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TATA TELESERVICES 2021-22 Annual Report Analysis
Wed, 8 Jun

TATA TELESERVICES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

TATA TELESERVICES Income Statement Analysis

  • Operating income during the year rose 4.8% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 260.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 42.8% in FY22 as against 27.9% in FY21.
  • Depreciation charges decreased by 5.0% and finance costs decreased by 1.4% YoY, respectively.
  • Other income declined by 29.8% YoY.
  • Net profit for the year declined by 39.1% YoY.
  • Net profit margins during the year grew from 191.3% in FY21 to 111.1% in FY22.

TATA TELESERVICES Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 10,437 10,938 4.8%
Other income Rs m 241 169 -29.8%
Total Revenues Rs m 10,678 11,107 4.0%
Gross profit Rs m -2,909 4,676 -260.7%
Depreciation Rs m 1,687 1,602 -5.0%
Interest Rs m 15,611 15,393 -1.4%
Profit before tax Rs m -19,967 -12,150 -39.1%
Tax Rs m 0 0 0.0%
Profit after tax Rs m -19,967 -12,150 -39.1%
Gross profit margin % -27.9 42.8
Effective tax rate % 0.0 0.0
Net profit margin % -191.3 -111.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Enclosed: Invitation to Access Our Latest Research Project

TATA TELESERVICES Balance Sheet Analysis

  • The company's current liabilities during FY22 down at Rs 94 billion as compared to Rs 100 billion in FY21, thereby witnessing an decrease of -5.9%.
  • Long-term debt stood at Rs 107 billion as compared to Rs 99 billion during FY21, a growth of 8.5%.
  • Current assets fell 22% and stood at Rs 4 billion, while fixed assets fell 3% and stood at Rs 10 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 14 billion as against Rs 15 billion during FY21, thereby witnessing a fall of 10%.

TATA TELESERVICES Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m -184,909 -188,325 1.8
 
Current Liabilities Rs m 100,093 94,234 -5.9
Long-term Debt Rs m 98,689 107,108 8.5
Total Liabilities Rs m 15,093 13,645 -9.6
 
Current assets Rs m 4,880 3,783 -22.5
Fixed Assets Rs m 10,213 9,863 -3.4
Total Assets Rs m 15,093 13,645 -9.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



TATA TELESERVICES Cash Flow Statement Analysis

  • TATA TELESERVICES's cash flow from operating activities (CFO) during FY22 stood at Rs 5 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -4 billion, an improvement of 1% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -263 million from the Rs -415 million net cash flows seen during FY21.

TATA TELESERVICES Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 5,672 5,324 -6.1%
Cash Flow from Investing Activities Rs m -1,765 -1,318 -
Cash Flow from Financing Activities Rs m -4,322 -4,269 -
Net Cash Flow Rs m -415 -263 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for TATA TELESERVICES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -6.2, an improvement from the EPS of Rs -10.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 117.6, stands at -18.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at -1.2 times, while the price to sales ratio stands at 21.0 times.
  • The company's price to cash flow (P/CF) ratio stood at -27.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 5.3 5.6
TTM Earnings per share Rs -10.2 -6.2
Diluted earnings per share Rs -10.2 -6.2
Price to Cash Flow x -1.5 -27.9
TTM P/E ratio x -1.4 -18.9
Price / Book Value ratio x -0.1 -1.6
Market Cap Rs m 24,437 294,803
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for TATA TELESERVICES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.0x during FY22, from 0.0x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 0.2x during FY22, from -0.3x during FY21. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 6.5% during FY22, from 10.8% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at -4.0% during FY22, from 5.1% during FY21. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at 23.8% during FY22, from -28.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 0.0 0.0
Debtors’ Days Days 3 2
Interest coverage x -0.3 0.2
Debt to equity ratio x -0.5 -0.6
Return on assets % -28.9 23.8
Return on equity % 10.8 6.5
Return on capital employed % 5.1 -4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how TATA TELESERVICES has performed over the last 5 years, please visit here.

TATA TELESERVICES Share Price Performance

Over the last one year, TATA TELESERVICES share price has moved up from Rs 21.0 to Rs 117.6, registering a gain of Rs 96.6 or around 460.0%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 13,556.2 (up 0.3%). Over the last one year it has moved up from 12,517.4 to 13,556.2, a gain of 1,039 points (up 8.3%).

Overall, the S&P BSE SENSEX is up 5.6% over the year.

(To know more, check out historical annual results for TATA TELESERVICES and quarterly results for TATA TELESERVICES)

Annual Report FAQs

What is the current share price of TATA TELESERVICES?

TATA TELESERVICES currently trades at Rs 106.0 per share. You can check out the latest share price performance of TATA TELESERVICES here...

What was the revenue of TATA TELESERVICES in FY22? How does it compare to earlier years?

The revenues of TATA TELESERVICES stood at Rs 11,107 m in FY22, which was up 4.0% compared to Rs 10,678 m reported in FY21.

TATA TELESERVICES' revenue has fallen from Rs 20,791 m in FY18 to Rs 11,107 m in FY22.

Over the past 5 years, the revenue of TATA TELESERVICES has grown at a CAGR of -14.5%.

What was the net profit of TATA TELESERVICES in FY22? How does it compare to earlier years?

The net loss of TATA TELESERVICES stood at Rs -12,150 m in FY22, which was down -39.1% compared to Rs -19,967 m reported in FY21.

This compares to a net loss of Rs -37,141 m in FY20 and a net loss of Rs -6,676 m in FY19.

Over the past 5 years, TATA TELESERVICES net profit has grown at a CAGR of -40.7%.

What does the cash flow statement of TATA TELESERVICES reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of TATA TELESERVICES reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 5,324 m as compared to Rs 5,672 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs -1,318 m as compared to Rs -1,765 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs -4,269 m as compared to Rs -4,322 m in FY21.

Here's the cash flow statement of TATA TELESERVICES for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations6,034-7,339-3,5975,6725,324
From Investments2,587-1,0155,101-1,765-1,318
From Financial Activity-8,6009,674-2,370-4,322-4,269
Net Cashflow221,320-866-415-263

What does the Key Ratio analysis of TATA TELESERVICES reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of TATA TELESERVICES reveals:

  • Operating profit margins witnessed a fall and down at 42.8% in FY22 as against 27.9% in FY21.
  • Net profit margins grew from 191.3% in FY21 to 111.1% in FY22.
  • Debt to Equity ratio for FY22 stood at -0.6 as compared to -0.5 in FY21.

Here's the ratio/financial analysis of TATA TELESERVICES for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)-425.541.5-186.4-27.942.8
Net Profit Margin (%)-526.7-52.3-344.6-191.3-111.1
Debt to Equity Ratio (x)-0.6-0.4-0.4-0.5-0.6

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