TATA TELESERVICES 2023-24 Annual Report Analysis

Mon, 3 Jun

TATA TELESERVICES has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

TATA TELESERVICES Income Statement Analysis

• Operating income during the year rose 7.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 44.3% in FY24 as against 44.0% in FY23.
• Depreciation charges increased by 2.2% and finance costs increased by 8.0% YoY, respectively.
• Other income declined by 3.6% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year grew from 103.5% in FY23 to 103.1% in FY24.

TATA TELESERVICES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	11,062	11,917	7.7%
Other income	Rs m	168	162	-3.6%
Total Revenues	Rs m	11,229	12,078	7.6%
Gross profit	Rs m	4,872	5,274	8.2%
Depreciation	Rs m	1,472	1,504	2.2%
Interest	Rs m	15,016	16,216	8.0%
Profit before tax	Rs m	-11,447	-12,284	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	-11,447	-12,284	NA
Gross profit margin	%	44.0	44.3
Effective tax rate	%	0.0	0.0
Net profit margin	%	-103.5	-103.1

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

TATA TELESERVICES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 75 billion as compared to Rs 102 billion in FY23, thereby witnessing an decrease of -26.3%.
• Long-term debt stood at Rs 130 billion as compared to Rs 100 billion during FY23, a growth of 29.2%.
• Current assets rose 7% and stood at Rs 3 billion, while fixed assets rose 8% and stood at Rs 10 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 13 billion as against Rs 12 billion during FY23, thereby witnessing a growth of 8%.

TATA TELESERVICES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	-190,545	-192,530	NA
Current Liabilities	Rs m	102,214	75,347	-26.3
Long-term Debt	Rs m	100,271	129,566	29.2
Total Liabilities	Rs m	12,107	13,070	7.9
Current assets	Rs m	2,715	2,905	7.0
Fixed Assets	Rs m	9,393	10,165	8.2
Total Assets	Rs m	12,107	13,070	7.9

TATA TELESERVICES Cash Flow Statement Analysis

• TATA TELESERVICES's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion, an improvement of 5.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -645 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 182 million from the Rs -25 million net cash flows seen during FY23.

TATA TELESERVICES Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	5,581	5,861	5.0%
Cash Flow from Investing Activities	Rs m	-662	-645	-
Cash Flow from Financing Activities	Rs m	-4,944	-5,034	-
Net Cash Flow	Rs m	-25	182	-

Current Valuations for TATA TELESERVICES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -6.3, an decline from the EPS of Rs -5.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 76.0, stands at -12.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.8 times, while the price to sales ratio stands at 12.5 times.
• The company's price to cash flow (P/CF) ratio stood at -14.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	5.7	6.1
TTM Earnings per share	Rs	-5.9	-6.3
Diluted earnings per share	Rs	-5.9	-6.3
Price to Cash Flow	x	-10.9	-14.7
TTM P/E ratio	x	-9.5	-12.1
Price / Book Value ratio	x	-1.3	-0.8
Market Cap	Rs m	253,945	158,975
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TATA TELESERVICES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.0x during FY24, from 0.0x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 0.2x during FY24, from 0.2x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 6.4% during FY24, from 6.0% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at -6.2% during FY24, from -4.0% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 30.1% during FY24, from 29.5% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	0.0	0.0
Debtors’ Days	Days	4	5
Interest coverage	x	0.2	0.2
Debt to equity ratio	x	-0.5	-0.7
Return on assets	%	29.5	30.1
Return on equity	%	6.0	6.4
Return on capital employed	%	-4.0	-6.2

To see how TATA TELESERVICES has performed over the last 5 years, please visit here.

TATA TELESERVICES Share Price Performance

Over the last one year, TATA TELESERVICES share price has moved up from Rs 64.9 to Rs 76.0, registering a gain of Rs 11.1 or around 17.2%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 15,877.3 (up 1.3%). Over the last one year it has moved up from 13,154.1 to 15,877.3, a gain of 2,723 points (up 20.7%).

Overall, the S&P BSE SENSEX is up 20.4% over the year.

(To know more, check out historical annual results for TATA TELESERVICES and quarterly results for TATA TELESERVICES)