TATA COMM 2020-21 Annual Report Analysis

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?  

TATA COMM 2020-21 Annual Report Analysis
Fri, 22 Oct

TATA COMM has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

TATA COMM Income Statement Analysis

  • Operating income during the year rose 0.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 43.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.1% in FY21 as against 16.8% in FY20.
  • Depreciation charges decreased by 1.9% and finance costs decreased by 10.7% YoY, respectively.
  • Other income grew by 125.2% YoY.
  • Net profit for the year declined by 1540.8% YoY.
  • Net profit margins during the year grew from 0.5% in FY20 to 7.2% in FY21.

TATA COMM Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 170,680 171,001 0.2%
Other income Rs m 958 2,157 125.2%
Total Revenues Rs m 171,637 173,158 0.9%
Gross profit Rs m 28,724 41,270 43.7%
Depreciation Rs m 23,577 23,139 -1.9%
Interest Rs m 4,707 4,202 -10.7%
Profit before tax Rs m 1,397 16,086 1,051.8%
Tax Rs m 2,267 3,549 56.6%
Profit after tax Rs m -870 12,537 -1,540.8%
Gross profit margin % 16.8 24.1
Effective tax rate % 162.3 22.1
Net profit margin % -0.5 7.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



FREE REPLAY: Discover What Richa Revealed in Her Smallcaps Summit

TATA COMM Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 78 billion as compared to Rs 114 billion in FY20, thereby witnessing an decrease of -31.7%.
  • Long-term debt stood at Rs 89 billion as compared to Rs 68 billion during FY20, a growth of 30.7%.
  • Current assets fell 2% and stood at Rs 58 billion, while fixed assets fell 5% and stood at Rs 152 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 210 billion as against Rs 219 billion during FY20, thereby witnessing a fall of 4%.

TATA COMM Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m -12,784 1,155 -109.0
 
Current Liabilities Rs m 113,704 77,666 -31.7
Long-term Debt Rs m 67,978 88,864 30.7
Total Liabilities Rs m 218,816 210,232 -3.9
 
Current assets Rs m 59,421 58,371 -1.8
Fixed Assets Rs m 159,395 151,860 -4.7
Total Assets Rs m 218,816 210,232 -3.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



TATA COMM Cash Flow Statement Analysis

  • TATA COMM's cash flow from operating activities (CFO) during FY21 stood at Rs 32 billion, an improvement of 25.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -20 billion, an improvement of 31.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -12 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -322 million from the Rs 609 million net cash flows seen during FY20.

TATA COMM Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 25,248 31,798 25.9%
Cash Flow from Investing Activities Rs m -15,298 -20,046 -
Cash Flow from Financing Activities Rs m -9,423 -12,048 -
Net Cash Flow Rs m 609 -322 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for TATA COMM

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 44.0, an improvement from the EPS of Rs -3.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,406.0, stands at 31.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 196.2 times, while the price to sales ratio stands at 1.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 11.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 598.9 600.0
TTM Earnings per share Rs -3.1 44.0
Diluted earnings per share Rs -3.1 44.0
Price to Cash Flow x 17.6 11.2
TTM P/E ratio x 31.0 31.0
Price / Book Value ratio x -9.3 196.2
Market Cap Rs m 400,710 400,710
Dividends per share (Unadj.) Rs 4.0 14.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for TATA COMM

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.8x during FY21, from 0.5x during FY20. 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 4.8x during FY21, from 1.3x during FY20. 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 improved and stood at 1,085.8% during FY21, from 6.8% during FY21. 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 improved and stood at 22.5% during FY21, from 11.1% during FY20. 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 8.0% during FY21, from 1.8% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 0.5 0.8
Debtors’ Days Days 69 56
Interest coverage x 1.3 4.8
Debt to equity ratio x -5.3 77.0
Return on assets % 1.8 8.0
Return on equity % 6.8 1,085.8
Return on capital employed % 11.1 22.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

TATA COMM Share Price Performance

Over the last one year, TATA COMM share price has moved up from Rs 924.6 to Rs 1,406.0, registering a gain of Rs 481.4 or around 52.1%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 15,392.2 (down 1.3%). Over the last one year it has moved up from 9,949.7 to 15,392.2, a gain of 5,442 points (up 54.7%).

Overall, the S&P BSE SENSEX is up 50.0% over the year.

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

Equitymaster requests your view! Post a comment on "TATA COMM 2020-21 Annual Report Analysis". Click here!

  

Related Views on News

TATA COMM Announces Quarterly Results (2QFY22); Net Profit Up 10.3% (Quarterly Result Update)

Oct 26, 2021 | Updated on Oct 26, 2021

For the quarter ended September 2021, TATA COMM has posted a net profit of Rs 4 bn (up 10.3% YoY). Sales on the other hand came in at Rs 42 bn (down 5.2% YoY). Read on for a complete analysis of TATA COMM's quarterly results.

TATA COMM Announces Quarterly Results (1QFY22); Net Profit Up 15.2% (Quarterly Result Update)

Aug 5, 2021 | Updated on Aug 5, 2021

For the quarter ended June 2021, TATA COMM has posted a net profit of Rs 3 bn (up 15.2% YoY). Sales on the other hand came in at Rs 41 bn (down 6.8% YoY). Read on for a complete analysis of TATA COMM's quarterly results.

More Views on News

Most Popular

Infosys vs TCS: Which is Better?(Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake(Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

How to Hit Rs 100 Crore Wealth in Your Lifetime(Equitymaster Wealth)

Nov 15, 2021

This is how you can achieve the ambitious goal of a net worth of Rs 100 crore.

Don't Sell these Stocks if the Market Falls(Profit Hunter)

Nov 17, 2021

These are the 3 types of stocks that you should not sell in a market crash.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing.(Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

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

COMPARE TATA COMM WITH

MARKET STATS