Tata Teleservices Maharashtra Ltd (TTML) has reported that VAS and Data Revenues accounted for 29.8% of total revenues in Q1 FY12. While not directly comparable, the segment had contributed 22.9% to total wireless revenues for the full year ended 31st March 2011. TTML’s revenues include earnings from the USB data card business, where the company is a leading player, alongwith Reliance Communications. TTML, is the sister company of Tata Teleservices Ltd (TTSL), and is operational in Goa, Maharashtra and Mumbai circles. It offers landlines, mobile connectivity (CDMA and GSM) and EVDO based wireless broadband services (Photon+).
On the whole, TTML reported losses of Rs.119.32 crore for the quarter ended June 30th 2011, compared to a profit of Rs.557.88 crore reported for the same quarter last year. The company reported a decline in revenues: for the same period, revenues were down from Rs.1395.02 crore to Rs.589.96 crore. However, last year’s Q1 results also include profit on sale of the company’s subsidiary 21st Century Infra Tele Limited, which resulted in additional revenues of Rs. 834.93 crore, over and above its revenues of Rs.560.09 crore. So the results are not comparable. The company has reported an EBIDTA of Rs 120 crore.
In a statement, the company has said that:
– Gross minutes of usage increased 3% over the corresponding quarter of the previous year.
– Revenues increased by almost 5%.
– EBIDTA grew by 2% compared to the EBIDTA in the corresponding quarter last year, if profit from the sale of investment in the company’s tower subsidiary is excluded from last year’s Q1 results.
– TTML paid Rs. 1257.82 crore for 3G spectrum in Maharashtra circle (including Goa and excluding Mumbai) which was capitalized during the quarter ended June 30, 2010. In accordance with the accounting policy followed in this regard, the Company has commenced amortization of the aforesaid payment, on commencement of 3G operations and will amortise such payment over the remaining life of the license. The borrowing cost attributable to the aforesaid aggregating to Rs. 62.82 crore had been capitalized during the previous year under Accounting Standard16 on ‘Borrowing costs’.