Ladies and gentlemen, good day, and welcome to the Q1 FY 2025 results conference call of GTPL Hathway, hosted by Emkay Global Financial Services. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions at the end of today's presentation. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pulkit Chawla from Emkay Global Financial Services. Thank you, and over to you, sir. Thank you, Sagar. Good evening, everyone, and welcome to the Q1 FY 2025 GTPL Hathway earnings call. From the management, we have with us today Mr. Anirudhsinh Jadeja, promoter and Managing Director, Mr. Piyush Pankaj, business head of CATV and Chief Strategy Officer, and Mr. Saurav Banerjee, Chief Financial Officer. Without any further delay, I shall now hand over the call to the management for the opening remarks. Over to you, sir. Thank you, Pulkit. Good evening, everyone. A warm welcome to everybody to the earnings call of GTPL Hathway to discuss financial performance of quarter one FY 2025. We continue to see positive transition in subscriber in both our division, translating to continued growth momentum. We are steadily approaching quoted milestone of 10 million subscriber in the cable TV division, and as we look back our journey over the years to become a larger player in the country, we are filled with a sense of determination to carry this forward. Our broadband segment has performed well and post the price hike from major telcos. The option of high-speed, unlimited wireline broadband to be shared amongst the family member become even more lucrative for people. I will now hand over to the call to Mr. Piyush Pankaj, who will take you through the KPI and for cable TV and broadband segment. Thank you, Mr. Jadeja. Good evening, everyone. First, let me share the usual KPIs for our cable TV and broadband business before delivering to some of the recent tech solutions and collaborations implemented in this quarter. Our digital cable TV subscriber base, as on 30th June 2024, stands at 9.6 million. Paying subscribers stand at 8.9 million. On a YOY basis, the increase in active and paying subscriber is 550K, a 6% increase, and 600K, a 7% increase respectively. In the broadband business, active subscribers as at end of the quarter stood at 1.03 million. We thus have added 70K new subscribers, which is an increase of 7% on a YOY basis. HomePass stood at 5.90 million as on thirtieth June 2024, of which 75% are available for FTTH conversion. HomePass grew by 500K on a year-over-year basis. The broadband ARPU for quarter one FY 2025 remained stable at INR 450. The average data consumption per customer per month stood at 350 GB and 13% increase year-over-year. I would now like to take a moment to go through the various tech implementation we have undertaken to address and enhance certain operational patterns and improve the overall customer viewing experience. The first one is the GIVA, which is the GTPL interactive app. The deployment of NLP-trained AI chatbot integrated with WhatsApp to enable full customer service automation, offering round-the-clock support. It is equipped with payment features to further improve our digital collection. The second one is the Genie ATM, which is the implementation of Genie Networks network performance solution to analyze and optimize traffic. Genie ATM will help provide valuable and real-time insights that will enable us to undertake efforts towards elevating the performance and increase efficiency of overall network and all resources involved. Providing reliable and secure services become paramount as company is constantly expanding its subscriber base, footprint, and portfolio of offerings. The third one is TVkey Cloud. We collaborated with Samsung and NAGRA for the launch of industry's first product, namely the TVkey Cloud. It allows users to access linear TV content on their connected TV without the need for additional wires or even a set-top box. This results in cost savings for the consumers by allowing them to enjoy both normal TV content as well as OTT apps. We have rolled out this product pan-India, and it presents a new opportunity for us to garner new subscribers from home. We will be the default live TV source application. As evidenced by our KPIs, we have seen a constant trend of rising data consumption with sustained additions to both our cable TV and broadband subscriber base. Our CapEx in strengthening our infrastructure, as well as expanding into new territories, have been translating to consistent net addition in our subscribers at a time when the overall industry has seen elevated churn post-COVID. Offering new products, competitive pricing, and leveraging technology will drive our business forward. I will now hand over the call to Mr. Saurav Banerjee, who will take you through the financial performance of the company. Thank you, Mr. Piyush. Good evening to all the participants. On a consolidated quarterly financial results, total revenue grew by 9% YOY to INR 8,506 million. Subscription revenue saw an increase of 7% YOY to INR 3,193 million. The broadband revenue stood at INR 1,348 million, and registered a growth of 4% on a yearly basis. Consolidated EBITDA stood at INR 1,205 million, with an EBITDA margin of 14.2%. Net profit for Q1 FY 2025 stood at INR 150 million. Now, on to the standalone results. Total revenue grew by 6% YOY to INR 5,433 million. Subscription revenue saw an increase of 3% YOY to INR 2,249 million. Standalone EBITDA stood at INR 690 million, stable YOY, with an EBITDA margin of 13%. Net profits for Q1 FY 2025 stood at INR 150 million. With regard to other updates, the credit rating agency, India Ratings and Research, has reaffirmed the company rating and its debt facilities at IND AA- Stable. The rating affirms the healthy financial position and strong balance sheet, driven by prudent debt management and a free cash flow-generating history. I would now request the moderator to open the floor for the Q&A session. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone phone. 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. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Devang Mehra from SKV Capital. Please go ahead. Hello, sir. Good afternoon. Sir, my question is to your CFO, sir. So on the interest cost end, can you share the reason why our finance cost has increased, has increased sharply? Are there any credit lines we are drawing? Also, what the debt repayment timeline? I think in the previous call, management has guided that we will see the debt at FY 2024. FY 2023 levels. Are we on track for that? Yeah, thanks for your question. The interest cost has risen to a certain extent because of greater utilization of limits over a period of time. And also, we have the LC facilities, the BGs that we have taken for various business reasons. The cost of those LCs and BGs also get added and reflect in the interest cost. That is one of the reasons for an increase. The other is a purely accounting matter, wherein the finance cost or interest cost also includes the operating lease cost. So as per the Ind AS 116, it has to be accounted as part of the finance cost. So almost, close to INR 2 crore of that portion, which is more of an accounting treatment, as per the Ind AS 116 requirement, is also included in the finance cost. As far as the overall borrowings are concerned, you would have already seen that there is a decrease in the overall borrowing by almost INR 4.55 crore, particularly because some of the long-term borrowings have been repaid. So that's the reason why the borrowings have started coming down. Going forward during the year, the company will make an endeavor to ensure that borrowing state is in a reasonable level and, there is no increase in the debt, amounts. Thank you. Okay. Okay, sir, got it. And the second question is on depreciation side. So you guided that the CapEx is necessary to maintain the subscriber base, and we understand that what is the level we should expect depreciation to settle at? Since typically what I have noticed is that depreciation is lowest for you in the first quarter, but given it so elevated currently in the first quarter itself. So we expect higher than last year depreciation. So any guidance on the same would be very helpful. Yeah. So if you see from quarter four to quarter one, almost the depreciation is almost it, from INR 90 crore to INR 91 crore, it is showing there. And as you know, that, we are spending around INR 350 crore-INR 400 crore of CapEx in a year. And, if I talk about 8 years to 9 years of the depreciation on that, so every year we are looking forward that around INR 30 crore-INR 35 crore will added into the, into the depreciation. But yet, the block will go away also from the below, so we are looking forward that somewhere around between INR 25 crore-INR 30 crore, which is going to be added in the depreciation for next two years, and after that it will start coming down. Okay. Okay, sir, got it. Thank you. That's from my side. Thank you. The next question is from the line of Vinit Manek from Karma Capital. Good evening, sir. Thank you for giving me the opportunity. Yeah. This question is for you, Jadeja sir. Sir, if you look at, like, more than 10 quarters now for us, our top line growth has been really soft, and it is getting more softer going forward also. But on that, if we see our other expenses have significantly shoot up from almost like a run rate of INR 120-150 crore to now upwards of INR 200 crore. So structurally now, as investors, how should we look at the business going forward? Because our top line growth is not happening, and despite of that, our incremental spends are really higher, which is leading to a negative operating leverage to our business. So how should we look at that going forward? Yeah, Vinit, first I will attend this, then I will request Mr. Jadeja to come and come into that also. See, yes, you are right, that the operating expense is going up, but there are variable costs and the fixed costs. The variable costs has to go along with the revenue, which we have seen that we have gone up in the revenue also. So those variable costs is already getting up on that basis. Yeah, some of the fixed costs on, at least for this quarter, I can say, that in the anticipation of expansion of new business in cable TV, the company has made the infrastructure and taking the bandwidth from last few quarters. But due to the elections and, second is the anticipation of price increase by the broadcasters and what is going into the industry, we have just added 100K in the last, you can say last one quarter or last two quarters, you can get somewhere around 150 to 160K, which was a bit less. Yes, we are taking the corrective actions, so wherever that function will not be possible, we will bring down the cost. That is on the cable TV side. We have broadband side, business side, it is more of the variable cost which is there, because, as you know, we have started the B2B vertical, and there the commission cost, which is of around 50%-60% of the revenue, has to go into the operating cost. This quarter we have added around 30K of the net of the gross additions in the B2B, and net additions of around 7K. So those costs have come into play there. And in the current quarter there is a PFDD of around INR 3 crore somewhere close to that, which is we have taken the the outstanding of one of the broadcasters, which we have provided for conservative accounting. Yeah, it's all all broadcasters broadcasting switch off, but it's all in use. So still we are in constant touch with them, and hopefully they are committed that they will clear. So but for conservative accounting, we have taken. So you are seeing that that increase in the operating cost because of these three reasons right now. Yes, you are right, that, of the cost has gone up in the anticipation of creating more business as we are more in the expansion mode. At that point of time, you have to create the infrastructure and all in, in our business in advance, and that's what we did. But yes, we will see that wherever we can cut the infrastructure, where the expansion is, not possible or expansion is not as per the expectation, then we will do that in the coming quarters. But, sir, on the growth CapEx also, we are not able to see a commensurate growth because as we see that there is no great pricing action on both our businesses, except the new implementation of the NTO. So we are also not able to get the volume growth on the part of the subscriber addition. And also, as specifically you mentioned about the broadband business, that there is a huge scope, but our broadband business subscriber addition has been incrementally slowing down. Our growth over there has been now mid-single digit kind of a growth on the top line. So despite of all the efforts done on the operating expenses side, we are not able to grow the business. So it is not even the growth happening, and we are losing on the profitability side also. So that is the reason, this question comes up. So I will take one by one, but first on the cable business unit. Cable business, as you know, we are doing around 500,000 on a year-over-year basis. Yes, the opportunities are both, but we have to put more CapEx. As you know, I have already given that part of our CapEx is going on the maintaining of the business, being the influx of that business. But yes, we are seeing the reverse trend now, and you can say that the churn is going down year by year, and we are hopeful that the churn will go down with the time as the created after the COVID or at the beginning of COVID and after the COVID, that is already getting arrested for the... And there we will see that our increment will be higher. As you know, we have entered into new four states in the last one year, and the scope is very high on those states. We are hopeful that in the cable TV, we will start seeing the target, which was earlier around 800 AX, 8 to 1 million in a year, but we will start jumping towards that. Yes, that is the case. In the broadband business, yes, last two quarters are a bit muted. The reason is that the new technology, which is V-Fiber and the AirFiber, has come and created some euphoria in the market. Now, it is again coming back, that euphoria is dying, seeing that what is happening. Again, we are hopeful, which you must have seen something that again, the FTTH is coming back into the market, the pure FTTH, and which is more consistent and reliable. Plus, the increase in the prices by the cellular operators, and that will help in the wide business again, because the data cost is increasing there. So we are hopeful that we'll come back again to that, adding around 80 to 100K subscriber base in the broadband. So that is there. We are hopeful in the data business. Data business has a lot of potential, but yes, it is seasonal, you can say, because going up and down, some event happens, like some quarter goes up, some quarter goes down, but yeah, that is the case. Okay, and, just one last question from my side, on, specifically talking on the margin. So few quarters back, even on the television, you guys have guided for a 20% kind of EBITDA margin, including your other income. So we have been, like, off the mark, on that, since many quarters, and the gap is increasing. So when do you expect to reach there, or do you expect the margins to be lower, and, and how should we look at that from an FY 2025 perspective? Yeah, Vinit, I will say that, that's why I started giving the operating EBITDA in my presentation, in virtual presentation. Because, as I explained that, for looking at the business perspective, that how the business is performing, we should go for the operating EBITDA, rather than, this EBITDA, where the, the problem is that, which I explaining again, that, the, marketing and, marketing placement and the revenues, the contribution of that to EBITDA is between 2%-20%. So depending upon what type of deals are happening with the broadcasters and all. And that's why it is very erratic. That's why I always say that we have to see, because it is going to the same broadcasters, that we have to meet the costs from the free channel, minus the marketing and more revenue, and see the operational EBITDA. So the operational EBITDA, yes, you will see that last year we did 24%. And the first quarter is at 23% right now. That's why, because I have explained that some of the costs which we have taken extra cost, the PFDD and all. But we are very, very sure that it will come back to 24%-25% in the whole year, and we will maintain that 24%-25% of operating EBITDA, which is there during the years. That should come in the coming quarters, because I think as I collate some past numbers from FY 2022 to FY 2023, we were about 28%, kind of, 28%-29% operating EBITDA. Yeah. Those, Vinit, you have to see more than this, since even 2019, 2020... 2021, 2022 was a great year for the broadband. As you know, we were adding around 150, we have added around 160, 180K also on those years, those time, because of the euphoria. Euphoria is for the broadband also, for the OTT also, everything, which is now more on the stable side, which I have always said that we will be stable in 80 to 100K or maximum 120K. But that time it was 180K, and that's why the margin has gone up to 28%, 27%-28%. But before that also, you will see we are at 24%-25% of that. Okay, so that is- That is, that is the consistency, that around 25% is what it should be. Okay, okay. Thank you. Thank you for your detailed answers. Thanks. Thanks, Vinit. Thank you. The next question is from the line of Darshil Jhaveri from Crown Capital. Please go ahead. Hello. Good evening, sir. Thank you so much for taking my question. So I'm a bit new to the company, so could you, if possible, just briefly explain the difference in the margins of 13% reported and 23% in this. Yeah, yeah. Yeah. I'll explain. Yeah. Because what happens is that, we have two relations with the broadcasters. One relation is the channel cost, and secondly, marketing and placement. Marketing and placement is also related to those services only, but, it is built on a different invoices. So we have to book it as a revenue, and here it is a cost. But both are... For the broadcaster also and for us also, both are related. So what's happening that, depending upon the deal, somewhere the marketing and sales team is giving 20% margin, somewhere it is giving 10%, some broadcaster is giving just a 5%, on the margin side, if I talk about. So whenever we have to see the real business, you have to take out those costs. So free channel, so from the revenue, you take out the marketing and the revenue, and then you reduce the cost, the free channel minus marketing and all, and then you have to see the margin. And also take out some of the one-time revenues, that is activation revenue and one-time other income, which is like one time, and then you see it. So if you go through my presentation, just after the PNL, we are giving the operating EBITDA margins, which you will see that for this quarter we are at 23%. Last year, full year we were at 25%. Oh, okay, okay. Better, better insight in the business performance. Yeah, fair enough, sir. Understood, sir. So the margins are that way, but so in terms of our revenue top line growth, what kind of guidance could we give for, you know, maybe FY 2025 and FY 2026? No, the growth will be on the same range which we are doing right now. We have subscription, we can talk about. Yeah, subscription is going to be somewhere. We are trying to have a double-digit. If you see Y to Y, we have set around 7%, but FY to FY, we are going to be in the double-digit number. So the same number, maybe 20%, in FY 2024, so something like that is what we can hope for, sir, right? Yeah. If you're talking about the total revenue, yes, that is going to happen, surely. And if you're talking about the subscription revenue, it's going to be in the double digits. Okay. Okay. Okay. Fair enough, sir. And so are we planning to take any price hike as in any of the business in, you know, broadband or this? Are we planning for any price hikes? Yes, we are going to do in some of the strategic market, mainly in the cable side, not in the broadband side. Cable side, yes, we are thinking of doing it in the some of the strategic market, but yes, we are waiting for that. Now, the election is over, everything is over, so we're going to wait somewhere in the quarter two. Oh, okay. Okay. Fair enough, sir. Yeah, that's it from my side, so, all the best, sir. Thank you. Thank you. Thank you. A reminder to all the participants, you may press star and one to ask a question. The next question is from the line of Ketan Athavale from Robo Capital. Please go ahead. Hello, sir. Thank you for the opportunity. Hi. Most of my questions have been answered. I just want, can you just highlight a few trigger points for our revenue growth and, margin improvement? By when can we, by which quarter can we see this 26% margin coming in? The trigger point is more of as you go for the ARPU increase the business, that will straightway going to hit it in your margin. When you are doing the volume increase, there is cost which is going to build up. Some of the cost, plus there is going to be CapEx effect. If you are just going for the value increase, which is more of the ARPU increase, that will straightaway come into the margin. So here, as I said, that in some of the strategic markets, we are going to take and do the ARPU increase as some of the market is getting mature now. As you enter into new market, you have to do it at the lower prices, but as you get mature in those markets, you tend to increase the ARPU. So that's what we are going to do, most likely in the quarter two. So that's why we are looking forward, that it will grow. Plus, as I said, that some of the cost, which is build up, is more of like a one-time cost, and we have to go clean down. That will bring down the... Which will bring up the margin, a bit of margin again. So that's the two factors which we are looking forward. Okay, got it. That answers my question. Thank you so much. Thank you. The next question is from the line of Sahil Vora from MNS Associates. Please go ahead. Hello, sir. Am I audible? Yes, Sahil. Please, go ahead. Thanks. Firstly, thank you for the opportunity. My first question is on the TVkey Cloud product. Could you highlight how exactly the product functions? And, I think in the press release, you have mentioned that it will make GTPL the default live TV application. Yes. Source application. So will they be using our cable TV services? Or how does it all work exactly? Yeah. So it's more of that, you can watch GTPL straight into the Samsung TV and by plugging the wire into the TV, which was like in the old times, if you remember, that, there is a tuner that built in the TV. Every, every TV has that, and you used to put the wire straight away there, without the set-top boxes or any boxes are there. The same thing you have to do without the set-top box. The all conditional access systems and all, all those things will be through cloud, which is already inbuilt there in the Samsung. And, there is a live TV option embedded into the... Going to be embedded in the Samsung TV only. So you can access the live TV or cable TV of GTPL on your Samsung TV without any set-top box. So that's just the technology on which we have brought in, along with Samsung and our tech partner, NAGRA. And it is successfully implemented. One of the, you can say, one of the kind of this application, which is not there. And so already we have gone into the market, already subscribers have started selling on that, and because of this new technology, I think everyone is excited. So we look forward to that, we will get traction, more traction on this. Okay, sir. Got it. A follow-up to the question would be, since launch, what exactly is the kind of response you have been seeing for this TVkey Cloud product? Yeah, we have just launched, and we have started marketing it, as you know. And, so the initial response is very good. Still, in some of the version of old Samsung TVs, it is getting OTP, the whole thing, which is happening, which is going to expand our base of target base. So right now, it is happening in the latest TV, and it is happening in some of the old TVs also. So all those things are going on. It's just the early days right now, but whatever response we are getting or whatever queries we are getting, queries are very high, that everyone wants to understand that how it is functioning, how it is going to come into the home. We don't have to use the set-top box. There are some subscribers which is already there. Yes, we are hopeful that we'll see more traction from the coming days. Okay, sir. That's great. Got it. And also, what is the opportunity size in terms of Samsung connected TV user base? As in, what is the revenue potential from this product? Revenue potential is simple, that it's a cable TV, so all subscription, that's the way which is coming right now. So it's more of, more, subscriber addition will happen, and that is getting targeted on the Samsung TV especially, without the set-top box, where the cost is not there to their, customers, for the old TVs also and new TVs also, both. It will be delivered on both. So that is the case. We are looking forward, but, it's going to be around last 5 years sale of, Samsung TVs that is getting enabled. And, so it's going to be the target market is going to be around, somewhere around, more than 10 million on this. Got it, sir. That, that's really helpful. Lastly, is the product exclusively tied to Samsung, or can we roll out the product for the mass public, for other brands too, I mean? So, that has target audience increases manifold, I think. No, it is OEM based right now. We have started it with Samsung, the first OEM. And we have developed it along with the Samsung and NAGRA, the whole solution. We look forward at how the responses are there and all, and then we'll see that whether we have to do with other OEMs or not. We have to expand it with other OEMs. But yes, Samsung is a great partner, and we look forward to do more strategic and more innovative in the future. Okay, sir. Thank you so much for the detailed response. That's it from my side, and all the best for the meeting. Thanks. Thank you. Participants, if you wish to register for questions, please press star and one on your telephone. The next question is from the line of Sapna Agarwal, from... who's an individual investor. Please go ahead. Hello. Hi, Sapna. Yeah. Hi, thank you for the opportunity. I have a couple of questions related to the broadband segment. Firstly, can you share the split of the new subscriber addition in the broadband segment between B2B and B2C rates? Yeah, it's as I said, out of 10K, 7K is B2B and 3K is B2C. That's the split addition. Okay. Okay, and the follow-up question being: How many customers covered by the B2B route are available for you to convert into your subscribers under the broadband? Are there any specific states you will target subscriber growth via B2B more aggressively than other states? No, B2B, we are doing strategically wherever we are present in the cable and whichever area we are in the cable side. So we want to do it with our partners in both areas. So like, already we have started around 7 states right now. So 7 states is already there. We are going to expand on other states slowly. Then gradually, we are going to expand on other states. We are, as you know, cable side, we are at 23 states right now. But we have 7 states we have already started for the B2B and created those infrastructures and all. Other states, we are ready for launch in next 2 states right now, which, I think we will do by the end of July. Next 2 states again, will be B2B. But yes, gradually we are coming into all good states. Okay, okay, that's right. Thank you. Thank you. The next question is from the line of Ankita Mehta, who's an individual investor. Please go ahead. Ms. Mehta, your line is unmuted. Please proceed with your question. Hello. Yeah. Hi, Ankita. Hi. Good evening, everyone. So, how has the broadband price hike has affected you? And also, will you also be raising your prices, or will you run any special discount programs which will eventually attract people to get a GTPL broadband Wi-Fi at home? Now, the news has come that data packs on mobile have become much more expensive. So have you seen any inquiries regarding your broadband plans? As you know, we are consistently, our ARPU is between INR 450-INR 460. It has increased from INR 450-INR 460 last one year, but that is more of that people are shifting to higher packages. So, we are going to increase the prices, but we are going to do it with the layering of the services. We will add services over OTT services and other services, and then we will increase the prices, and give attractive prices for both the services or two services or three services together and to the customer. Yeah, individual broadband, right now we are not increasing the price. We are keeping it at the same level. Also, one more follow-up question, regarding other expenses. So any particular reason for rising other expenses for this quarter? Yeah, I've already explained that some of the reasons that in the cable TV side, we have built some infrastructure and bandwidth from last two quarters, but due to the election and anticipation of price increase by the broadcasters, those expansion has not had happened. So either we have to pull down those costs, or we have to do the expansion very fast in those areas. That is one. That is in the broadband side, as you, I explained that the more business has came from a B2B vertical, where the around 50%-60% is going into the commission and the cost. So that has increased a bit of the cost. And there is one PFDD which we have to take for one of the old current broadcasters for the cumulative account. Yes, we are in touch with that broadcaster, and they are saying that they will give back the money, but for cumulative accounting, we have taken it under the PFDD. That is coming into the other operating and admin cost. Okay, thank you. Thank you, sir. Thank you. A reminder to all the participants, you may press star and one to ask a question. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. I would like to express my thanks to every participant who took their time out to attend the call. I would like to thank Emkay for organizing this call. For any queries, please feel free to contact with Orient Capital, who are our investor relations advisors. Thank you once again. Thanks. Thanks, all. Thank you. On behalf of Emkay Global Financial Services, that concludes this conference. Thank you for joining us. You may now disconnect your lines.