TV Broadcasting & Software Production · Founded 1995 · www.ortelcom.com · BSE 539015 · NSE ORTEL · ISIN INE849L01019
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Business
Ortel Communications Ltd. operates primarily in the TV broadcasting and software production sector in India. Its core business involves providing multi-system operator (MSO) services, delivering cable television channels to subscribers through its network. Complementary to its cable TV services, Ortel also offers broadband internet services, leveraging its existing last-mile infrastructure. The company generates revenue primarily through subscription fees from its cable TV and broadband internet customers. It may also derive revenue from carriage fees, placement fees, and potentially local advertising or content production for its network.
Revenue Mix
While specific contribution percentages are not publicly available without detailed financial reports, the company's revenue streams typically comprise:
Cable Television Services: Subscription fees from residential and commercial customers for accessing various TV channels. This forms a significant portion of its traditional business.
Broadband Internet Services: Subscription fees from customers for internet connectivity, often bundled with cable TV or offered as a standalone service.
Content & Other Services: Potential revenue from local content production, advertising, or value-added services, though likely a smaller segment compared to subscriptions.
Industry
The Indian TV broadcasting and software production industry is dynamic and highly competitive. Ortel Communications operates as a Multi-System Operator (MSO), primarily competing with other MSOs, national Direct-to-Home (DTH) satellite TV providers (e.g., Tata Play, Airtel Digital TV), and increasingly, over-the-top (OTT) streaming platforms (e.g., Netflix, Amazon Prime Video). In the broadband segment, it competes with national telecom operators (e.g., Jio Fiber, Airtel Xstream Fiber) and other regional ISPs. Ortel has historically established a strong regional presence, particularly in specific states like Odisha, allowing it to carve out a niche market share within its operating geographies.
MOAT
Ortel's potential competitive advantages include:
Established Last-Mile Infrastructure: Extensive physical cable and fiber optic network in its primary operating regions, which is costly and time-consuming for new entrants to replicate.
Regional Brand Recognition & Relationships: A long-standing presence in its specific markets may foster customer loyalty and strong relationships with local cable operators (LCOs) and local authorities.
Switching Costs: For customers with physical cable connections, the effort and potential disruption of switching providers can act as a deterrent.
Local Content/Service Customization: Ability to offer localized channels or services that might appeal specifically to its regional subscriber base.
Growth Drivers
Increasing Broadband Penetration: Growing demand for high-speed internet in India, especially in semi-urban and rural areas where Ortel may have an existing footprint, can drive broadband subscriber growth.
Digitalization & Upgradation: Ongoing government initiatives and consumer preference for digital quality and value-added services (e.g., HD channels, interactive TV) can drive upgrades and ARPU (Average Revenue Per User) growth.
Regional Content Demand: A rising appetite for localized and vernacular content could present opportunities for content production or aggregation tailored to its audience.
Expansion of Value-Added Services: Introduction of new services such as home security, smart home solutions, or integration with OTT platforms could diversify revenue.
Risks
Intense Competition: Fierce competition from DTH players, national telecom operators expanding their broadband footprint, and the proliferation of low-cost OTT streaming services pose a significant threat to subscriber retention and ARPU.
Regulatory Changes: The Indian broadcasting and telecom sector is heavily regulated by TRAI (Telecom Regulatory Authority of India). Changes in tariff orders, interconnection charges, or licensing policies can impact profitability.
Technological Obsolescence: Rapid advancements in technology (e.g., 5G, fiber-to-the-home) could render older infrastructure or business models less competitive if not upgraded.
Content Costs: Increasing costs of acquiring popular TV channels and premium content from broadcasters can squeeze margins.
Subscriber Churn: High churn rates due to competitive offerings or dissatisfaction with service quality can negatively impact revenue.
Management & Ownership
As is common with many Indian companies, Ortel Communications Ltd. is likely promoter-led, with the founding family or group holding a significant ownership stake and influencing strategic direction. Without specific public reports on current management quality or a detailed ownership breakdown, it is difficult to assess individual leadership performance or broader governance structures. However, promoter-led structures often bring a long-term vision but can also concentrate decision-making power.
Outlook
Ortel Communications faces a challenging but opportunity-rich landscape. The increasing demand for high-speed broadband internet, especially in its regional markets, presents a significant growth avenue where its existing infrastructure can be leveraged. Opportunities also exist in offering differentiated regional content and bundling services to enhance customer stickiness. However, the company operates in a highly competitive sector marked by aggressive pricing and technological disruption from national players and OTT platforms. Regulatory shifts and the need for continuous infrastructure upgrades to remain competitive will require ongoing capital investment and strategic agility. Its ability to innovate, expand its service offerings, and effectively compete on price and quality will be crucial for sustained performance.
Price goes above X
Price falls below X
PE goes above X
PE falls below X
| #(Fig in Cr.) | Dec 2018 | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 25 | 0 | 23 | 21 | 21 | 18 | 19 | 16 | 18 | 10 |
| Other Income | 1 | 0 | 1 | 1 | 0 | 1 | -0 | 1 | 1 | 0 |
| Total Income | 26 | 0 | 24 | 22 | 21 | 20 | 19 | 17 | 20 | 11 |
| Total Expenditure | 23 | 0 | 26 | 22 | 23 | 16 | 17 | 17 | 16 | 14 |
| Operating Profit | 3 | 0 | -2 | -0 | -2 | 4 | 2 | 0 | 4 | -3 |
| Interest | 8 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 7 | 0 | 7 | 7 | 7 | 6 | 6 | 6 | 6 | 6 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | -13 | 0 | -9 | -7 | -9 | -2 | -5 | -6 | -2 | -9 |
| Provision for Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Tax | -13 | 0 | -9 | -7 | -9 | -2 | -5 | -6 | -2 | -9 |
| Adjustments | 0 | 0 | -0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | -13 | 0 | -9 | -7 | -9 | -2 | -5 | -6 | -2 | -9 |
| Adjusted Earnings Per Share | -3.8 | 0 | -2.6 | -2.1 | -2.6 | -0.7 | -1.5 | -1.9 | -0.7 | -2.8 |
| #(Fig in Cr.) | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | TTM |
|---|---|---|---|---|---|
| Net Sales | 184 | 111 | 87 | 68 | 63 |
| Other Income | 70 | 9 | 2 | 4 | 2 |
| Total Income | 254 | 119 | 89 | 72 | 67 |
| Total Expenditure | 214 | 117 | 98 | 68 | 64 |
| Operating Profit | 40 | 2 | -9 | 4 | 3 |
| Interest | 29 | 21 | 0 | 0 | 0 |
| Depreciation | 27 | 32 | 26 | 26 | 24 |
| Exceptional Income / Expenses | -79 | 0 | 0 | 0 | 0 |
| Profit Before Tax | -95 | -51 | -35 | -22 | -22 |
| Provision for Tax | 0 | 0 | 0 | 0 | 0 |
| Profit After Tax | -95 | -51 | -35 | -22 | -22 |
| Adjustments | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | -95 | -51 | -35 | -22 | -22 |
| Adjusted Earnings Per Share | -31.3 | -15.5 | -10.6 | -6.7 | -6.9 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -22% | -28% | 0% | 0% |
| Operating Profit CAGR | 0% | -54% | 0% | 0% |
| PAT CAGR | 0% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -23% | 10% | 9% | -38% |
| ROE Average | 0% | 0% | -115% | -115% |
| ROCE Average | -13% | -15% | -19% | -19% |
| #(Fig in Cr.) | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 |
|---|---|---|---|---|
| Shareholder's Funds | 21 | -20 | -55 | -77 |
| Minority's Interest | 0 | 0 | 0 | 0 |
| Borrowings | 103 | 142 | 142 | 142 |
| Other Non-Current Liabilities | 23 | 20 | 12 | 1 |
| Total Current Liabilities | 324 | 303 | 305 | 300 |
| Total Liabilities | 471 | 445 | 404 | 366 |
| Fixed Assets | 364 | 357 | 331 | 299 |
| Other Non-Current Assets | 51 | 40 | 32 | 26 |
| Total Current Assets | 56 | 47 | 40 | 41 |
| Total Assets | 471 | 445 | 404 | 366 |
| #(Fig in Cr.) | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 |
|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 4 | 4 | 4 | 4 |
| Cash Flow from Operating Activities | 38 | 27 | 3 | 3 |
| Cash Flow from Investing Activities | -41 | -14 | -4 | -3 |
| Cash Flow from Financing Activities | 3 | -12 | 0 | 0 |
| Net Cash Inflow / Outflow | -0 | 1 | -0 | 0 |
| Closing Cash & Cash Equivalent | 4 | 4 | 4 | 4 |
| # | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 |
|---|---|---|---|---|
| Earnings Per Share (Rs) | -31.28 | -15.53 | -10.57 | -6.66 |
| CEPS(Rs) | -22.39 | -5.75 | -2.63 | 1.11 |
| DPS(Rs) | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 6.77 | -6.19 | -16.93 | -23.55 |
| Core EBITDA Margin(%) | -16.4 | -5.93 | -12.44 | -0.51 |
| EBIT Margin(%) | -35.94 | -27.31 | -39.99 | -32.31 |
| Pre Tax Margin(%) | -51.8 | -46.33 | -39.99 | -32.31 |
| PAT Margin (%) | -51.8 | -46.33 | -39.99 | -32.31 |
| Cash Profit Margin (%) | -37.08 | -17.15 | -9.97 | 5.39 |
| ROA(%) | -20.24 | -11.19 | -8.22 | -5.71 |
| ROE(%) | -461.74 | 0 | 0 | 0 |
| ROCE(%) | -30 | -14.05 | -18.18 | -13.47 |
| Receivable days | 47.23 | 61.87 | 59.55 | 80.91 |
| Inventory Days | 1.18 | 1.97 | 2.04 | 1.92 |
| Payable days | 0 | 0 | 0 | 0 |
| PER(x) | 0 | 0 | 0 | 0 |
| Price/Book(x) | 2.97 | -0.61 | -0.03 | -0.04 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 1.4 | 2.09 | 2.61 | 3.36 |
| EV/Core EBITDA(x) | 6.46 | 111.62 | -26.19 | 62.38 |
| Net Sales Growth(%) | 0 | -39.92 | -21.16 | -22.02 |
| EBIT Growth(%) | 0 | 54.35 | -15.45 | 37 |
| PAT Growth(%) | 0 | 46.26 | 31.95 | 37 |
| EPS Growth(%) | 0 | 50.34 | 31.96 | 37 |
| Debt/Equity(x) | 9.68 | -11.25 | -4.12 | -2.96 |
| Current Ratio(x) | 0.17 | 0.16 | 0.13 | 0.14 |
| Quick Ratio(x) | 0.17 | 0.15 | 0.13 | 0.13 |
| Interest Cover(x) | -2.27 | -1.44 | 0 | 0 |
| Total Debt/Mcap(x) | 3.26 | 18.58 | 145.19 | 80.11 |
| # | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 | Sep 2021 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 55.43 | 55.43 | 55.43 | 55.43 | 55.43 | 55.43 | 55.43 | 55.43 | 55.43 | 55.43 |
| FII | 9.24 | 9.24 | 9.24 | 9.24 | 9.24 | 9.24 | 9.24 | 8.42 | 8.42 | 8.42 |
| DII | 13.17 | 11.11 | 1 | 0.99 | 0.99 | 0.99 | 0.99 | 0.99 | 0.99 | 0.99 |
| Public | 22.16 | 24.21 | 34.33 | 34.34 | 34.34 | 34.34 | 34.34 | 35.17 | 35.17 | 35.17 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 | Sep 2021 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 1.83 | 1.83 | 1.83 | 1.83 | 1.83 | 1.83 | 1.83 | 1.83 | 1.83 | 1.83 |
| FII | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | 0.28 | 0.28 | 0.28 |
| DII | 0.43 | 0.37 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Public | 0.73 | 0.8 | 1.13 | 1.13 | 1.13 | 1.13 | 1.13 | 1.16 | 1.16 | 1.16 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 3.3 | 3.3 | 3.3 | 3.3 | 3.3 | 3.3 | 3.3 | 3.3 | 3.3 | 3.3 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -22% | -28% | — | — |
| Operating Profit CAGR | — | -54% | — | — |
| PAT CAGR | — | — | — | — |
| Share Price CAGR | -23% | +10% | +9% | -38% |
| ROE Average | 0% | 0% | -115% | -115% |
| ROCE Average | -13% | -15% | -19% | -19% |
| # | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 | Sep 2021 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 55.43 | 55.43 | 55.43 | 55.43 | 55.43 | 55.43 | 55.43 | 55.43 | 55.43 | 55.43 |
| FII | 9.24 | 9.24 | 9.24 | 9.24 | 9.24 | 9.24 | 9.24 | 8.42 | 8.42 | 8.42 |
| DII | 13.17 | 11.11 | 1 | 0.99 | 0.99 | 0.99 | 0.99 | 0.99 | 0.99 | 0.99 |
| Public | 44.57 | 44.57 | 44.57 | 44.57 | 44.57 | 44.57 | 44.57 | 44.57 | 44.57 | 44.57 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 | Sep 2021 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 1.83 | 1.83 | 1.83 | 1.83 | 1.83 | 1.83 | 1.83 | 1.83 | 1.83 | 1.83 |
| FII | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | 0.28 | 0.28 | 0.28 |
| DII | 0.43 | 0.37 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Public | 1.47 | 1.47 | 1.47 | 1.47 | 1.47 | 1.47 | 1.47 | 1.47 | 1.47 | 1.47 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 3.3 | 3.3 | 3.3 | 3.3 | 3.3 | 3.3 | 3.3 | 3.3 | 3.3 | 3.3 |
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