Hathway Cable & Datacom Ltd has announced impressive financial results for the second quarter of FY24, demonstrating its resilience and growth in the competitive cable television and broadband market. The company reported a net profit of ₹25.8 crore for the quarter ending September 30, 2024, reflecting a remarkable 28.4% year-on-year increase from ₹20.1 crore in the same period last year.
Revenue Growth
Hathway's revenue from operations also saw a positive uptick, increasing by 6% to reach ₹512.7 crore, compared to ₹484.8 crore in Q2 FY23. This growth can be attributed to a rise in subscribers and enhanced performance across both its cable television services and broadband offerings.
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Operational Efficiency
The company’s operating performance remained solid, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rising 4.4% to ₹86.3 crore, up from ₹82.7 crore in the same quarter last year. However, the EBITDA margin slightly contracted, standing at 16.8%, down from 17.1% in Q2 FY23. Despite this minor dip, Hathway continues to exhibit strong operational efficiency, managing costs effectively while maintaining profit margins in a competitive environment.
Leadership in the Market
Hathway Cable & Datacom is well-known for its cable television services, delivered through its wholly-owned subsidiary, Hathway Digital Private Limited. With a PAN India ISP license, the company is a key player in the broadband segment, having pioneered high-speed cable broadband services in the industry. The rise in demand for reliable internet services, especially in the wake of increasing digital consumption, has significantly contributed to Hathway's growth.
Positive Stock Market Response
Following the announcement of its financial results, Hathway's shares closed at ₹20.08 on the Bombay Stock Exchange (BSE), reflecting a gain of ₹0.17 or 0.85%. This positive movement in the stock indicates investor confidence in the company's strong performance and its growth potential.
Key Financial Highlights
Net Profit: ₹25.8 crore, up 28.4% YoY from ₹20.1 crore in Q2 FY23.
Revenue from Operations: ₹512.7 crore, a 6% increase from ₹484.8 crore in the corresponding period last year.
EBITDA: ₹86.3 crore, up 4.4% from ₹82.7 crore in Q2 FY23.
EBITDA Margin: 16.8%, down from 17.1% in Q2 FY23.
Looking Ahead
Hathway's future appears promising as the company continues to focus on expanding its subscriber base, investing in technology upgrades, and diversifying its revenue streams. With its established presence in the cable and broadband sectors, Hathway is well-positioned to capitalize on the ongoing digital transformation in India, meeting the growing needs of digital consumers and enhancing its service offerings.
As Hathway Cable & Datacom continues to innovate and improve its services, it remains a formidable player in the fast-evolving landscape of cable television and broadband services.