TATA COMM 2023-24 Annual Report Analysis

Thu, 27 Jun

TATA COMM 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 COMM Income Statement Analysis

• Operating income during the year rose 17.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 8.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.0% in FY24 as against 24.4% in FY23.
• Depreciation charges increased by 9.2% and finance costs increased by 49.0% YoY, respectively.
• Other income declined by 30.0% YoY.
• Net profit for the year declined by 46.3% YoY.
• Net profit margins during the year declined from 9.9% in FY23 to 4.5% in FY24.

TATA COMM Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	178,383	209,688	17.5%
Other income	Rs m	4,058	2,841	-30.0%
Total Revenues	Rs m	182,440	212,529	16.5%
Gross profit	Rs m	43,520	39,929	-8.3%
Depreciation	Rs m	22,618	24,697	9.2%
Interest	Rs m	4,325	6,442	49.0%
Profit before tax	Rs m	20,635	11,631	-43.6%
Tax	Rs m	2,966	2,135	-28.0%
Profit after tax	Rs m	17,668	9,496	-46.3%
Gross profit margin	%	24.4	19.0
Effective tax rate	%	14.4	18.4
Net profit margin	%	9.9	4.5

Don't Miss: Key Information for Long-term Investors

TATA COMM Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 137 billion as compared to Rs 98 billion in FY23, thereby witnessing an increase of 39.7%.
• Long-term debt down at Rs 47 billion as compared to Rs 50 billion during FY23, a fall of 5.2%.
• Current assets rose 6% and stood at Rs 59 billion, while fixed assets rose 24% and stood at Rs 178 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 238 billion as against Rs 202 billion during FY23, thereby witnessing a growth of 18%.

TATA COMM Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	15,183	17,818	17.4
Current Liabilities	Rs m	97,859	136,706	39.7
Long-term Debt	Rs m	50,086	47,457	-5.2
Total Liabilities	Rs m	201,975	238,443	18.1
Current assets	Rs m	55,546	58,884	6.0
Fixed Assets	Rs m	143,865	178,454	24.0
Total Assets	Rs m	201,975	238,443	18.1

TATA COMM Cash Flow Statement Analysis

• TATA COMM's cash flow from operating activities (CFO) during FY24 stood at Rs 32 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -26 billion, an improvement of 43.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -8 billion, an improvement of 64% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -3 billion from the Rs 3 billion net cash flows seen during FY23.

TATA COMM 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	43,844	31,820	-27.4%
Cash Flow from Investing Activities	Rs m	-18,416	-26,440	-
Cash Flow from Financing Activities	Rs m	-22,408	-8,130	-
Net Cash Flow	Rs m	3,076	-2,724	-

Current Valuations for TATA COMM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.3, an decline from the EPS of Rs 62.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,841.2, stands at 55.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 29.5 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 13.4 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	625.9	735.7
TTM Earnings per share	Rs	62.0	33.3
Diluted earnings per share	Rs	62.0	33.3
Price to Cash Flow	x	8.8	13.4
TTM P/E ratio	x	20.1	55.3
Price / Book Value ratio	x	21.5	25.7
Market Cap	Rs m	325,748	457,703
Dividends per share (Unadj.)	Rs	21.0	16.7

Ratio Analysis for TATA COMM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY24, from 0.6x 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 deteriorated and stood at 2.8x during FY24, from 5.8x 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 declined and down at 53.3% during FY24, from 116.4% 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 27.7% during FY24, from 38.2% 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 declined and down at 6.7% during FY24, from 10.9% 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	0.6	0.4
Debtors’ Days	Days	6	7
Interest coverage	x	5.8	2.8
Debt to equity ratio	x	3.3	2.7
Return on assets	%	10.9	6.7
Return on equity	%	116.4	53.3
Return on capital employed	%	38.2	27.7

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

TATA COMM Share Price Performance

Over the last one year, TATA COMM share price has moved down from Rs 1,564.9 to Rs 0.0, registering a loss of Rs 1,564.9 or around 100.0%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 17,000.6 (up 0.2%). Over the last one year it has moved up from 13,077.4 to 17,000.6, a gain of 3,923 points (up 30.0%).

Overall, the NIFTY 50 is down 0.0% over the year.

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