GTPL Hathway Ltd — Q4 FY26

GTPL Hathway Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=twKz4hryvS0 Published: 3 weeks ago

0:03 3 seconds Ladies and gentlemen, good day and welcome to GTPL Hatway's limited Q4 FI26 0:10 10 seconds earning conference call hosted by MK Global Financial Services Limited. This conference call may contain forward-looking statements about the 0:18 18 seconds company which are based on the beliefs, opinions and expectation of the company as on date of this call. These statements are not the guarantee of 0:26 26 seconds future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant 0:34 34 seconds line will be in the listenon mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistant 0:42 42 seconds during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being 0:51 51 seconds recorded. I now hand the conference over to Mr. Aryanati from MK Global Financial Service Limited. Thank you and over to you sir. 1:01 1 minute, 1 second Good afternoon everyone. I would like to welcome the management and thank them for this opportunity. We have with us 1:08 1 minute, 8 seconds today Mr. Anerut Sinh Jadea promoter and managing director Mr. Push Pankage business head B2B and chief strategy 1:16 1 minute, 16 seconds officer and Mr. Sorav Banerjee chief financial officer. I shall now hand over the call to the management for the 1:24 1 minute, 24 seconds opening remarks. Over to you Mr. Jade 1:32 1 minute, 32 seconds call of GTPLE limited to discuss financial performance of quarter 4 FI26. 1:39 1 minute, 39 seconds We remain the country's largest MSO while constantly deepening our footprint as a significant player in the fast 1:47 1 minute, 47 seconds evolving peace broadband landscape. Both our cable TV and broadband businesses deliver steady operational performance 1:55 1 minute, 55 seconds over the year. Over the past financial year, we have focused on launching and scaling consumer centric products and 2:04 2 minutes, 4 seconds services. And with the newly launched GTPL infiniti, our hits platform will enable to scale our operation, speed of 2:12 2 minutes, 12 seconds ground implementation and cost efficiency. 2:16 2 minutes, 16 seconds In the line with our consistent dividend paying policy from last 9 years for the financial year FI26, the board of 2:25 2 minutes, 25 seconds director have recommended dividend of 20% of face value rupees 2 per share. I 2:32 2 minutes, 32 seconds now hand over to the call to Mr. Punkard who will take you through the KPI for the cable TV and broadband segment as 2:40 2 minutes, 40 seconds well as highlights of our efforts throughout the year. P. Thanks Mr. Jadea. 2:47 2 minutes, 47 seconds Good evening everyone. The KPIs for both the businesses are as follows. First cable TV segment. 2:57 2 minutes, 57 seconds Our digital cable TV subscriber base as on March 31st 2026 stood at 9.4 40 3:04 3 minutes, 4 seconds million. Among the total subscriber base, paying subscribers stood at 8.70 million. In the broadband business, 3:13 3 minutes, 13 seconds active subscriber base at the end of the quarter stood at 1.06 million, adding 15,000 new subscribers on a YI basis. 3:24 3 minutes, 24 seconds Home parks stood at 5.95 million as of 31st March 2026 of which 75% are available for FTX. 3:35 3 minutes, 35 seconds The broadband R2 for quarter 4 F26 stood at NR465. 3:41 3 minutes, 41 seconds Average data consumption per month stood at 436 GB a 10% increase YI. 3:50 3 minutes, 50 seconds The number of Indian households is expected to increase from 332 million in 3:55 3 minutes, 55 seconds 2025 to 345 million by 2028 alongside a rise in per capita income 4:04 4 minutes, 4 seconds from US dollar to 2,800 to US 3,600. 4:10 4 minutes, 10 seconds This growth is expected to expand India's middle class to approximately 4:15 4 minutes, 15 seconds 715 million people by 203031 creating a strong foundation for higher 4:22 4 minutes, 22 seconds television and broadband ownership and convention. Television household penetration in India is around 60% which is expected to be around 65% by 2030. 4:34 4 minutes, 34 seconds India's demographic and economic trends continue to support long-term growth in television and broadband penetration. 4:44 4 minutes, 44 seconds This quarter has become exceptional as the company has reported negative profit after tax. The decline in PAT is driven 4:54 4 minutes, 54 seconds by mainly three factors. First the revenue impact subscription 5:01 5 minutes, 1 second table subscription and ISP revenues were lower due to the lower operating days in the quarter which is a 2-day impact and a marginal decline in subscriber base. 5:11 5 minutes, 11 seconds The impact is of around 12 cr. 5:14 5 minutes, 14 seconds Second is year end accounting adjustments higher one-time provision towards conservative accounting and 5:22 5 minutes, 22 seconds impairment being the end of a fine which is the impact is of around 7.5 cr and 5:30 5 minutes, 30 seconds one time forex loss of around 9 cr the revaluation loss due to iron depreciation linked to geopolitical 5:38 5 minutes, 38 seconds developments in the Middle East because of that the company has lost around 9 cr and the impact is there in the pack. 5:47 5 minutes, 47 seconds I will now hand over the call to Mr. 5:49 5 minutes, 49 seconds Sabanerji CFO who will take you through the financial performance of the company. Thank you Mr. P and good 5:56 5 minutes, 56 seconds evening to everyone joining us today on a consolidated basis for the quarter. 6:01 6 minutes, 1 second Total revenue rose 4% year on year to INR 9344 million. Subscription revenue 6:09 6 minutes, 9 seconds came in at INR2850 million while broadband revenue increased 3% year on year to INR1394 6:18 6 minutes, 18 seconds million. Consolidated reported EITA was INR908 million reflecting a margin of 9.7%. 6:28 6 minutes, 28 seconds Operating AITA for the quarter stood at INR 854 million with a margin of 18%. 6:35 6 minutes, 35 seconds Looking at the full year FY26, consolidated revenue grew 7% annually to 6:42 6 minutes, 42 seconds INR 37466 million. Subscription revenue reached INR 11862 million while broadband 6:51 6 minutes, 51 seconds revenue rose 2% yearonear to INR 5580 million. Consolidated reported EITA for 7:00 7 minutes the year was INR 4321 million translating to a margin of 11.5%. 7:06 7 minutes, 6 seconds Operating AITA stood at INR 4026 million maintaining a margin of 22% compared to 7:14 7 minutes, 14 seconds the pre prior year. Net profit attributable to the parent was INR56 7:20 7 minutes, 20 seconds million on a standalone basis for the quarter. Total revenue grew by 9% Y and 1% Q on Q to INR 6185 million. 7:33 7 minutes, 33 seconds Standalone reported EITA for the quarter was INR 596 million at a margin of 9.6%. 7:41 7 minutes, 41 seconds Standalone figures for SY26 stood as follow. Total revenue was stable annually at INR 8685 million. 7:51 7 minutes, 51 seconds Reported AITA stood at INR 2369 million at an AITA margin of 9.6%. 7:59 7 minutes, 59 seconds Net profit for the per period was INR 56 million. Balance sheet of the company remains healthy with a debt to equity of 8:08 8 minutes, 8 seconds 0.18 times as on 31st March. Net cash flow from operations for the full year 8:15 8 minutes, 15 seconds stood at a robust INA 3601 million and we are also free cash flow positive for the financial year. Now I request the 8:24 8 minutes, 24 seconds moderator to open the floor for question and answer session. 8:28 8 minutes, 28 seconds Thank you so much sir. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. 8:40 8 minutes, 40 seconds If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. 8:49 8 minutes, 49 seconds Ladies and gentlemen, we'll wait for a moment while the question assembles. 9:04 9 minutes, 4 seconds Thank you. Our first question come from the line of Sua from China Capital. Please go ahead. 9:10 9 minutes, 10 seconds Hi, thank you for the opportunity. This is Suana from Chan Capital. Uh can you hear me? 9:17 9 minutes, 17 seconds Yes. Now we can we can hear you. Please go ahead. 9:20 9 minutes, 20 seconds Yeah. I have two question. uh we have noticed that there has been no growth in cable TV and broadband subscriber during 9:27 9 minutes, 27 seconds this quarter. So could you please explain the reason behind this and my second question is could you please 9:35 9 minutes, 35 seconds provide more detail on the personal item of rupees 56.89 million uh and the 9:42 9 minutes, 42 seconds whether this is likely to be there u going forward. Thank you. 9:51 9 minutes, 51 seconds Okay. 9:54 9 minutes, 54 seconds Uh for the first question, yes, you're right. There is uh no increase in the subscriber base uh of cable TV and u 10:03 10 minutes, 3 seconds broadband both sides. Uh cable TV as you know we have started implementing in the sky. So we are concentrating 10:11 10 minutes, 11 seconds right now more of converting the current subscriber base and uh going for the 10:19 10 minutes, 19 seconds cost saving which will start reflecting from first quarter rather than the expansion in the first quart in the this quarter the all the expansion and all 10:28 10 minutes, 28 seconds the things will happen from the first quarter of FY27. So you will start seeing some positive attraction on 10:36 10 minutes, 36 seconds battery. Yes. As you know, uh the competition is very high right now and uh the environment is also not very 10:45 10 minutes, 45 seconds favorable for the cable TV business, but still we are holding our uh uh uh base 10:53 10 minutes, 53 seconds and retaining our base throughout and plus uh from the next quarter we are going to uh increase the uh our pace of 11:03 11 minutes, 3 seconds operations uh in the hidden in the sky and we have start getting more more subscriber base on that way. So that's 11:11 11 minutes, 11 seconds that's the way on the clear cable side barb side. Yeah, this this this quarter is a bit muted. uh overall in the year 11:18 11 minutes, 18 seconds we have added 15k but this quarter was a bit muted but uh next quarter from the next quarter onwards we will start 11:25 11 minutes, 25 seconds seeing the addition in the uh subscriber base again 11:32 11 minutes, 32 seconds and uh uh the uh one time which we have seen the exception which is the investment impairment which I have 11:40 11 minutes, 40 seconds talked about uh uh on our on my uh statement that uh how it is impacting our pat and that is the part of that 11:49 11 minutes, 49 seconds that is a one-time investment impairment uh of uh uh some of the investments uh which uh the conservative accounting uh 11:58 11 minutes, 58 seconds our auditor has uh recommended us to take it and we have taken in this year but it is only one time it will not continue. 12:08 12 minutes, 8 seconds Okay. Thank you. Thank you. 12:12 12 minutes, 12 seconds Thank you. Our next question come from the line of Rich Si from HKR Capital. Please go ahead. 12:21 12 minutes, 21 seconds Hello. Um can you audible? Yeah. 12:26 12 minutes, 26 seconds Um so um I had a question in line of the previous question. 12:32 12 minutes, 32 seconds The particular this particular industry has been consolidating since quite some time now. How prolonged this can this consolidation phase be according to you? 12:42 12 minutes, 42 seconds like any reason for this consolidation. 12:46 12 minutes, 46 seconds Uh yeah, you're right. This this industry is in the consolidation state and we are also preferring to go for the 12:53 12 minutes, 53 seconds acquisitions and uh do the consolidation of the industry. As you know that uh out 13:00 13 minutes of around uh 80 millions of cyber base still 40 to 45 million subscriber base is with the smaller MSOs where with the 13:09 13 minutes, 9 seconds changing changing technology and the quality and all it is difficult for them to hold the subscriber base for long as 13:16 13 minutes, 16 seconds as you know uh the change in technology is happening and uh uh whether it is OTT 13:24 13 minutes, 24 seconds and whether it is other other uh uh YouTube and uh Insta or Facebook all are 13:32 13 minutes, 32 seconds all have become the threat because they all are now a content company rather than a social media companies and uh because of that uh you have to improve 13:41 13 minutes, 41 seconds your uh quality. You have to improve your interactions with the customers. 13:46 13 minutes, 46 seconds you have to be at the uh you can say improve your quality or that that is the 13:54 13 minutes, 54 seconds problem with this industry that uh smaller MSOs are uh in the long term are not good able to do it and that's why 14:02 14 minutes, 2 seconds the consolidation is required so that uh you can retain those subscribers in the industry and uh they will remain 14:09 14 minutes, 9 seconds enjoying the KBTV uh services. So that's that's one of the reason that's uh 14:16 14 minutes, 16 seconds happening in the industry for last four five years. Uh this year as you see that we have uh our numbers have not 14:25 14 minutes, 25 seconds increased. It is almost sick because we have reduced our acquisitions or uh consolidation activity as we have 14:33 14 minutes, 33 seconds concentrated more towards the hidden in the sky launch and uh the putting the 14:38 14 minutes, 38 seconds capex over there to to create the uh one of the one of the state-of-the-art uh uh 14:47 14 minutes, 47 seconds uplinking center and doing the all the down linking in the uh in the market. So that's why we have not gone for the very 14:55 14 minutes, 55 seconds aggressive consolidation and all which we we used to do it from last two to three years but now we are doing it and you will start seeing the results from 15:04 15 minutes, 4 seconds the first quarter only uh from this quarter only that uh for the consolidation and we believe that consolidation is good for the industry 15:12 15 minutes, 12 seconds as uh 800 MSOs are there in the uh country right now which should reduce and fewer players should be there who can uh serve the customer data. 15:24 15 minutes, 24 seconds Uh so just to uh understand that uh we have been able to capture the benefit of consolidation to certain 15:33 15 minutes, 33 seconds extent and we'll be able to get good benefit from it in future. Correct. 15:38 15 minutes, 38 seconds Yeah. Yeah. That's that's that's the way we are working towards. We are very aggressive towards the consolidation and uh we will work towards that after our 15:46 15 minutes, 46 seconds headed to the sky platform. uh we are going to be very very very aggressive for the consolidation of industry. 15:54 15 minutes, 54 seconds Okay. And sir uh from an industry standpoint we now see that apart from us only one other uh hits operator remains 16:03 16 minutes, 3 seconds active given this limited competitive landscape. Could you help us understand what has prevented like more players from adopting the hits model? 16:14 16 minutes, 14 seconds Um now you have to uh broaden your horizon as for the competitors because 16:22 16 minutes, 22 seconds right now your competitors are uh everyone who is providing the content that's why I've taken the name of uh you 16:30 16 minutes, 30 seconds talk about telos you talk about uh YouTube you talk about Insta Facebook everyone who all are giving the content 16:38 16 minutes, 38 seconds or who are taking the eyeballs uh of the customer those have become your properties So you have to broaden your 16:46 16 minutes, 46 seconds horizon on the competitors. You don't have to go for traditional competitors. 16:50 16 minutes, 50 seconds Traditional competitors are always there and they are soon to remain but you have to broaden the competitive uh landscape 16:58 16 minutes, 58 seconds and uh we are working towards on that basis that we have the competition with uh all all the all the players who are providing content. 17:10 17 minutes, 10 seconds Got it. Got it. And uh so uh one more question. So the cable TV industry has been facing some structural challenges 17:19 17 minutes, 19 seconds due to the OTT platform but now players like you Zo we have started giving OTT with normal TV channels as a part of our 17:28 17 minutes, 28 seconds safe box plan. So how do you see the cable TV subscriber evolving over the next few years with this? See the you 17:38 17 minutes, 38 seconds see the whole whole world is moving towards the connected TVs where you will getting the TV also means cable 17:45 17 minutes, 45 seconds connection or digital connection plus you are having one or two OTTs or three OTTs there at the home and that is the way which we look forward also that the 17:54 17 minutes, 54 seconds future will be like that because uh content you can say it is more of uh uh 18:01 18 minutes, 1 second uh uh platform agnostic. So content has to reach to the customers. If it is a good content, customer will go and see 18:08 18 minutes, 8 seconds that content whether it will be on any platform. So you have to go according to the customer perspectives what their requirement is and if contents are 18:18 18 minutes, 18 seconds getting available on those platforms then you have to go for those platforms and you have to so we look look forward 18:25 18 minutes, 25 seconds look towards ours as a pipe. If you see uh we are a pipe which is reaching at home right now we are distributing 18:33 18 minutes, 33 seconds broadcasters channels we can distribute OTT also we can distribute uh gaming also which we have started we can 18:40 18 minutes, 40 seconds distribute financial services also we can do so it's more of like a layering of the services to the customers. So you are you have the reach at home how you 18:49 18 minutes, 49 seconds are going to uh utilize that so that your customers is satisfied whatever he wants he is getting that. So that's 18:57 18 minutes, 57 seconds that's the way we look into the business and that's why uh we are providing uh all type of uh combinations of different 19:05 19 minutes, 5 seconds services and that's that's the way we look forward for the future. Okay sir. Okay. Thank you so much sir. 19:13 19 minutes, 13 seconds I'll join the team for the further question. Sure. 19:26 19 minutes, 26 seconds Reminder to all the participant that you may press star and want to ask a question. 19:32 19 minutes, 32 seconds Our next question comes from the line of hers from Alpha alternatives. Please go ahead. 19:39 19 minutes, 39 seconds Hi. Uh uh Pi, you are talking about this four to five cr customers in the MSO space right and you are saying that 19:47 19 minutes, 47 seconds you'll be very aggressive. Can you tell us in the next coming years like FI 27 and 28 how much of this four to 5% 19:55 19 minutes, 55 seconds customer you can acquire very confidently? 20:01 20 minutes, 1 second uh it's a very speculative question has as you know uh we are in uh uh talk with 20:08 20 minutes, 8 seconds uh different players big players I will say and uh which you will start getting the announcement in first quarter only 20:16 20 minutes, 16 seconds as uh now we already we have implemented hidden in the sky and now we are going ahead for the kill so uh I will say yes 20:25 20 minutes, 25 seconds good substantial number will come I can't uh give you exact numbers as you know it's uh more of become extulation 20:33 20 minutes, 33 seconds but yes we are on the job and uh uh by next quarter next quarter call you will 20:41 20 minutes, 41 seconds you will get that okay this much number has come and then we will start seeing the trends from that side but yes we are 20:48 20 minutes, 48 seconds we are doing the consolidation and uh uh one of our main strategy is that so this would be acquisition of MSO 20:56 20 minutes, 56 seconds right uh come again sorry H So you're talking about acquiring three of the MSOs. 21:05 21 minutes, 5 seconds Uh yes, we are talking about uh acquisitions but yes we are looking forward to go ahead and do it. So yes. 21:16 21 minutes, 16 seconds Got it. Secondly, I just wanted to understand on your cable TV base how difficult it is to you know take a 21:25 21 minutes, 25 seconds 56 rupees hike in R2 R2 uh 21:35 21 minutes, 35 seconds uh R2 you can you can do higher we are doing it this year also we did it last year also but as you know Indian markets 21:44 21 minutes, 44 seconds are very sensitive about the R2 uh we are increasing it and every time if you're seeing it's increasing by 3 21:53 21 minutes, 53 seconds rupees to 4 rupees to 5 rupees which is hardly you can say 3% to 4% increase but that 3 to 4% increase will happen every 22:01 22 minutes, 1 second year that is going to happen so in 3 years time you will say yes 10 to 12% agreement has happened in the in the 22:10 22 minutes, 10 seconds arpoo but uh drastic improvement in arpu is uh not uh we are not looking forward forward to that we are more going or 22:19 22 minutes, 19 seconds playing the uh volume game rather than the value game here that value is going to be 2 to 3% 4% maximum and main volume 22:29 22 minutes, 29 seconds game is going to is going to give you the returns and the revenues so so the volume will be taken care of 22:37 22 minutes, 37 seconds by the acquisition of MSO right so from there you'll see the volume grow in organic inorganic organic everything 22:46 22 minutes, 46 seconds see there is a I'll just give you the largest perspective on that basis that I just given that there are 332 million uh 22:54 22 minutes, 54 seconds households and they are out of that the TV households is just 193 194 billion and uh still it is somewhere around 60% 23:03 23 minutes, 3 seconds only so still 40% is there which is without TV which is a uh you can say 23:11 23 minutes, 11 seconds non-cable non DTH non-TV areas in country right which is somewhere around you can say 130 million to 140 million 23:20 23 minutes, 20 seconds households which is there. So that opportunity is a bigger bigger opportunity there which you can increase 23:26 23 minutes, 26 seconds you can uh go for inclusiveness of them in the in the as becoming the TV households as now one of the reason that 23:36 23 minutes, 36 seconds we have gone for the header in the sky so that we can be presents in every nook and corner of the country and we can start the business weeks time to 10 days 23:44 23 minutes, 44 seconds and that's one of the prime thing that how you can bring this 150 140 million households into the wave of your television and 23:52 23 minutes, 52 seconds So that's that's one of the bigger bigger target plus the other target becomes as I tell you 40 to 40 to 45 23:59 23 minutes, 59 seconds million households which is uh still with the smaller MSOs and they are like a lowhanging fruit for go and acquire 24:07 24 minutes, 7 seconds them but yeah there is some cost involved yes cost involved but you go and acquire them and you increase your subscriber base on that basis the third 24:15 24 minutes, 15 seconds comes the DTH because now you are at par with DTH from last five four five years as you have the number of same number of 24:22 24 minutes, 22 seconds channels you have the same quality after digitization and everything you have a big portion of BT as a competition where 24:30 24 minutes, 30 seconds you can win back because DBX has won the customers from the cable and grow and 24:36 24 minutes, 36 seconds now that uh we should win win win from them. So all those things and one more question is your freedish because 24:45 24 minutes, 45 seconds freedish has moved they have increased tremendously only because there was no option at the ruler areas for the other 24:52 24 minutes, 52 seconds players to go into or have the reach to re have to reach those households uh through your P2P or fiber and everything 25:01 25 minutes, 1 second and uh DTH's uh direct to home is too costly for that and that's why they have gone into the fold of so there is 40 50 25:10 25 minutes, 10 seconds million subscriber base is designed in the freeway which you can now hamper because you are also reaching there through a hidden kind. So the uh 25:19 25 minutes, 19 seconds possibilities are large. Yeah, we have to take it one by one but possibilities are large and uh we can attack in 25:26 25 minutes, 26 seconds everyone and there is a lot of work for next decade I will say that you can uh do this and increase this businesses 25:36 25 minutes, 36 seconds twofold or threefold to fivefold. So that's that's that's you can say the large perspective is there to increase your business. 25:46 25 minutes, 46 seconds Got it. U so um lastly on your capeex and depreciation uh how should we model this going forward? 25:57 25 minutes, 57 seconds Yeah, capex uh this year we did around 290 K of capex total. Out of that around uh uh 110 K is in the broadband at 180 K 26:08 26 minutes, 8 seconds which includes the uh hits capex is 180 K. We are looking forward that next year 26:15 26 minutes, 15 seconds we will be again back to 350 KES somewhere. We are we are looking forward that 150 to 160 K will be on the 26:23 26 minutes, 23 seconds broadband and the rest will be on the uh cable and heads. That's when will the cape speak sir? 26:34 26 minutes, 34 seconds Sorry H your voice was cracking. When uh when will the capeex peak out? 26:40 26 minutes, 40 seconds Peak out maximum maximum will peak out means uh you're talking about the quarter wise 26:48 26 minutes, 48 seconds peak out or uh no no no so you're doing three 300 every year right so uh 26:54 26 minutes, 54 seconds that will come down to what 100 kores of maintenance by by when you're talking about uh when it will get 27:02 27 minutes, 2 seconds start reducing we are not looking forward to reduce it as uh we are seeing that this is the time for the growth for both the 27:10 27 minutes, 10 seconds businesses as I said you the cable business a lot of hits in cable business there's a lot of perspective same same 27:17 27 minutes, 17 seconds is there in the broadband side as you know in the broadband only uh 46 million households are in the wide side right 27:25 27 minutes, 25 seconds now and as you see the wireless cost are going up uh with the time so this is the 27:31 27 minutes, 31 seconds time where you can add your thing and uh uh out of 332 million only 46 million 27:38 27 minutes, 38 seconds which is hardly about 40% 13% to 40% penetration are there. So there is a uh 27:45 27 minutes, 45 seconds uh I will say this is this next decade there's going to be both for uh uh broadband and cable for both both the 27:53 27 minutes, 53 seconds businesses where you can increase your uh stake and uh in the whole participation in the country. So I'm not 28:01 28 minutes, 1 second looking forward for at least for next 3 years that we will going to reduce our capex. 28:09 28 minutes, 9 seconds Got it. Uh okay. Thanks. That's that's from my side. 28:16 28 minutes, 16 seconds Thank you. 28:18 28 minutes, 18 seconds Reminder to all the participant that you may press star and one on your touchstone telephone in order to ask a question. 28:26 28 minutes, 26 seconds Our next question come from the line of Venit Manik from Karma Capital. Please go ahead. 28:37 28 minutes, 37 seconds Yeah. Hi PG. Can you hear me? Yeah. Yeah. Go ahead. Uh PG just one question from our side. 28:45 28 minutes, 45 seconds It was really disappointing to see a loss this quarter. But sir, overall despite of all the efforts that you 28:52 28 minutes, 52 seconds mentioned on the call uh that we have been doing it for so long, our margins have been at least on the operating side 29:00 29 minutes that we used to say that 24% margin we used to make that was down to 22 and now it is down to 18%. And in fact if we see 29:09 29 minutes, 9 seconds on a CATV basis also we are seeing a degrowth. our broadband business is also growing at a very smaller pace. So how 29:17 29 minutes, 17 seconds should we look at the long-term you know business structurability about the profitability of the business because margins have been falling and growth has 29:26 29 minutes, 26 seconds not been so great for us. So that was the first part of the question and the second part is that can you slightly 29:33 29 minutes, 33 seconds elaborate on the uh non on the exceptional charges that you said on the investment that you have taken with the 29:41 29 minutes, 41 seconds recommendation of the auditor uh that what was largely that was attributable to and the nature of it if you can explain. 29:49 29 minutes, 49 seconds Thank you. 29:50 29 minutes, 50 seconds Yeah sure with it. So first question you're right with it that uh this quarter is uh a bit disappointing 29:58 29 minutes, 58 seconds because uh we have gone for the negative path and uh and uh this year also if it as I said that at the beginning also 30:06 30 minutes, 6 seconds that we are have a very muted number on the both the businesses as uh we have not lost the number but yes we have not 30:14 30 minutes, 14 seconds increased the numbers which was expected that we should increase our number and all as uh in the cable business side I 30:21 30 minutes, 21 seconds will say that we were more concentrating towards uh uh not uh going overboard of acquisitions and all and concentrate on 30:29 30 minutes, 29 seconds our hidden in the sky capex so that we can be ready for the future. So that's why we have a bit muted uh in the 30:36 30 minutes, 36 seconds broadband side. Yes, the the competition mainly from the the new technology which has come as the air fiber and that has 30:44 30 minutes, 44 seconds suddenly taken us in the leap and now we are recovering from that as uh our net edition has started increasing now and 30:51 30 minutes, 51 seconds we are hopeful that uh next year is going to be better that business also and uh cable business also yeah uh the 31:00 31 minutes profitability side I will say we have maintained our operational profit if you see 22% 22% that's yes you're right that 31:07 31 minutes, 7 seconds at some point of time we were at 24 to 25% at in 2022 or 2023 and we have come down to 22%. But uh we are looking 31:16 31 minutes, 16 seconds forward that uh with the implementation of heads as we are going to save a lot of money in uh uh your uh uh delivery 31:24 31 minutes, 24 seconds cost that is going to increase your uh which is directly going to increase your emitter plus the new businesses which we 31:32 31 minutes, 32 seconds are going to get is going to increase that. So you are able to control your cost if you go through our uh uh 31:41 31 minutes, 41 seconds employee cost and our operational cost and also we have uh work tremendously towards that uh this year and we have 31:48 31 minutes, 48 seconds brought it down both uh our other operating expenses in all uh the overall and the employee cost plus you can see 31:57 31 minutes, 57 seconds the pay channel cost also it is consistent same if we talk about the operational profit operational slide number before in my in our investor 32:06 32 minutes, 6 seconds presentation on that way but yes you are right that uh in one look this is a grave situation and this quarter is uh 32:14 32 minutes, 14 seconds really really uh impacting which I have given in your in my statement also uh 32:21 32 minutes, 21 seconds the another one you're talking about the the impairments and all uh this is two 32:28 32 minutes, 28 seconds parts are there one is the impairment which has happened on some of our old investment which has happened and uh 32:35 32 minutes, 35 seconds those investment which we did the uh you can say invested long time back in uh 2011 2012 32:45 32 minutes, 45 seconds 2013 and the analog era those investment has uh become invalid you can say on those according to the auditors you know 32:54 32 minutes, 54 seconds and they have recommended to go for impairment for the more of like a cleaning of the books one time and that has appeared there which is uh uh below 33:04 33 minutes, 4 seconds the IITA is around 5.7 K and above the IITA is around more of two 2 cr 2 and a 33:12 33 minutes, 12 seconds half crores. The total is around 7 and a half to 8 crores is there. And the second portion which we need we have got 33:19 33 minutes, 19 seconds hit is because of our uh uh the forex fluctuation as you know that uh the accounting of headed in the sky the 33:26 33 minutes, 26 seconds transponders which we have taken in from Indonesia there the contracts are in the dollars and uh we have started taking 33:34 33 minutes, 34 seconds that in the uh the depreciation plus uh those cost which we have to do on roou basis and those fluctuations because of 33:43 33 minutes, 43 seconds those fluctuations as um on uh 31st March the depreciation was very high for 33:49 33 minutes, 49 seconds the INR and 1st and 2nd April it got back but uh we have to go according to the 31st March and we got hit by around 33:57 33 minutes, 57 seconds 9 crores because of that in the books which is like a one time uh if those one time would have not happened we would 34:04 34 minutes, 4 seconds have uh uh those are the national costs I would say we would be positive having a uh better margins and uh that is the 34:14 34 minutes, 14 seconds case and future Sure I will say vit we are very very hopeful as you know we are uh the rethinking on the whole business 34:22 34 minutes, 22 seconds from our last one one and a half years as we told you earlier also and that's why we are implementing or taking big 34:30 34 minutes, 30 seconds steps where we are spending on the uh on the capex on the new platforms we are 34:37 34 minutes, 37 seconds spending on the capex in the broad side also of different uh technology side so all those things we are doing on uh on 34:45 34 minutes, 45 seconds the basis that yes we are going to implement our strategies in the coming years and uh again which I have talked that next three years we are going to be 34:54 34 minutes, 54 seconds very very aggressive which we used to uh around uh five years back uh so we are going to use to those uh again the next 35:04 35 minutes, 4 seconds three years is going to be aggressive and we we are hopeful that we are again going to improve our margins and again 35:11 35 minutes, 11 seconds we are going to start seeing the uh positive PAT and again the PAT will go up like it has reached to 200 K at some 35:19 35 minutes, 19 seconds point of time and then it declined. We are hopeful that we will reach to that level with next three to four years. 35:28 35 minutes, 28 seconds And sir the 18% margin that we reported the operating margins that we reported this quarter was because of that one 35:35 35 minutes, 35 seconds time charges included in that from 22 to 18 or uh that one time charge is below 35:42 35 minutes, 42 seconds the line item that is no it is it is below the line item 22% is the in operational slide number 24 if 35:50 35 minutes, 50 seconds you see but 22 is full year right FYI 26 is 22%. 35:56 35 minutes, 56 seconds This quarter it went down to 18%. On an operating basis 36:09 36 minutes, 9 seconds 1 minute 1 minute yeah this quarter we have uh 18% that is 36:16 36 minutes, 16 seconds one of the exceptional because uh uh 2 days revenue has gone. So always quarter 4 is lower uh with it because uh in 36:26 36 minutes, 26 seconds quarter 4 you get just the 90 days not the 92 days. So if you see the quarter 3 was 24%. It was exceptional because we've got 92 days there. 36:37 36 minutes, 37 seconds So that's why revenue goes up and down. 36:39 36 minutes, 39 seconds So it's better to see on the yearly basis that where we are standing. 36:44 36 minutes, 44 seconds Okay. Okay. Got it. Got thank you sir. Thank you for Yeah. 36:51 36 minutes, 51 seconds Thank you. Our next question comes from the line of Vishi Gupta from Vij Finance. Please go ahead. 36:59 36 minutes, 59 seconds Hello sir, am I audible? Yeah, sure. 37:03 37 minutes, 3 seconds Yeah. So, so, so my question is like what is the churn profile for cable customers and which retention initiatives have shown the best result? 37:14 37 minutes, 14 seconds uh churn if you talk about the industry churn is somewhere around 17 to 18%, we are at the same level and uh if I talk 37:25 37 minutes, 25 seconds about 17 to 18% churn then you can say that if we are retaining our customer at the same level uh I will say that it is 37:34 37 minutes, 34 seconds a reducing churn year to year because when the covid time was there the churn has gone up to 24%. And then it started 37:43 37 minutes, 43 seconds reducing and reducing and now it is at around 78% which is there and we are hopeful that it will go down with the time as more retention will come into 37:51 37 minutes, 51 seconds that. Uh we are doing the all efforts on the retention and that's 37:59 37 minutes, 59 seconds why we are going down to 17%. Still industry it is at 20 21% churn is going 38:06 38 minutes, 6 seconds up there. So we are doing better than industry and on the churn matter and so that is that is the case. 38:14 38 minutes, 14 seconds Okay. Okay sir. And what is the strategy for setup box upgrades or replacement and how are the cost recovered? 38:24 38 minutes, 24 seconds See uh if we are talking about replacement and all the replacements are happening and uh generally we are doing 38:32 38 minutes, 32 seconds the replacement with our used box or refurbished box and if it is has to be in the new box then there is a cost 38:39 38 minutes, 39 seconds involved on that for the replacement. So that's way you are recovering the uh your investments on that way. So uh 38:48 38 minutes, 48 seconds there is a two-way you can replace if a if a box is not working either it has to be a refurbished box which is like a 38:56 38 minutes, 56 seconds used box which is repaired and uh retrieved and repaired box through that you can recover uh the very small cost 39:05 39 minutes, 5 seconds or if you have to go for the new box then you have to pay for the new box that is the policy. A okay. Okay. And 39:12 39 minutes, 12 seconds like how do we coordinate between business teams of cable and broadband to maximize our cross-ell opportunities? 39:20 39 minutes, 20 seconds No, the teams are different. Yes. The you can say that uh the collaboration is always there uh between the teams on the 39:30 39 minutes, 30 seconds strategic matters on the uh ground matters where you have to give the uh you can say the leads here and there but 39:38 39 minutes, 38 seconds yes as both the businesses are different require different skills. So the teams are different. Yes you keep the leads 39:47 39 minutes, 47 seconds you collaborate between them in the same areas. uh technical people are there who are going to help each others all those 39:55 39 minutes, 55 seconds things are there all the synergies are there on the helping side but yes there is a broadband team is different and the cable team is different dedicated teams 40:03 40 minutes, 3 seconds are there okay and in the broadband what is the expected ARPU mix as customer moves to 40:12 40 minutes, 12 seconds high higher speed tires so right now RPU is 465 if you see uh 40:19 40 minutes, 19 seconds from last 3 years the RP was at around 440 and it has gone up to 465. We have 40:26 40 minutes, 26 seconds uh not increased our our package price we have reduced it a bit but because uh customers are migrating to higher 40:34 40 minutes, 34 seconds packages higher speed packaging because of that we have shift last two years we have seen that uh around 25 rupees 40:42 40 minutes, 42 seconds increase has happened in the R2 and we are looking forward that that increase will come in the future also. 40:49 40 minutes, 49 seconds Okay. Okay. Further I also wanted to know that how long does it typically takes us to convert the home pass into a 40:56 40 minutes, 56 seconds paying broadband customer and what steps are shortened that timeline what steps we have taken. 41:05 41 minutes, 5 seconds See um once you meet the home pass and you declare it that it is available for 41:10 41 minutes, 10 seconds the sale uh generally it takes 18 months for converting those whom pass up to 41:19 41 minutes, 19 seconds around 17 to 20%. Or extracting the customer to that way and uh it depends on the area. So if it is a very dense 41:27 41 minutes, 27 seconds area then it can go up to 25 to 30% also and if it is a rubber area it might be 12 to 15% but yeah the industry norm is 41:35 41 minutes, 35 seconds 20% conversion of the that's the best we are at around 17% 18% 41:42 41 minutes, 42 seconds right now but we are extracting more and more all the time. 41:48 41 minutes, 48 seconds Okay. Okay. And how do we prioritize which neighborhood or circles to roll out next and what commercial criteria drive that choice? 41:58 41 minutes, 58 seconds uh those are I think we have uh you're going into the details of operations that how we do that criteras and all that then we can we can connect uh 42:07 42 minutes, 7 seconds offline and I'll give you the all the details of those that what are the criterias we keep it uh for different different areas 42:15 42 minutes, 15 seconds uh and whether it is rural whether it is urban uh what type of uh speed and uh 42:24 42 minutes, 24 seconds what type of packages we have to take on those areas So all all have different criterias. So if I talk about that uh if 42:31 42 minutes, 31 seconds I'm doing something in Anand is a different strategy. If I'm doing something in San is a different strategy if I'm doing in uh you can say Nasi it's 42:40 42 minutes, 40 seconds going to be a different but I'm doing in the Bombay it is going to be different. So that's way that's operational thing. 42:46 42 minutes, 46 seconds It's not uh you can say standardized thing. standardize is some basic standardization but uh you have to go 42:55 42 minutes, 55 seconds according to the market or according to the customer you're targeting on those markets. 43:02 43 minutes, 2 seconds Okay. Okay. Thank you so much sir. Thank you. 43:11 43 minutes, 11 seconds Next question come from the line of Vir Jen from MSG Finance. Please go ahead. Yeah. Hi. Am I audible? 43:19 43 minutes, 19 seconds Yeah. Yes. 43:21 43 minutes, 21 seconds Yeah. Thank you for the opportunity. Few quick question from my side. The first one was on the cape uh side. So can you 43:29 43 minutes, 29 seconds just provide us a guidance for the capeex plan for going forward let's say for 2 year from 27 to 29 and what could 43:37 43 minutes, 37 seconds be the split between the cables broadband and heads and uh how much of it will be for growth and what will be the maintenance capex. 43:47 43 minutes, 47 seconds Yeah. So we are looking forward for somewhere around uh 350 kores uh peranom 43:55 43 minutes, 55 seconds uh that's the capex which we are looking forward and out of that around 150 k is going to be in uh broadband and the rest 44:03 44 minutes, 3 seconds 200 k in the cable and heads cable and heads together this is going to uh cable is going to get into the time and uh so 44:12 44 minutes, 12 seconds that's that's the way if I talk about the maintenance capex maintenance capex will be somewhere around 50% the both side going to be in the maintenance 44:21 44 minutes, 21 seconds capex and 50% is going to be the growth capex that's why we are uh going up to the cart that's why you can say next two 44:30 44 minutes, 30 seconds years somewhere around 700 cr what we trying to do out of that 350 cr will be 44:36 44 minutes, 36 seconds the maintenance capex and 350 capex got it sir my next question was with 44:44 44 minutes, 44 seconds regards to the ro so if If we look historically from FY 14 to 18, we could see that we were doing ROC of around 12 44:53 44 minutes, 53 seconds to 15%. But uh during the COVID year and post it grew up u exceptionally high to around 25%. 45:02 45 minutes, 2 seconds And uh post it uh we can see that it's already coming back to normal range of 12 to 15% in FI 23 to 24. 45:12 45 minutes, 12 seconds So however but uh the last year we saw that the ROC of was in the single digit. 45:19 45 minutes, 19 seconds So what could be our expected target for ROC in FY 27 to 30 and what will be the 45:26 45 minutes, 26 seconds uh initiatives will uh this will it drive? 45:33 45 minutes, 33 seconds Yeah because uh see the normalization is somewhere around 50%. 45:39 45 minutes, 39 seconds That's what we are going to achieve gain back this year is exceptional as I say that uh we have not gone for uh big 45:46 45 minutes, 46 seconds acquisitions and all or increasing the number in both the businesses as we were more concentrating towards uh uh 45:54 45 minutes, 54 seconds implementing the uh new platforms or structures in such a way for the futures 46:01 46 minutes, 1 second and the investment has gone towards that and the capex and the new platforms and all and that's way the increment mental 46:09 46 minutes, 9 seconds or sustainedness the sustainable capex is required more rather than the growth 46:16 46 minutes, 16 seconds capex uh which we did and that's why you will see the ROC has come down a bit but uh going forward as uh I had mentioned 46:25 46 minutes, 25 seconds that there is going to be a good good uh growth capex uh spend and that is going to increase 46:33 46 minutes, 33 seconds and we are hopeful that uh we will achieve back again 15% in next two to three years 46:42 46 minutes, 42 seconds back to 15%. Got it. So that was all from my side. Thank you. Thank you. 46:50 46 minutes, 50 seconds Thank you. 46:52 46 minutes, 52 seconds As there are no further question from the participant, I would like to hand the conference over to the management for the closing remarks. Thank you and over to you team. 47:01 47 minutes, 1 second Yeah, thanks. 47:04 47 minutes, 4 seconds I would like to express my thanks to every participant who took their time out to attend the call. I would like to 47:11 47 minutes, 11 seconds thank MK for organizing this call. For any queries, please feel free to contact MUFGR who are our investor relations advisers. 47:22 47 minutes, 22 seconds Thank you and have a good day. 47:25 47 minutes, 25 seconds Thank you sir. On behalf of MK Global Financial Service Limited, that conclude this conference. Thank you for joining us. And you may now disconnect your lines.