Shares of Hathway Cable & Datacom gained nearly 3 percent on October 14 after the company reported healthy earnings for Q2FY25, which ended on September 30, 2024. The upmove in the stock in this manner indicates increasing optimism among investors regarding the company’s financial health and operative performance.
Hathway Cable & Datacom is one of the leading MSOs and cable broadband service providers in India. The company provides a long list of cable television services through its owned subsidiary, Hathway Digital Private Limited. Apart from its cable services, Hathway Cable has a PAN India Internet Service Provider license that will help it position itself as the first in the sector, offering high-speed cable broadband services.
In the latest results of Hathway, the company mentioned that net profit during the quarter grew at a rate of 28.4 percent, on a YoY basis, to ₹25.8 crore. Operations revenue up 6 percent YoY to ₹512.7 cr for this quarter. On the operation side, the EBITDA rose to 4.4 percent YoY to ₹86.3 cr during this period. EBITDA margin was 16.8 percent, compared with 17.1 percent in the comparable period the preceding fiscal year, an indication that operational efficiency still needs further review.
Cable television business revenue stood at ₹344.01 cr with a 5.1 percent YoY rise. The revenue of the broadband business fell 3.43 percent YoY to ₹151.09 cr, which puts a question mark on whether competitive pressures are finally taking a toll on the broadband business. Hathway reported ₹17.14 cr revenue from securities trading, which marks the diversification strategy adopted by the company.
At 11:45 am, Hathway Cable shares traded 3.3% higher on the National Stock Exchange at Rs 20.77. Even with that uptick, though, the stock is still in the red so far this year, losing to the Nifty index, which has gained 14%. The stock has risen just 4% in the past year compared with the Nifty’s 26% gain, and it appears to be one of the bigger questions in some time ahead.
