On April 17, 2023, GTPL Hathway, a small-cap internet service provider, experienced a sell-off, with its stock plummeting 10 per cent on the Bombay Stock Exchange (BSE). Shares traded at Rs 101.5, 9.86 per cent lower than the previous close.

The company released its earnings results for the quarter ending in March 2023 on Saturday, posting a net loss of Rs 11.75 crore, a 121.57% YoY decline from the previous year’s net profit of Rs 54.47 crore in the same quarter.

However, the company’s revenue from operations rose 12.2% YoY to Rs 692.42 crore in Q4FY23. But the company’s expenses also increased by 24.3% YoY to Rs 692.9 crore, leading to a decline in EBITDA by 20.6% YoY to Rs 111.2 crore. The EBITDA margin in Q4FY23 also decreased YoY to 22.5%. In the financial year ended March 31, 2023, the company’s consolidated net profit tumbled 42.9% YoY to Rs 113.94 crore, despite revenue rising by 10.3% YoY to Rs 2,663.92 crore in the year.

The company claims to be India’s largest multiple system operator (MSO) that provides digital cable TV services and India’s sixth-largest private wireline broadband service provider. Its average broadband revenue per user (ARPU) increased by Rs 10 yearly to Rs 460 in FY23. Additionally, the company’s Board recommended a dividend of 40% or Rs 4 per share for the financial year.

The cable TV business of GTPL Hathway declined marginally while overall sales increased slightly. There was an increase in the company’s trade payables and other financial liabilities due to capital expenditure payables.

Anirudhsinh Jadeja, Managing Director, GTPL Hathway, said, “Our broadband business continues to experience healthy growth in subscribers and ARPU. Our focus and commitment to expanding our broadband business are expected to bear fruit as expected in the coming years.”

“The company has further strengthened its presence in all other markets, especially in the southern states. We continue to expand our presence in the digital cable TV market and have entered New Delhi, Haryana and Uttarakhand,” Jadeja added.