MTNL: Margins squeezed - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

MTNL: Margins squeezed

Nov 2, 2000

In spite of the ongoing restructuring in the telecom sector Mahanagar Telephone Nigam Ltd. (MTNL) has reported strong topline growth. This is a much improved performance compared to the first quarter of the current year (10% topline growth).

(Rs m) 2QFY00 2QFY01 Change
Sales 12,200 15,212 24.7%
Other Income 630 775 23.0%
Expenditure 6,870 9,372 36.4%
Operating Profit (EBDIT) 5,330 5,841 9.6%
Operating Profit Margin (%) 43.7% 38.4%  
Interest 40 17 -56.3%
Depreciation 1,950 1,933 -0.9%
Profit before Tax 3,970 4,665 17.5%
Tax 740 191 -74.2%
Profit after Tax/(Loss) 3,230 4,474 38.5%
Net profit margin (%) 26.5% 29.4%  
No. of Shares (eoy) (m) 630.0 630.0  
Diluted Earnings per share* 20.5 28.4  
P/E Ratio   5.1  
*(annualised)      

Although operating profits are up the OPM has dropped sharply by 530 basis points. The company's staff cost has almost doubled over 2QFY00. This may be due to the new wage agreement entered into with retrospective effect (FY98), which locks in wages for the next eight years. Network charges for the company have also increased substantially. Consequently, operating costs have increased.

Historically, the company has traded at a multiple of 15.8. At Rs 144 the company is trading on a multiple of 5.1 on 2QFY01 annualised earnings.


Equitymaster requests your view! Post a comment on "MTNL: Margins squeezed". Click here!

  

More Views on News

MTNL Announces Quarterly Results (1QFY20); Net Profit Down 11.6% (Quarterly Result Update)

Aug 20, 2019 | Updated on Aug 20, 2019

For the quarter ended June 2019, MTNL has posted a net profit of Rs 11 bn (down 11.6% YoY). Sales on the other hand came in at Rs 4 bn (down 16.2% YoY). Read on for a complete analysis of MTNL's quarterly results.

MTNL Announces Quarterly Results (4QFY19); Net Profit Up 16.1% (Quarterly Result Update)

Jun 5, 2019 | Updated on Jun 5, 2019

For the quarter ended March 2019, MTNL has posted a net profit of Rs 8 bn (up 16.1% YoY). Sales on the other hand came in at Rs 5 bn (up 9.0% YoY). Read on for a complete analysis of MTNL's quarterly results.

MTNL 2017-18 Annual Report Analysis (Annual Result Update)

Dec 19, 2018 | Updated on Dec 19, 2018

Here's an analysis of the annual report of MTNL for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of MTNL. Also includes updates on the valuation of MTNL.

More Views on News

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

MTNL SHARE PRICE


Sep 23, 2020 (Close)

TRACK MTNL

COMPARE MTNL WITH

MARKET STATS