analyst call q112 - tata tele business services...2011/02/08 · census towns nos. 331 331 331 331...

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Analyst CallQ112

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Tata Teleservices (Maharashtra) Ltd.


Disclaimer

Certain statements in this release concerning our Company objectives, future prospects,expectations may be forward-looking statements, which involve a number of risks, anduncertainties that could cause actual results to differ materially from those in such forward-looking statements. Tata Teleservices (Maharashtra) Limited may, from time to time, makeadditional written and oral forward looking statements, including our reports toshareholders. The Company does not undertake to update any forward-looking statementthat may be made from time to time by or on behalf of the Company.

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Click to edit Master title styleMarket Overview – TTML’s competitive positionWireless EOP Market Share

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Source: TRAI Subscriber Report & Telecom Watch report for June 11. The CDMA BSNL and MTNL nos are not released hence considered the same as May-11

Mumbai Rest of Maharashtra

TTML

* EOP subs figure in ‘000s

4811 53345775 5949 6172

0

1000

2000

3000

4000

5000

6000

7000

Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12

16.5% 17.1% 17.3% 17.1% 16.9%

8,446 9,0359,738 10,174 10,512

0

2,000

4,000

6,000

8,000

10,000

12,000


18.0% 17.8% 17.2% 16.5% 16.3%

13257 1436915513 16123 16684

0

4000

8000

12000

16000

20000


17.5% 17.5% 17.2% 16.7% 16.5%

Click to edit Master title styleMarket Overview – TTML amongst private playersWireline EOP Market Share

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Source: TRAI Subscriber Report & Telecom Watch report for June 11

Note: Incremental Market Share is calculated only for private players

Mumbai Rest of Maharashtra

TTML

TTML continues to maintain its market leadership in the

Wireline segment

* EOP subs figure in ‘000s

504 513 517 524 529

380

430

480

530

580


180190

198206 211

160

170

180

190

200

210

220


684703 715

729 740

640

660

680

700

720

740

760


49.2% 49.0% 48.7% 48.7% 48.8% 54.7% 55.0% 55.0% 55.4% 55.7%

50.6% 50.5% 50.3% 50.4% 50.6%

Click to edit Master title styleIndustry Adjusted Gross Revenue (AGR) and TTML Revenue Market Share trend

Source: TRAI Revenue Report

12.2%11.9% 12.6%11.9%

12.6%

3,813 3,738 3,739 3,666 3,551 3,509 3,650 3,649

10.3% 10.8%11.2%

12.2%

9.5%10.2%

11.60%12.64%

0.0%

4.0%

8.0%

12.0%

16.0%

0

800

1600

2400

3200

4000

Q1 09-10 Q2 09-10 Q3 09-10 Q4 09-10 Q1 10-11 Q2 10-11 Q3 10-11 Q4 10-12

Industry Adjusted Gross Revenue Trend and TTML RMS%

AGR Revenue (Rs. Cr) TTML RMS% Series3

11.9% 12.6%12.5%

TTML Rs 238 Cr bad debt written off in FY11 was reduced in TRAI reporting . Corrected here for market share estimation

Click to edit Master title styleTTML Key Milestones in Q1 FY12

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Continuous focus on Data growth and superior network coverage.

VAS & Data Revenues for TTML have constantly grown over past

quarters and contribute to 29.8% of Wireless Revenues

18.5%22.1%

24.1%26.7%

29.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Q1-11 Q2-11 Q3-11 Q4-11 Q1-12

VAS + Data Revenues as a % of Wireless Revenue

Click to edit Master title styleProducts and Initiatives:GSM

Building Customer Value

• Roaming value to customers.

• Free incoming while roaming on Docomo network

• Applicable for Postpay plan above Rs 299

• Friends and Family

• Single plan & billing ; single payment for upto 5 family members

• Free CUG between family members; plan starts at Rs 999.

Entry Options for 3G usage:

• Entry starts from Rs.299 onwards (exclusive of dongle).

• Money back offer on dongle purchase for Postpay customers.

Brand Campaign-Keep it Simple

• Brand campaign to highlight our promise for keeping customers’ life SIMPLE without any Terms & Conditions

Strengthening of Rates announced in July:

• SMS:

• Local rates increased fromRs0.6 to Rs 1 per SMS

• National rate increased from Rs 1.2 to Rs 2 per SMS

• Call Rates:

• Post 1 year rates to increase from 1p/sec to 2p/sec on STD call legs

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Click to edit Master title styleProducts and initiatives- CDMA

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Customer Choice AwardTata Photon Plus

• Product of the Year in wireless broadband category

Leveraging Customer RelationshipHappy Family Plan – Postpaid

• Talk time Sharing

• Control over Budget

• Unlimited calling between family members

• Single Bill

Youth oriented prepaid plan Bindas Bol-

• Night calling 50% discount

• SMS and Data Usage free


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Scorecard : Q112Q4 11

ActualsParticulars (Rs in Crs) Q1 12

ActualsQ1 11

Actuals

16.9 EOP Subscribers (Nos. in Mn) 17.4 13.9 0.6 Net Addition (Nos. in Mn) 0.6 0.9

586 Total Revenue 591 563

126 EBITDA 121 118

21% EBITDA Margin (%) 20% 21%

22 Cash Profit - excl. Forex Loss / Gain 9 41

18 Cash Profit 8 28

(137) PAT before Adjustments (119) (112)

193 Profit from Tower Divestment,Provision for Contingencies & Accelerated Dep. On certain items of Plant and Machinery

- 670

(330) PAT after Adjustments (119) 558


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Key ParametersParticulars Units

Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 FY-10 FY-11Wireless ServicesCDMA Nos. '000 8,359 8,699 9,111 9,166 9,394 8,122 9,166 GSM Nos. '000 4,900 5,673 6,404 6,959 7,293 4,222 6,959 Total Subscribers Base Nos. '000 13,260 14,372 15,515 16,126 16,687 12,344 16,126 Prepaid Subscribers as a % of EOP Subscribers % 94% 95% 96% 96% 96% 94% 96%Wireless Subscribers Market Share % 17.5% 17.5% 17.2% 16.7% 16.6% 17.6% 16.7%Average Revenue per User * Rs. per month 164 170 170 179 184 135 173 Avg. MOU per User * Min. per month 384 403 401 407 416 256 404 Rate per Minute ** Rs. 0.43 0.42 0.42 0.44 0.44 0.53 0.43 Postpaid Voluntary Churn % per month 1.1% 1.1% 0.8% 0.8% 0.6% 1.3% 0.9%Postpaid Company Initiated Churn % per month 1.5% 6.4% 2.3% 2.0% 2.2% 1.5% 3.0%Prepaid Churn % per month 2.1% 3.0% 1.8% 3.4% 2.9% 1.6% 2.8%VAS + Data Revenues as a % of Wireless Revenue % 18.5% 22.1% 24.1% 26.7% 29.8% 14.6% 22.9%

Wireline ServicesCustomers Nos. '000 681 700 712 726 737 657 726 ARPU *** Rs. per month 861 899 852 783 812 961 853

* Average Revenue per User & Average MOU per User from Q1-11 are computed considering Subscriber base of Revenue Earning Customers(REC)** Only Voice MOUs considered. Local on net MOUs have been counted twice.** Wireline revenues are inclusive of one time revenue from dark fibre and bandwidth sale : Rs 16.19 Cr in Q2-11 , Rs 11.80 Cr in Q3-11, Rs 1.47 Cr in Q4-11 & Rs 3.31 Cr in Q1-12

Year EndedQuarter Ended

Click to edit Master title styleOther Details

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Particulars Units Q1-11 Q2-11 Q3-11 Q4-11 Q1-12Wireless ServicesMinutes on Network * Mn Min 9065 9171 9325 9299 9318Census Towns Nos. 331 331 331 331 331Non-Census Towns and Villages Nos. 11145 11205 11225 11340 11360Population Coverage (excluding Mumbai) Nos. lacs 727 728 728 729 730Network Sites Nos. 8107 8280 8546 8933 9163Optic Fibre Network Km 9963 10014 10710 12078 12228

TTML Balance Sheet data (Standalone)Gross Debt Rs. Cr 4,601 4,500 4,363 4,653 4,744 Net Debt Rs. Cr 4,370 4,193 4,318 4,578 4,709 Gross Block (including Capital WIP) Rs. Cr 7,177 7,318 7,557 7,774 7,852

* Only Voice MOUs considered. Local on net MOUs have been counted twice.

Click to edit Master title styleMarket Capitalization & Share Price

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Source: NSE

Note: Telecom Index is the weighted average of all listed Telecom Companies providing telephony services

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1,000

2,000

3,000

4,000

5,000

6,000

7,000

020406080100120140160180

Apr

-10

May

-10

Jun-

10

Jul-1

0

Aug

-10

Sep-

10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Share Price Movement

Telecom Index TTML NSE-Nifty

19.30

0500

100015002000250030003500400045005000

Apr-

10

May

-10

Jun-

10

Jul-1

0

Aug-

10

Sep-

10

Oct

-10

Nov

-10

Dec-

10

Jan-

11

Feb-

11

Mar

-11

Apr-

11

May

-11

Jun-

11

TTML Market Capitalization (Rs. Cr.)

3662


Thank You

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Slide Number 1DisclaimerMarket Overview – TTML’s competitive position�Wireless EOP Market ShareMarket Overview – TTML amongst private players�Wireline EOP Market ShareIndustry Adjusted Gross Revenue (AGR) and TTML Revenue Market Share trendTTML Key Milestones in Q1 FY12Products and Initiatives:GSMSlide Number 8Slide Number 9 Other DetailsMarket Capitalization & Share Price Thank You

analyst call q112 - tata tele business services...2011/02/08 · census towns nos. 331 331 331 331...

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