GTPL's Q3 Profit Plunge
- 10th January 2025
Aaj Ka Bazaar
The US markets were closed yesterday to honour ex-president Jimmy Carter. In the Asian markets, the Nikkei opens lower and remains under pressure amidst profit booking after the release of disappointing earnings results the previous day. Hang Seng made a strong start, however the steam fizzled out with the benchmark now trading flat. On the domestic front, GIFT Nifty indicates a flattish start. The key highlight for the day would be the performance of TCS, which would largely drive the direction of its peers during the day.
Markets Around Us
BSE Sensex -77,682.59 (0.08%)
Nifty 50 – 23,551.90 (0.11%)
Bank Nifty – 49,426.50 (-0.16%)
Dow Jones – 42,515.69 (-0.28%)
Nasdaq – 19,478.88 (-0.06%)
FTSE – 8,319.69 (0.83%)
Nikkei 225 – 39,212.64 (-0.99%)
Hang Seng – 19,152.11 (-0.46%)
Sector: TV Broadcasting
GTPL Shares Plunge on Weak Q3
GTPL Hathway shares dropped 9% to ₹133.50 on January 10 after a disappointing Q3 performance. The company reported a 57.2% YoY decline in net profit to ₹10.1 crore, down from ₹23.6 crore last year. Despite a 4.3% increase in revenue to ₹887.2 crore, operational performance weakened, with EBITDA falling 12.6% to ₹105.3 crore and margins dropping to 11.9% from 14.2%. The broadband segment added 37,000 subscribers, reaching 1.04 million, with 75% of homepass ready for fiber conversion. Digital cable TV added 200,000 active subscribers, bringing the total to 9.6 million, and paying subscribers grew to 8.9 million, generating ₹3,024 million in subscription revenue. Broadband ARPU rose slightly to ₹465, with average data usage per subscriber increasing to 365 GB per month. Despite strong pre-earnings momentum, the stock has fallen nearly 12% in three months.
Why it Matters:
GTPL Hathway’s weak Q3 results highlight challenges in maintaining profitability despite growing revenue and subscriber base. The decline in EBITDA and profit margins signals potential operational inefficiencies. For investors, this raises concerns about the company’s ability to sustain growth in a competitive broadband and cable TV market.
NIFTY 50 GAINERS
TCS – 4212.00 (4.29%)
TECHM – 1683.85 (2.50%)
WIPRO – 298.05 (1.97%)
NIFTY 50 LOSERS
INDUSINDBK – 960.15 (-2.12%)
SHRIRAMFIN – 552.00 (-1.77%)
HINDALCO– 579.50 (-1.65%)
Sector: Gems & Jewellery
Profit-taking drags Senco Gold lower
Senco Gold shares dropped 3% to ₹1,086 on January 10 as investors booked profits despite a strong Q3 update. The company reported 22% year-on-year revenue growth and achieved record sales of ₹1,000 crore in October and ₹2,000 crore for Q3FY25. Retail demand grew 19%, especially in Tier 3 and Tier 4 towns, supported by reduced customs duties and festive buying during Dhanteras. Old gold contributed 38% of sales, signaling a shift to organized players. Same-store sales grew by 13-14%, and four new showrooms opened in Q3. Senco raised ₹459 crore through a Qualified Institutional Placement (QIP), issuing shares at ₹1,125 each, boosting equity capital. It also launched a subsidiary to focus on premium leather goods, lab-grown diamonds, and perfumes. The company targets 19-20% sales growth for FY25 but has seen its shares drop over 23% in the last three months, underperforming the Nifty 50 index.
Why it Matters:
Senco Gold’s strong sales growth highlights the resilience of gold demand despite high prices, driven by festive buying and a shift to organized markets. The company’s expansion into lifestyle segments and new store openings signal diversification and growth potential. However, the recent stock decline underscores profit-booking and market volatility, which traders should watch closely.
Around the World
Asian stocks fell on Friday, closing the first trading week of 2025 on a weak note due to concerns over slower U.S. interest rate cuts and a possible rate hike by the Bank of Japan (BOJ). Japanese stocks dropped as strong wage and spending data fueled expectations of a BOJ rate hike, pressuring export-heavy companies. Chinese stocks slipped amid weak inflation data and fears of harsher U.S. trade policies, following Tencent’s addition to a U.S. blacklist. Broader Asian markets, including Australia and Singapore, were weighed down by risk aversion ahead of key U.S. payroll data, while South Korea faced political uncertainty. Indian markets remained subdued, with attention shifting to upcoming corporate earnings after recent losses driven by declining economic confidence.
Option Traders Corner
Max Pain
Nifty 50 – 23,600
Bank Nifty – 51,000
Nifty 50 – 23,573 (Pivot)
Support – 23,456, 23,386, 23,270
Resistance – 23,642, 23,759, 23,829
Bank Nifty – 49,510 (Pivot)
Support – 49,223, 48,942, 48,655
Resistance – 49,791, 50,078, 50,358
Did you know?
2 Million Indian Travelled to USA
The number of Indians who travelled to the United States in the first 11 months of 2024, up 26% from the same period last year.
Have you checked our Super 7 Stocks for the Month of January 2025 ? Click Below
