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TATA COMM 2021-22 Annual Report Analysis
Tue, 14 Jun

TATA COMM 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 COMM Income Statement Analysis

  • Operating income during the year fell 2.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 2.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 25.2% in FY22 as against 24.1% in FY21.
  • Depreciation charges decreased by 4.7% and finance costs decreased by 14.3% YoY, respectively.
  • Other income grew by 58.9% YoY.
  • Net profit for the year grew by 17.9% YoY.
  • Net profit margins during the year grew from 7.3% in FY21 to 8.8% in FY22.

TATA COMM Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 171,001 167,247 -2.2%
Other income Rs m 2,157 3,427 58.9%
Total Revenues Rs m 173,158 170,674 -1.4%
Gross profit Rs m 41,270 42,221 2.3%
Depreciation Rs m 23,139 22,045 -4.7%
Interest Rs m 4,202 3,603 -14.3%
Profit before tax Rs m 16,086 20,000 24.3%
Tax Rs m 3,549 5,221 47.1%
Profit after tax Rs m 12,537 14,779 17.9%
Gross profit margin % 24.1 25.2
Effective tax rate % 22.1 26.1
Net profit margin % 7.3 8.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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TATA COMM Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 84 billion as compared to Rs 78 billion in FY21, thereby witnessing an increase of 8.6%.
  • Long-term debt down at Rs 60 billion as compared to Rs 89 billion during FY21, a fall of 32.6%.
  • Current assets fell 17% and stood at Rs 49 billion, while fixed assets fell 4% and stood at Rs 146 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 195 billion as against Rs 210 billion during FY21, thereby witnessing a fall of 7%.

TATA COMM Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 1,155 9,276 703.4
 
Current Liabilities Rs m 77,666 84,307 8.6
Long-term Debt Rs m 88,864 59,909 -32.6
Total Liabilities Rs m 210,232 194,507 -7.5
 
Current assets Rs m 58,371 48,698 -16.6
Fixed Assets Rs m 151,860 145,809 -4.0
Total Assets Rs m 210,232 194,507 -7.5
* 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 FY22 stood at Rs 42 billion, an improvement of 32.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -9 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -34 billion on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -1 billion from the Rs -322 million net cash flows seen during FY21.

TATA COMM 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 31,798 42,038 32.2%
Cash Flow from Investing Activities Rs m -20,046 -8,950 -
Cash Flow from Financing Activities Rs m -12,048 -34,312 -
Net Cash Flow Rs m -322 -1,210 -
* 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 51.9, an improvement from the EPS of Rs 44.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 926.2, stands at 17.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 28.5 times, while the price to sales ratio stands at 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 10.2 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 600.0 586.8
TTM Earnings per share Rs 44.0 51.9
Diluted earnings per share Rs 44.0 51.9
Price to Cash Flow x 8.5 10.2
TTM P/E ratio x 24.2 17.9
Price / Book Value ratio x 196.2 40.3
Market Cap Rs m 226,582 374,248
Dividends per share (Unadj.) Rs 14.0 20.7
* 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 deteriorated and stood at 0.6x during FY22, from 0.8x 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 6.6x during FY22, from 4.8x 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 159.3% during FY22, from 1,085.8% 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 improved and stood at 34.1% during FY22, from 22.5% 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 9.5% during FY22, from 8.0% 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 0.8 0.6
Debtors’ Days Days 6 6
Interest coverage x 4.8 6.6
Debt to equity ratio x 77.0 6.5
Return on assets % 8.0 9.5
Return on equity % 1,085.8 159.3
Return on capital employed % 22.5 34.1
* 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 down from Rs 1,337.0 to Rs 926.2, registering a loss of Rs 410.9 or around 30.7%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 12,987.0 (up 0.6%). Over the last one year it has moved up from 12,783.1 to 12,987.0, a gain of 204 points (up 1.6%).

Overall, the S&P BSE SENSEX is up 0.9% over the year.

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

Annual Report FAQs

What is the current share price of TATA COMM?

TATA COMM currently trades at Rs 1,086.8 per share. You can check out the latest share price performance of TATA COMM here...

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

The revenues of TATA COMM stood at Rs 170,674 m in FY22, which was down -1.4% compared to Rs 173,158 m reported in FY21.

TATA COMM's revenue has fallen from Rs 170,966 m in FY18 to Rs 170,674 m in FY22.

Over the past 5 years, the revenue of TATA COMM has grown at a CAGR of 0.0%.

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

The net profit of TATA COMM stood at Rs 14,779 m in FY22, which was up 17.9% compared to Rs 12,537 m reported in FY21.

This compares to a net loss of Rs -870 m in FY20 and a net profit of Rs 699 m in FY19.

Over the past 5 years, TATA COMM net profit has grown at a CAGR of NaN%.

What does the cash flow statement of TATA COMM 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 COMM reveals:

  • Cash flow from operations increased in FY22 and stood at Rs 42,038 m as compared to Rs 31,798 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs -8,950 m as compared to Rs -20,046 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -34,312 m as compared to Rs -12,048 m in FY21.

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

(Rs m)FY18FY19FY20FY21FY22
From Operations17,12818,44325,24831,79842,038
From Investments-5,037-22,880-15,298-20,046-8,950
From Financial Activity-9,591-277-9,423-12,048-34,312
Net Cashflow2,536-4,673609-322-1,210

What does the Key Ratio analysis of TATA COMM 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 COMM reveals:

  • Operating profit margins witnessed a fall and down at 25.2% in FY22 as against 24.1% in FY21.
  • Net profit margins grew from 7.3% in FY21 to 8.8% in FY22.
  • Debt to Equity ratio for FY22 stood at 6.5 as compared to 77.0 in FY21.

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

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)11.816.416.824.125.2
Net Profit Margin (%)-1.80.4-0.57.38.8
Debt to Equity Ratio (x)11.8-37.4-5.377.06.5

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