling with OD segments 27:59 27 minutes, 59 seconds see um our u see the main focus is the subscriber based growth as I say that uh 28:07 28 minutes, 7 seconds we are coming up with the new technology and new delivery platforms and And there we are going to be very aggressive on the subscriber right arrow as you say 28:16 28 minutes, 16 seconds India is a sensitive market. So we have to go increase the ARO basis that we can increase you can see our trend also we 28:25 28 minutes, 25 seconds are doing it in that way that uh in last five years we have increased around three times three to four times. So that's that's the way it is going to be. 28:33 28 minutes, 33 seconds But yeah, subscriber base we are going to be addressing. 28:39 28 minutes, 39 seconds All right. And like has been a couple of good quarters since the company decided to explore the B2B model for broadband 28:46 28 minutes, 46 seconds growth. So while expectations were like faster subscriber additions in pace like it has slowed down. So like are there 28:53 28 minutes, 53 seconds any headwinds which we are seeing or anything like you would want to add in? 28:58 28 minutes, 58 seconds uh you know B2B is still the focus is there as you know that uh uh this uh four to 29:05 29 minutes, 5 seconds five months we are more concentrated towards how the new technology and all but yes B2B is the focus area we will do 29:12 29 minutes, 12 seconds that and uh again you'll see the growth in that already 100 plus subscriber base are there in the B2B which we are 29:20 29 minutes, 20 seconds expecting that it will grow at the good pace like anything like we taking any measures or anything like because like 29:28 29 minutes, 28 seconds our active subscribers has also been in the same ballpark as we seen for like last couple of quarters. 29:35 29 minutes, 35 seconds Yeah, I already said that because of the competition and uh we are maintaining our subscriber base uh on that basis and 29:44 29 minutes, 44 seconds we are hopeful that we'll start reaching the globe as the potentials are very high and we are working towards that we 29:51 29 minutes, 51 seconds will start seeing the growth in both B2C segment and B2B we are taking those steps towards that 29:59 29 minutes, 59 seconds all right sir I'm hoping for a good quarter next like in the coming few sessions thank you so much and happy Diwali sir Yes, same to you. 30:09 30 minutes, 9 seconds Thank you. Ladies and gentlemen, to ask a question, please press star and one on your phone. 30:16 30 minutes, 16 seconds The next question is from the line of Vive Gupta from Star Investment. Please proceed ahead. 30:23 30 minutes, 23 seconds Hello. Yeah. Hi. Am I able? Yeah. Please go ahead. 30:27 30 minutes, 27 seconds Yeah. Uh hello sir. uh so you had earlier guided uh for a capex of uh 350 to 400 KES for FY26 uh with about uh 30:35 30 minutes, 35 seconds around 80 crores incurred in Q1. So uh could you uh update us on the capex spend during this quarter uh and 30:43 30 minutes, 43 seconds elaborate on what is like this spending primarily pertains to like whether it's for uh sector works or cable network 30:51 30 minutes, 51 seconds expansion or modernization or other strategic initiatives. 30:56 30 minutes, 56 seconds Yeah. So uh uh the total capex uh for uh A1 is 153 K 31:06 31 minutes, 6 seconds uh right now uh where we have spent around 90 K in CATV and rest is in the 31:13 31 minutes, 13 seconds broadband which is around 63 K. uh on 90 cr I would say that around uh uh 20 cr 31:21 31 minutes, 21 seconds has gone into the hips project side and 50 cr is in the mainly into the uh dead 31:28 31 minutes, 28 seconds pockets are very low but mainly into the st 95 to 97 but that is the boxes and the broadband capex that is the uh 31:37 31 minutes, 37 seconds mainly on the uh feb and customeration cost which is around 63 which is gone so 31:45 31 minutes, 45 seconds still we are maintaining that uh the total capex will be somewhere in the range of 350 K uh including both the business sector. 31:58 31 minutes, 58 seconds Okay. Uh so the hits uh platform roll out will be a significant strategic initiative for uh the company. So uh 32:05 32 minutes, 5 seconds could you uh share the details on the capex allocated towards uh this launch and the key areas where this uh 32:12 32 minutes, 12 seconds investment is being directed to? Yeah, in my initial opening remarks I've said that we are launching it in the quarter 32:20 32 minutes, 20 seconds three. Very soon we are launching it and uh as we launch uh we will give you all the details that uh is the capex and uh 32:29 32 minutes, 29 seconds what are the expectations out of uh this uh we are just giving some bigger expectations right now uh and bigger 32:38 32 minutes, 38 seconds strategy but yeah once once it will be launched uh officially then uh we will share all the information. 32:48 32 minutes, 48 seconds Uh okay cool. Uh thank you. Thank you sir. Thanks. 32:55 32 minutes, 55 seconds Thank you. Our next question is from the line of Priya Agarwal from SK Associates. Please proceed. 33:02 33 minutes, 2 seconds Yeah. Thank you so much for the opportunity. So I would like to know that the stock revenue has been seeing a marginal decline on both uh standalone 33:12 33 minutes, 12 seconds and consolidated basis. So could you share your perspective on what led to this decline? 33:18 33 minutes, 18 seconds subscription revenue. I have already said that this quarter because of excessive rate and all the number of uh 33:26 33 minutes, 26 seconds subs has gone down which we are going to recover in quarter three and quarter four. Quarter two is always bad. uh if 33:33 33 minutes, 33 seconds you see the trend from the last say five years that because of the attractive rains and no big events happen because 33:39 33 minutes, 39 seconds of the rains and all uh always we find it difficult for the sales and retention and because of that uh there is a margin 33:49 33 minutes, 49 seconds marginal lower in the revenue side if you see in the quarter to quarter in the standalone we are at the same level. 33:56 33 minutes, 56 seconds Yeah, at the consolidated level we are down. Uh but we are hopeful that uh quarter three and quarter four we will start getting the revenues. 34:08 34 minutes, 8 seconds And this unders sir and um what are your expectations for subscription revenue over the next couple of quarters like do 34:16 34 minutes, 16 seconds you anticipate a stabilization or a recovery trend uh and uh what initiatives are being undertaken to support that improvement. 34:27 34 minutes, 27 seconds See um if you see we have the CGI somewhere around between uh 8 to 11% 34:34 34 minutes, 34 seconds which is going on that's what we are expecting. Yeah has come down from earlier time but still it is at 8 to 11% 34:42 34 minutes, 42 seconds between 8 to 11%. That's what we are hoping that we are going to maintain that creat this uh quarter is 34:49 34 minutes, 49 seconds exceptional as we have uh done but uh we will again go back to that ci level and 34:57 34 minutes, 57 seconds uh we maintain that s um and uh also I wanted to know what 35:04 35 minutes, 4 seconds uh sort of the early feedback and trend you are seeing in the market from competition from competitive broadband distribution. 35:14 35 minutes, 14 seconds methods in term of air fiber and very recently satellite broadband. 35:20 35 minutes, 20 seconds See I have given this answer broadband. Yes. 35:25 35 minutes, 25 seconds Uh uh it has a euphoria which happened from uh last 6 to 8 months. Now it is 35:32 35 minutes, 32 seconds ticking down and satellite are uh still to get launched and uh we have to see that uh how it is going to affect us but 35:40 35 minutes, 40 seconds we are hopeful that the equipment costs are very high so it might not uh affect us but we have to see that how how the 35:49 35 minutes, 49 seconds go to market happens for the satellite technology. 35:53 35 minutes, 53 seconds Okay. And uh cost is scalable and it would be superior to satellite. But if one had to differentiate between the two 36:02 36 minutes, 2 seconds cable uh broadband and air fibers on matrix of speed uh convenience to set up 36:09 36 minutes, 9 seconds cost uh how would you describe competitiveness there? 36:15 36 minutes, 15 seconds It is very difficult to differentiate all those things but yet just one statement that FTPX is a proven 36:24 36 minutes, 24 seconds technology worldwide it's a proven technology from 2015 onwards 2014 2015 36:30 36 minutes, 30 seconds onwards and it has proven years uh air to fiber if you see the US market count on it have come from last three to four 36:38 36 minutes, 38 seconds years in India it has come now so still they had to prove that level of consistency which capacity at the 36:46 36 minutes, 46 seconds beginning but it's very hard to say that this speed is higher that speed is higher it is very hard to differentiate 36:53 36 minutes, 53 seconds between okay understood thank you so much sir 37:04 37 minutes, 4 seconds thank you the next question is from the line of Nakul doshi please proceed ahead 37:11 37 minutes, 11 seconds thank you for the opportunity. Uh just wanted to know if you could share the company's approach to subscription pricing for the OTD platform and uh are 37:19 37 minutes, 19 seconds the plans to revise the pricing or introduce tier plans for different audience segments and how might this uh 37:26 37 minutes, 26 seconds impact uh our subscriber growth. Uh just one line statement n that uh we want to 37:33 37 minutes, 33 seconds be really competitive on our OTT pricing and that's what we are providing in the market right now. 37:39 37 minutes, 39 seconds uh uh you know that OT is provided by competition also and all. So we want to be very competitive and this whole 37:46 37 minutes, 46 seconds strategy comes from the uh market situation that what is happening how we are providing it as a single one with 37:54 37 minutes, 54 seconds combo with other products and all. So all those strategy comes into play but yeah we are we are going to be very very competitive in the market that is for 38:03 38 minutes, 3 seconds sure. So I understand that uh your strategy would be towards more of attracting 38:11 38 minutes, 11 seconds uh subscribers as compared to driving higher uh RPU. 38:16 38 minutes, 16 seconds You're right. You're right on that that internal purpose would be more of customer acquisition and retention that's what we are focusing on 38:26 38 minutes, 26 seconds and whether we would be having any specific tier plants or premium offerings. 38:31 38 minutes, 31 seconds It's it's already there if you see our uh it's already there. The tier one is already there that where you can uh do the crosselling upselling everything. 38:42 38 minutes, 42 seconds It's already there. Uh understood. Just one last question. Uh like generally our marketing incentive 38:50 38 minutes, 50 seconds income increases somewhere 20 to 25% Y and likewise pre- channel cost used to increase by around 15%. But uh this 38:59 38 minutes, 59 seconds quarter both this income and associated expense increased sharply by 6% more than the usual uh range. So what would 39:06 39 minutes, 6 seconds be the reason for the same? Now uh if you see the uh yi net p channel cost 39:14 39 minutes, 14 seconds which I'm talking about my operational slide if you see the operation performance slide in the net p cost 39:21 39 minutes, 21 seconds there is a saving uh from the yi side it's almost flat uh if you see we talk 39:29 39 minutes, 29 seconds about in the bigger numbers so there is no increase in the the channel pass rate uh we have maintained 39:38 39 minutes, 38 seconds Please please refer to that slide uh operational performance slide in presentation slide number 22. 39:47 39 minutes, 47 seconds Okay. Uh just one last and uh terms of competition on the cable TV side sir uh you mentioned that the competition is 39:55 39 minutes, 55 seconds quite high. Can you share how is the competitive landscape today with uh DD uh free TV or is it still going strong in other metro cities as well? 40:05 40 minutes, 5 seconds See uh BB they are functioning on a different uh you can say on the uh 40:14 40 minutes, 14 seconds different regulations and all. So the competition is not there on that side because uh they are going on the uh 40:25 40 minutes, 25 seconds auction software systems and all we are on the different side. So that is the but yes the market accommodates everyone 40:33 40 minutes, 33 seconds and that's what is happening. But right now lot of customers tell them and 40:40 40 minutes, 40 seconds that's how we can take them back when the rumors 40:49 40 minutes, 49 seconds and on the uh shift of DTH viewers to cable TV like uh what is the opportunity we are seeing uh there as of today? Do 40:57 40 minutes, 57 seconds you feel a shift is happening or are there some road roadblocks in the way of this uh shift? 41:04 41 minutes, 4 seconds See you have to understand that there are 350 million household out of that only 41:12 41 minutes, 12 seconds 220 million households is TV households right now. So still 130 million households are the TV dark area or you 41:19 41 minutes, 19 seconds can say they don't have a TV in households but there is a largeity out of this frequency million there is a 41:26 41 minutes, 26 seconds cable there is DTS there are and this is all the opportunities are there. So BTH also you have to win the BTH uh 41:35 41 minutes, 35 seconds customers back which we have the uh different schemes and uh aggressive plans and aggressive marketing for those 41:43 41 minutes, 43 seconds same we have to win from the other MSO and smaller MSOs the consolidation of 41:50 41 minutes, 50 seconds the the MSOs by organic and inorganic that's uh what we are doing uh we have to come with the plan so that we can 41:58 41 minutes, 58 seconds build the river market from British bank and the third is the there is a table park areas and hilly areas and 42:07 42 minutes, 7 seconds everywhere where the TVs are not reached at all on those households there is a large the opportunities are very big uh 42:14 42 minutes, 14 seconds still and we are working towards that and we are investing in the uh uh in the new technologies and all where we can 42:22 42 minutes, 22 seconds have uh all over India reach and uh we can be aggressive in the market to gain the subscriber market share Understood. That's it from my side. 42:34 42 minutes, 34 seconds Thank you for a detailed answer. Thanks. 42:40 42 minutes, 40 seconds Thank you. Ladies and gentlemen, to ask a question, please press star and one on your phone. 43:13 43 minutes, 13 seconds Thank you so much. As there are no further questions from the participants, I now hand the conference over to the management for the closing comments. 43:22 43 minutes, 22 seconds Thanks. 43:24 43 minutes, 24 seconds I would like to express my thanks to every participant who took their time out to attend the call. I would like to 43:31 43 minutes, 31 seconds thank MK for organizing this call. For any queries, please free to contact with MUFGIR who are our industry relation advisers. 43:42 43 minutes, 42 seconds Thank you and have a good day and happy Diwali. Happy Diwali to all. 43:50 43 minutes, 50 seconds Thank you sir. On behalf of MK Global Financial Service Limited, that concludes this conference.