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: Revised tariffs lowers revenues - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Jul 27, 2001

    VSNL: Revised tariffs lowers revenues

    Videsh Sanchar Nigam Limited (VSNL), the state owned international telephony service provider, has posted a drop in net profits for the first quarter ended 30th June 2001. The reduction in international telephony rates by the Telecom Regulatory Authority of India (TRAI) has clearly taken its toll on the value growth for VSNL. However, a closer look reveals that net profit has actually gone up by 0.5%.

    (Rs m) 1QFY01 1QFY02 Change
    Sales 16,958 15,283 -9.9%
    Other Income 1,553 1,138 -26.7%
    Expenditure 12,596 11,099 -11.9%
    Operating Profit (EBDIT) 4,362 4,184 -4.1%
    Operating Profit Margin (%) 25.7% 27.4% 6.4%
    Interest - -  
    Depreciation 265 307 15.8%
    Profit before Tax 5,650 5,015 -11.2%
    Extraordinary item - 229  
    Tax 1,821 1,589 -12.7%
    Profit after Tax/(Loss) 3,829 3,655 -4.5%
    Net profit margin (%) 22.6% 23.9%  
    No. of Shares (eoy) 285 285  
    Earnings per share (Rs)* 53.7 51.3  

    On an average, the accounting rates are lower by 27%-28% compared with the correponding quarter of the previous financial year. We had expected a marginal decline in telecom revenues in the first quarter against which VSNL has reported a significant fall. Sales in 1QFY01 also include Rs 211 m as income from Intelsat, which was corporatised recently and as a result sales in 1QFY02 does not include income from Intelsat.

    Operating margins, on the other hand, have also gone up from 25.7% in 1QFY01 to 27.4% in 1QFY02 and are is in line with our projections. Extraordinary item here pertains to prior period adjustments to the tune of Rs 229 m. Other income has fallen significantly because other income in 1QFY01 includes interest earned from GDR proceeds. Excluding both the fall in other income as well prior period adjustments, net profit has actually gone up by 0.5% to Rs 2,288 m in 1QFY02.

    The scrip is currently trading at Rs 264 at a P/E multiple of 5.1x the annualised 1QFY02 earnings.



    Equitymaster requests your view! Post a comment on "VSNL: Revised tariffs lowers revenues". 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.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    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...

    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


    Aug 16, 2017 (Close)


    • 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


    Detailed Quarterly Results With Charts