Ortel Q2 net zooms 133% to Rs 2.8 cr

Firm's topline up 18.2% to Rs 48.2 cr; Performance driven by healthy addition in RGUs, which stood at 571,834

Ortel Communications' net profit for the quarter ended September 30 rose 133 per cent, aided by strong growth in customer base and robust margin in broadband business.

The net profit of the cable television and broadband service provider moved up to Rs 2.8 crore from Rs 1.2 crore recorded in the year-ago period.

Ortel's topline also grew 18.2 per cent from Rs 40.8 crore to Rs 48.2 crore in the same period. Its EBITDA (earnings before interest, taxes, depreciation and amortisation) increased from Rs 13.4 crore to Rs 17.3 crore, registering a growth of 29.1 per cent.

"I am glad to report a strong operational and financial performance for the quarter ended September 30, 2015. Performance during the quarter was driven by healthy addition in RGUs (revenue generating units) which stood at 571,834. We are witnessing encouraging traction to our LCO (local cable operators) buyout strategy in emerging markets like Andhra Pradesh and Chhattisgarh, and I am confident that this would sustain", said Bibhu Prasad Rath, president and chief executive officer, Ortel Communications.

"Going forward, we would continue with our strategy of aggressive LCO buyouts across all our markets and diligently integrate the new subscribers into Ortel's last mile network. Healthy contribution from new RGUs along with ongoing focus on the high margin broadband business would enable us to deliver strong financial performance in the forthcoming years", he added.

During the July-September quarter, Ortel's RGU growth stood at 29.617 compared to 12,106 in the April-June quarter. It added 41,723 subscribers in the April-September period of this fiscal.

The company signed network buy out agreements with multiple LCOs during the April-September period and 65,000 RGUs are in the pipeline to be integrated into its company's last mile network

More than 50 per cent of the new buyouts in the last two quarters have come from the emerging markets like Andhra Pradesh, Chhattisgarh, West Bengal & Madhya Pradesh.

Credit rating agency ICRA has upgraded the debt rating of the company's term loans, fund based limits and unallocated Limits to BB from BB-.