NXTDIGITAL Limited, the media vertical of the global Hinduja Group and India’s premier integrated digital distribution platform, delivering services through digital cable television, HITS (Headend-In-The-Sky) and Broadband; continued to leverage innovation and strategy to combat the challenges of the second wave – posting strong results for the quarter ending 30th June 2021.
- On a consolidated basis, the Company’s revenues grew by 13.5% in the first quarter of the current financial year 2021-22 to Rs 266.6 crores against revenues of Rs 234.8 crores during the same period in the previous
- The Earnings Before Interest, Depreciation & Taxes (EBIDTA) was at Rs 3 crores in the first quarter of the current financial year as against Rs 50.4 crores for the same period in the previous year.
- Despite the first quarter of every year being a stabilizing quarter and despite the pandemic effect, the Profit/(Loss) after tax during the first quarter of the current year improved to Rs (28.9) Crores from Rs (30.0) Crores during the same period in the previous
- The Company has signed up several prestigious contracts in both, the video and broadband segments of its business, which projects got delayed due to the second wave. These are temporary blips which the Company expects to overcome once the above projects and its infrastructure sharing business start going on-stream in the second and third quarters.
- The broadband business continued to grow, touching 677,000 subscribers – registering a 93% growth over Q1 of FY21.
- With respect to the proposed Rights Issue, the Company has filed the Draft Letter of Offer with SEBI and the Stock exchanges on 2nd August 2021.
Financial Results
NXTDIGITAL Limited posted healthy results for the first quarter of FY22 against the headwinds of the second wave of the COVID-19 pandemic. On a consolidated basis the Company’s revenues grew by 13.5 % in the first quarter of the current financial year 2021-22 to Rs 266.6 crores against revenues of Rs 234.8 crores during the same period in the previous year.
The Earnings Before Interest, Depreciation & Taxes (EBIDTA) was at Rs 51.3 crores in the first quarter of the current financial year as against Rs 50.4 crores for the same period in the previous year.
Despite the first quarter of every year being a stabilizing quarter and despite the second wave effect, the Profit/(Loss) after tax during the first quarter of the current year improved to Rs (28.9) Crores from Rs (30.0) Crores during the same period in the previous year.
The Company has signed up some prestigious contracts in both, the video and broadband segments of its business, which projects have got delayed due to the second wave. The Company looks at this as a temporary phenomenon.
In line with the general trend across industries and more specifically in the media and entertainment space, the Company saw a decline in revenues in the current quarter to Rs 266.6 Crores vis-a-vis Rs
277.9 crores in Q4 of the previous financial year. This decline in revenue has also reflected in the decline in EBIDTA and the Profit After Tax. These are temporary blips which the Company expects to overcome once the above projects and its Infrastructure sharing business start going on-stream in the second and third quarters.
With respect to the proposed Rights Issue approved by the Board of Directors at its meeting held on 13th May 2021, the Company has filed the Draft Letter of Offer with SEBI and the Stock exchanges on 2nd August 2021 and is in the process of clearance.
Growth Drivers in Q2
One of the growth drivers will be its infrastructure sharing PaaS or Platform-as-a-Service offering which was delayed due to the second wave. As the lockdown eases, NXT is looking to implement the service for its anchor customer, Siti Networks Ltd., one of India’s largest Multi System Operators. NXT expects to start clocking revenues from its infrastructure sharing business during Q2 of the current fiscal.
Besides continuing to drive its broadband proliferation, another key driver will be expanding the current coverage of the HITS platform to at least another 100 towns – through a unique networking model of setting up advanced digital “owned and operated” NXTHUBs.
Each future-ready NXTHUB is equipped with the latest technology comprising an ADDS or Advanced Digital Distribution System – to distribute video signals and broadband to Last Mile Owners (LMOs) and their customers; as well as other digital services in future.
The model eliminates the need for LMOs to invest in related headend technology whilst having access to these points of presence across the country. The first NXTHUB will go “live” in Ranchi by end August with another 10 sites shortly thereafter.
Vynsley Fernandes, MD & CEO at NXTDIGITAL Limited, said “The Q1 performance exhibits the company’s agility and reflexes – being able to innovate and maintain its momentum through a quarter impacted by the second wave. With the situation easing up, we are confident that implementation of our PaaS platform and the roll-out of our 100 NXTHUB project will see traction.
“Whilst we look to commence our infra sharing model with Siti Networks and then extend it to other MSOs, our 100 NXTHUB launch later this month from Ranchi and then on to other geographies, will continue to keep us well on the growth track,” Fernandes said.