Ortel logs Rs 2.4 cr net profit, total income up 25% in Apr-June

Firm attributes growth to cable TV and broadband businesses, supported by momentum in infrastructure leasing segment

Ortel Communications Ltd (Ortel), a leading cable television and high speed broadband services provider, has recorded a net profit of Rs 2.4 crore for the quarter ended June 2015 as against loss of Rs 1.2 crore posted in the year-ago period.

Its total income rose 25 per cent from Rs 34.6 crore to Rs 43.1 crore in the same period
 

 

"We have begun the year on a healthy note with 25 per cent increase in revenues and 44 per cent improvement in EBITDA (earnings before interest, taxes, depreciation and amortisation) during the April-June quarter of FY16. EBITDA margins enhanced to 37 per cent from 32 per cent in Q1 of FY15 and Profit After Tax (PAT) stood strong at Rs 2.4 crore compared to Rs 5.6 crore reported in FY15. Thus, the trend remains encouraging. Overall growth was delivered on the back of steady contribution from cable TV and broadband segments supported by continued momentum in the infrastructure leasing segment. Significant growth in subscriber base, deeper penetration, enhanced product offerings and a strong team, should enable us to notably improve our performance going forward", said Bibhu Prasad Rath, president & chief operating officer at Ortel Communications.

 

 

"Over and above the 542,217 RGUs (revenue generating units) as on June 30, 2015, we have signed buyout agreements with multiple LCOs (local cable operators) with total estimated RGUs of 33,000 which would be integrated into Ortel's last mile network going forward. So, we remain on track and are confident of achieving our target of one million RGUs by March 2017 backed by our LCO buy out strategy and focus on organic growth both in broadband and cable TV", he added.

In the April-June period of 2015-16, Ortel's digital cable TV penetration improved to 23.6 per cent from 16.1 per cent in the corresponding period of last fiscal. It introduced free broadband option for all subscribers in Odisha, West Bengal and Chhattisgarh as a complimentary special value added service.