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After a good performance in Q3 FY10, when the Tata Tele Services Maharashtra (TTML) reported 12% sequential growth on the back of good traction from its GSM service, the revenue in Q4 FY10 was almost flat on Q-o-Q at Rs 607.76 crore, up 1%. On Y-o-Y the revenue was up 18% but in Q4 FY09 the GSM service was not there. The company added 1.5 million subscribers during the quarter (1.9 million in Q3 FY10) with total subscriber base reaching to 13 million subscribers. With lower marketing & business promotion expenses (170 bps lower to 16.4% of revenue) (as the brand has well established now) and lower interconnect charges partly offset by rise in network operating cost, the OPM improved 220 bps sequentially to 24.2%. The operating profit was up 11% Q-o-Q to Rs 146.95 crore.
Significantly higher other income (Rs 22.25 crore against Rs 1.21 crore in sequential quarter), Rs 7.79 crore forex gain (against forex loss of Rs 3.99 crore) and EO income of Rs 13.64 crore (related to profit on sale of dark fibre and band width capacities) helped in reducing the loss at PAT level. However, 14% higher depreciation at Rs 165.73 crore narrowed the gap. With almost Nil provision for taxes, the loss at PAT level have come down from Rs 103.29 crore in Q3 FY10 to Rs 64.33 crore in Q4 FY10. However, on Y-o-Y the net loss was higher by 64%.
For FY10, the revenue was up by 10% Y-o-Y at Rs 2242.22 crore, however, the OPM dipped by 510 bps to 23.6% due to pressure on margins and higher expenses during the year (specifically in Q2 FY10) due to launch of GSM services. The net loss for FY10 stood at Rs 318 crore, 87% higher Y-o-Y.
Consolidated performance for the quarter ended March 2010
After a good performance in Q3 FY10, when the company reported 12% sequential growth on the back of good traction from its GSM services – TATA DoCoMo, the revenue in Q4 FY10 was almost flat on Q-o-Q at Rs 607.76 crore (excluding Rs 13.64 crore related to profit on sale of dark fibre and band width capacities), up 1%. On Y-o-Y the revenue was up 18% but in Q4 FY09 the GSM services were not there. The company added 1.5 million subscribers during the quarter (1.9 million in Q3 FY10) with total subscriber base reaching to 13 million subscribers. With lower marketing & business promotion expenses (170 bps lower to 16.4% of revenue) (as the brand has well established) and lower interconnect charges (150 bps drop to 19.6%), partly offset by 210 bps rise in network operating cost to 24.2%, the OPM improved 220 bps sequentially to 24.2%, but 100 bps down on Y-o-Y. The operating profit was up 11% Q-o-Q to Rs 146.95 crore.
Significantly higher other income (Rs 22.25 crore against Rs 1.21 crore in sequential quarter), Rs 7.79 crore forex gain (against forex loss of Rs 3.99 crore) and EO income of Rs 13.64 crore (related to profit on sale of dark fibre and band width capacities) helped in reducing the loss at PAT level. However, 14% higher depreciation at Rs 165.73 crore narrowed the gap. With almost Nil provision for taxes, the loss at PAT level have come down from Rs 103.29 crore in Q3 FY10 to Rs 64.33 crore in Q4 FY10. However, on Y-o-Y the net loss was higher by 64%.
Segmental performance for the quarter ended March 2010
Telecommunication Services
This segment, being the main contributor to the revenue, contributes 95% of total revenue at Rs 607.76 crore, up 2% Q-o-Q. AT EBIT level, the loss has come down by 25% Q-o-Q to Rs 13.14 crore.
The company added 1.5 million subscribers during the quarter (1.9 million in sequential quarter) with total subscriber base reaching to 13 million subscribers.
Passive Infrastructure Support System
The segmental revenue stood at Rs 33.52 crore, 23% higher on Q-o-Q. The EBIT from the segment was up 35% Q-o-Q to Rs 8 crore. The EBIT margin has also improved by 220 bps Q-o-Q to 23.9%.
Consolidated performance for the year ended March 2010
For the year ended March 2010, the revenue was up by 10% Y-o-Y at Rs 2242.22 crore. The OPM for the year, however, dipped by 510 bps to 23.6% due to pressure on margins and higher expenses during the year (specifically in Q2 FY10) due to launch of GSM services. As a combined result, operating profit stood 10% lower at Rs 529.27 crore.
With higher interest cost (28% higher at Rs 346.03 crore) (excluding foreign exchange fluctuation loss), 22% higher depreciation charges at Rs 563.98 crore and after considering EO income of Rs 35.56 crore against Nil in FY09, the net loss stood at Rs 318 crore, 87% higher Y-o-Y.
Promoters Holding
As of 31st March 2010, promoters hold 77.72% shares (same as at the end of sequential quarter), foreign investors hold 1.46% (1.4% at end of sequential quarter), MFs, Banks and other institutions hold 0.8% (0.81% at end of sequential quarter), and others hold 20.02% (20.06% at end of sequential quarter). The promoters have pledged 49.33 crore shares as on 31st March 2010 (33.45% of promoters holding and 26% of total share capital of the company), against 94.28 crore shares pledged as on 31st December 2009.
The shares of the company are currently trading at around Rs 23 (LTP on 30th April 2010) at BSE.
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