Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

Tata Communications - Q3FY21 First Cut - ICICI Direct

Posted On: 2021-01-19 22:21:54 (Time Zone: Arizona, USA)


(CMP - Rs. 1129; MCap - Rs. 32178 crore)

Tata Communication Q3FY21 performance was in line with sequential revenues weakness largely due to seasonality and COVID related weakness in deal conversion. Margins also normalised as last quarter had certain one-offs.

Q3FY21 earnings summary

- Topline came in at Rs. 4223 crore, flattish YoY & down 4% QoQ (tad lower than our estimates of 2.4% QoQ decline). The data revenues (forming ~84% of the revenues) grew by 3.8% YoY (down 2.6% QoQ). The data revenues growth was driven by Traditional services revenue which grew by 6% YoY with traction from Enterprise and OTT segments. The Growth services, however, witnessed muted performance with revenues up 2.6% YoY, largely due to slower deal conversion in wake of business uncertainties due to COVID. Sequential decline of ~11% in growth services was due to seasonality and lower usage-based revenue due to holidays. Voice segment continued to remain weak with revenues down 16.6% YoY at Rs. 674 crore.

- Consolidated EBITDA came in at Rs. 1046 crore, up 37.5% YoY (tad lower our estimate of Rs. 1065 crore). The consequent margin was in line at 24.8% (up 678 bps YoY). We highlight that margins tapered off by 153 bps QoQ as Q2FY21 one-off gain of Rs. 43 crore and there was also an impact of Rs. 31 crore, due to timing difference of revenue & cost recognition in Voice segment. Data EBITDA margin was at 28.9%, up 800 Bps YoY (down 150 bps QoQ due to one-off impacts). Voice segment margins at 2.9%, was down 290 bps YoY due to timing difference as stated above.

- The company reported a PAT of Rs. 309 crore vs. expectations of Rs. 284 crore profit, with beat owing to lower depreciation and tax rate. Another key positive was sequential decline in debt by ~Rs. 659 crore, with Net Debt to EBITDA now at comfortable levels of 1.9x as compared to 2.9x in Q3FY20.

Tata Communication remains a key beneficiary of new normal of work from home, increased conferencing needs thereof and overall digitisation. We seek management commentary on the growth trajectory ahead. We will soon come up with an update post the conference call.

Shares of TATA COMMUNICATIONS LTD. was last trading in BSE at Rs.1129.95 as compared to the previous close of Rs. 1117.85. The total number of shares traded during the day was 18443 in over 1227 trades.

The stock hit an intraday high of Rs. 1143.55 and intraday low of 1095.8. The net turnover during the day was Rs. 20638244.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

Warehousing demand expected to grow around 160% to reach 35 million sq. ft in 2021: JLL

Telecom - Spectrum auction: Prudent investment by Bharti Airtel - ICICI Securities

JB Chemicals & Pharmaceuticals - Analyst meet takeaways - ICICI Securities

IPO Review - MTAR Technologies Ltd - ICICI Direct

Auto Sector - Monthly Volume Round-up - Feb 21 - Decent YoY Growth Continues

Aditya Birla Fashion and Retail - Focus on scaling up new businesses - ICICI Securities

Automobiles (wholesale) - Wholesales push continues despite modest retail trends - ICICI Securities

Aditya Birla Capital - Thoughtful (inclusive) conglomerate business evolution commands premium - ICICI Securities

Jubilant Foodworks - Buying in-the-money options - ICICI Securities

Multi Commodity Exchange of India - Play on rising commodity prices? - ICICI Securities

Gladiator Stocks - Sudarshan Chemical - ICICI Direct

Monthly Commodities Outlook - March 2021 - ICICI Direct

ICICI Direct - Monthly Currency Outlook: Rupee to depreciate further towards 75.00 level...

ICICI Direct - Covid Recovery Pulse - E-way bill generation in February 2021 starts on strong note...

Company Update - Virtual JLR Investor Event - Tata Motors - ICICI Direct

Analyst Meet Update - Aditya Birla Fashion and Retail - ICICI Direct

MTAR Technologies Ltd. - IPO - Huge Opportunities from Clean Energy Bodes Well - Reliance Research

ICICI Direct Derivatives Weekly View (February 26): Failure to move above 14700 may extend declines towards 14300...

Bank: Sector Credit Trends - Slows, Yet again - HDFC Securities

Piramal Enterprises - Pharma day highlights - ICICI Securities

Polymer price tracker - PVC prices rise sharply again! - ICICI Securities

Greenply Industries - Growth returns, at an inflection point - ICICI Securities

Tata Motors - JLR future proofing itself with rapid electric transition - ICICI Securities

Dairy - Higher freight cost and increase in Global SMP prices - ICICI Securities

Analyst Meet Update - Nestlé India (Hold): Focus on product innovation, expanding rural reach - ICICI Direct

MTAR Technologies Ltd - A strong player in booming high precision engineering... - Geojit

Rollover Report for February - March 2021 : Angel Broking

Reaction from industry experts on Q3FY21 GDP numbers

M. Govinda Rao, Chief Economic Adviser, Brickwork ratings on Q3FY21 GDP numbers

Mr. Dhiraj Relli, MD & CEO, HDFC securities views on Q3FY21 GDP Growth Number

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research on Q3FY21 GDP

Rollover Analysis - Feb 21, 2021 - YES Securities

Consumer Durables - Demand-driven recovery continues - HDFC Securities

Cement - Demand surprises; earnings upgrade to continue - ICICI Securities

Gladiator Stocks - TeamLease Services - ICICI Direct

Gladiator Stocks - Metals to outshine post multi-year breakout... - ICICI Direct

Company Update - Sundaram Finance - ICICI Direct

Indian pharmaceutical industry to meet an ambition of US$130 billion by 2030 through innovation-led growth: EY-FICCI report

4th Industrial Conclave - Bullish undertone, favourable valuation - HDFC Securities

Sanofi India - Weak quarter; sequential improvement - ICICI Securities

Sunteck Realty - All eyes on upcoming launches - ICICI Securities

Company Update - Tata Motors - ICICI Direct

Q4CY20 Company Update - Mahindra CIE Automotive - ICICI Direct

Event Update - Hindalco - ICICI Direct

EY report launch at BioAsia 2021 - Moving the needle: Healthcare industry in a post-COVID world

Initiating Coverage - Dalmia Bharat Ltd - HDFC Securities Retail Research Desk

Initiating Coverage - Mastek Ltd - HDFC Securities Retail Research Desk

Hindalco Industries - Status quo maintained - ICICI Securities

Tata Motors - India business scaling in the right direction - ICICI Securities

IPO Review - Heranba Industries Ltd



Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020