Tata Communications Ltd

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Tata Communications Ltd

₹ 1,841 -0.55%
13 Dec - close price
tatacommunications.com BSE: 500483 NSE: TATACOMM
About

Tata Communications was incorporated on March 19, 1986 as VSNL. In February 2002, the Government of India, as per their disinvestments plan, sold 25% of their holding in the company to the strategic partner. Consequently, the company was taken over under the administrative control of TATA. [1] It is the leading global digital ecosystem enabler. It has a leadership position in emerging markets, and an infrastructure that spans the globe. It delivers managed solutions to multinational companies and service providers. It partners with 300 of the Fortune 500 companies with their state-of the-art solutions, including a wide range of communication, collaboration, cloud, mobility, connected solutions, network and data center services. [2]

Key Points

Overview & History[1]
The company was incorporated in 1986, as VSNL (a wholly owned government entity). TATA group acquired 50% stake in the company in 2002 and changed its name to TCL in 2008. In FY21, Government of India divested its entire shareholding of 26.12%, of which 16.12% was sold to the general public, while the balance 10% was sold to PFL (a WOS of TSPL) through an off-market inter se transfer of shares between the promoters. As of FY23, TS holds a 58.86% stake. TCL owns and operates the world’s only wholly owned fibre optic sub-sea network ring around the globe and is the world’s largest wholesale voice provider. It offers international and national voice and data transmission services, selling and leasing of bandwidth
on undersea cable systems, Internet dial up, and broadband services and other value-added services comprising mainly mobile
global roaming and signalling services, transponder lease, telex and telegraph, and television up linking.
TCL’s businesses are primarily divided into the following segments: DMS, Voice Services (VS), transformation services, payment
solutions, and real estate.

Website BSE NSE
  • Market Cap ₹ 52,467 Cr.
  • Current Price ₹ 1,841
  • High / Low ₹ 2,175 / 1,586
  • Stock P/E 64.2
  • Book Value ₹ 62.4
  • Dividend Yield 0.91 %
  • ROCE 17.6 %
  • ROE 65.2 %
  • Face Value ₹ 10.0
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Pros

  • Company has a good return on equity (ROE) track record: 3 Years ROE 126%
  • Company has been maintaining a healthy dividend payout of 40.8%

Cons

  • Stock is trading at 29.5 times its book value
  • The company has delivered a poor sales growth of 4.88% over past five years.
  • Company might be capitalizing the interest cost

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

Peer comparison

Sector: Telecomm-Service Industry: Telecommunications - Service Provider

Part of BSE Telecommunication BSE 400 MidSmallCap Index Nifty Midcap 100 Nifty India Digital Index Nifty Midcap 150

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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024
4,174 4,185 4,263 4,311 4,431 4,528 4,569 4,771 4,872 5,633 5,692 5,633 5,767
3,061 3,102 3,218 3,233 3,301 3,451 3,534 3,747 3,857 4,499 4,635 4,509 4,650
Operating Profit 1,113 1,082 1,045 1,077 1,130 1,077 1,034 1,024 1,015 1,134 1,056 1,124 1,117
OPM % 27% 26% 25% 25% 26% 24% 23% 21% 21% 20% 19% 20% 19%
49 27 243 234 113 31 62 191 25 -174 5 112 57
Interest 91 83 90 80 98 123 132 131 137 188 188 172 193
Depreciation 542 542 589 537 552 555 618 580 605 619 666 647 661
Profit before tax 530 484 609 694 593 431 345 504 298 154 207 417 321
Tax % 20% 20% 40% 23% 11% 10% 8% 26% 26% 74% -52% 21% 30%
426 393 369 545 534 395 327 382 221 45 322 333 227
EPS in Rs 14.93 13.87 12.81 19.08 18.68 13.82 11.44 13.39 7.74 1.57 11.27 11.68 7.97
Raw PDF

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 TTM
17,213 17,714 19,913 18,149 17,620 16,772 16,525 17,068 17,100 16,725 17,838 20,969 22,726
15,153 15,708 16,919 15,714 15,214 14,359 13,780 13,779 12,840 12,498 13,520 16,739 18,294
Operating Profit 2,060 2,006 2,994 2,434 2,406 2,412 2,745 3,289 4,261 4,227 4,318 4,230 4,432
OPM % 12% 11% 15% 13% 14% 14% 17% 19% 25% 25% 24% 20% 20%
331 717 291 82 1,294 -116 62 -321 82 338 440 47 -0
Interest 794 427 751 409 367 344 397 471 420 360 432 644 740
Depreciation 2,027 1,852 2,161 1,864 1,866 1,906 2,068 2,358 2,314 2,205 2,262 2,470 2,593
Profit before tax -431 444 373 243 1,467 46 343 140 1,609 2,000 2,063 1,163 1,099
Tax % 51% 77% 99% 96% 16% 778% 80% 162% 22% 26% 14% 18%
-651 103 3 10 1,235 -326 -80 -85 1,252 1,485 1,801 970 927
EPS in Rs -21.87 3.56 0.05 0.30 43.26 -11.53 -2.89 -3.02 43.88 51.99 63.02 33.98 32.49
Dividend Payout % -14% 126% 12,151% 1,412% 14% -39% -156% -133% 32% 40% 33% 49%
Compounded Sales Growth
10 Years: 2%
5 Years: 5%
3 Years: 7%
TTM: 21%
Compounded Profit Growth
10 Years: 30%
5 Years: 73%
3 Years: -5%
TTM: -38%
Stock Price CAGR
10 Years: 22%
5 Years: 37%
3 Years: 9%
1 Year: 2%
Return on Equity
10 Years: %
5 Years: %
3 Years: 126%
Last Year: 65%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Sep 2024
Equity Capital 285 285 285 285 285 285 285 285 285 285 285 285 285
Reserves 1,140 515 36 -648 1,307 214 -467 -1,563 -170 643 1,233 1,501 1,493
12,362 13,694 13,076 14,231 9,214 8,927 9,935 12,413 11,394 9,122 8,577 11,263 12,420
10,041 10,456 10,798 11,230 10,228 10,131 10,198 10,996 9,797 9,588 10,424 11,316 11,019
Total Liabilities 23,828 24,950 24,195 25,098 21,033 19,557 19,951 22,131 21,306 19,638 20,519 24,365 25,217
14,711 14,914 14,704 14,444 10,929 10,797 11,289 12,768 11,520 10,936 10,500 13,467 13,422
CWIP 771 653 638 800 751 520 361 349 493 852 1,148 1,327 1,099
Investments 1,322 1,758 1,768 1,837 2,434 1,250 1,491 1,563 2,233 1,565 1,951 1,608 1,739
7,024 7,625 7,086 8,017 6,920 6,990 6,809 7,451 7,060 6,284 6,921 7,963 8,957
Total Assets 23,828 24,950 24,195 25,098 21,033 19,557 19,951 22,131 21,306 19,638 20,519 24,365 25,217

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
2,455 3,062 3,028 2,363 2,394 1,713 1,844 2,525 3,180 4,204 4,384 3,182
-2,481 -2,280 -1,908 -2,313 940 -500 -2,284 -1,521 -2,007 -894 -1,836 -2,641
320 -186 -1,388 -9 -3,276 -959 -28 -942 -1,205 -3,431 -2,241 -813
Net Cash Flow 293 596 -268 41 58 254 -467 61 -32 -121 308 -272

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
Debtor Days 67 56 46 61 54 64 66 69 56 56 56 65
Inventory Days
Days Payable
Cash Conversion Cycle 67 56 46 61 54 64 66 69 56 56 56 65
Working Capital Days -88 -88 -124 -93 -73 -86 -71 -94 -59 -56 -61 -52
ROCE % 2% 4% 8% 7% 23% 8% 8% 9% 18% 22% 24% 18%

Shareholding Pattern

Numbers in percentages

Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
58.86% 58.86% 58.86% 58.86% 58.86% 58.86% 58.86% 58.86% 58.86% 58.86% 58.86% 58.86%
21.57% 19.38% 17.88% 17.02% 17.28% 16.99% 17.18% 17.53% 19.20% 18.24% 18.09% 18.06%
8.85% 11.49% 12.93% 13.89% 13.92% 14.02% 14.07% 13.55% 12.12% 13.14% 13.15% 13.45%
10.72% 10.26% 10.33% 10.22% 9.92% 10.11% 9.88% 10.06% 9.81% 9.77% 9.91% 9.62%
No. of Shareholders 1,19,4871,44,9791,74,9481,75,0171,66,1161,82,9401,70,8571,85,9761,95,6981,93,1572,03,4171,85,024

* The classifications might have changed from Sep'2022 onwards. The new XBRL format added more details from Sep'22 onwards.

Classifications such as banks and foreign portfolio investors were not available earlier. The sudden changes in FII or DII can be because of these changes.

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