gtpl hathway ltd share price Management discussions

A. ECONOMIC REVIEW

The global economy appears poised for a gradual recovery from the powerful blows of the pandemic and of Russias unprovoked war on Ukraine. China is rebounding strongly following the reopening of its economy. Inflation rates are receding after touching highest marks in decades across many economies. The rate hike and persistent inflation also led to a lowering of the global growth forecasts for 2022 and 2023 by the IMF in its October 2022 update of the World Economic Outlook (World Economic Outlook - A Rocky Recovery- Apr2023).

The central banks across economies led by the Federal Reserve responded with synchronised policy rate hikes to curb inflation. The frailties of the Chinese economy further contributed to weakening the growth forecasts. With inflation persisting in the advanced economies and the central banks hinting at further rate hikes, downside risks to the global economic outlook appear elevated.

The S&P Global Ratings report highlights six themes on which the global economy will be shaped in the near future.

Developing Asias economies are reopening with impressive dynamism. Private consumption, investment, and services are now reviving and growth is gathering pace after showing resilience last year amid weakened demand from advanced economies, lockdowns in China, monetary policy tightening, and the Russian invasion of Ukraine. Growth in Asian economy is expected at 4.8% with Southeast Asia leading the growth (Aslan Development Outlook2023).

An array of immediate and emerging challenges could still hold back the Asian economic recovery. The recent banking turmoil in Europe and the United States is an indication that financial stability risks have heightened. A stronger-than-expected opening in China will have positive spillovers through tourism and trade links but this could also trigger inflationary pressures through higher global commodity prices that would require close monitoring. Climate change has increased the frequency and severity of extreme weather events in developing Asia. Economies in the region must ready themselves for the transition to net zero emissions, and this will have wide-ranging impacts on consumption, investment, and public finances.

a. Market Size

The Indian economy has moved on after its encounter with the pandemic, staging a full recovery in FY 2021-22 ahead of many nations and positioning itself to ascend to the pre-pandemic growth path in FY 2022-23. Yet, during FY 2022-23, India has also faced the challenge of reining in inflation that the European strife accentuated. Measures taken by the Government and RBI, along with the easing of global commodity prices, have finally managed to bring retail inflation below the RBI upper tolerance target in November 2022. However, the challenge of the depreciating rupee, although better performing than most other currencies, persists with the likelihood of further increases in policy rates by the US Fed.

As per the Economic Survey, India is projected to be the fastest growing major economy at 6.5-7% in FY 2022-23. Indias contribution to developing Asias growth is projected to have risen from 22% on average over 2015-2019 to 25% this year and 27% in 2024 as per Asian Development Outlook 2023. While the overall projection for GDP growth for Emerging Markets and Developing economies is 3.9% in 2023 and 4.2% in 2024, Indias economic outlook appears to be stronger relative to other markets with the IMF projecting a real GDPgrowth of 5.9% in 2023 and 6.3% in 2024, positioning it as the fastest-growing economy in the world. Fiscal policy drivers, such as improved investments in digital infrastructure, a growing labour force and becoming an attractive exporter, partly explains its strong growth.

b. Recent Developments

The year FY 2022-23 so far for India has reinforced the countrys belief in its economic resilience. The economy has withstood the challenge of mitigating external imbalances caused by the Russian-Ukraine conflict without losing growth momentum in the process. Indias stock markets had a positive return in 2022, unfazed by withdrawals by foreign portfolio investors. Strong consumption rebound, robust revenue collections, sustained capex in both the public and the private sector, growing employment levels in the urban as well as the rural areas, and targeted social security measures further underpin the prospects for economic and social stability and sustained growth. In FY 2022-23, the Indian economy has nearly recouped what was lost, renewed what had paused, and re-energised what had slowed during the pandemic and since the conflict in Europe, c. Road Ahead

India, currently holding the prestigious Presidency of G20 nations, has grown from being the tenth largest economy ten years ago to the fifth-largest today. Diverse and inclusive new-age skilled talent pool with strong entrepreneurial mindset, people-first innovation, responsible & ethical tech and governance built on trust, commitment to Environmental, Social & Governance (ESG) goals, & Corporate Social Responsibility (CSR), form the cornerstones of this vibrant ecosystem. Cost competitiveness and efficiencies, stable and trusted Government consistently building a conducive business environment and infrastructure through reforms and policies, along with the largest and youngest working population and consumer market, makes the industrys foundation even stronger. Indias inherent leadership skills have ensured Indian origin leaders occupy a seat at the table in global organisations, fronting global charters across various verticals (Nasscom Annual Strategic Review Report 2023).

This years budget outlines seven priorities termed Saptarishi to guide the country towards growth and provide a blueprint for an empowered and inclusive economy. The seven priorities listed are:

• Inclusive Development

• Reaching the Last Mile

• Infrastructure & Investment

• Unleashing the Potential

• Green Growth

• Youth Power

• Financial Sector

The scheme implemented by the Government under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has been rapidly creating more assets in respect of Works on Individuals Land than in any other category. In addition, schemes like PM-KISAN, which benefit households covering half the rural population, and PM Garib Kalyan Anna Yojana have significantly contributed to lessening impoverishment in the country.

B. INDUSTRY REVIEW

a) Media & Entertainment (M&E)

The year 2022 was marked as an important inflection point for the global M&E industry as revenue rose by 5.4% in 2022, to US$ 2.32 Trillion as per the Perspectives from the Global Entertainment & Media Outlook 2023-2027 report published by PWC.

The rate of growth in Consumer Spending is expected to decline sequentially and grow at a CAGR of just 2.4% between 2022 and 2027 to reach US$ 903.20 Billion from the current level of US$ 829 Billion. Advertising will become the largest revenue category in the M&E industry in 2025 followed by internet access revenues with consumer spending being the lowest contributor as per the same report.

As per the EY-FICCI report, business of content creation, distribution, advertising, and monetisation is more fluid and uncertain than ever before, and media companies are racing to adapt. The long-term success in streaming requires establishing a durable subscriber relationship by offering bundled services in addition to the streaming content. Bundling of products and services by media companies allow to improve efficiency in spending and technological investments. Merger deals within the M&E will play an important role in assessing how the industry shapes. Partnerships and joint ventures with industry peers can accelerate market entry, share investment and deliver synergy benefits. Reshaping the industry for the direct-to-consumer (DTC) era will require to fit in the important pillars together in a manner that creates strategic value and competitive advantage.

With cinema releases back to theatres, the box office revenues are still 30% lower than the pre- Covid-19-pandemic levels (Source:Boxofficemojo. com). Studios are reviewing which genres work economically for theatrical releases versus a straight- to-streaming approach. Studios are basing release plans that is now centered on maximising DTC — ultimately determining that some films are best suited for a streaming release.

The excitement around NFT and Metaverse had cooled by the end of 2022 with macroeconomic factors taking centre stage. Media companies continue to prepare for next level of interactions with their customers by investing in areas of strategic planning, R&D, consumer research and technology. The study on how the customer accesses content, transacts, engages with advertising and socialises will become an important element for the future business plan decisions and capital allocation.

Indian M&E industry

The Indian media and entertainment industry has taken its legacy of epics, fables and storytelling forward and evolved to create content that is now resonating globally. The Indian entertainment sector has blurred barriers like language and region. The perennial pillars of the sector are content commerce and community. The diverse consumer base, coupled with favourable macroeconomic and demographic factors, have translated into a very exciting time for the industry. The Indian M&E sector powered through to a growth of 20% and grew by ? 348 Billion to reach ? 2.1 Trillion in 2022, which is 10% more than its pre-pandemic levels in 2019 (EY-FICCI). Television continued to remain the single largest segment with 34% of the sectors revenue, while Digital media cemented its position as a strong number two, contributing 27%. Print maintained its third position with 12% contribution while Filmed entertainment (9%) recovered riding on doubled theatrical releases and reclaiming its fourth position.

The sector is expected to grow 11.5% in 2023 to reach 2.34 Trillion and further grow at a CAGR of 10.5% and add 734 Billion to reach 2.83 Trillion by 2025 (EY-FICCI). Television, Digital and Online gaming are expected to lead this growth contributing 65% of the growth. Animation and VFX too will be significant contributors.

	2019	2020	2021	2022	2023E	2025E	CAGR 2022-2025
Television	787	685	720	709	727	796	3.9%
Digital media	308	326	439	571	671	862	14.7%
Print	296	190	227	250	262	279	3.7%
Filmed entertainment	191	72	93	172	194	228	9.8%
Online gaming	65	79	101	135	167	231	19.5%
Animation and VFX	95	53	83	107	133	190	21.1%
Live events	83	27	32	73	95	134	22.2%
Out of Home media	39	16	20	37	41	53	12.8%
Music	15	15	19	22	25	33	14.7%
Radio	31	14	16	21	22	26	7.5%
Total	1,910	1,476	1,750	2,098	2,338	2,832	10.5%
Growth		(23.2%)	19.3%	19.9%	11.5%

As per EY-FICCI, television segment marginally decreased by 1.5% reaching 709 Billion in 2022 but is expected to grow by 2.5% in 2023 to reach 727 Billion. Television advertising grew by 2% in 2022 reaching its 2019 levels. Connected TV sets reached 25 Million though only 8-10 Million connected to internet on a daily basis.

As per the EY-FICCI report, total Indian households are expected to reach 328 Million by 2025. These households can be broadly divided into five segments based on the mode in which they access content. Digital only who consume content on

Digital platform only with limited access to television. Digital 1^st consumes pay TV and at least one paid OTT segments. TV 1^st segment are the ones who primarily consume content on TV and free OTT content. Free consumers, do not pay for content on TV or digital. TV dark do not have access to largest screens but might be accessing free content using smart phone.

The linear TV universe will remain constant and reach 169 Million by 2025. Pay TV too will remain stagnant at 119 Million in the same timeline. 10 Million new TV households are expected to be added by 2025.

Overall Television segment is expected to reach 796 Billion by 2025 growing at a CAGR of 3.9% while the advertising segment is expected to grow at a CAGR of 5% and reach 371 Billion during the same period. This growth will be fuelled by end of the Russia- Ukraine war, continued increase in regional and sports content. Increase in Indias per capita income, State elections in 2023 and National elections in 2024 too will be important factors in driving the growth.

Subscription revenue will continue to contribute more than 50% revenues of the total Television segment and is expected to cross 425 Billion by 2025. Increase in population will define the increase in TV households by 9 Million. Continued rural electrification and availability of low-cost TV set will play an important role in driving the subscription revenues. (EY-FICCI).

	2020	2021	2022	2025E
Pay TV (cable + DTH + HITS)	131	125	120	116
Free TV	40	43	45	50
Unidirectional TV	171	168	165	166
Connected TV (bi-directional)	5	10	15	40
Total TV Subscriptions	176	178	180	206

Subscriptions in Millions Source: EY estimates

The overall TV subscriptions will be on a growth trajectory and is expected to cross 200 Million by 2025 (EY-FICCI). The market has clearly segmented into pay tv, free tv and connected tv. Content studios, broadcasters and distributors will need to address the needs of each of these segments separately, to effectively monetise their products and services.

Last mile Cable Operators (LCO) will continue to play an important role in driving the last mile distribution for live television and broadband connections. The services will include content across TV and OTT, data, smart home solutions and community interactions.

Digital media grew by 132 Billion increasing its contribution to 27% in M&E sector. Digital advertising rose by 30% to reach 499 Billion contributing 48% of the total advertising revenue. Digital subscription reached 72 Billion, an increase of 27% in 2022. Several factors like hyper-localised targeted campaigns, geo-targeted OOH, DTC marketing by brands are the primary reasons for driving growth for digital ads segment.

The volume of digital media consumption in India with ~ 866 Million internet subscribers, of which ~832 Million have access to Broadband as of December 2022, which is second only to China. Smartphone users reached 538 Million in December 2022. Growth has tapered since mid-2021 since the average cost of buying a smartphone increased, resulting in just 35 Million new smartphone additions during 2022. The wired broadband base increased by 22% to reach 32 Million as on December 2022 as per The Indian Telecom Services Performance Indicators Oct - Dec 2022 (TRAI).

Low data prices are the main reason for growing internet subscribers and consequently leading to an increase in online entertainment, gaming, social media etc. Average monthly mobile data usage per smartphone was 25GB per month in 2022, and this is set to increase at a CAGR of 14% to reach 54GB by 2028 (EY-FICCI).

The Digital Media segment is expected to grow at a CAGR of 15% to reach 862 Billion by 2025. Digital advertising too is estimated to grow at a CAGR of 15% and contribute 54% of the total advertising revenue by 2025. Subscription revenues will grow at 11% CAGR to reach 97 billion in 2025. Regional OTT content & bundled products, need for more original content and e-commerce advertising will be main factors for revenue growth in the digital media.

The Print segment reached 85% of the pre-pandemic levels rising by 10% in 2022. Education, FMCG and Auto sectors continued to be the largest spenders on print. Advertising recovered by 17 Billion when compared to 2021, though circulation remained stagnant at 2021 levels. The print segment is expected to grow at 3.7% CAGR to reach 279 Billion by 2025. The focus would remain on core print and evolve around innovations like hyperlocal news and events, information and knowledge, community and speciality news and commerce and saving information.

B Distribution- TV households

The number of distribution platforms in India remained constant at 1,753 in 2022. The Indian market currently has presence of 5 Direct-to-home (DTH) players out of which 4 are pay DTH providers and one is a free DTH provider. There is only one Headend-In-The-Sky (HITS) service provider in the country.

The availability of TV channels marginally decreased to reach 885 channels as of December 31, 2022 (TRAI). The number of Pay channels increased by 5, while the number of free-to-air (FTA) channels decreased by 26, largely owing to conversion of FTA to Pay channels by broadcasters. (TRAI)

The number of channels available on Free Dish remained at 179 including 79 private channels at the end of 2022. The four major broadcasters pulled out their GEC channels from the Prasar Bharati operated Free Dish platform in early 2022.

Overall television impression dropped second year in row and decreased by 7% in comparison to 2021. The drop was higher in South markets in comparison to HSM. People retfurning to Work from Office was a major factor which led to the drop in TV viewership. Availability of niche regional content, rise in social media, gaming and free access on YouTube were the alternate consumption options for viewers. Availability of TV content on OTT too led to delay in TV subscriptions renewal.

g. Advertising

Television advertising recovered second year in a row to 318 Billion in 2022. Television remained the most effective medium for mass promotions and ad rates. FMCG continued to be the largest sector to advertise on television contributing 45% of the total ad volumes. E-commerce was the main driver of growth with 42% contribution to the growth (EY-FICCI). Automobile, DTC, Gaming, betting and crypto apps muted the growth governed by several regulatory and external factors.

Product category	Category contribution 2021	Category contribution 2022	Growth in spends
FMCG	46%	45%	35%
E-commerce	18%	20%	42%
Education	6%	4%	-16%
Auto	5%	5%	6%
Telecom	4%	3%	-4%
Household durables	4%	4%	5%
Real estate and home improvement	3%	4%	5%
Banking, financial services, insurance	3%	3%	4%
Other	11%	12%	22%
Total	100%	100%	100%

Source: Pitch Madison Advertising Report for2022

Regional channels contribution to ad volumes increased significantly by 19% in 2022 in comparison to 2021. Out of the Top 5 channel genres which saw new TV advertisers, 3 were in the regional space. The Sports genre also saw a sizeable number of new advertisers indicating growing interest and viewership of non-cricket sports in India (EY-FICCI).

The number of advertisers grew by 3.5% for the first time in 3 years. More than 50% of the advertisers used television alone as their mode for advertisements.

g. Customer ARPU

End Customer price reached remained flat at 223 in 2022. Cable TV ARPUs remained largely stable as most customers opted for packs recommended by MSOs and LCOs without many customisations.

g. Digital India

Digital grew by 30% in 2022, with significant increase both in Advertising and subscription. Low data prices led to increase in telecom internet users which in turn drove the growth in online entertainment, gaming and other mediums. India ranked 8th worldwide in terms of amount of time spent online with Indians spending an average of close to 5 hours a day online. More than 3,000 hours of original content was produced of which 50% was in regional languages (EY-FICCI).

5G services have been launched towards the end of 2022. Though the pricing for 5G plans is yet to be made distinct, more than 31 Million customers have upgraded to 5G smart phones to enable them to utilise the service when available.

f. Gaming

Online gaming segment grew 35% in 2022 to reach 135 Billion becoming the fourth largest contributor in the M&E sector. Online gamers count in India reached 421 Million, one fourth of which are frequent gamers. Online game viewing and streaming became an alternate entertainment option to OTT consumption and social media (EY-FICCI).

Gaming is estimated to grow at a CAGR of 20% and reach 231 Billion by 2025 as per EY-FICCI report. 5G services, cloud gaming, gaming-based video content and online gaming-based events and tournaments will be the trends to watch and drive the segment growth.

g. Broadband

Out of the total 1.17 Billion telecom subscriptions, 74% were reported as using internet services in Dec 2022. With 866 Million internet subscriptions, India has the second largest internet subscriber base in the world.

The penetration of broadband (Wired + Wireless) has shown an incremental trend reaching more than 96% of the total internet subscriptions in December 2022, while narrow band is on a decline as per available TRAI reports.

Particular	Dec-21	Dec-22
Total Internet Subscriptions	829	866
Narrow Band Subscriptions	37	34
Broadband Subscriptions	792	832
Wireless	802	834
Wirelines	27	32
Urban Internet Subscription	496	516
Rural Internet Subscriptions	333	350

All count in Millions.

Source : TRAI Performance Indicator Dec-2022

Low penetration of wired broadband (~4% of total broadband subscriptions) offers an opportunity for growth in the sector. Of the 310 Million households in India, just 10% are connected with wired broadband and leaves enough legroom for all the service providers to grow.

62% of the total internet subscription was attributable to urban subscribers which grew by 4% in 2022. Internet subscription in the Rural areas is gaining ground with the base growing by 5% in 2022 (TRAI).

Government Policies:

Policies Implemented:

Amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2021:

Amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2021 were notified in September 2022. The IT Rules 2021 have been amended and have imposed a legal obligation on intermediaries to take reasonable efforts to prevent users from uploading harmful/unlawful content including certain categories dealing with misinformation, and content that could incite violence between different religious/caste groups. Certain amendments have been made in Rule 3(1)(b)(ii) However, decision on whether any content is defamatory or libellous will be determined through judicial review. Grievance Appellate Committee(s) will be established to allow users to appeal against the inaction of, or decisions taken by intermediaries on user complaints. However, users will always have the right to approach courts for any remedy.

The Rules additionally incorporate regulations for online gaming to safeguard users. These rules will be applicable to any intermediary who offer one or more games. The introduction of formal online gaming rules will enable privacy and security for gamersRs information and can aid in the increase of online gamers due to increased transparency.

Guidelines for Uplinking and Downlinking of Television Channels in India

The Ministry of Information and Broadcasting (MIB) notified revised Policy Guidelines for uplinking and downlinking of television channels in November 2022. In pursuance to the same, the Ministry issued a clarification in March 2023 reaffirming and clarifying that the broadcasters can provide signal reception decoders only to the registered Multi system operators (MSOs), licensed Direct to Home (DTH) operators, licensed Internet Protocol Television (IPTV) operators and licensed Headend in the Sky (HITS) operators and to no other entities who are not permitted under the policy guidelines. The revised guideline underscore the importance of registered/licensed distribution platform operators for dissemination of linear content to the end subscribers.

The Competition Amendment Act, 2023:

The Competition (Amendment) Act, 2023 has been notified in April 2023, bringing significant and far- reaching changes to rein in anti-competitive and abusive conduct in the market. The Amendment aims to regulate mergers and acquisitions based on the value of transactions mandating the approval of CCI for any transaction value which is above 2,000 crore. In its ongoing exercise towards improving ease of doing business, the Government of India is decriminalising offences and the replacement of fines with civil penalties in the Amendments is a welcome move.

Initiatives Undertaken:

AVGC Task Force:

The Task Force presented its report to the Union minister of MIB (AVGC Report) in December 2022. The AVGC Report presented recommendations on market access and development, skilling & mentorships, education, access to technology, financial viability, promotion of high-quality content, diversity, equity and inclusion in the AVGC segment. Cinematograph (Amendment) Bill, 2023 (2023 Bill):

In April 2023 , the Government gave its clearance to the Cinematograph (Amendment) Bill 2023, which proposes to introduce more categories for film certification and also brings in stricter penal provisions to prevent film piracy, which is yet another affirmative step to address the menace and curb instances of piracy. The proposed bill suggests imprisonment ranging from three months to three years, and a fine of at least 300,000 which may extend to a sum of up to 5% of the audited gross production cost of the film, to prevent film piracy. The Bill is likely to be presented in Parliament soon.

CCI suggests the film industry to adopt self- regulatory measures, eschew anti-competitive practices:

In its first-ever market study on film distribution chain in India, CCI has proposed self-regulations related to multiplexes and producers, Virtual Print Fee (VPF), stakeholders associations and digital cinema. Major recommendations include removal of restrictions in the exhibition of films that may impinge on producers freedom of trade; tailor-made arrangements between multiplexes and producers for contracting; anti- competitive conduct, such as bans and boycotts and prohibitions on working with non-members to be avoided.

Indian Telecommunication Bill 2022:

The existing regulatory framework for the telecommunication sector is based on the Indian Telegraph Act, 1885. The nature of telecommunication, its usage and technologies have undergone a massive change since the era of telegraph and has evolved to new technologies such as 4G and 5G, M2M Communications, Mobile Edge Computing, etc. The Ministry of Communications initiated a public consultative process to develop a modern and future-ready legal framework on the Need for a new legal framework governing Telecommunication in IndiaRs in July 2022.

Based on the consultations and deliberations, the Ministry of Communications has prepared a draft Indian Telecommunication Bill, 2022 which has been put in public domain for further consultations. Relevant legislations in the international markets like Australia, the European Union, United Kingdom, Singapore, Japan and the United States of America have also been examined in detail. The Bill aims to replace the existing legal framework governing telecommunication in India, comprising of the Indian Telegraph Act, 1885, the Wireless Telegraphy Act, 1933 and the Telegraph Wires (Unlawful Possession) Act, 1950.

Issuance of Guidelines for Platform Services:

Further to the issuance of guidelines for Platform Services on DTH platforms, the MIB has published guidelines with respect to Platform Services

(PS) offered by multi system operators (MSOs) in November 2022, which mandates registration of PS channels on the portal of Broadcast Seva with the condition that the validity of registration of such PS channels shall be coterminous with the duration of MSO licence. A nominal one-time registration fee of 1000 per PS channel has been notified. Further, the total number of permitted PS channels (including the PS channels of affiliated local cable operators) has been capped at 5% of the total channel carrying capacity, with an additional 2 PS permitted per district to cater to local content needs. The applicability of these Guidelines is expected to take effect from the end of the calendar year 2023.

Indigenous manufacturing of Set top Boxes The Telecom Regulatory Authority of India (TRAI) published its recommendations on Promoting Local Manufacturing in the Television Broadcasting Sector in March 2023. Besides recommending a number of other measures to promote indigenous manufacturing/development of broadcasting technologies and equipment, TRAI has recommended that linear set-top boxes (STBs) be included in the PLI scheme to promote local manufacturing in the television broadcasting sector. The TRAI has also suggested conducting periodic reviews of indigenous components, factoring in local components in determining localisation levels under the PLI scheme, and reviewing investment outlays required for MSME manufacturing for selected equipment.

Interoperability of Set-Top-Boxes (STBs)

MIB has sought comments from various stakeholders regarding the recommendation issued by TRAI on interoperability of STBsRs in December 2022. TRAI had recommended that all STBs (from the prospective date of implementation) provided to consumers for reception of signals of television channels must be inter-operable in principle. Further, TRAI has also recommended that all digital television sets should mandatorily have built-in-tuners for enabling reception of content through both cable and satellite platforms. The MIB is examining the issue from the perspective of cost implications at present and has not taken a decision on this matter.

Joint Working Group for Return Path Data (RPD):

Subsequent to the Joint Working Group on Return Path Data (JWG for RPD) for audience measurement sampling submitting its report to the MIB in July 2022 followed by a supplementary report in November

2022, the stakeholders have been in active discussions to implement the RPD model to enhance the television rating system currently being handled by BARC. The leading MSOs and DTH platforms are interacting with BARC with the active involvement of the MIB to enable a wider base for audience measurement. Regulatory Interventions:

Implemented Recommendations:

Amendment to the Regulatory Framework for Broadcasting and Cable Television Services:

I n November 2022, TRAI amended the Tariff Order and Interconnection Regulations permitting broadcasters to create bouquets of pay channels with an MRP of 19/- or less to be part of a bouquet offering a maximum discount of 45% while pricing its bouquet of pay channels over the sum of MRPs of all the pay channels in that bouquet; and discount/ incentive offered to DPOs on the MRP of a pay channel to be based on combined subscription of that channel both in a-la-carte as well as in bouquets. The amended Tariff Order and Regulations came into effect from February 1, 2023.

TRAI Recommendations on Market Structure/ Competition in Cable TV services:

Subsequent to the consultation paper on Market Structure/Competition in Cable TV services, TRAI released its Recommendations in September 2022. TRAI recommended that there no additional regulations are required to enhance the level of competition in cable TV distribution sector at present. It also recommended that the Government may take suitable measures to facilitate and promote sharing of cable infrastructure by Local cable operator with Telecom Service Providers to enable last mile for provision of broadband services with necessary amendments in the Rules/Guidelines to enable such sharing.

TRAI consultation paper on issues relating to media ownership:

TRAI published Consultation Paper dated April 12, 2022 on Issues Related to Media Ownership basis MIBs reference to TRAI seeking its reconsideration of the Recommendations on Issues Relating to Media Ownership dated August 12, 2014 considering significant changes that have happened in the media and entertainment sector post 2014. Hence, the Authority issued the consultation paper to seek comments/views of the stakeholders on the need, nature, and level of safeguards with respect to horizontal & vertical integration in the broadcasting and distribution sectors and cross holdings across various media sectors. The Authority is yet to issue recommendations on the same.

Publication of Test Guide Document for CAS and SMS for Broadcasting Sector:

The Telecommunication Engineering Centre (TEC) was designated as the testing and certification agency for Conditional Access System (CAS) and Subscriber Management System (SMS) in September 2021. In June 2022, TRAI released Test Guide Document for CAS and SMS along with the requirements notified vide Schedule-IX of the Telecommunication (Broadcasting and Cable) Services Interconnection (Addressable Systems) (Third Amendment) Regulations 2021. The Test Guide Document has been rolled out with the objective of achieving the desired benefits of better content security, factual reporting of the subscriber base, reduction of revenue loss and eventually leading to improved consumer experience.

Launch of Gati Shakti Sanchar Portal to Streamline the process of Right of Way (ROW) Applications and permissions across the Country

Universal and equitable access to Broadband Services across the country, especially in the rural area is one of the most important visions of Honble Prime Minister of India. To fulfil this vision, it is imperative that backbone of infrastructure is created by facilitating smooth and efficient deployment of Digital Communications Infrastructure across the country. With this objective, the Ministry of Communications launched the Gati Shakti Sanchar portal for Centralised Right of Way (RoW) approvals with all 36 States/UTs onboard. The portal is also integrated with Ministry of Railways, MoRTH and MoD-DGMO.

It acts as an enabler for Ease of doing Business for telecommunications infrastructure works. The timely disposal of RoW applications of various services and infrastructure providers shall enable speedy infrastructure creation. The portal will enable applicants from various Telecom Service Providers (TSPs), Internet Service Providers (ISPs) as well as Infrastructure providers (IPs) to apply at a common single portal for Right of Way permissions to lay down Optical Fiber Cable.

Ease of Doing Business:

TRAI issued its Recommendation on Ease of Doing Business in Telecom and Broadcasting sector in May 2023. The Recommendations have suggested a Digital Single Window System for all the Ministries/

Departments related to licenses/registrations/ permissions/clearances enabled with distinct user manual with duly filled in sample forms/formats. The recommendations also suggest facilitation of online payment of any fees integrated with existing payment systems and seamless integration with all concerned Ministries/Departments/Agencies. It is also recommended establishment of an Ease of Doing Business Committee in each Ministry and its departments to review, simplify and update existing processes as an ongoing activity.

Consultation of regulatory mechanism for OTT Communication services.-

In September 2020, TRAI had recommended against regulatory intervention for OTT communication platforms stating that it should be left to market forces. However, based on reference from DoT in 2022 requesting TRAI to reconsider its recommendations, TRAI has issued a fresh Consultation Paper in July 2023 and invited the stakeholders to send suggestions about regulating OTT communication services and whether a selective banning of such services can be done as opposed to shutting down the entire Internet. Regulating such services has been a long-standing demand of telecom operators, who have for years, been advocating for same service, same rules. The same is certainly a welcome step to ensure a level playing field amongst the players/service providers offering similar/ substitutable services. Furthermore, it paves a way for a healthy debate/discussion on the growing disparity in the regulatory/licensing regime between the regulated service providers and the ever-growing & fragmented OTT service providers.

Judicial Interventions

CESTAT judgment on tax liability between MSOs and LCOs

In a landmark decision, the Supreme Court of India dismissed appeal filed by the Service Tax department against an order passed by CESTAT Chandigarh which held that Multi System Operator (MSO) is liable to pay service tax only on the gross amount received by them from Local Cable Operators (LCOs). This order settles the principle that the LCOs are independent service providers and cannot be treated as the agents of the MSO.

Sustainability in Media & Entertainment Industry.

The M&E sector will play a vital role in achieving Net Zero goals and promoting sustainable growth. As a digital ecosystem enabler, M&E platforms can technology. The Company has over 97,000 kms of Optical Fiber Cable stretched across India for improved connection. The Company offers Unlimited data with Unlimited speeds ranging between 60 Mbps to 200 Mbps.

One of the first Cable platforms to offer language- based regional packs to all of its consumers in India, the Company also improved customer experience by allowing users to select the channels as per their choice.

Year at a Glance:

The Company has grown significantly across its businesses and has cemented its leadership position in the segments that it operates.

• Business Reach :(C~^)

• Active Digital Cable TV subscribers as on 31^st March 2023 stood at 8.95 Million, a growth of 1.7x in the last 6 years.

• 3.8x growth in active Broadband subscriber base in the last 6 years to reach 9,20,000 subscribers.

• 5.30 Million homepass with net addition of 104K in FY 2022-23.

• Key Financial Figures :(^)

• Total Revenues at 27.14 Billion.

• Consolidated Revenue growth of 12% annually (ex. EPC).

• PAT Positive for consecutive last six years

• Continued dividend paying history (Proposed Dividend of 40% for FY 2022-23)

• Operational Efficiency : (:::)

• Sales Management web portal for better control and faster sales and retention execution.

• Implementation of online complaint management system integrated with all customer touch points.

• Availability of applications in local languages for ease of operation.

• Presence across multiple Digital platforms for better reach.

• Key Highlights : (?)

• The Company maintained Net Debt Free status during FY 2022-23.

• Upgraded to IND AA-/Stable & IND A1+ (WC) by India Ratings

In-House Platform Services for Entertainment

The Company offers a robust selection of 50+ owned and operated channels in a variety of languages and genres. The channels provide a variety of programming to accommodate the varied tastes of their large client base.

50+ Channels across 5+ Genres

Awards & Recognition

• GTPL has earned the privilege of being listed amongst Indias Growth Champions 2023 for the second year in a row.

• GTPL ranked #89 across India with an absolute growth of 87%.

• GTPL, once again was part of the esteemed Top 500 companies in the fifth Annual FT Ranking-High Growth Asia-Pacific Companies 2023 published by Financial Times

• GTPL ranked #438 with an absolute growth of 87% in revenues.

• GTPL was honoured with the prestigious Excellence in Innovation award by The Economic Times held in June- 2023.

• GTPL was recognised as The Economic Times Iconic Brands of India 2022 for its legacy and sustainability in India and the global market.

• GTPL won big at the Innovation and Technology Summit & Awards 2022 organised by Empiric Business Media.

• It won awards for Best Customer Loyalty Program and Best Digital Innovation.

Business Partners

The Company has a robust network of Business Partners with more than 39,000 Last Mile operators across India.

The Company follows a bottom-up approach to ensure transparency with its trusted partners. The Company utilises the strength of the Business Partners and ensures growth for all stakeholders.

Technology

The Company consistently invests in the advanced technology and equipment from leading international and domestic technology vendors to ensure that the Company is able to provide high quality products and services to the customers across its businesses. The Company constantly evaluates innovations and available technology to enhance the customers experience.

The Company collaborates with international technology partners for procurement of equipment and services from international leaders including Harmonics, Skyworth, CISCO, Nokia, NAGRA, Verimatrix, Alepo, Broadpeak, Aprecomm and others to deliver high quality video experience. The Company has its main Headend (Mother Headend) located in Gujarat, which caters to operations across India. The second main headend is installed in Kolkata. The Company distributes more than 900 channels including 97+ HD channels.

SWOT Analysis Strengths:

• Robust infrastructure and continuous investments in world-class technology.

• Leadership positions in key operating markets; presence in 22 States across 1,400+ towns; economies of scale.

• Preferred partner with 39K+ last mile operators, 200+ Broadcasters, 1,775+ enterprise clients and 30+ Government projects.

• Customised product offerings across Digital Cable TV, Broadband & OTT; focus on regional preferences.

• Availability of multi-modal customer support.

• Skilled workforce and experienced management team.

Weaknesses:

• Dependence on operators for maintaining last mile infrastructure.

• Limited innovation in content by Broadcasters which may affect viewership patterns.

• Potential increase in cost due to offers/discounts/ promotional schemes which may need to be offered to retain existing customers or to gain new customers.

Opportunities:

• Close to 70% penetration of TV among 319 Million households in India offering an opportunity for increased Digital Cable TV penetration in close to 100 Million households.

• With only 10% of the households connected to wired broadband, there is a huge opportunity for high-speed broadband expansion, especially with the Governments continued focus on Digital India enablement.

• Opportunity for consolidation in the unorganised Cable TV sector with a potential of ~45 Million.

• Diversification of product mix to include OTT applications among the Digital Cable TV and Broadband customers and cross sell of different products to the same consumer.

Threats:

• Changing content consumption habits to include digital media along with the continued consumption through television.

• Regulatory imbalance specially with respect to unregulated distribution platforms.

• Emergence of new technologies in wired and wireless broadband delivery.

b) Broadband Business: Annual Homepass (Million)

c) Financial Performance • Revenues

The Companys revenue grew to 27,140 Million during FY 2022-23. The revenue growth was a healthy 12%, excluding the impact of EPC revenue accounted during the year.

The Digital Cable TV subscription revenue grew by 2% during last year and reached 11,005 Million in FY 2022-23 against 10,753 Million in FY 2021-22. Cable TV subscription revenues have consistently grown during the last five years at a CAGR of 11%.

The ISP revenues stood at 4,826 Million in FY 2022-23 against 4,075 Million in FY 2021-22 with a growth of 18% on annual basis. The ISP revenue has been growing at CAGR of 35% for the past five years.

• EBITDA

The EBITDA for the Company stood at 2,842 Million on standalone basis. The consolidated

EBITDA for FY 2022-23 was recorded at 5,163 Million. The EBITDA margin (ex. EPC) stood at 19% for FY 2022-23.

• Expenses

The total operating expense at consolidated level for FY 2022-23 stood at 21,976 Million (ex. EPC), with a rise of 19% annually against 18,477 Million (ex. EPC) in FY 2021-22.

• Key Financial Ratios (Incl. EPC)

Particulars	Unit	As at March 31, 2023	As at March 31, 2022	% of Change in Ratio
Current Ratio	Times	0.48	0.56	-13%
Debt Equity Ratio	Times	0.13	0.12	6%
Debt Service Coverage Ratio	Times	8.94	4.15	116%
Return on Equity (%)	Percentage	12%	23%	-49%
Inventory Turnover Ratio	Times	0	2.12	NA
Trade Receivables Turnover Ratio	Times	9.26	6.94	33%
Trade Payables Turnover Ratio	Times	3.89	3.46	12%
Net Capital Turnover Ratio	Times	2.42	2.34	3%
Net Profit Ratio	Times	0.05	0.09	-48%
Return on Capital Employed (%)	Percentage	10%	24%	-58%

1. Debt Service Coverage Ratio

The Debt Service Coverage Ratio for the Company improved from 4.15 times in FY 2021-22 to 8.94 times in FY 2022-23. Improvement in debt Service Coverage ratio due to repayment of loan and reduction in finance cost during current year.

2. Return on Equity

The Return on Equity ratio for FY 2022-23 is 12% as against the last fiscal return of 23%. The major reason for the change in the return on equity is attributable to additional depreciation and exception items during the current year.

3. Trade Receivables Turnover Ratio

The Trade Receivable Turnover Ratio for the Company has improved from 6.94 times in FY 2021- 22 to 9.26 times in FY 2022-23. Improvement in Trade Receivables due to efficient collection of trade receivables during current year.

4. Net Profit Ratio.

The net profit ratio for FY 2022-23 is 0.05 as against the last fiscal ratio of 0.09. The major reason for the change in net profit ratio is attributable to additional depreciation and exception items during the current year.

5. Return on Capital Employed

The Return on Capital Employed ratio for FY 2022- 23 is 10% as against the last fiscal return of 24%. The major reason for the change in the return on capital employed is attributable to additional depreciation and exception items during the current year.

Key Initiatives:

The Company is constantly focussing on customer experience and has taken a number of initiatives in this direction.

• Launched GTPL Genie+, an OTT app aggregation product that effectively cater to the requirements of our customers by offering OTT apps to both Digital Cable TV and Broadband customers. Our customers can now relish a comprehensive offering comprising Digital Cable TV, High-Speed Broadband as well as OTT content.

• To enhance our visibility and accessibility to potential customers, actively searching for products with the intention to purchase, we have taken the initiative to list all GTPL office locations on the Google My Business platform. By leveraging this platform, we have better control on our digital presence and ensure discoverability and availability of information about our products and services to the prospective customer facilitating seamless engagement and conversion.

• The Company has adopted an advanced Online Reputation Management (ORM) tool provided by Konnect Insight. This progressive solution streamlines the management and monitoring of all our social media handles, consolidating them under a single unified platform.

Risk Management

Preference Risk - With the implementation of NTO, customer has the right to choose channels as per their preference which has led to an increase in customer focus for the M&E sector. Along with this, customers can opt for their regional pack choices from the variety of the offerings. GTPL has upgraded its offering in line with its customers preferences and offers versatile recommendations suited to each geography. Migration Risk - Difficulty in retaining customers directly impacts business growth and sustainability. The Company, through its partners, offers customers the option of online renewal, package changes, channel subscriptions etc. In order to attract new customers, the Company regularly announces offers in collaboration with its LCOs. The Company has also initiated a brand building exercise and collaborates with its LCOs to increase customer awareness in the market.

Awareness Risk - The 39,000+ partners spread across urban and rural areas are one of the mainstays of our business. In order to communicate the offers and services provided by GTPL, the Company regularly conducts interaction sessions with its partners. The Company has also developed a portal in-house to communicate all such offers and services as well as to enable the partners to manage their customers better.

Content Risk - The Company distributes channels and services provided by broadcasters. Being an important player in Hindi Speaking Markets (HSM) and Non-HSM, the Company is able to obtain channels without any difficulties. It maintains excellent relations with all broadcasters, and they prefer to launch any new services on our platform.

Cyber Security Risk- Cyber security or information security risk is defined as the potential of loss or harm to the Company, resulting from breaches to, attacks on, or unauthorised access to the Company information system, which include computers, networks, hardware, software, switches, routers, mobile devices, applications, websites, data, information, and so on.

Cyber security incidents can result in large-scale financial losses, damage to reputation, legal liabilities and regulatory issues. Therefore, mitigating this risk

is an integral aspect of enterprise risk management. The Company has robust policies, procedures, controls and monitoring tools to manage and mitigate cybersecurity risk. The framework covers people, processes and technology.

d) Human Resources

Our core belief revolves around nurturing talent through the identification of individuals with untapped potential and a growth-oriented attitude. We are committed to providing ample opportunities for them to acquire the necessary knowledge and skills, fostering a culture of continuous learning and development. This philosophy is ingrained at every level of our organisation, starting from those embarking on their journey with GTPL to those reaching the echelons of senior management. Recognising the importance of a skilled and competent workforce, we devised a strategic approach that involved forging partnerships with esteemed institutes and skill development centres. This collaboration has not only met the demands for a highly skilled workforce but also has redefined conventional employee profiles. As a result, we have successfully attracted a diverse pool of applicants hailing from various fields, ensuring a rich blend of talent from different genders, cultures, and social backgrounds.

I n the preceding financial year, we took significant strides in promoting diversity and inclusivity within our workforce. Our relentless efforts in diversified hiring bore fruit, with more than 50% of female employees joining the ranks in the pivotal domains of Customer Care and Information Technology. Additionally, we prioritised strengthening the bond between employees and HR through our groundbreaking HR Assistance programme. This initiative focussed on addressing employee needs, elucidating Company policies, and welcoming their invaluable suggestions. Remarkably, this program touched over 60% of our dedicated workforce and received high praise from them.

As of March 31, 2023, GTPL boasts a robust workforce of 743 permanent employees, spread across various locations. Each one of them is an essential pillar of our success, contributing to our journey of growth and excellence.

e) Internal Control

The Company has an adequate system of Internal Controls aimed at achieving efficiency in operations, optimum utilisation of resources and compliance with all applicable laws and regulations. An Independent firm of Chartered Accountants has been appointed as Internal Auditor for the Company. The key observations and recommendations following such internal audit, for improvement of the business operations and their implementation, are reviewed by the Audit Committee on a quarterly basis. Pursuant to the mandatory requirements, the management has established adequate preventive and corrective measures so as to mitigate all major risks.

f) Cautionary Statement

We have disclosed forward-looking information to enable investors to comprehend our prospects and take investment decisions. This report and other statements - written and oral - that we periodically make contain forward-looking statements that set out anticipated results based on the managements plans and assumptions. We cannot guarantee that these forward-looking statements will be realised, although we believe we have been prudent in our assumptions. The achievement of results are subject to risks, uncertainties, and even inaccurate assumptions. Readers are requested to keep this in mind. Actual results may differ from those expressed or implied. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

	For & on behalf of the Board of Directors
	Ajay Singh	Anirudhsinh Jadeja
	Chairman	Managing Director
	DIN: 06899567	DIN: 00461390
Date : April 15, 2023	Place: Mumbai	Place: Ahmedabad