X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
VSNL: Higher margins boosts profits - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Jan 22, 2001

    VSNL: Higher margins boosts profits

    VSNL, the state owned telecom major, has posted a 34% growth in net profits for the third quarter ended 31st December 2000 backed by a 23% growth in sales. Operating margin has also gone up from 26% in 3QFY00 to 31% in 3QFY01. The growth in operating margins would have been sharper but for decline in accounting rate (VSNL negotiates accounting rates with international carriers every year for transfer of calls between countries, which has been on the decline). The Total Accounting Rate (TAR) has gone down by 20% compared to the corresponding quarter of the previous year.

    (Rs m) 3QFY00 3QFY01 Change
    Sales 16,628 19,502 17.3%
    Other Income 191 1,120 486.4%
    Expenditure 12,242 13,479 10.1%
    Operating Profit (EBDIT) 4,386 6,023 37.3%
    Operating Profit Margin (%) 26.4% 30.9%  
    Interest - -  
    Depreciation 199 280 40.7%
    Profit before Tax 4,378 6,863 56.8%
    Other Adjustments - (52)  
    Tax 1,394 2,809 101.5%
    Profit after Tax/(Loss) 2,984 4,002 34.1%
    Net profit margin (%) 17.9% 20.5%  
    No. of Shares (eoy) (m) 95.0 285.0  
    Diluted number of shares 285.0 285.0  
    Earnings per share* 41.9 56.2  
    *(annualised)      

    Telephone traffic for the quarter ended 31st December 2000 was 707 m paid minutes, compared to 543 m paid minutes in quarter ended 31st December 1999, a growth of 30%. This could be attributed to the fact that tariff rates for international calls were reduced during the current year, which has added to the top line growth. The other reason for a 23% growth in topline could be from value-add service like Internet and leased lines.

    Income from value-add services has gone up by 19% to Rs 5,705 m for the nine months period ended 31st December 2000. VSNL reduced rates for Internet and leased lines by 50% and 75% respectively, during the third quarter of the current year, which has led to this higher growth.

    The stock is currently trading at Rs 312 at a P/E multiple of 5.5x the annualised 3QFY01 earnings. On the annualised sales of Rs 70,893 m, market capitalisation to sales works out to 1.3 times (market capitalisation is Rs 88,920 m)

     

     

    Equitymaster requests your view! Post a comment on "VSNL: Higher margins boosts profits". Click here!

      
     

    More Views on News

    Sorry! There are no related views on news for this company/sector.

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    TATA COMM. SHARE PRICE


    Aug 18, 2017 (Close)

    TRACK TATA COMM.

    • Track your investment in TATA COMM. with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    TATA COMM. - VERIZON COMPARISON

    Compare Company With Charts

    COMPARE TATA COMM. WITH

    MARKET STATS