Hathway, Den Networks rally upto 20% after strong Q2 results by Hathway

Hathway Cable & Datacom has locked in upper circuit of 20% at Rs 38.25, while Den Networks was up 8% to Rs 91 on the BSE

Shares of cable service providers such as Hathway Cable & Datacom Limited (Hathway), Den Networks, Siti Networks and Dish TV India rallied by up to 20% after Hathway reported good set of numbers for the quarter ending September 2017 (Q2FY18).

Hathway had posted 50% quarter on quarter (QoQ) growth in standalone net profit before exceptional item at Rs 15.3 crore in Q2FY18 against Rs 10.2 crore in June quarter (Q1FY18). Ebitda (earnings before interest, tax, depreciation and amortization) margin improved 600 bps QoQ at 44% in Q1FY18 from 38% in Q1FY18.

“Minimum data limits across country increased to 200 GB/consumer/month. 45% of our consumers have monthly data limits of 1,000 GB. Average GB/consumer/month has increased to 98 GB in month of October, strong indicator of demand side potential of high speed wire line broadband,” Hathway said in an investor presentation.

The cable television business of the company was transferred by way of slump sale to Hathway Digital Private Limited, a wholly owned subsidiary with effective from March 31, 2017.

Hathway promoted by Raheja Group, is one of the largest multi system operator (MSO) & cable broadband service providers in India today.

Hathway has locked in upper circuit of 20% at Rs 38.25 on the BSE with only buyers were seen on the counter. Till 11:16 AM; a combined 748,721 shares changed hands and there were pending buy orders for 557,714 shares on the NSE and BSE.

Among the other individual stocks, Den Networks has surged 8% to Rs 91, followed by Siti Networks (up 5% at Rs 26) and Dish TV India (up 2% at Rs 77) on the BSE. On comparison, the benchmark S&P BSE Sensex was up 0.23% at 33,651 points.