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 ChangeYoY Change
Net SalesRs m42,72844,02944,0110.0%3.0%
Other incomeRs m95147761416.3%697.7%
TurnoverRs m42,82344,17744,7721.3%4.6%
ExpensesRs m34,39133,61232,436-3.5%-5.7%
Gross profitRs m8,27810,31311,0367.0%33.3%
DepreciationRs m5,5835,8995,719-3.1%2.4%
InterestRs m1,1571,1631,064-8.5%-8.0%
Profit before taxRs m1,6323,3985,01347.5%207.1%
TaxRs m1,1078121,15342.0%4.2%
Profit after taxRs m5252,5863,86049.3%635.0%
Gross profit margin%19.423.425.1
Effective tax rate%67.823.923.0
Net profit margin%1.25.98.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


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.