tatadocomo

When was the last time Tata Teleservices Maharashtra Limited (TTML) actually made a profit? The quarter ending June 30, 2010 (Q1-FY11), when it reported a net profit of Rs 557.88 crore (pdf) on revenues of Rs 1,395.02 crore. This makes it 15 quarters (three years and nine months) of losses.

It’s worth noting that the telco hadn’t disclosed its quarterly results for quarter ended March 31, 2011 (Q4-FY11) and in its yearly results, it had reported a profit of Rs 49.90 crore for the entire fiscal FY11.

In the current quarter, it has reported a net loss of Rs 111.61 crore for the quarter ended March 31, 2014, an improvement from Rs 156.4 crore loss in the previous quarter and Rs 115.23 crore loss in the same quarter last year.

The net income from telecom services was nearly flat at Rs 666 crore for the quarter, from Rs 662.26 crore revenue in the previous quarter and Rs 669.18 crore revenues in the same quarter last year.

Strangely, the telco has stopped providing any information on the contribution of VAS and data revenues to its total wireless revenues. It hadn’t provided this information for the past two quarters as well. In the corresponding quarter last year (Q4-FY13), TTML had mentioned that VAS and Data Revenues represented 37% of its total wireless revenues for the quarter while in Q1-FY14 (which was the last quarter TTML had provided this information), VAS and data revenues accounted for 39% of the company’s total wireless revenues for the quarter.

The telco mentions that it has doubled its 3G subscriber base in rest of Maharashtra during the course of the year, however it hasn’t disclosed any specific information on how many 3G subscribers it currently has in India.

Remember that TTML is operational only in Goa, Maharashtra and Mumbai circles, however it operates mobile services under the Tata DOCOMO brand with its sister company Tata Teleservices Ltd (TTSL) which is not a listed company.

Other Highlights

– TTML added around 1,900 GSM sites, taking its total site count to over 10,000 in FY14. It currently provides services across 900 towns.

– The company is reportedly planning to set up 4,000 WiFi hotspots in nine cities across India in the next two years. It apparently started setting up WiFi hotspots at airports, restaurants, cafes and other businesses about nine months ago and had claimed to have rolled out about 540 of them across the country until March this year.

– Last month, NTT DOCOMO had announced that it is selling its entire 26.5% stake in Tata Teleservices through the equity method by June 2014. The company has an an option to sell its stake for Rs 7,250 crore (about 50% of the acquisition price) or a fair market price, whichever is higher. It is however not clear yet on how this option will be performed.

Financials

TTML reported total revenues of Rs 722 crore for the quarter, a minor 1.5% growth from Rs 711 crore revenues in the previous quarter and a minor 2.85% growth from Rs 702 crore in the same quarter last year. The EBITDA grew to Rs 168 crore for the quarter, up 13.5% YoY.

For the year ended March 31, 2014, total revenues grew by 5% to Rs 2,819 crore from Rs 2,686 crore in the previous year. The EBITDA grew by 22.5% to Rs 614 crore for the year, from Rs 501 crore in the previous year. The net loss also improved significantly to Rs 560.1 crore for the year, from Rs 658.8 crore loss in the previous year.

DownloadFinancials