Hathway Cable & Datacom Ltd
Broadcasting & Cable TV
FV – Rs 2; 52wks H/L –48/24; TTQ – 1.18 Lacs; CMP – Rs 34 (As On November 23rd 2016; 12.30);
Market Cap – Rs 2832 Crs
Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)
|Long Term Debt||
Standalone Financials and Valuations for Q1 FY17
|Long Term Debt||
TTM EPS (Rs)
*On 6/1/2015 there was stock split from Rs.10 to Rs.2 per share
- Long Term Debt to Equity – 0.8
- ROE % – Nil
- Market Cap/Sales – 1.35
India’s largest cable broadband service provider with approximately 3.3 million two-way broadband homes passes and more than 40% share of the total cable broadband market in India.
- The company has crossed 7 Lakhs Broadband subscribers.
- Extensive network connecting 12.3 million CATV households and 10.6 million digital cable subscribers.
- More than 10.6 million Set-Top Boxes (STBs) seeded across the country.
- For the quarter 0.6 Mn STBs deployed at consolidated level (0.2 Mn STBs at Standalone) total DAS III subscribers base reaches 4.7Mn.
- CATV subscription revenue for Standalone stood at Rs. 117.7 Cr (YoY + 12%)
- Standalone ARPU for Phase I and II is Rs. 105 and Rs. 86 respectively.
- Supreme Court has moved all stay petition granting extension for implementation of DAS III to Delhi High Court; the next hearing is schedule on 6 & 7 th September 2016.
- Due to pending court decision, DAS III standalone 2.2 Mn + subscribers monetisation stood at Rs 25 – 30 per subscriber against overall content cost Rs 30 per Subscriber and other overhead Rs 20 Per subscriber.
- A dedicated 24/7 spiritual channel christened “Divine” launched on 1 st Sept 2016.
- 50% of standalone phase I & II customer base has moved to Hathway Connect.
- Launch of Hathway Connect Mobile APP, enables LCOs to manage their business from anywhere, this shall speedup servicing of subscribers.
|Financial (Rs.Crs)||Q1 FY17||Q1 FY16||QoQ %|
|Other Operating Income||4.7||4.6||3|
|Purchase of stock-in-trade||–||–||0|
|Pay Channel Cost||102||78.6||30|
- Hathway Bhawani Cabletel and Datacom Ltd is engaged in distribution of television channels through analog and digital cable distribution network and Internet services through cable.
- The Company offers cable television services and broadband services.
- It provides cable television services across over 140 cities and towns, and high-speed cable broadband services in approximately 21 cities.
- The Company’s digital cable television products include High Definition Personal Video Recorder (HD PVR), Hathway HD and Hathway Standard definition (SD).
- The Company offers a range of kids channels, infotainment channels, English and business news channels, English entertainment and music channels, English movies channels and sports channels. It provides home broadband and business broadband.
- Its Fiber Broadband plans for Home Users include HD Elite, HD3 Stream50, HD Bliss, HD4 Stream50 and Infinite 2Mbps Unlimited.
- It offers fiber Internet services and multi office connectivity for its clients.
- Mr. Sridhar Gorthi – Chairman
- Mr. Jagdishkumar G. Pillai – MD & CEO
The Equity Capital is @ Rs 166.1 Crs consisting of 830494500 equity Shares of FV Rs 2 currently held
None Of the Promoter’s Holding is pledged.
Major Non – Promoter Holdings:
|Sr.No||Non – Promoters||No. of shares held||% of shares held|
|1||Reliance Capital Trustee Co. Ltd A/C Relianceequity Opportunities Fund||33960053||4.09|
|2||American Funds Insurance Series Global Small Capitalization Fund||11750000||1.41|
|3||Goldman Sachs (Singapore) Pte||18604392||2.24|
|4||East Bridge Capital Master Fund Limited||22467400||2.71|
|5||Morgan Stanley Asia (Singapore) Pte.||25316227||3.05|
|6||Macquarie Bank Limited||25448913||3.06|
|7||Clsa Global Markets Pte. Ltd.||35204687||4.24|
|8||Smallcap World Fund, Inc||35876000||4.32|
|9||P6 Mauritius India Holding Limited||70717760||8.52|
|10||Satish B Raheja||11146880||1.34|
|11||P6 Aisa Holding Investments Iv (Mauritius) Limited||19350000||2.33|
|12||Infrastructure India Holdings Fund Llc||27843045||3.35|
|13||P5 Asia Holding Investments (Mauritius) Limited||52783220||6.36|
Consolidated Financial Trends (In Rs. Crs) :
|Equity Paid Up||166.1||166.1||152||143||143||143|
|Book Value (Rs)||13||13||13||11||11||12|
In FY14 678495600 equity shares were issued at a face value of Rs.10 per share.
CATV and Broadband revenue have increased by 13% and 61% respectively, on YoY basis
- Stay orders of various High Courts has impacted seeding plan in DAS III areas.
- Further extension or refusal to vacate the stay will create hurdles in the expansion plan.
- The competition in broadband space may intensify over time due to existing and new players which may impact ARPUs and start a price war.