GTPL Hathway Ltd

MD's Message

" GTPL is the largest Multi-System Operator (MSO) in India and continues to be amongst the leading wireline Broadband players in India. We continue to be the No.1 service provider in Digital Cable TV Services as well as in Broadband Services in Gujarat. Your Company is also amongst the few consistently profit-making Digital Cable TV and Broadband players in India.

Dear Stakeholders,

During the last fiscal, your Company completed 15 successful years of being "At Your Service". GTPL started in 2006 from Ahmedabad and Baroda and I take pleasure in informing you that your Company has become the largest Multi-System Operator (MSO) in India and continues to be amongst the leading wireline Broadband players in India. We continue to be the No. 1 service provider in Digital Cable TV Services as well as in Broadband Services in Gujarat. Your Company is also amongst the few consistently profit-making Digital Cable TV and Broadband players in India. The Company's phenomenal growth in the last 15 years can be attributed to the contribution of all its stakeholders including its partners, affiliates, investors, and employees.

Covid-19 posed unigue challenges in the last 2 years, forcing people and businesses to find new ways to survive, work, learn, shop, connect and interact without stepping out of the comfort of their homes. During this entire period, there was an exponential increase in the need for information and connectivity. Your Company was uniguely positioned to serve these needs and we stepped up to take responsibility and ensured access to information through our Digital Cable TV services and uninterrupted internet connectivity through our Broadband services.

As the economy recovers from the effects of the pandemic, we look forward to growth opportunities, driven by our passion to serve, backed by our robust and consistent performance track record.

Encouraging Industry Trends

Increased levels of digital adoption are bringing in revolutionary change in all spheres of life, be it entertainment, education, medicine, work-from-home opportunities or shopping for daily necessities.

The demand for data has seen an unprecedented rise, with every home and business connecting with the world using internet. Naturally, our broadband segment stands to gain immensely from this demand which is also evident from the exponential growth that we have seen.

As per the EY-FICCI Report, the M&E sector is expected to grow by 17% in FY 2022-23 to reach ^ 1.89 Trillion and Rs 2.32 Trillion by FY 2023-24. The television segment is expected to record a CAGR of 5% and reach from Rs 787 Billion in2019toRs826 Billion in 2024. ? \ I

The demand for hybrid set-top A boxes is expected to increase I as customers choose bundled linear channels & OTT services Jp to satisfy all their entertainment I needs. The importance of last mile connectivity cannot be underplayed, and last mile V operators (LMO/LCO) will play a critical role in delivery of Broadband as well as video services. Your Company is well positioned to take advantage of this latent demand with availability of Digital Cable TV, Broadband and Hybrid set-top-boxes with attractive and competitive pricing.

Performance to Ponder

I take pride in informing you thatyour Company continued to deliver strong performance in the FY 2021-22 across all its businesses. Our continued commitment to provide unparalleled service with strategic investments in technology as well as constant upgradation of our operational capabilities are expected to reap rewards and aid our growth story. During FY2021-22, the revenue from operations for your Company (Ex.EPC) increased by 12% from Rs 21,484 Million in FY2020-21 toRs 24,154 Million in FY2021-22; while the EBITDA (Ex.EPC) grew by 4% and stood atRs5,677 Million in FY2021-22 fromRs5,455 Million in FY2020-21.

The Profit after Tax stood at Rs 2,006 Million during the year, growing by a CAGR of 38% over the last 6 years. The Company reported an ROE of 21% for the FY2021-22. The Company has performed consistently for the last 6 years with a CAGR of 21% in revenues (Ex. EPC) and 19% in EBITDA (Ex. EPC) over the period. Our Digital Cable TV subscriber base has surged by 2.3x while the broadband subscriber base has witnessed 4.8x growth in the same time span. The Board of Directors have recommended a final dividend of 40% for FY 2021-22 to the Company's shareholders.

We launched GTPL Genie, an Android TV based, Hybrid Set-Top- Box compatible with all types of TV sets (4K, HD, LED, LCD, Plasma, CRT, etc) which offers the convenience of Live TV channels and subscription to multiple OTT applications as a bundled service at competitive prices.

Your Company expanded its Digital Cable TV operations in Madhya Pradesh, Karnataka, Odisha and Nagaland during the year and now reaches more than 1,200 towns across 19 States. The active Digital Cable TV subscriber base grew to 8.40 Million during the year. The Company saw healthy growth in Broadband subscribers and reached 8,16,000 subscribers as of March 31, 2022. Your Company also invested in creating new broadband home-pass reaching a total of 4.70 Million as on March 31, 2022. Data consumption per customer also increased substantially growing to 256 GB per month, upby21%Y-o-Yfrom 212 GB in FY2020-21. The Broadband ARPU for FY 2021-22 grew to Rs 450 per subscriber per month.

Your Company introduced innovative products and services in the market during the last fiscal to cater diverse and evolving customer preferences. We launched GIVA (GTPL Interactive Virtual Assistant) a WhatsApp based chatbot for 24X7 support to our customers followed by a revamped user-friendly Ul based on customer feedback. We implemented systems and built processes to ensure effective & consistent interaction, first call resolution of issues and shorter response time to the customers.

We launched GTPL Genie, an Android TV based, FHybrid Set-Top- Box compatible with all types of TV sets (4K, HD, LED, LCD, Plasma, CRT, etc) which enables the customers to download and utilize more than 5,000 Apps on the Google Play Store for TV. GTPL Genie offers the convenience of Live TV channels and subscription to multiple OTT applications as a bundled service at competitive prices.

Recognition

Your Company has been acknowledged for their consistent performance, nationally and internationally. Your Company was listed amongst "India's Top 500 Companies" for theyear2021 by Dun & Bradstreet, an internationally acclaimed organization. Our subsidiaries GTPL Broadband Private Limited and GTPL Kolkata Cable & Broadband Pariseva Limited were also listed amongst the "Leading SMEs of India of 2021" and "Leading Mid-Corporates of 2021" respectively by Dun & Bradstreet.

Your Company has been recognised for its consistent financial performance and has been listed amongst "India's Growth Champions 2022" published by Economic Times and Statista.

The listing is an annual feature that highlights the accelerators of the Indian economy. Your Company was also listed among the "High-Growth Companies Asia Pacific 2022" published by Financial Times and Statista, further re-enforcing your Company's financial performance as being among the highest in the Asia- Pacific region.

These achievements are an affirmation to your Company's unwavering commitment to the highest levels of corporate leadership, innovation, transparency, governance and is a testament to your Company being a front-runner within the industry.

Closing Note

We have entered 2022-23 with confidence in the outlook for our business and its ability to continue its successful evolution. Our continued investment over many years in our people and our systems has generated strong and resilient results in the past years and we believe that it will continue to do so. We thank all our stakeholders for their continued patronage in our success story and look forward to their support for many more years.