GTPL Hathway Limited (GTPL) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q3 FY '25 Results Conference Call of GTPL Hathway hosted by Emkay Global Financial Services. [Operator Instructions] Please note that this conference is being recorded. I would now like to 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 Q3 FY '25 earnings call for GTPL Hathway. From the management, we have with us today, Mr. Piyush Pankaj, business B2B and Chief Strategy Officer; Mr. Paramveersinh Jadeja, Promoter Family and Chief Business 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 the financial performance of quarter 3 FY '25. Our company remains the largest MSO and a prominent player in the fixed broadband landscape in the country. Both the business segments, Cable TV and Broadband continues to increase their customer base, driving the business forward. Our long track record of subscriber growth is a testament towards our constant efforts to create value for our valued customers. We constantly evaluate organic and inorganic avenues for growth. As a company with a national footprint, we are actively pursuing expansion opportunities in state beyond our traditional strongholds of Gujarat and West Bengal. Advancement of broadband subscriber count will also be achieved by taking advantage of our extensive network of LCOs and B2B partners. We strongly believe that current industry landscape is one of migration towards value and this presence and opportunity of consumer consolidation from smaller inefficient players. In the 9 months of this financial year, we have launched services such as GTPL Buzz consumer app loaded with innovative features, AI chatbot GIVA for ease of consumer self-services, an industry-first TVKey Cloud in collaboration with NAGRA. At GTPL Hathway, one of our core philosophies is to keep moving forward, provide entertaining services and constantly explore opportunities for growth. These are the principles that reflect in our business undertaking as well. I now hand over the call to Mr. Piyush Pankaj, who will take you through the KPIs for the Cable TV and Broadband segments.

Thanks, Param. Good evening, everyone. The usual KPIs for both the businesses are as follows: first, Cable TV segment. Our Digital Cable TV subscriber base as on 31st December 2024 stood at 9.6 million. Among the total subscriber base, paying subscribers stood at 8.9 million. On a Y-o-Y basis, the increase in both active and paying subscriber is 200,000, respectively. In the broadband business, active subscriber base at the end of the quarter stood at 10,42,000, which is 1.042 million, adding 37,000 new subscriber which is an increase of 4% on a Y-o-Y basis. Homepass stood at 5.95 million as of 31st December 2024, of which 75% are available for FTTX; Homepass grew by 6% on a Y-o-Y basis, registering an increase of 350,000 on an absolute basis. The broadband ARPU for quarter 3 FY '25 increased by INR 5 Y-o-Y and stood at INR 465. Average data consumption per month stood at 365 GB, a 6% increase Y-o-Y. Pace of subscriber addition remains healthy in both the segments, particularly for the Cable TV segment, which we highlighted in the previous earnings call, efforts towards customer addition and retention on ground employees were hindered by extended rain and flood in various parts of the country. As this phenomena subsided in the quarter and normal operations resumed, we have once again resumed the trend of achieving sequential addition to our subscriber base besides registering growth on a yearly basis. Broadband business achieved steady onboarding of new subscribers with positive development across key monitorable as highlighted above. Wireline broadband continues to be underpenetrated in our country with demand driven by need for reliable high-speed data at affordable prices. I will now hand over the call to Mr. Saurav Banerjee, CFO, who will take you through the financial performance of the company.

Thank you, Mr. Piyush, and good evening to all the participants. On a consolidated basis for the quarter, total revenue grew by 4% Y-o-Y to INR 8,957 million. On a sequential basis, this translated to a growth of 4%. Subscription revenues stood at INR 3,024 million, and the broadband revenue stood at INR 1,383 million. Consolidated reported EBITDA stood at INR 1,138 million at an EBITDA margin of 13%. Operating EBITDA for the quarter was INR 1,021 million with a margin of 22%. Net profit attributable to the parent stood at INR 102 million. Consolidated figures for 9 months FY '25 stood as following: Total revenue grew by 7% Y-o-Y to INR 26,083 million. Consolidated reported EBITDA stood at INR 3,481 million at an EBITDA margin of 13%. Operating EBITDA for 9 months was INR 3,143 million with a margin of 22%. Net profit stood at INR 374 million. On a stand-alone basis for the quarter, total revenue grew by 8% Y-o-Y and 4% Q-on-Q to INR 5,652 million. Stand-alone reported EBITDA for the quarter was INR 654 million at a margin of 12%. Operating EBITDA for the quarter was INR 549 million, thus implying a margin of 22%. Net profit stood at INR 107 million. Stand-alone figures for 9 months FY '25 stood as following: Total revenue grew by 7% Y-o-Y to INR 16,537 million. Reported EBITDA stood at INR 1,995 million at an EBITDA margin of 12%. Operating EBITDA was -- for 9 months was INR 1,716 million at a margin of 23%. Net profit for the period was INR 397 million. I would now request the moderator to open the floor for the Q&A session.

[Operator Instructions] Our first question comes from [ Mamta Agarwal ] from [ AMS Investments ].

Sir, my question is, many listed companies over the past months have won orders towards the Phase III of BharatNet project. I think most of these are towards the equipment and infrastructure side of things, right? And we as service providers, provide for broadband, so like what is the opportunity size for us from this scheme?

BharatNet project, as you know, that BSNL and BBNL has launched that. And recently, they have launched for 16 states. And the tender has been filled and given and the results has been announced also. But it is under judicial matter right now. We are also waiting that once the judicial matter will be over, then it will get pursued. Yes, company is participating on that. And we are looking forward that as the judicial matter will go over -- will get over, then we will come back to the investors and tell them that what we got, what we not, yes.

Okay. Great. Sir, my follow-up question is, did we also do the same work some of these companies such as HFCL or ITI or like our scope of work is different?

No, it is same as those companies. We have presently did a BharatNet project, which is crafted by GFGNL in Gujarat, which you can see in '19, '20, '21 balance sheets -- in our balance sheets and financials that this is -- we considered it as an EPC project. So we did that, we did the implementation of 17,000 kilometers fiber link on the GFGNL connecting around 4,000 Gram Panchayats. So we successfully did that project in the stipulated time lines of 2 years and handed it over back to the GFGNL, and we are doing the operation and maintenance of that project currently.

Okay. Sir, we have also participated in the previous phases. So we -- so like will you do the same in Phase III and win some projects?

Yes, we are looking forward for that. We already have the capability and developed in the company and successfully, we did a big project. So yes, we are looking forward for that.

Okay. And sir, what is the quantum of orders expected, execution time and margin profile?

Right now, I can't disclose those because it is under the judicial matter. Once we will -- the judicial matter will be over and we will get the documents and all in hand then we will disclose it to [ bosses ] also and disclose it to the investor also.

Okay, sir, no problem. Sir, again, follow-up question on this. Besides BharatNet III, are there any other government initiative the company can participate in for project work? Like can you share some details on the opportunity front of this?

Yes, yes. We are looking forward for that, and we are applying for different government projects, and we are hopeful to get those.

Sir, my second question is based on your announcement and commentary, I'm aware you have launched initiatives on Cable TV side for new services. What explains rising ARPU on broadband side?

ARPU on the broadband side, yes, this quarter, if you see, we have -- it has gone up, and this is now at INR 465. That is mainly due to the demand from the customers for higher packages, which is going on. We are launching some of the higher packages at higher ARPU, and that is what the ARPU will be driven by. So if you see from last 8 quarters, we are between INR 440 to INR 460 in the ARPU. First time, we have gone up to INR 465. So we are looking forward that with the strategy of introducing higher speed packages and all and which the customer demand is there, we will increase our ARPUs.

A follow up on this, like if I calculate your value gain, which I'm assuming as ARPU gain INR 465 over INR 460, it comes close to 1.1%. And your volume gain in terms of subscriber count comes to around 3.7%. That is 10,42,000 subscribers versus 10,05,000 subscribers a year ago. if I broadly combine them, then your revenue from broadband should have increased approximately by 5%. But when I see your presentation, it is only a 2% growth in broadband ISP revenue. So can you help me walk through this difference, please?

So this INR 5 has happened over the quarter which is you have to average it out. So if you average it out this 5% increase, it will come to 2.5%. And because some of the subscriber base is there of the B2B subscriber base, where there is a lower ARPU on that whole basis, so that's why it is coming to around 2% on that basis. So if you see, there is no increase in subscriber base from last quarter. It is -- from 1,040, it is 1,042. So this quarter is a bit muted on the increase in the subscriber base. ARPU has gone up, but we have to take that ARPU at the average. So then it will come to 2%, 2.2%.

The next question comes from [ Yash Mathre ] from [ Cruise Capital ].

My first question will be, can you share some insights on the consumer app and the downloads reviews and initial responses from the public?

Yes. So the responses are very good. Actually, we have -- when we launched GTPL Buzz it is with the Live TV, plus we have introduced a Distro TV and the gaming Blacknut for gaming, all are together there, plus the general app for the complaints and maintenance and services and all. So it's more of like out of, you can say, the already downloaded app, which is converted into GTPL Buzz app now, which is somewhere around, you can say, more than 1 million subscriber base right now on those. Plus, we will see that when we launched the new app the overall, around 150,000 more download has happened in the past 3 months, 3 to 4 months time. So that's the thing we are seeing, and we are getting the good customer response, you can say, feedback on those, yes, this is a good app. And people are taking the gaming app also, Blacknut and around 6,000 subscriber base has come into the gaming right now from the last 4 months.

And also, sir, I understand the app is free right now. So what are our revenue channels? Can you just expand on that?

No, this is -- GTPL Buzz is more from the retention side. Revenue channel is more of what we launched the additional services of gaming, which is there. Distro TV is more or less free for our customers. And Live TV is free for our customers. Plus, all the services, complaint services and everything which was already there in the app, which is now in the enhanced mode. So this app is mainly for the retention side, which will make the customer sticky. Plus gaming app, gaming services is a small revenue, which you can say. But yes, there is a services available for the gaming now, which we are promoting to the customer, which we'll see that how the revenue happens on that -- with the time.

And I think my final question would be, sir, these costs that are associated with running the service, would they increase as the user base increases or what are the strategies that we have in place? Because as users increases, the costs are increasing, and we are not charging the users, I think that would affect our...

Now app running charges, maintenance charges -- no, no, app maintaining chargers are very, very less. It is more of that once you add around 0.5 million customers, then your cost increases on that basis. So right now, is it, you can say, 1.3 million downloads, which has happened, 1 million -- close to 1 million was already there for the old app also, which is converted into new app. So you can say from the last 3 months, we are seeing -- witnessing somewhere around 200,000 increase in the app side. So yes, when it will cross around 0.5 million, then some small costs will come up, but it's not very significant cost in maintaining these apps.

Sir, just 1 last question. As the company started bundling up of services, there is competition from Airtel Xtreme and Jio, which leaves us with very little room for pricing power, so how do we plan to operate in this segment? And what is -- what do we bring to the table, which is different from these companies?

Yes. So see, the 2 product that is going to be cable and entertainment and broadband that is going to be ours, others are going to be third party. You are right, taking the third-party app or third-party services, there is a very small room for that, which actually Airtel and Jio is also doing. Jio has their own app because of that. But overall, if they are doing the combining of other apps and all, that is the third party and there, the room is smaller. But the room comes in the how you are doing it for the entertainment and broadband. So we'll create the room over there on the pricing, and we have created. Like as you know, the DTH prices and our prices, cable prices are already -- there is a gap and DTH prices are higher than us. Same on the broadband, when we are fighting their lower is that 30 Mbps at our price, we are providing on those at 50 Mbps and 60 Mbps or 100 Mbps, which we manage in that way. So there, the room is there to fight with them on the pricing side on our own products.

[Operator Instructions] The next question comes from [ Sahil Vora ] from [ M&S Associates ].

My first question is, I saw the stock exchange regarding investment in a subsidiary for some INR 11 crores, INR 12 crores, so if the management may help provide with some rationale for the acquisition, since we are already holding 51% stake and the subsidiary numbers were already being considered in our consolidated results. So what exactly was the rationale behind making it a wholly owned subsidiary?

Yes, it's a wholly owned subsidiary because what we are doing is, as you know, that we are consolidating the subsidiaries and as you can say in the precedent that in 2021, we did the merger of 11 companies, demerger and merger, the same way we want to do and reduce the going forward number of subsidiaries and all which is at around 26 right now. And that's the endeavor to go ahead and do it. Here, what we are doing that there are outstanding, which is like pre-tariff outstanding and all. And through that, we are converting it into 51%. The cash flow outflow is almost nil in this whole transaction. But yes, the valuations and all are there for those companies which is already in that JV, if you see, joint venture, there are around 100,000 subscribers. So the valuation is there. But yes, there is outstanding and all which is getting converted, which will get converted on that. And the cash outflow is almost negligible in this transaction.

Okay. That helps. My next question is on the cable TV business. I wanted to understand that we, as distributors pass on price hikes by broadcasters to the customers. And I remember you had mentioned last year that certain broadcasters had increased channel prices leading to a blackout like situation for a couple of weeks in an extreme scenario. And recently, as per media articles, major Indian broadcasters, including JioStar, Sony Picture Networks India and Zee Entertainment have announced significant price increases ranging from about 10% to 18% effective February 1, 2025. So I just wanted to understand a couple of things. How long -- how exactly long does it take for us to pass on the price to the end consumer?

Right now, the prices and all has come in the first week of January. And we are busy in the board meeting and all. So already, we are assessing the whole situation that how to react on those and talk to our -- because broadcasters are also our partners, work like a partner. So how to talk to them and there they also wanted to talk to us that how they want to get -- to take the whole price and all those things to the consumer level and how to resolve this whole situation that the price hike has happened and how to take care of the consumer base and the whole industry side. So that has just started right now. We are still in the early stage of that. But yes, you are right, the price hike has been announced, and we have to tackle that at company level also, at the industry level also and at the consumer level also. So that is going on. We will be more clear in the coming days. and we look forward that we'll sit with our partners, and we'll see that how to resolve this.

Sir, on the impact at the consumer level, do you foresee some impact of this on subscriber count coming under pressure?

See, the -- seeing in the situation of the industry right now, we have to assess that whether any price hike, the consumer or the -- at the ground level, the price hike can be observed or not. So that assessment has to come. And we have to see because -- once you go for the price hike, the likely situation is that churn will happen in the consumer base or whether the situation is like that because -- but yes, that some price hike can be observed by the ground by the consumer or not. So those assessments are still we have to do. It is going on. And appropriate decisions will be made in the coming months, in the coming time on this.

And sir, lastly, on the financial side, what do you think the impact it would have on our company financials, like will quantum of pay channel cost increase be higher than the revenue we earn from placement, carriage and marketing side?

See, if the pay channel cost is going high and if we are increasing the price also that is going to be accretive to my whole balance sheet and whole P&L, but yes, we have to see the ground situation, the industrial situation at this point of time, that whether those price hikes can be observed by them or not. So we have to do the assessment. Yes, on the -- theoretically, this price hike happened by the broadcaster and we can successfully pass that to the ground, then it will be going to be accretive to my P&L and balance sheet.

The next question comes from [ Ram Bhat ] from [ Acharya Diplomacy Investments ].

Sir, I just have 2 questions. Sir, on earlier calls, it was mentioned that price hikes by telecom companies for wireless data packages would lead to customers shifting their preferences to wired broadband. So sir, what updates are you seeing towards that front? Have business inquiries increased? And how is the company capitalized on the same?

Yes. So you're right on that, that happened in the -- we have seen that happened in the second quarter, if you see that the price hike has been announced. And suddenly, we have seen that people are shifting to wireline from wireless and inquiries we have made. But yes, it was muted in this quarter, you can say from -- you can see, from Diwali onwards, it is a bit muted. And we are looking forward that more price hike if it is announced as the telecom, then again, you will see that we are shifting from wireless to wired. But yes, I think still the data cost at the telecom side is still at a suitable way right now. We have to see that more price hike happens on those. So yes, there is a -- you can say, we have seen for 1 quarter that effect and then it is a muted response.

And sir, 1 more question. Sir, the trend of your subscription income growth since the past 2 results...

Sorry to interrupt. Ram, sir, your voice was not clear at the initial. Could you please repeat the question once again?

Yes. So sir, when I look at the trend of your subscription income growth since the past 2 results, it has decreased both year-on-year and sequential during Q2 results and again in Q3 results. So what explains this decrease despite the rising subscriber base?

Yes. So see, August to October month was unprecedented for the industry, where we have seen that there is no major events. The major events have completed and the extended rain and flood, which hampered the customer addition and retention as well. We have witnessed high churn during this period and lower customer addition. And you can see that last quarter, we have resulted in customer decline. So we have started recovering after Diwali and mainly in November and December month and we will see that number has increased, gone up by 200,000, again, back to square, but the increase in revenue of this 200,000, the full revenue increase will be witnessed in next quarter only. So we have seen that there is a decline in there and also, we -- because we lost customers in established and matured markets, and we are gaining customers from new markets, which will have effect in the lower blended ARPUs because in the new market, when we are growing, we are growing at a lower ARPU, a bit lower ARPU, and they are using the established market, the high ARPU customer Those are the effects which is happening. But we are hopeful that the coming quarter is going to be positive and we will quickly recover the decline, because major cricketing events are there, elections are lined up in quarter 4 FY '25. And we will start gaining the whole revenue of these customers, which we added in quarter 3, which we added mainly in December. So those are the bright signs which we are looking forward, and we are hopeful that, again, we will be at the same revenue level. It has not gone much if you see on the 9 months to 9 months, it is just the INR 11 crores, which we are down right now, and that is because of quarter 2 and quarter 3 effect, which we are hopeful that we can try to recover in quarter 4.

And sir, just 1 follow-up. It was good to note that quarter-on-quarter rise of the customer count in cable has increased. Can you then guide on what year-end FY '25 and for FY '26, your subscriber count should look like in both businesses?

See, FY '25 and FY '26 and '27, I will say next year financial year as we are going to change the delivery technology, which we have going on. I will talk about that in quarter 4, much on the quarter 4 as we are changing it from the fiber to satellite, which we are doing right, header in the Sky. But I will talk about the Header in the Sky in the next quarter and how it is going to give us the company the access to the whole -- all over India, what is going to be main targets on that, how we are going to increase our subscriber base, how it is going to do affect our costing and what's the positive impact will happen on that. I will give -- going to give you in the quarter 4, we are planning to launch that in FY '26 this Header in the Sky. And it is going to be very, very positive for the company.

[Operator Instructions] Our next question comes from [ Rahul Jain ], individual investor.

Sir, can you share a breakup of broadband subscribers addition from B2C and B2B of the current 37,000 new additions?

Yes. it is on 37,000 Y-o-Y basis, we can say that B2B is around 22,000 to 23,000 and rest is B2C. So more is coming from -- 60% is coming from B2B right now on that basis. B2C is a bit muted on that basis.

So it's a follow-up is, how is the B2B tie-up progressing for broadband?

Yes. B2B is a going book. We have more than 100,000 now in the B2B and mainly you can say that a lot of pipelines are there in the B2B side, and the market is quite open, as you know, mainly B2C we are doing in Gujarat market and some of the specific cities, but B2B, we are doing all over India except from the Gujarat and those specific cities. So the market is open and there is a lot of inquiries and all that. But yes, if we are doing the broadband, as I said earlier in my calls also, we have to see B2C the technology compatibility in that way, and that yes, fibers are compatible and we can put the equipment the last miler compatibles and all. So a bit more time takes in the technical evaluation and integration of those. But yes, a lot of inquiries are there, and we are progressing well. As you can see that in the last 7 to 8 months, we are already more than 100,000. And this year is good for B2B on that basis that this year also already we have made this more than 100,000-plus. So we are looking forward that this business will start taking off in a better pace from next financial year as we have to put more people in this sector, in this segment and going -- and we'll go aggressive on that.

Okay, sir. Sir, 1 more follow-up on that. Like TRAI data shows that while it's still nascent adoption of the wireline broadband is increasing with the top 5 players, all increasing sub counts despite the varying reasons in their wireless subscriber count. This also aligns with what the guidance has been. However, I have been expecting faster growth on the broadband side, given you are also now actively focusing on B2B, when I compare your net additions, even on an absolute basis, the trend has been growing sequentially like 15,000 new subscribers -- new subscriber increase sequentially in Q4 FY '24, 10,000 each in Q1 FY '25 and Q2 FY '25 and now 2,000 in Q3 FY '25. Are you facing more competition or have some dynamics shifted in the market?

No. It's more of -- see, if you talk about the tacos, mainly Jio and Airtel, they have gone mainly into the B2C market. And they are investing and going for all over India as a market. We -- the B2C, we are not going for the all over India. And when you are doing B2B then you have to be dependent upon the equipment and all from your partner side. In B2C, we are doing your own investment because the customer acquisition cost is high. If I talk about our customer acquisition cost it's like INR 5,000 for 1 customer in B2C and in the B2B, that comes down to INR 1,200 to INR 1,500 only. So that's the way of investment, you have to see that because you want to go ahead and do those investments and all. Yes, on the industry side, you can say, yes, wired broadband industry, from last 4 years, you can say from 20 million, 22 million it has gone up to more than 44 million, 45 million now. And the main gainer here is your Jio and Airtel, which is now at 48 million. We have gained, but we have gained from 600,000 to 700,000 to 1 million, and now we are muted on that way because we are just in 1 state, which we are doing right now the B2C mainly and those -- that state is not providing that opportunity of growth right now. But yes, B2B, we are growing, and we are seeing that with B2B, if we -- if possible, we will start doing the B2C also in different markets. But right now, we are focus is on B2B. And here also, we have to -- as now in last 8 to 9 months, we have developed that how to make it a bit faster, the whole thing, which we are looking forward that we will start seeing some good customer addition from [indiscernible].

Sir, like, from what I could have now observed, I had a subscription income stayed same as Q2 FY '25 that would have meant that at least at the EBITDA level, we would have been only marginally down year-on-year. However, if the CFO can help me with this, like why has the interest cost shown a sudden jump sequentially. It is largely the higher interest cost that aggravates my movement from EBITDA down to PAT. So if some clarity can be provided on that?

Yes. Saurav here. Interest cost has gone up primarily because of 2 reasons. One is that the overdraft utilization has been on the higher side for the past few months. In terms of utilization, overdraft facilities are usually taken from the banks for these purposes that whenever there's an outflow which is required to be done in terms of trade payables and all. The utilization is on the higher side. And again, it takes us down towards the end of the fourth quarter. So this is 1 of the reasons. Whenever there is a higher utilization the interest cost naturally will start going up on a temporary basis. The other reason is that we are investing in the hits project, as you might be aware. And for that, we have taken some borrowings from the banks especially to cater to the HITS project. So these are in the nature of term loans. And again, when we utilize those term loans to ensure that the HITS project is moving on the right track. So until the time it goes live, there will be this interest cost attributed to the HITS project. So these are the 2 reasons why the finance cost is showing a slightly, I would say, a higher trend than what it was earlier.

Sir, just wanted to know like what's your debt profile currently? Like earlier, you used to be net debt negative, and it seems like the debt levels are increasing slowly?

Yes. As I said that the debt levels have increased because of the project costs that we are investing in, particularly the HITS. But if we were to take away those project-related borrowings then it's just the OD utilization, which will move up and down during the year. So effectively, for the core business activities, there is hardly any new debt on the book. It is mostly attributable to project costs.

So that's the loan for the new project, Header in the Sky, this is for the short term, you can say, which once we will launch the Header in the Sky and due to the saving of operational costs and all and which is already there, we are going to pay back this loan and reduce again the whole loan. Right now, if we talk about the net debt basis, hardly, it's around, you can say, the debt is -- on the net debt side, the debt is hardly around INR 15 crores more in the whole scenario in the bank, that's why we have not stated this quarter that we are net debt 0 or net debt negative right now. But yes, this company will again become net debt negative by, you can say, somewhere September or December '26.

True. And in any case, these are term loans. So it's like an EMI kind of a situation with the bank. So there's a repayment which keeps on happening every month. So when we utilize the term loan and then the repayment start immediately over a period of time, let's say, 12 months, a substantial part of the term loan will get anyways repaid.

The next question comes from Saket Kapoor from Kapoor Company.

Sir, you were mentioning about this, HITS and the Sky project. So if you could just dwell more into what -- how much have we spent, how much has been the CapEx on the HITS project? And if you could just elaborate the benefits, how are you going to -- what -- in terms of efficiency also, if you could just explain the same?

Saket, that's what I said earlier that we'll disclosed this whole thing on the next quarter, the whole project that what is the -- what we listed in that, the project cost and all and what is going to be the benefit for the whole company and what are the savings which we are going to do. Yes, it is like a very exciting one because you will see that there is a lot of savings on the delivery side. And the expansion of market will happen because we are available in the nook and corner of the country segment now, so yes, there is going to be exciting time after this. But yes, all the details, we're going to disclose in the next quarter.

And -- and we have already spent money on the project, sir, or we are -- we will be doing it and then first elaborating the same and then the CapEx...

Yes, we are spending it. Already, you can say that the project is around 80% completed on the CapEx side. And we are just looking forward that by next -- by this quarter the whole project will be completed and we will be ready to launch.

And how much have we spent, sir?

That I'll give you on the next quarter. I'll give you in the next quarter the whole project, whatever project cost and all. But yes, you can say that already we are spending that and those are in these financials also. But before that, we are absorbing all the CapEx in the current business only.

Sir, since you have already mentioned that going ahead, we would be able to connect the nook and corner of the country and that is clearly hinting towards the satellite part of the story that even Starlink is trying and the government is also coming up with more clarification on how one can participate in those auctioning and all, I think there's something related to that. So if you could just give an understanding, sir, then what would the amount of money that we have to spend on laying down on fiber, how will that supplement -- that would be a supplement to the CapEx that we have done? It will be supplementing the previous CapEx?

Yes. It will be supplementary on that basis that whatever we have done the investment in our -- our investment in the fiber, plus we are going -- Header in the Sky is different from what the Starlink are now doing, but Starlink is on the broadband side, they are doing on the satellite broadband. We are not into the satellite broadband. This is a traditional way of taking the TV signals to the homes and to the operator Header in the Sky technology. And so yes, by going into the satellite, my signals are going to be available in every nook and corner of the country. And that is going to give me the advantage over others and we can exploit that in a positive way and expand our business very quickly. So yes, we'll give you all the details in the next quarter, let's wait. I'm not giving you the details because still the CapEx are happening and all. And still we are waiting for the clearance from some of the departments from the government, which we have already applied for, looking forward for the license obligations to be completed, the license which is going to be granted by the Ministry of Information and Broadcast. Those obligations are still some are building, which we are taking right now. So that's why we wanted to give you all the details in the next quarter.

Sir, when we look at the wired broadband part of the story and the home passes for the wired broadband, it is the OFC that is the bedrock for the transmission of signal. And for the home passes, the fiber to home, it is the structured cables. Are these things segregated and correct, sir?

Yes, yes, you're right in that way because right now, cable and broadband, we can go through the same fiber. But yes, you have to put the active instruments, active devices on that for the broadband. But yes, you're right, that broadband will continue to go in the fiber, but that will be because the bandwidth requirement for the B2B business are smaller you can do at a very less cost on that basis. But if you are doing the cable, it is that costs are higher on that way in the fiber. So you have to see on that basis. Yes, those business will do, we are going to give the combined services combo packages and everything that is what we are doing right now, but we continue with the HITS and the -- all those things, so that is not a problem on that side.

And sir, can you give the CapEx number or how much have we spent on -- the recurring CapEx for both OFC and structured cable for the period ending December?

Yes. So CapEx -- yes, so total CapEx, as we have given that for the annual CapEx we are going to do the INR 360 crores, out of that, we did INR 265 crores right now. TV side, we did -- cable TV side, we did INR 160 crores and the broadband side, we did INR 95 crores till 9 months, 31 December 2024. So that's the figures.

Okay, INR 360 crores is the total figure and out of that INR 265 crores have been spent.

That's right. INR 265 crores has been spent out of INR 360 crores.

Okay. And out of this INR 265 crores, sir, cable [Foreign Language]?

Cable, you can say because mainly in the CATV, the main CapEx happens for the -- it's set of boxes, so out of INR 160 crores, you can say around 90% is under cable boxes. The rest is on the fiber and all.

Sir, going ahead, we are going to see this OFC structured cable and the technology which you are speaking for which you will be getting the approval, complementing each other and then creating an entire ecosystem for how broadband and this -- the Cable TV business model will work like. This is what should be the good understanding?

Yes, you are right. And this will give us the opportunity to penetrate into the rural side also, in the rural India.

Okay. But the backbone for communication is fiber, and that is going to be there, whatever new technology also become -- it will going to be transmitted through this bedrock of fibers only. That understanding is correct? Or we are getting any technological change?

Broadband is going to be on the fiber, cable is going to be in the satellite and both are merging at the customer level.

And sir, data centers [Foreign Language] and a lot of money is also being poured into creating that infrastructure. So in this ecosystem, have we found out any business opportunity? How can we create or being an ancillary or proxy to this segment or it is altogether a different experience for us?

We have the enterprise segment, which we described that we are doing the BharatNet projects, we did the BharatNet projects, and we are hopeful to do more projects. And one of the segment was data centers also, which we are exploring -- our team are exploring. And we are in a very positive manner we are exploring that, and we are looking forward to expand that. Already, we have those capabilities. We are trying to get the projects from those also.

BharatNet III, sir, just concluded, so what -- have we got any -- any of our bids have commensurated into any order or any update on how we will participate in...

I updated in the call also that we will update you because it's a judicial matter right now, under judicial. We are waiting for that to complete and then we'll announce anything.

Whatever has concluded, we have -- somebody has challenged that. That is the reason why you are not speaking.

Yes, yes. We are looking forward for the judicial thing to complete, then we will announce anything. Yes, you're right.

[Operator Instructions] As there are no further questions from the participants, I now hand the conference over to the management for closing comments.

Thanks. 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 adviser. Thank you, and have a good day.

Thank you.

Thank you. On behalf of Emkay Global Financial Services, that concludes this conference. Thank you for joining us. You may now disconnect your lines.