Tata Communication

COnsolidated revenue down 5.2%, PAT up 10.6% YoY

Oct 21, 2021 05:10 IST capital market

On consolidated basis 

Quarter ended Sep 2021 compared with Quarter ended Sep 2020. 

Net sales (including other operating income) of Tata Communications has declined 5.16% to Rs 4174.02 crore.  Sales of Voice Solutions segment has gone down 20.14% to Rs 606.04 crore (accounting for 14.37% of total sales).  Sales of Data Services segment has gone down 2.21% to Rs 3,157.19 crore (accounting for 74.84% of total sales).  Sales of Payment Solutions segment has gone down 29.56% to Rs 40.89 crore (accounting for 0.97% of total sales).  Sales of Real Estate segment has gone up 24.00% to Rs 54.77 crore (accounting for 1.30% of total sales).  Sales of Transformation Services segment has gone up 2.75% to Rs 359.74 crore (accounting for 8.53% of total sales).  Inter-segment sales rose Rs 38.66 crore to Rs 44.61 crore.  

Profit before interest, tax and other unallocable items (PBIT) has slumped 2.45% to Rs 571.25 crore.  PBIT of Voice Solutions segment fell 3.39% to Rs 39.36 crore (accounting for 6.89% of total PBIT).  PBIT of Data Services segment fell 3.96% to Rs 529.28 crore (accounting for 92.65% of total PBIT).  PBIT of Payment Solutions segment fell 54.98% to Rs -15.22 crore (accounting for -2.66% of total PBIT).  PBIT of Real Estate segment rose 56.90% to Rs 37.64 crore (accounting for 6.59% of total PBIT).  PBIT of Transformation Services reported loss of Rs 19.81 crore compared to profit of Rs 3.59 crore.  

PBIT margin of Voice Solutions segment rose from 5.37% to 6.49%.  PBIT margin of Data Services segment fell from 17.07% to 16.76%.  PBIT margin of Payment Solutions segment rose from negative 58.24% to negative 37.22%.  PBIT margin of Real Estate segment rose from 54.31% to 68.72%.  PBIT margin of Transformation Services segment fell from 1.03% to 5.51%.  Overall PBIT margin rose from 13.19% to 13.54%.  

Operating profit margin has jumped from 26.30% to 26.66%, leading to 3.86% decline in operating profit to Rs 1,112.85 crore.  Employee cost increased from 17.31% to 17.45%.   Other expenses fell from 56.39% to 55.89%.   Telecommuncation charges rose from 37.15% to 37.54%.   

Other income fell 52.14% to Rs 36.42 crore.  PBIDT fell 6.84% to Rs 1149.27 crore.  Provision for interest fell 14.65% to Rs 90.82 crore.  Loan funds rose to Rs 10,386.61 crore as of 30 September 2021 from Rs 8,824.96 crore as of 30 September 2020.  Inventories declined from Rs 50.07 crore as of 30 September 2020 to Rs 37.03 crore as of 30 September 2021.  Sundry debtors were lower at Rs 2,745.89 crore as of 30 September 2021 compared to Rs 3,219.00 crore as of 30 September 2020.  Cash and bank balance declined from Rs 1,219.72 crore as of 30 September 2020 to Rs 738.68 crore as of 30 September 2021.  Investments declined from Rs 2,133.21 crore as of 30 September 2020 to Rs 1,543.81 crore as of 30 September 2021.  

PBDT fell 6.10% to Rs 1058.45 crore.  Provision for depreciation fell 5.30% to Rs 541.6 crore.  Fixed assets declined from Rs 12,425.00 crore as of 30 September 2020 to Rs 10,228.54 crore as of 30 September 2021.  Intangible assets increased from Rs 95.86 crore to Rs 1,638.89 crore.  

Profit before tax down 6.92% to Rs 516.85 crore.  Provision for tax was expense of Rs 103.78 crore, compared to Rs 115.34 crore.  Effective tax rate was 19.57% compared to 23.06%.

Minority interest increased 224.24% to Rs 1.07 crore.  Net profit attributable to owners of the company increased 10.64% to Rs 425.38 crore.  

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Tata Communications has declined 5.99% to Rs 8276.81 crore.  Sales of Voice Solutions segment has gone down 23.30% to Rs 1,195.22 crore (accounting for 14.30% of total sales).  Sales of Data Services segment has gone down 2.26% to Rs 6,279.11 crore (accounting for 75.10% of total sales).  Sales of Payment Solutions segment has gone down 28.86% to Rs 78.47 crore (accounting for 0.94% of total sales).  Sales of Real Estate segment has gone up 8.41% to Rs 97.55 crore (accounting for 1.17% of total sales).  Sales of Transformation Services segment has gone up 1.33% to Rs 710.24 crore (accounting for 8.50% of total sales).  Inter-segment sales rose Rs 79.86 crore to Rs 83.78 crore.  

Profit before interest, tax and other unallocable items (PBIT) has slumped 1.15% to Rs 1,025.54 crore.  PBIT of Voice Solutions segment fell 39.74% to Rs 59.30 crore (accounting for 5.78% of total PBIT).  PBIT of Data Services segment rose 0.03% to Rs 951.82 crore (accounting for 92.81% of total PBIT).  PBIT of Payment Solutions segment fell 61.38% to Rs -25.55 crore (accounting for -2.49% of total PBIT).  PBIT of Real Estate segment rose 21.68% to Rs 64.71 crore (accounting for 6.31% of total PBIT).  PBIT of Transformation Services reported loss of Rs 24.74 crore compared to profit of Rs 0.47 crore.  

PBIT margin of Voice Solutions segment fell from 6.31% to 4.96%.  PBIT margin of Data Services segment rose from 14.81% to 15.16%.  PBIT margin of Payment Solutions segment rose from negative 59.97% to negative 32.56%.  PBIT margin of Real Estate segment rose from 59.10% to 66.34%.  PBIT margin of Transformation Services segment fell from 0.07% to 3.48%.  Overall PBIT margin rose from 11.68% to 12.27%.  

Operating profit margin has jumped from 24.98% to 25.36%, leading to 4.56% decline in operating profit to Rs 2,098.90 crore.  Employee cost increased from 17.31% to 18.58%.   Other expenses fell from 57.70% to 56.06%.   Telecommuncation charges fell from 38.35% to 37.80%.   

Other income fell 45.21% to Rs 49.77 crore.  PBIDT fell 6.18% to Rs 2148.67 crore.  Provision for interest fell 16.02% to Rs 187.03 crore.  Loan funds rose to Rs 10,386.61 crore as of 30 September 2021 from Rs 8,824.96 crore as of 30 September 2020.  Inventories declined from Rs 50.07 crore as of 30 September 2020 to Rs 37.03 crore as of 30 September 2021.  Sundry debtors were lower at Rs 2,745.89 crore as of 30 September 2021 compared to Rs 3,219.00 crore as of 30 September 2020.  Cash and bank balance declined from Rs 1,219.72 crore as of 30 September 2020 to Rs 738.68 crore as of 30 September 2021.  Investments declined from Rs 2,133.21 crore as of 30 September 2020 to Rs 1,543.81 crore as of 30 September 2021.  

PBDT fell 5.12% to Rs 1961.64 crore.  Provision for depreciation fell 7.62% to Rs 1073.36 crore.  Fixed assets declined from Rs 12,425.00 crore as of 30 September 2020 to Rs 10,228.54 crore as of 30 September 2021.  Intangible assets increased from Rs 95.86 crore to Rs 1,638.89 crore.  

Profit before tax down 1.91% to Rs 888.28 crore.  Share of profit/loss was 85.88% higher at Rs -0.24 crore.  Provision for tax was expense of Rs 183.05 crore, compared to Rs 196.55 crore.  Effective tax rate was 20.20% compared to 23.41%.

Minority interest increased 210% to Rs 1.86 crore.  Net profit attributable to owners of the company increased 12.33% to Rs 721.49 crore.  

Equity capital stood at Rs 285.00 crore as of 30 September 2021 to Rs 285.00 crore as of 30 September 2020.  Per share face Value remained same at Rs 10.00.  

Promoters stake was 58.86% as of 30 September 2021 ,compared to 74.99% as of 30 September 2020 .  Promoters pledged stake was 4.96% as of 30 September 2021 ,compared to 3.90% as of 30 September 2020 .  

Cash flow from operating activities increased to Rs 1,657.57 crore for YTD ended September 2021 from Rs 1,446.61 crore for YTD ended September 2020.  Cash flow used in acquiring fixed assets during the YTD ended September 2021 stood at Rs 704.43 crore, compared to Rs 655.45 crore during the YTD ended September 2020.  

Management Commentary:

In a challenging quarter impacted by the second wave of COVID-19, we have delivered a robust performance, said A S Lakshminarayanan, Managing Director and CEO, Tata Communications. Delivering a sequential growth on a quarter-on quarter basis after three quarters of decline is a positive indicator which we will continue to build on. The second quarter of FY22 was marked by recovery with favorable underlying trends as economic activities normalize. As the global industries recover, we continue to maintain sharp focus on the needs of our customers, in line with the rapidly changing trends and evolving digital needs.

Commenting on the results, Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications, said, Our performance in the second quarter demonstrates a continued improvement in revenue supported by improvement in profitability and build-up free cash flow. We continue to strenthen our balance sheet and invest for future growth as we evolve as a trusted partner for our customers, enabling their digital transformation journey.

Tata Communication: Consolidated Financials

 

2109 (3) 2009(3) Var (%) 2109 (6) 2009(6) Var (%) 2103 (12) 2003 (12) Var (%)
Sales 4174.03 4401.08 -5.16% 8276.81 8804.02 -6.0% 17100.10 17067.99 0.19%
OPM (%) 26.66% 26.30% 25.36% 24.98% 24.92% 19.27%
OP 1112.86 1157.53 -3.86% 2098.90 2199.29 -4.6% 4260.58 3288.95 29.54%
Other inc. 36.42 76.10 -52.14% 49.77 90.84 -45.2% 156.76 69.68 124.97%
PBIDT 1149.28 1233.63 -6.84% 2148.67 2290.13 -6.2% 4417.34 3358.63 31.52%
Interest 90.82 106.41 -14.65% 187.03 222.70 -16.0% 420.20 470.74 -10.74%
PBDT 1058.46 1127.22 -6.10% 1961.64 2067.43 -5.1% 3997.14 2887.89 38.41%
Dep. 541.60 571.93 -5.30% 1073.36 1161.86 -7.6% 2313.87 2357.72 -1.86%
PBT 516.86 555.29 -6.92% 888.28 905.57 -1.9% 1683.27 530.17 217.50%
Share of profit/loss from JV 0.64 -1.19 LP -0.24 -1.70 -85.9% -2.14 2.18 PL
PBT Befor EO 517.50 554.10 -6.61% 888.04 903.87 -1.8% 1681.13 532.35 215.79%
Execptional items 12.74 -53.95 LP 18.36 -64.44 -128.5% -74.72 -390.51 -80.87%
PBT After EO 530.24 500.15 6.02% 906.40 839.43 8.0% 1606.41 141.84 1032.55%
Total Tax 103.78 115.34 -10.02% 183.05 196.55 -6.9% 354.89 226.67 56.57%
PAT 426.46 384.81 10.82% 723.35 642.88 12.5% 1251.52 -84.83 LP
Minority Interest 1.07 0.33 224.24% 1.86 0.60 210.0% 0.89 1.13 -21.24%
Net Profit 425.39 384.48 10.64% 721.49 642.28 12.3% 1250.63 -85.96 LP
EPS (Rs)* # # # # 45.92 -11.66
* EPS is on current equity of Rs 285 crore, Face value of Rs. 10 Each
# EPS is not annualised due to seasonality of business
BPS- Basis points
LP: Loss to profit
PL: Profit to Loss
Figures in Rs crore
Source: Capitaline Corporate Database

Tata Communication: Consolidated Segment results

 

Quarter ended Year ended
% of (Total) 2109 (3) 2009(3) Var.(%) % of (Total) 2109 (3) 2009(3) Var.(%) % of (Total) 202103 202003 Var.(%)
Sales
Voice Solutions 14.37% 606.04 758.92 -20.14% 14.30% 1195.22 1558.24 -23.30% 16.30% 2790.77 3376.22 -17.34%
Data and managed Services 74.84% 3157.19 3228.50 -2.21% 75.10% 6279.11 6424.45 -2.26% 81.39% 13931.29 13192.48 5.60%
Payment Solutions 0.97% 40.89 58.05 -29.56% 0.94% 78.47 110.30 -28.86% 1.26% 215.37 343.41 -37.28%
Transformational Services 8.53% 359.74 350.10 2.75% 8.50% 710.24 700.91 1.33% - - - -
Real Estate 1.30% 54.77 44.17 24.00% 1.17% 97.55 89.98 8.41% 1.05% 179.67 179.06 0.34%
Total Reported Sales 100.00% 4218.63 4439.74 -4.98% 100.00% 8360.59 8883.88 -5.89% 100.00% 17117.10 17091.17 0.15%
Less: Inter segment revenues 44.61 38.66 15.39% 83.78 79.86 4.91% 17.00 23.18 -26.66%
Net Sales 4174.02 4401.08 -5.16% 8276.81 8804.02 -5.99% 100.00% 17,100.10 17,067.99 0.19%
PBIT
Voice Solutions 6.89% 39.36 40.74 -3.39% 5.78% 59.30 98.40 -39.74% 7.01% 136.47 233.12 -41.46%
Data and managed Services 92.65% 529.28 551.09 -3.96% 92.81% 951.82 951.53 0.03% 92.82% 1806.89 651.61 177.30%
Payment Solutions -2.66% -15.22 -33.81 -54.98% -2.49% -25.55 -66.15 -61.38% -5.53% -107.58 -62.88 71.09%
Transformational Services -3.47% -19.81 3.59 -651.81% -2.41% -24.74 0.47 PL - - - -
Real Estate 6.59% 37.64 23.99 56.90% 6.31% 64.71 53.18 21.68% 5.70% 110.93 109.38 1.42%
Total PBIT 100.00% 571.25 585.60 -2.45% 100.00% 1025.54 1037.43 -1.15% 100.00% 1946.71 931.23 109.05%
Less : Finance Cost 90.82 106.41 -14.65% 187.03 222.70 -16.02% 21.59% 420.20 470.74 -10.74%
Less: Other un-allcoable (Income) net of expenditure -49.16 -22.15 121.94% -68.13 -26.40 158.07% -4.21% -82.04 320.83 -125.57%
PBT 529.59 501.34 5.63% 906.64 841.13 7.79% 82.63% 1608.55 139.66 1051.76%

Powered by Capital Market - Live News

Related Story

Open Free Demat Account (Rs699)
Open ZERO Brokerage Demat Account

  • 0

    Delivery Brokerage for Lifetime

  • 20

    Per order for Intraday, F&O, Currency & Commodity