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.
MTNL: OPM falls 630 basis points in 1QFY01 - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Jul 31, 2000

    MTNL: OPM falls 630 basis points in 1QFY01

    Mahanagar Telephone Nigam Limited has posted a 13.5% growth in net profits for the quarter ended 30th June 2000. The company has suffered a sharp erosion in operating margins. However a decline in the provision for taxation has more than made up for the decline in operating profits, resulting in an improved bottomline.

    (Rs m) 1QFY00 1QFY01 Change
    Sales 12,637 14,007 10.8%
    Other Income 674 462 -31.5%
    Expenditure 6,704 8,320 24.1%
    Operating Profit (EBDIT) 5,933 5,687 -4.1%
    Operating Profit Margin (%) 46.9% 40.6%  
    Interest 11 24 124.3%
    Depreciation 1,646 1,952 18.6%
    Profit before Tax 4,950 4,172 -15.7%
    Other Adjustments      
    Tax 1,699 482 -71.6%
    Profit after Tax/(Loss) 3,251 3,691 13.5%
    Net profit margin (%) 25.7% 26.3%  
    No. of Shares (eoy) (m) 630.0 630.0  
    Diluted number of shares 630.0 630.0  
    Diluted Earnings per share* 20.6 23.4  

    We have projected a 9% growth in topline for the year and a 2% decline in gross margins. In view of the sharp decline in operating profits there may be a need to look into the margins projected by us. Detailed results are not available as yet.

    The company has also suffered a decline in other income. Interest costs have risen and so has depreciation expenditure. MTNL has availed of tax benefits under section 80 1A. The earnings per share as a consequence stands increased to Rs 23.4, implying a P/E multiple of 7.3x.

    MTNL has off late been affected by the TRAI's decision to restructure telephone rental and usage charges. The company is currently in the process of rolling out its cellular telephony services in both Delhi and Mumbai. It is also aggressively promoting its internet service to generate growth.



    Equitymaster requests your view! Post a comment on "MTNL: OPM falls 630 basis points in 1QFY01". Click here!


    More Views on News

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

    Most Popular

    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.

    The Most Profitable Investment in the History of the World(Vivek Kaul's Diary)

    Aug 8, 2017

    'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'

    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.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    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 21, 2017 (Close)



    Detailed Financial Information With Charts