Published on 10/07/2018 2:49:11 PM | Source: Motilal Oswal Securities Ltd

Buy Dish TV India Ltd For Target Rs.95.00 - Motilal Oswal

Adj. EBITDA rises 21% QoQ to INR5.6b (27% beat)

*  Revenue grew 8% QoQ to INR16.6b (7% beat), mainly on the back of subscription revenue growth.

*  Subscription revenue increased 8% QoQ to INR14.9b (5% beat), led by healthy net subscribers adds and strong QoQ ARPU growth.

*  ARPU rose 6.5% QoQ to INR214, led by lower discounts and higher HD subs adds (44% of incremental subs adds).

*  Net subscriber base grew 0.3m QoQ to 23.3m, with HD subs base reaching 3.9m (17% of the net subs).

*  EBITDA rose robustly by 39% QoQ to INR5.6b (27% beat), mainly led by revenue growth coupled with 3% QoQ savings in opex. In 1QFY19, SGA expenses fell 20% QoQ, while employee cost was down 14% QoQ.

*  Adjusted EBITDA (excluding merger one-off expenses of INR0.6b in 4QFY18), surged 21% QoQ.

*  EBITDA margin expanded 750bp QoQ to 33.6%; adj. EBITDA margin was up 360bp QoQ.

*  Finance cost rose 34% QoQ to INR1.8b.

*  Adj.* PAT stood at INR0.3b v/s -INR0.3b in 4QFY18, driven by EBITDA growth, partly offset by depreciation and interest cost.

*Adjusted for INR1.47b deferred tax gain in 4QFY18.

At CMP of INR73, the stock trades at EV/EBITDA of 7x on FY19E and 5.4x on FY20E.

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