Research And Views Archives

Bharti Tele: Meeting expectations
(Company Info)

Oct 28, 2004

Bharti Televentures, the largest mobile telphony services provider in the country, continues to report strong financial performance in FY05. For 2QFY05, the company has reported a 63% YoY rise in topline while the bottomline growth stood at 257%, albeit on a smaller base. The improvement in bottomline continues as the company moves towards steady state after years of expansion in various circles. Topline growth as well as strong improvement in its operating margins have led to the improvement in

VSNL: Extraordinary effect
(Company Info)

Oct 26, 2004

VSNL has reported improved performance in the second quarter of FY05. While the growth in topline has been only marginal, the operating margins have shown a marked improvement. Expansion in margins seems to indicate an improvement in the company's core business. We would also like to point out that though the topline growth has been negligible, it is indeed better than the performance that the company reported during the past two years, when topline had declined on a consistent basis.

Telecom: Cellular woes
(Sector Info)

Jun 15, 2004

The Indian telecom sector is at a crossroad. What we mean by this is that while the sector is witnessing an explosive growth rate and is likely to maintain it going forward, it is also increasingly facing falling profitability due to regulatory pressures and fragmentation. Increasingly the choice among the various cellular operators is becoming clear and the obvious road that must be taken is that of consolidation.

Bharti Tele: Hexacom in the bag
(Company Info)

Apr 6, 2004

The unified licensing regime has thrown open the doors of consolidation in the Indian telecom sector. However, while there has been just a single large acquisition deal, a lot of noise has characterized consolidation in the sector. The deal we are referring to here is the buyout of Escotel’s GSM operations in three circles by Idea Cellular. However Bharti Tele has joined the act and has announced an acquisition of its own.

VSNL: Dishnet in the net
(Company Info)

Mar 19, 2004

Consolidation was imminent among the 189 strong ISPs (internet service providers) and the fourth largest ISP i.e. VSNL, has taken the first step towards the same. VSNL has acquired the assets of Dishnet DSL for a consideration of Rs 2.7 bn. Dishnet DSL is an ISP, that offers internet accesses by way of digital subscriber lines, apart from normal dialup connections. Considering the fact that both VSNL and Dishnet DSL have been losing market share to competitors like BSNL and Sify, this acquisitio

"We would be pushing hard our mobile CDMA services."
(Interview)

Feb 18, 2004

In an interview with Equitymaster, Mr. Pandit talks about the challenges in the Indian telecom industry, how he proposes to grow Tata Teleservices Maharashtra amidst these changes, and his vision for the company.

MTNL vs Bharti Tele
(Company Info)

Jul 29, 2003

MTNL is the largest player in basic telephony in Mumbai and Delhi whereas Bharti Televentures is the market leader in the cellular segment. Bharti operates in 15 circles of the total 22 circles. Though these companies are not strictly comparable as MTNL has a head start, but we are attempting to strike a comparison between the two as Bharti is fast moving up the ladder.

MTNL: Gathering moss
(Company Info)

Jul 22, 2003

MTNL has not yet declared its 1QFY04 results. In the meanwhile let’s have a look at the trend of its 1st quarter results of the last 4 years. As seen in the table below, the sales (read revenues) in the last few years have been sluggish. This can be attributed to a variety of factors predominantly, its operating inefficiencies and strong competition from private operators both basic and cellular. Its operational inefficiencies can be measured with reference to its employees per line. It had e

Cellular: The road ahead
(Sector Info)

Jul 14, 2003

Telecommunications is now universally recognised as one of the prime movers of the modern economy. International studies have established that for every 1% increase in tele-density, there is a 3% increase in the growth of GDP. In the Indian context, the cellular segment has outpaced basic telephony in the recent past due to liberalisation and the potential continues to remain promising. But whether the growth is sustainable is a matter of debate.

Telecom: The big ‘Boom’
(Sector Info)

Jul 7, 2003

The Indian fixed line telecom segment is going through a phase of transition. The major policy reforms initiated since the introduction of the National Telecom Policy (NTP) 1999 have resulted in a significant expansion of fixed line telephony services, especially in rural India. The entry of private players has meant that customers have a variety of choices now. This has been possible because private operators are given entry without any restriction on the number of operators.

MTNL: Woes continue
(Company Info)

May 2, 2003

Mahanagar Telephone Nigam Limited (MTNL), has posted a poor performance for the full year ended March 2003. While revenues from its core businesses i.e. basic and cellular services have declined, there has been a significant pressure on the operating margins as well. Net profit for FY03 is lower by 31%.

Telecom: Connection restored
(Sector Focus)

Apr 26, 2003

The Indian telecommunication sector has entered into a new growth phase starting FY04. The lack of level playing field has been one of the key deterrents in accelerating subscriber base growth, both in basic and cellular, in the past. The long-term objective of the National Telecom Policy 1999, to increase penetration level to 15% was itself under threat. But after quite a lot of deliberations, the interconnection regime is largely in place. From now on, players who have invested significant sum

Bharti - Solid foundation
(Company Info)

Apr 24, 2003

Bharti Televentures Limited (BTVL), the market leader in the Indian cellular telephony segment, has posted an impressive performance for the fourth quarter and full year ended March 2003. While revenues have more than doubled in 4QFY03, the company has posted a net profit in the same period as compared to a net loss of Rs 640 m last year. This despite a competitive environment is commendable.

VSNL: No surprises
(Company Info)

Nov 20, 2002

After six months of tussle with BSNL and MTNL, VSNL has finalised its revenue share agreement. While the international long distance telephony (ILD) major has agreed to match revenue share for outgoing calls (from India to say US), a compromise formula has been arrived at in the case of incoming calls.

MTNL: Twilight zone
(Company Info)

Oct 25, 2002

Mahanagar Telephone Nigam Limited (MTNL) has posted yet another dismal performance for the second quarter ended September 2002. While revenues have declined sharply, lower operating margins has had significant impact on profitability as well.

Hughes Tele: Positive numbers
(Company Info)

Oct 24, 2002

Hughes Tele announced its second quarter results recently. After having extended its service to nine more cities in Maharashtra, the company's revenues and operating profits have been consistently improving each quarter that is reflected in its financials. However, subscriber addition per quarter even on a smaller base seems to have slowed down off late.

VSNL: Revenues nose dive
(Company Info)

Oct 21, 2002

There seems to be no respite in sight for Videsh Sanchar Nigam Limited (VSNL), the privatised international long distance telephony (ILD) operator. For yet another quarter, the company has posted a sharp drop in both revenues and profitability. In 2QFY03, net profit has nose-dived by a significant 33% for the quarter ended September 2002. The company meanwhile, has finalised on its proposed investment in Tata Teleservices Limited (TTSL), the basic service provider under the Tata Group.

VSNL: Hit from all sides
(Company Info)

Sep 4, 2002

The recent spat between the Communication Ministry and VSNL (effectively the Tata’s) has led to the stock price of the ILD major bring battered on the bourses. The stock is currently trading at its 52-week low levels.

Telecom: Bursting with dynamism
(Sector Focus)

Aug 17, 2002

Free competition, as they say, has its own merits and demerits. If one still wonders what is the appeal of deregulation, the Indian telecommunication sector is a typical case study to understand its pros and cons. Ever since the National Telecom Policy 1999 was framed, the communication infrastructure in the country has improved by leaps and bounds. So has the subscriber base in all segments. However, there is a still a long way to go.

VSNL: Time to deliver!
(Company Focus)

Aug 17, 2002

Videsh Sanchar Nigam Limited (VSNL) is in the process of re-inventing itself. Deregulation has actually forced the company to rethink its business plan. Apart from what the company is aiming to become, we discuss in detail the possible fallout of the proposed investment by VSNL in Tata Teleservices (TTL) and whether the investment would provide a competitive advantage in the long run. We also take a closer look at the synergies that the Tata Group offers for VSNL and vice versa.