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TATA TELESERVICES Announces Quarterly Results (1QFY20); Net Profit Up 49.8%

Thu, 8 Aug

TATA TELESERVICES has announced its results for the quarter ended June 2019. Here is a detailed performance review of the same:

TATA TELESERVICES Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-18*	3 Mar-19*	3 Jun-19*	QoQ Change	YoY Change
Net Sales	Rs m	3,345	3,155	2,935	-7.0%	-12.3%
Other income	Rs m	9	42	18	-57.7%	97.8%
Turnover	Rs m	3,353	3,196	2,952	-7.6%	-12.0%
Expenses	Rs m	2,922	-2,121	2,271		-22.3%
Gross profit	Rs m	-490	10,379	2,486	-76.0%
Depreciation	Rs m	387	553	477	-13.8%	23.3%
Interest	Rs m	3,686	4,072	4,316	6.0%	17.1%
Profit before tax	Rs m	-4,554	5,796	-2,289	-139.5%
Tax	Rs m	0	0	0	0.0%	0.0%
Profit after tax	Rs m	-4,554	5,796	-2,289	-139.5%
Gross profit margin	%	-14.7	329.0	84.7
Effective tax rate	%	0.0	0.0	0.0
Net profit margin	%	-135.8	181.3	-77.5

Year-on-Year Performance:

• The company's operating income during the quarter fell 12.3% on a year-on-year (YoY) basis. The expenses were down by 22.3% YoY during the same period.
• The company's operating profit declined by 607.1% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 84.7% in 1QFY20 as against 14.7% in 1QFY19.
• Depreciation charges increased by 23.3% and finance costs increased by 17.1% YoY, respectively.
• Other income increased by 97.8% YoY during the quarter.
• Net profit for the quarter increased by 49.8% YoY. Net profit margins during the quarter increased from -135.8% in 1QFY19 to -77.5% in 1QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 7.0% on a quarter-on-quarter (QoQ) basis. The expenses were down by 207.1% QoQ during the same period.
• The company's operating profit declined by 76.0% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 84.7% in 1QFY20 as against 329.0% in 4QFY19.
• Net profit for the quarter declined by 139.5% QoQ, while net profit margins declined from 181.4% in 4QFY19 to -77.5% in 1QFY20.

To see how TATA TELESERVICES has performed over the last eight quarters,please visit here.

TATA TELESERVICES Share Price Performance

Over the last one year,TATA TELESERVICES share price has moved down from Rs 5.2 to Rs 2.8, registering a Loss of Rs 2.3 or around 44.9%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 7,742.2 (up 1.1%). Over the last one year it has moved up from 7,421.1 to 7,742.2, a gain of 321 points (up 4.3%).

Overall, the S&P BSE SENSEX is down 2.5% over the year.

Current Valuations

At the current price of Rs 2.8, the price to book value (P/BV) ratio of TATA TELESERVICES stands at 0.0 times.