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Tag: Ortel Communications

  • IBF, NBA, MSO Alliance get more representation in DAS Task Force

    IBF, NBA, MSO Alliance get more representation in DAS Task Force

    NEW DELHI: New members have been taken on board of the Task Force for Digital Addressable System (DAS) Phases III and IV headed by the Additional Secretary in the Information and Broadcasting Ministry.

     

    These include one additional member each from Indian Broadcasting Foundation (IBF), and News Broadcasters Association (NBA).

     

    In addition, the new members include Noida Technology Software Park as members representing HITS operator; Ortel Communications; and a representative each from four national MSOs – Den, Siticable, Hathway and IMCL – who were also members of the MSO Alliance; and the All India Digital Cable Federation.

     

    The Government on 12 September last year had reconstituted the Task Force. This followed a revision of deadlines for the two final phases of DAS.

     

    The other members of the Task Force are Telecom Regulatory Authority of India (TRAI) principal advisor for broadcast and cable satellite, I&B Ministry joint secretary (Broadcasting), one other representative from the MSO Alliance, five independent MSOs one each from north, south, east, west and north east regions, five registered LCO associations one each from north, south, east, west and north east regions, representatives from the Indian Broadcasting Foundation, News Broadcasters Association, Association of Regional Television Broadcasters of India, DTH Association, FICCI, CII, ASSOCHAM, CEAMA, Department of Telecommunications, Department of Electronics and Information Technology, DG: Doordarshan, DG: All India Radio, BECIL, BIS, five prominent consumer organisations one each from north, south, east, west and north east regions and 33 state level nodal officers one each from the states/union territories governments.

     

    The task force is aimed to act as an interface between the government and the industry in matters related to implementation of DAS in the cable TV sector and monitor the implementation of DAS. It also will have to analyze the roadblocks that may come in the way of digitization and suggest measures. 

  • Ortel reports respectable maiden numbers for FY-2015 & Q4-2015

    Ortel reports respectable maiden numbers for FY-2015 & Q4-2015

    BENGALURU: At the time of its IPO earlier in March 2015, Ortel Communications had to withdraw a part of the promoter’s quota to prevent undersubscription. In its maiden financial numbers, Ortel reported fairly respectable numbers for FY-2015 as well as Q4-2015 and hence justified the faith that investors put in it. The company was listed on 19 March, 2015.

     

    For FY-2015, Ortel reported total income from operations (TIO) of Rs 154.79 crore for FY-2015, 20.5 per cent more than the Rs 128.50 crore in the preceding financial year. The company reported a profit after tax (PAT) of Rs 5.65 crore in FY-2015 as compared to a loss of Rs 11.28 crore in FY-2014.

     

    Notes: 100,00,000 = 100 lakh = 10 million = 1 crore

    The numbers mentioned in this report are standalone.

     

    Cable subscription fees in FY-2015 grew four per cent to Rs 79 crore from Rs 75.7 crore in FY-2014, while internet subscription fees grew five per cent to Rs 27 crore from Rs 25.8 crore in FY-2014.

     

    In Q4-2015, the company’s TIO at Rs 44.91 crore was a healthy 34.4 per cent more than the Rs 33.41 crore in the corresponding quarter of last year and 13.9 per cent more than the Rs 39.44 crore in Q3-2015. The company reported a PAT of Rs 5.65 crore in Q4-2015, as compared to a loss of Rs 1.23 crore in Q4-2014 and more than 20 times (20.64 times) the PAT for Q3-2014 which was reported as Rs 0.27 crore.

     

    Revenue generating units (RGU)

     

    Two main segments add to the company’s numbers – Cable TV and Broadband, with a big chunk of numbers also being added by unallocated segments.

     

    Ortel reported total RGUs of 530,111 in FY-2015 as compared to 515,835 in FY-2014 and 486,255 in FY-2013. Of these, total cable RGUs in FY-2015 were 471,592, in FY-2014 they were 461,408, and in FY-2013 they were 435,628.

     

    Correspondingly, Broadband RGUs were 58,519 in FY-2015, 54,427 in FY-2014 and 50,627 in FY-2013.

     

     

    Cable TV segment

     

    In FY-2015, Cable TV segment reported 11.5 per cent growth in revenue from Rs 97.35 crores in the previous year to Rs 108.52 crore in FY-2015. Cable TV segment reported 12.1 per cent growth in operating profit to Rs 49.32 crore in FY-2015 from Rs 43.98 crore in FY-2014.

     

    Within this segment, besides subscription fees, cable connection fees grew 161 per cent to Rs 3.1 crore in FY-2015 from Rs 1.2 crore in FY-2014. Channel carriage fees grew 29 per cent in FY-2015 to Rs 26.4 crore from Rs 20.5 crore from FY-2014.

     

    Cable TV reported 9.7 per cent y-o-y growth in revenue to Rs 27.87 crore from Rs 25.41 crore in Q4-2014 and 2.2 per cent growth from Rs 27.27 crore in Q3-2015. The segment reported more than triple the operating profits in Q4-2015 at Rs 11.21 crore as compared to the Rs 3.61 crore in the corresponding quarter of last year and 8.3 per cent more than the Rs 10.36 crore in Q3-2015.

     

    Broadband segment

     

    Broadband segment revenue grew 5.2 per cent during the corresponding period to Rs 28.89 crore in FY-2015 from Rs 27.47 crore in FY-2014. Operating profit from Broadband segment grew a healthy 43.3 per cent to Rs 20.89 crore from Rs 14.57 crore in FY-2014. Within this segment, internet connection fees grew 12 per cent in the current year to Rs 1.9 crore from Rs 1.7 crore in FY-2014.

     

    Broadband segment reported revenue of Rs 7.44 crore in Q4-2015, which was 5.9 per cent more than the Rs 7.02 crore in Q4-2014 and 4.5 per cent more than the Rs 7.12 crore in Q3-2015. The segment reported almost eight times (7.61 times) operating result of Rs 7.95 crore in Q4-2015 as compared to the Rs 1.04 crore in Q4-2014 and 68.9 per cent more than the Rs4.71 crore in the immediate trailing quarter.

     

    Unallocated

     

    Revenue from unallocated segment grew almost four fold (3.73 times) to Rs 17.38 crore in the current year from Rs 3.67 crore in FY-2014. Operating profit credited to unallocated segment grew 3.7 per cent from Rs 3.07 crore in FY-2014 to Rs 3.19 crore in FY-2015.

     

    In Q4-2015, revenue from unallocated revenue grew almost tenfold (9.79 times) to Rs 9.61 crore from Rs 0.98 crore in Q4-2014 and 90.1 per cent more than the Rs 5.06 crore in Q3-2015. Unallocated operating profit grew 4.2 per cent in Q5-2015 to Rs 0.81 crore from Rs 0.78 crore in Q4-2014 and grew 2.8 per cent from Rs 0.79 crore in Q3-2015.

     

    Average revenue per user (ARPU)

     

    The company has reported a slight reduction in average revenue per user (ARPU) in all cases when compared to the previous year, except for digital cable. Analog TV ARPU in FY-2014 was 145 per month as compared to Rs 147 in FY-2014 and Rs 136 in FY-2013.

     

    Digital TV ARPU in FY-2015 was Rs 186 as compared to Rs 177 in FY-2014 and Rs 157 in FY-2013.

     

    Retail broadband ARPU stood at Rs 356 in FY-2015 as compared to Rs 373 in both FY-2014 and FY-2013. Corporate broadband ARPU had the highest fall. In FY-2015, corporate broadband ARPU was Rs 2851 as compared to Rs 3487 in FY-2014 and Rs 3998 in FY-2013. Data usage per month has gone up relatively, hence indicating lowering of charges for data – in FY-2015, it was 3143 MB, in FY-2014 it was 3126 MB and in FY-2013 it was 2666 MB.

     

    Ortel President and CEO Bibhu Prasad Rath said, “I am pleased to report that the company delivered healthy performance during the quarter and full year on the back of growth in Revenue Generating Units (RGUs) in Cable and Broadband businesses and robust contribution from Infrastructure Leasing segment. Our EBITDA margins stood strong at 37 per cent in FY-2015 as compared to 31 per cent in FY-2014. We anticipate further improvement in margins going forward as a result of deeper penetration in the Cable business along with our continued focus on the high-margin Broadband segment. Ortel Communications’ Direct-to-Consumer offering with full control over the ‘last mile’ network has enabled us to emerge as a dominant regional player in the cable TV and broadband business. With increasing penetration in our core and emerging markets along with the inorganic LCO (Local Cable Operator) buy out strategy, we believe we are well-positioned to achieve our immediate target of ~1 million RGUs by the end of FY-2017. I am also proud to share that we successfully concluded the Initial Public Offering (IPO) of the company by raising Rs 108.6 crore during the quarter. The capital infusion will also enable us to accelerate growth and deliver much stronger financial and operational performance in the coming years.”

     

    Click here to read the investor presentation

  • Sun to resume distribution of Ortel signals in Vishakapatnam; subject to payment clearance

    Sun to resume distribution of Ortel signals in Vishakapatnam; subject to payment clearance

    NEW DELHI: Sun Distribution Services Pvt. Ltd has been directed to resume the supply of its signals to Ortel Communications Ltd and will also execute the interconnect agreement within one week from that date.

     

    Telecom Disputes Settlement and Arbitration Tribunal (TDSAT) chairman Justice Aftab Alam and member Kuldip Singh also held that Ortel will pay to Sun the payment of Rs 33,89,910 plus Rs 4,22,976 within 24 hours.

     

    In addition to the payments, Ortel will also give to Sun the certificate showing the deduction of taxes.

     

    However, TDSAT made it clear that the payment of Rs 4,22,976 will be subject to the Tribunal’s decision on the Telecom Regulatory Authority of India’s tariff order relating to inflationary increase, which is currently pending hearing before TDSAT.

     

    Based on a table presented to the Tribunal by Ortel, the admitted dues are Rs 33,89,910 and the difference between the admitted amount and the dues claimed by the respondent is thus Rs 9,42,148.

     

    Ortel’s counsel Samir Sagar Vashistha, who presented the table, explained that this included the sum of Rs 5,18,925 as the amount of taxes deducted at source and the actual dispute is only with respect to the sum of Rs 4,22,976. 

     

    He assured that Ortel will confine its operation within the area of Vishakhapatnam.

     

    Sun counsel A.S. Dugal said the sum of Rs 4,222,976 represented the inflationary increase of 15 per cent allowed by the TRAI’s tariff order.

     

    Vashistha stated that Ortel was willing to pay the sum of Rs 33,89,910 and also give to the respondent the certificate showing deduction of taxes amounting to Rs 5,18,925. In addition, it will also pay Rs 4,22,976 subject to the Tribunal’s decision on the tariff order in question. 

     

    Dugal said the offer was quite fair and the respondent was willing to accept it.

  • Ortel Communications makes below par debut on bourses

    Ortel Communications makes below par debut on bourses

    BENGALURU: Ortel Communications Limited (Ortel) debuted at Rs 160.05 per share on the National Stock Exchange (NSE), about 11.6 per cent below its listing price or Rs 181 per share on 19 March. The company had issued its shares at Rs 181 each early this month in its initial public offer (IPO), which was under subscribed by about 25 per cent.

     

    The high for the day was Rs 168.05 and it closed at Rs 162.25 on the NSE. Close to 26520 shares traded on the NSE at traded value of about Rs 43.90 lakh. 

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore. 

     

    On the Bombay Stock Exchange (BSE), the stock breached the lower circuit of Rs 171.95 with a turnover of Rs 5.11 lakh and a total traded quantity of 2964 shares.

     

    Financial industry sources explain that though the company is in the last mile connectivity business, its performance over the last few years has been dismal and hence the poor opening.

     

    The Ortel IPO opened on 3 March, 2015 for up to 1.2 crore (12 million) equity shares of face value of Rs 10 each including a share premium per equity share. The price band was fixed from Rs 181 to Rs 200 per equity share. The issue constituted 39.25 per cent of Ortel’s fully diluted post-issue paid up equity share capital and included up to 60 lakh fresh issue shares and 60 lakh shares by the selling shareholder NSR-PE Mauritius LLC. Facing a lukewarm response, the company had to cut the offer size by 36.7 lakh shares, pruning the NSR component from the IPO to that extent.

     

    The company had allotted 25.57425 lakh equity shares (28.416 per cent of QIB portion) at the rate of Rs 181 per share aggregating Rs 46.29 crore to Axis Mutual Fund and ICICI Prudential Life Insurance, before the IPO opened.

     

  • Ortel IPO opens amidst buoyant stock market conditions

    Ortel IPO opens amidst buoyant stock market conditions

    MUMBAI: The Ortel Communications issue opened on 3 March. At  the price band of Rs 181-200, the cable TV last mile operator (LMO) is offering 9.5 million shares to the public. National Stock Exchange data showed that the issue had been subscribed 0.15 times by end of day one of the offer. The company plans to use the money  raised through the issue to deepen the penetration of its cable TV and broadband offering in the geographical regions it is present i.e. Odisha, Chhattisgarh, Andhra Pradesh and West Bengal ; increasing digitisation of its cable TV subscriber base (currently 20 per cent of its analogue universe has been digitised), upgrading technology for its broadband service; buying out of local cable operators and networks, and leasing fibre infrastructure to corporates.

    At the time of writing, the IPO had received a mixed response from the investing community and research analysts. While one group says the price band is too high, another bunch has expressed that the Ortel stock has long legs and could go far. 

    Says a bullish observer: “The Ortel IPO offer is at 10 times EBIDTA for FY 2015. That’s pretty fair compared to 17 times EBIDTA for Hathway Cable & Datacom and seven times EBIDTA for DEN Networks,” says a research analyst. “We see the share appreciating after listing.”

    However, a bear stated that Hathway was quoting in the Rs 60-65 range, while DEN was in the Rs 120 band. “The Ortel price is too high when you compare it to what these stocks have notched up,” she said. “We expect to pick up Ortel after listing when we believe the overpricing will get corrected.”

    An ICICI Direct IPO review pointed out that Ortel’s low subscriber base of 0.5 million cable TV homes puts it at a competitive disadvantage against national MSOs such as DEN and Hathway which have 12 million subscribers each. 

    But another industry expert  points out that Ortel owns most of its subscriber base, aka as the last mile, which means it will reap the digital dividend and the moolah will straightaway accrue to its top line, and bottom line as it digitally connects more of them.

    He also points out to the low floating stock of Ortel that is on offer, which is likely to keep the price buoyant.

    At the time of writing, a positive sentiment had been ruling on the stock market with the National Stock Exchange Nifty  crossing an important threshold that of the 9,000 barrier which it did during intraday trading only to fall back to 8996 by close.

    The anchor investors for the IPO are Axis Mutual Fund (900,000 shares) and ICICI Prudential Life Insurance (1.657 million shares), while Kotak Mahindra Capital is managing the issue.

    The next two days (the issue is slated to close on 5 March) will throw clarity on which sentiment will hold its sway on investors during Ortel’s offering. 

  • Axis Mutual, ICICI Life are anchor investors for Ortel IPO; allotted 28.42% of QIB portion

    Axis Mutual, ICICI Life are anchor investors for Ortel IPO; allotted 28.42% of QIB portion

    BENGALURU: In its Red Herring Prospectus Ortel Communications had mentioned that out of the 90 lakh shares that form the QIB (qualified institutional bidders) portion of its IPO that opens tomorrow, up to 54 lakh equity shares (60 per cent of QIB portion) would be allotted to anchor investors on the anchor investment bidding date in consultation with the book running lead manager. Further, of the remaining 36 lakh equity shares of the QIB portion, at least 1.8 lakh shares would be allocated to mutual funds.

     

    The anchor investor bidding date was today – 2 March, 2014. The company has allotted 25.57425 lakh equity shares (28.416 per cent of QIB portion) at the rate of Rs 181 per share aggregating Rs 46.29 crore to Axis Mutual Fund and ICICI Prudential Life Insurance. It may be noted that the allotment is at the lowest price of the price band.

     

    The breakup of the anchor allotment is as follows: Axis Mutual Fund’s (Midcap Fund scheme) was allotted six lakh shares (23.46 per cent); Axis Mutual Fund (Small Cap Fund scheme) was allotted three lakh shares (11.73 per cent) and ICICI Prudential Life Insurance Co Ltd was allotted 16.57425 lakh shares (64.81 per cent) aggregating to 25.57425 lakh shares.

     

    Ortel Communications Limited (Ortel) IPO that is to open tomorrow, March 3, 2015, is for up to 1.2 crore (12 million) equity shares of face value of Rs 10 each including a share premium per equity share. The price band is fixed from Rs 181 to Rs 200 per equity share. The issue constitutes 39.25 per cent of Ortel’s fully diluted post-issue paid up equity share capital and includes up to 60 lakh fresh issue shares and 60 lakh shares by the selling shareholder NSR-PE Mauritius LLC.

     

    The funds raised through the IPO would be utilized for expansion of its network for providing video, data and telephony services; capital expenditure on development of digital cable services; capital expenditure on development of its broadband services; and general corporate purposes.

  • Ortel Communications files RHP for public issue

    Ortel Communications files RHP for public issue

    MUMBAI: Odisha based last mile owner (LMO) Ortel Communications has filed the Red Herring Prospectus (RHP) for a public issue.

     

    Confirming the same to Indiantelevision.com, Ortel Communications president and CEO Bibhu Prasad Rath said, “Yes, the RHP has been filed and the issue is scheduled to open on 3 March.”

     

    The company had filed for the Draft Red Herring Prospectus (DRHP) in September 2014.

     

    The LMO is looking at a primary issue of 60 lakh shares and sale of another 60 lakh share by New Silk Route, which currently owns 35 per cent share in the company.

     

    The IPO, which is being handled by Kotak Mahindra Capital, may raise close to Rs 250 crore. Ortel Communications will be utilising the funds for expansion of its network for providing video, data and telephony services. Additionally the company is also looking at developing its digital cable and broadband services with the infusion of funds.

     

    This issue is being made through the book building process wherein at least 75 per cent of the Issue shall be allotted to qualified institutional bidders (QIBs) on a proportionate basis out of which five per cent of the QIB portion (excluding the anchor investor portion, which shall be allocated on a discretionary basis) shall be available for allocation on a proportionate basis to mutual funds only, and the remainder shall be available for allocation on a proportionate basis to all QIB bidders, including mutual funds, subject to valid bids being received at or above the issue price.

     

    Further, not more than 15 per cent of the issue will be available for allocation on a proportionate basis to non-institutional bidders and not more than 10 per cent of the Issue will be available for allocation to retail individual bidders, subject to valid bids being received at or above the issue price.

     

    Attached is the PDF

  • Ortel Communications files DRHP with SEBI for IPO worth Rs 360 crore

    Ortel Communications files DRHP with SEBI for IPO worth Rs 360 crore

    MUMBAI: Odisha based last mile owner (LMO) Ortel Commnications has filed its draft red herring prospectus (DRHP) for its proposed initial public offering (IPO) with the securities and exchange board of India (SEBI). Ortel Communications CEO BP Rath confirmed the news to indiantelevision.com.

     

    The LMO is looking at a public issue of 14,182,598 equity shares of face value of Rs 10 each. The IPO may raise as much as Rs 360 crore.

     

    It consists of 60 lakh shares from the company and an offer for sale of up to 81.82 lakh shares by New Silk Route (NSR) that currently owns a 35 per cent share in the LMO. This would mean Ortel ending up with nearly Rs 150 crore and NSR exiting with Rs 200 crore.

     

    The deal is being handled by Kotak Mahindra Capital. It also has the option for a pre IPO sale of up to 25 lakh equity shares to generate up to Rs 65 crore.

     

    NSR has been keen to exit the business for quite some time. With this fresh infusion that Ortel is expecting, the LMO plans to grow its cable and broadband business in Odisha as well as neighbouring states such as Andhra Pradesh, Chhattisgarh, West Bengal etc.

  • Ortel Communications to launch HD services

    Ortel Communications to launch HD services

    MUMBAI: Cable TV subscribers in Odisha will soon get to watch Hindi soaps in high definition (HD) provided they have an Ortel cable connection. The last mile owner (LMO) with 520,000 subscribers, Ortel Communications, has received its first batch of HD set top boxes (STBs) that will be deployed to digital TV households soon.

     

    1000 STBs from Skyworth are currently docked out of the 25000 boxes ordered. Priced at Rs 2000 to Rs 2500 per STB, the service will be launched within one month. “We are preparing a pack of 15 HD channels comprising popular channels of all major broadcasters for launch date. This will include channels like Star Plus, Star Sports, Sony, NGC, Movies Now, Colors etc,” says Ortel Communications CEO BP Rath.

     

    The headend capacity currently only allows the LMO to have 15 HD channels; however it plans to add more channels soon. “We intend to increase our capacity to around 250 SD and 50 HD channels in the next one year or so,” informs Rath. The LMO currently offers 200 SD channels. The pricing will be competitive with the DTH platforms. Though the final pricing for the HD channel pack hasn’t been finalised as yet, it is expected to be below Rs 100 per month with an initial three month free trial period.

     

    While Rath doesn’t expect good revenues from the service this year, he is optimistic of it being considerable next year. “We expect revenues from HD to kick in from Q3 of this fiscal, though not significantly. However, we expect to do Rs 2 crore to Rs 3 crore revenue next year,” adds Rath.

     

    It is pertinent to note that Odia channels don’t have HD services but Rath is optimistic that in the future there would be Odia HD channels as well. “Viewing of English and Hindi content in our markets is very sizeable and that will drive the HD services. In any case, the channel list will be similar to DTH operators and we will not be in any disadvantageous position,” claims Rath.

     

    Ortel currently has about 75,000 digital subscribers which it is looking at increasing to about 250,000 by the year end.