Shares of GTPL Hathway rallied nearly 11 per cent in intraday trade on the Bombay Stock Exchange (BSE) on Friday after the company reported robust earnings in December quarter. The Cable TV and broadband service providers have reported a 78.2 per cent year-on-year jump in its consolidated net profit at Rs 33.06 crore for the third quarter ended December 31, 2019. The company's net sales zoomed 114.3 per cent to Rs 673.97 crore.
Boosted by strong Q3, share price of GTPL Hathway gained as much as 10.90 per cent to hit an intraday high of Rs 90 against previous closing price of Rs 81.15 on the BSE. Paring early gains, the stock closed Friday's trade at Rs 81.15, up 1.66 per cent. In contrast, the BSE Sensex closed 147 points, or 0.36 per cent, higher at 41,599.
There was surge in volume trade as 1.31 lakh shares changed hands over the counter as compared to two-week average volume of 3,940 shares.
In a similar fashion, shares of Edelweiss Financial Services spiked 11 per cent to hit a day's high of Rs 90 apiece on the National Stock Exchange (NSE). The stock ended trade at Rs 82, up 0.92 per cent.
GTPL Hathway, a leading Cable TV provider in Gujarat with 67 per cent market share, said that it has added 2,40,000 new home pass, 20,000 net broadband subscribers and 10,000 FTTX subscribers during Q3 FY20. The consumption per customer stood at 126 GB per month, up from 95 GB per month in December 2018.
Commenting on performance, Anirudhsinh Jadeja, Managing Director, GTPL Hathway said, "GTPL continued to deliver strong business and financial performance in third quarter of FY20. During the quarter, we seeded 150,000 STBs and reported a strong 44 per cent increase in CATV subscription revenue."
He said that our strong cash flow generation helped us not only in meeting our capex requirement but also helping in reducing the debt. During Q3, the company further reduced its debt by Rs 47.5 crore to Rs 186.1 crore on December 31, 2019.