TATA COMM. Announces Quarterly Results (2QFY21); Net Profit Up 635.0%

Mon, 19 Oct

TATA COMM. has announced its results for the quarter ended September 2020. Here is a detailed performance review of the same:

TATA COMM. Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-19*	3 Jun-20*	3 Sep-20*	QoQ Change	YoY Change
Net Sales	Rs m	42,728	44,029	44,011	0.0%	3.0%
Other income	Rs m	95	147	761	416.3%	697.7%
Turnover	Rs m	42,823	44,177	44,772	1.3%	4.6%
Expenses	Rs m	34,391	33,612	32,436	-3.5%	-5.7%
Gross profit	Rs m	8,278	10,313	11,036	7.0%	33.3%
Depreciation	Rs m	5,583	5,899	5,719	-3.1%	2.4%
Interest	Rs m	1,157	1,163	1,064	-8.5%	-8.0%
Profit before tax	Rs m	1,632	3,398	5,013	47.5%	207.1%
Tax	Rs m	1,107	812	1,153	42.0%	4.2%
Profit after tax	Rs m	525	2,586	3,860	49.3%	635.0%
Gross profit margin	%	19.4	23.4	25.1
Effective tax rate	%	67.8	23.9	23.0
Net profit margin	%	1.2	5.9	8.6

Year-on-Year Performance:

• The company's operating income during the quarter grew 3.0% on a year-on-year (YoY) basis. The expenses were down by 5.7% YoY during the same period.
• The company's operating profit increased by 33.3% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 25.1% in 2QFY21 as against 19.4% in 2QFY20.
• Depreciation charges increased by 2.4% and finance costs declined by 8.0% YoY, respectively.
• Other income increased by 697.7% YoY during the quarter.
• Net profit for the quarter increased by 635.0% YoY. Net profit margins during the quarter increased from 1.2% in 2QFY20 to 8.6% in 2QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 0.0% on a quarter-on-quarter (QoQ) basis. The expenses were down by 3.5% QoQ during the same period.
• The company's operating profit increased by 7.0% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 25.1% in 2QFY21 as against 23.4% in 1QFY20.
• Net profit for the quarter increased by 49.3% QoQ, while net profit margins increased from 5.9% in 1QFY20 to 8.6% in 2QFY21.

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

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TATA COMM. Share Price Performance

Over the last one year, TATA COMM. share price has moved up from Rs 357.5 to Rs 921.5, registering a Gain of Rs 564.0 or around 157.8%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 9,843.9 (down 0.4%). Over the last one year it has moved up from 7,578.0 to 9,843.9, a gain of 2,266 points (up 29.9%).

Overall, the S&P BSE SENSEX is up 4.8% over the year.

Current Valuations

At the current price of Rs 921.5, the price to earnings (P/E) ratio of TATA COMM. stands at 61.0 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 52.6 times.