stakeholders empowerment services tata ......tata teleservices (maharashtra) limited provides basic...
TRANSCRIPT
![Page 1: STAKEHOLDERS EMPOWERMENT SERVICES TATA ......Tata Teleservices (Maharashtra) Limited provides basic and cellular telecommunication services. The Company is engaged in wired and wireless](https://reader030.vdocuments.mx/reader030/viewer/2022040521/5e7c27dfe7d761031f246a1c/html5/thumbnails/1.jpg)
Stakeholdersβ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
1 | P A G E
SECTOR: TELECOM SERVICES REPORTING DATE: 25TH JANUARY, 2018
TATA TELESERVICES (MAHARASHTRA) LTD. www.tatateleservices.com
Tata Teleservices (Maharashtra) Ltd. NSE Code - TTML TABLE 1 - MARKET DATA (STANDALONE) (AS ON 24TH JANUARY, 2018)
Sector β Telecom Services NSE Market Price (`) 6.90 NSE Market Cap. (βΉ Cr.) 1,354.77
Face Value (`) 10.00 Equity (` Cr.) 1,954.93
Business Group - Tata 52 week High/Low (βΉ) 10.45/3.70 Net worth (βΉ Cr.)* -14,517.37
Year of Incorporation - 1995 TTM P/E (TTM) N.A. Traded Volume (Shares) 6,95,711
TTM P/BV N.A. Traded Volume (lacs) 48.00
Registered Office - Source - Capitaline, TTM - Trailing Twelve Months, N.A. - Not Applicable, * As on 30th September, 2017
Voltas Premises, COMPANY BACKGROUND
TB Kadam Marg, Chinchpokli, Tata Teleservices (Maharashtra) Limited provides basic and cellular telecommunication services.
The Company is engaged in wired and wireless telecommunications activities. The Company
holds approximately two unified access (basic and cellular) service licenses, one for Mumbai
service area and another for Maharashtra and Goa. The Company also provides
telecommunication services using Code Division Multiple Access (CDMA) technology/Global
System for Mobile Communications (GSM) technology under the its licenses. The Company also
holds third generation (3G) spectrum in Maharashtra and Goa circle (excluding Mumbai). The
Company is an integrated player across Technologies, including Wireline; Products, including
voice, data and other enterprise services, and Customer segments, including retail, large
corporate, and small and medium enterprises. The Company provides its range of products and
services to wireline and wireless subscribers under the Tata DOCOMO brand.
Mumbai β 400 033,
Maharashtra
Company Website:
www.tatateleservices.com
Revenue and Profit Performance
The revenue of the Company decreased from βΉ 712.81
crores to βΉ 515.32 crores from quarter ending Sepβ16 to
quarter ending Sepβ17. The Company made a loss of
βΉ8,198.31 crores in quarter ending Sepβ17 vis-a-vis making
a loss of βΉ468.13 crores in quarter ending Sepβ16.
Source: Moneycontrol
Performance vis-Γ -vis Market
TABLE 2- Returns
1-m 3-m 6-m 12-m
Tata Teleservices
(Maharashtra) Ltd -0.72% -9.42% -10.39% 13.11%
Nifty 5.27% 6.88% 10.70% 27.19%
Source - Capitaline/NSE
515.32 596.53 712.81
-8,198.31
-1,365.57-468.13
-13,000
-8,000
-3,000
2,000
Sep'17 Mar'17 Sep'16
Quarterly revenue and Profit (βΉ CRORE)
Revenue Profit
0.50
1.00
1.50
2.00
Jan 17 Mar 17 May 17 Jul 17 Sep 17 Nov 17
Tata Teleservices (Maharashtra) Ltd NIFTY
![Page 2: STAKEHOLDERS EMPOWERMENT SERVICES TATA ......Tata Teleservices (Maharashtra) Limited provides basic and cellular telecommunication services. The Company is engaged in wired and wireless](https://reader030.vdocuments.mx/reader030/viewer/2022040521/5e7c27dfe7d761031f246a1c/html5/thumbnails/2.jpg)
Stakeholdersβ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
2 | P A G E
SECTOR: TELECOM SERVICES REPORTING DATE: 25TH JANUARY, 2018
TATA TELESERVICES (MAHARASHTRA) LTD. www.tatateleservices.com
TABLE 3 - FINANCIALS
(βΉ Cr.) Sepβ17 Marβ17 Sepβ16 % Change
Sep β17 vs Marβ17 Marβ17 vs Sepβ16
Net Worth -14,517.37 -5,908.84 -4,032.46 N.A. N.A.
Current Assets 997.43 1,256.73 1,278.84 -20.63% -1.73%
Non-Current Assets 2,473.83 10,653.59 8,574.61 -76.78% 24.25%
Total Assets 3,471.26 11,910.32 9,853.45 -70.86% 20.87%
Investments 353.29 679.62 677.91 -48.02% 0.25%
Finance Cost 398.61 353.93 388.32 12.62% -8.86%
Long Term Liabilities 10,845.51 10,666.63 9,119.17 1.68% 16.97%
Current Liabilities 7,143.12 7,152.53 4,766.74 -0.13% 50.05%
Turnover 515.32 596.53 700.59 -13.61% -14.85%
Profit After Tax -8,198.31 -1,365.57 -468.13 N.A. N.A.
EPS (βΉ) -41.94 -6.99 -2.40 N.A. N.A.
Source - Money Control/Stock exchange filing
AUDIT QUALIFICATIONS
Audit Qualifications in last 3 years: The statutory auditors have not raised any audit qualification in their report for the FY 2016-
17, 2015-16, 2014-15.
Response Comment
Frequency of Qualifications NA -
Have the auditors made any adverse remark in last 3 years? No -
Are the material accounts audited by the Principal Auditors? Yes -
Do the financial statements include material unaudited financial statements? No -
TABLE 4: BOARD PROFILE (AS PER ANNUAL REPORT - FY 2016-17)
Regulatory Norms Company
% of Independent Directors on the Board 33% 40%
% of Promoter Directors on the Board - 0%
Number of Women Directors on the Board At least 1 1
Classification of Chairman of the Board - Non-Executive Director
Is the post of Chairman and MD/CEO held by the same person? - Yes
Average attendance of Directors in the Board meetings (%) - 85.71%
Composition of Board: As per Regulation 17(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015 "Listing Regulations, 2015", the Company should have at least 33% Independent Directors as the Chairman of the Board is
a Non-Executive Director. The Company has 40% of Independent Directors and hence, it meets the regulatory requirements.
Board Diversity: The Company has 5 directors out of which 4 are male and 1 is female.
![Page 3: STAKEHOLDERS EMPOWERMENT SERVICES TATA ......Tata Teleservices (Maharashtra) Limited provides basic and cellular telecommunication services. The Company is engaged in wired and wireless](https://reader030.vdocuments.mx/reader030/viewer/2022040521/5e7c27dfe7d761031f246a1c/html5/thumbnails/3.jpg)
Stakeholdersβ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
3 | P A G E
SECTOR: TELECOM SERVICES REPORTING DATE: 25TH JANUARY, 2018
TATA TELESERVICES (MAHARASHTRA) LTD. www.tatateleservices.com
TABLE 5 - FINANCIAL RATIOS
Ratios Sepβ17 Marβ17 Sepβ16
% Change
Sep β17 vs
Marβ17
Marβ17 vs
Sepβ16
Turn
ove
r
Rat
ios
Inventory Turnover 628.44 292.42 327.38 114.91% -10.68%
Debtors Turnover 1.91 2.58 2.61 -26.04% -1.13%
Fixed asset Turnover 0.21 0.06 0.08 272.02% -31.47%
Current Asset Turnover 0.52 0.47 0.55 8.84% -13.36%
Ret
urn
Rat
ios Operating Profit Margin 23.89% 11.14% 24.74% 114.49% -54.99%
Net Profit Margin -1,590.92% -228.92% -66.82% N.A. N.A.
Return on Assets (ROA) N.A. N.A. N.A. N.A. N.A.
Return on Equity (ROE) N.A. N.A. N.A. N.A. N.A.
Return on Capital Employed (ROCE) N.A. N.A. N.A. N.A. N.A.
Liq
uid
ity
Rat
ios
Current Ratio 0.14 0.18 0.27 -20.53% -34.51%
Quick Ratio 0.14 0.18 0.27 -20.46% -34.50%
Cash Ratio 0.10 0.14 0.21 -28.92% -32.35%
Working Capital Turnover ratio N.A. N.A. N.A. N.A. N.A.
Solv
ency
Rat
ios Debt to equity ratio N.A. N.A. N.A. N.A. N.A.
Interest Coverage Ratio 0.31 0.19 0.45 64.52% -57.96%
Trad
ing
Rat
ios
Market Cap / Sales 2.67 2.24 1.67 19.14% 34.08%
Market Cap/ Net Worth N.A. N.A. N.A. N.A. N.A.
Market Cap/PAT N.A. N.A. N.A. N.A. N.A.
Market Cap/EBITDA 11.20 20.16 6.77 -44.46% 197.92%
Source - Money Control/Stock exchange filing
TABLE 6 - TRADING VOLUME
Particulars Decβ17 Juneβ17 Decβ16
% Change
Dec β17 vs
Juneβ17
Juneβ17 vs
Decβ16
Trading Volume (shares) (avg. of 1 qtr) 31,69,192 24,93,115 22,49,299 27.12% 10.84%
Trading Volume (shares) (high in 1 qtr) 2,88,33,457 2,61,97,413 2,54,68,043 10.06% 2.86%
Trading Volume (shares) (low in 1 qtr) 2,28,998 5,57,193 3,35,967 -58.90% 65.85%
Ratio - High/low trading volume 125.91 47.02 75.81 167.80% -37.98%
Ratio - High/average trading volume 9.10 10.51 11.32 -13.42% -7.20%
Source - Capitaline
TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS
Dec-17 Jun-17 Dec-16 Comments
Shar
eho
ldin
g (%
)
Promoter shareholding 74.36 74.36 74.90 β’ No new equity shares were issued during 1st Janβ 2017 to
31ST Decβ 2017.
β’ The promoter shareholding decreased by 0.54% due to
market activity.
β’ No major change was observed in the shareholding
pattern during the said period.
β’ The promoters have pledged 34.97% of their
shareholding.
Public - Institutional
shareholding 0.51 0.55 0.56
Public - Others shareholding 25.13 25.09 24.54
Non - Promoter Non - Public
Shareholding 0.00 0.00 0.00
Source - NSE
![Page 4: STAKEHOLDERS EMPOWERMENT SERVICES TATA ......Tata Teleservices (Maharashtra) Limited provides basic and cellular telecommunication services. The Company is engaged in wired and wireless](https://reader030.vdocuments.mx/reader030/viewer/2022040521/5e7c27dfe7d761031f246a1c/html5/thumbnails/4.jpg)
Stakeholdersβ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
4 | P A G E
SECTOR: TELECOM SERVICES REPORTING DATE: 25TH JANUARY, 2018
TATA TELESERVICES (MAHARASHTRA) LTD. www.tatateleservices.com
MAJOR SHAREHOLDERS (AS ON 31st DECEMBER 2017)
S. No. Promoters Shareholding S. No. Public Shareholders Shareholding
1 Tata Teleservices Limited 36.54%
No Major Public shareholders. 2 Tata Sons Limited 19.58%
3 NTT Docomo Inc. 11.76%
4 The Tata Power Company Limited 6.48%
Source - NSE
TABLE 7 (B): OWNERSHIP & MANAGEMENT RISKS
Market Activity of Promoters The Promoters shareholding decreased by 0.03% during the FY 2016-17.
Preferential issue to promoters No preferential issue of shares was made to the promoters during the FY 2016-17.
Preferential issue to others No preferential issue of shares was made to other shareholders during the FY 2016-17.
GDRs issued by the Company The Company did not issue any GDRs during the FY 2016-17.
Issue of ESOPs/ Issue of shares other
than Preferential allotment
The Company did not issue any shares to the employees under its ESOP Scheme during
the FY 2016-17.
Source - Annual Report FY 16-17
TABLE 8: PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
Sr. No. Name and Description of main products / services % to Total turnover of the Company
1 Wired telecommunications activities 35.70%
2 Wireless telecommunications activities 64.30%
Source - Annual Report FY 16-17
![Page 5: STAKEHOLDERS EMPOWERMENT SERVICES TATA ......Tata Teleservices (Maharashtra) Limited provides basic and cellular telecommunication services. The Company is engaged in wired and wireless](https://reader030.vdocuments.mx/reader030/viewer/2022040521/5e7c27dfe7d761031f246a1c/html5/thumbnails/5.jpg)
Stakeholdersβ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
5 | P A G E
SECTOR: TELECOM SERVICES REPORTING DATE: 25TH JANUARY, 2018
TATA TELESERVICES (MAHARASHTRA) LTD. www.tatateleservices.com
Glossary
Equity: The equity shares capital of the Company
Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholdersβ funds of the Company
Turnover: The revenue earned from the operations of the Company
EPS: Earning Per Share is net profit earned by the Company per share
πΈππ =Profit After Tax
Number of outstanding shares
P/E ratio: It is the ratio of the Companyβs share price to earnings per share of the Company
π/πΈ πππ‘ππ =Price of each share
Earnings per share
Current Assets: Cash and other assets that are expected to be converted to cash in one year
Fixed Assets: assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land,
buildings, and equipment
Total Assets: Current Assets + Fixed Assets
Investments: An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in
the future.
Finance Cost: The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges
incurred during the year in relation to borrowed money.
Long Term Liabilities: Long-term liabilities are liabilities with a maturity period of over one year.
Current Liabilities: A company's debts or obligations that are due within one year.
Inventory Turnover ratio: Inventory Turnover is a ratio showing how many times a company's inventory is sold and replaced
over a period.
πΌππ£πππ‘πππ¦ ππ’ππππ£ππ πππ‘ππ =Sales Turnover
Inventory
Debtors Turnover: Accounts receivable turnover is an efficiency ratio or activity ratio that measures how many times a business
can turn its accounts receivable into cash during a period
π·πππ‘πππ ππ’ππππ£ππ πππ‘ππ =Sales Turnover
Accounts recievables
Fixed Asset Turnover: The fixed-asset turnover ratio is a financial ratio of net sales to fixed assets
πΉππ₯ππ π΄π π ππ‘ ππ’ππππ£ππ πππ‘ππ =Sales Turnover
Fixed Assets
Current Asset Turnover: The current-asset turnover ratio is a financial ratio of net sales to fixed assets
πΆπ’πππππ‘ π΄π π ππ‘ ππ’ππππ£ππ πππ‘ππ =Sales Turnover
Current Assets
Operating Profit Margin: Operating margin is a measurement of what proportion of a Companyβs revenue is left over after
paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Companyβs operating
income (also known as βoperating profitβ) during a given period by its sales during the same period.
ππππππ‘πππ ππππππ‘ ππππππ =Operating profit
Sales Turnover
Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales
πππ‘ ππππππ‘ ππππππ =Net profit
Sales Turnover
![Page 6: STAKEHOLDERS EMPOWERMENT SERVICES TATA ......Tata Teleservices (Maharashtra) Limited provides basic and cellular telecommunication services. The Company is engaged in wired and wireless](https://reader030.vdocuments.mx/reader030/viewer/2022040521/5e7c27dfe7d761031f246a1c/html5/thumbnails/6.jpg)
Stakeholdersβ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
6 | P A G E
SECTOR: TELECOM SERVICES REPORTING DATE: 25TH JANUARY, 2018
TATA TELESERVICES (MAHARASHTRA) LTD. www.tatateleservices.com
Return on Assets: ROA tells you what earnings were generated from invested capital (assets)
π ππ‘π’ππ ππ π΄π π ππ‘π =Net profit
Total Assets
Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholdersβ
equity.
π ππ‘π’ππ ππ πΈππ’ππ‘π¦ =Net profit
Net worth
Return on Capital Employed: Return on capital employed (ROCE) is a financial ratio that measures a company's profitability
and the efficiency with which its capital is employed.
π ππ‘π’ππ ππ πΆππππ‘ππ πΈπππππ¦ππ =Net profit
Total Debt + Equity share capital
Current ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts
over the next 12 months. It compares a firm's current assets to its current liabilities.
πΆπ’πππππ‘ πππ‘ππ =Current Assets
Current Liabilities
Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities.
ππ’πππ πππ‘ππ =Current Assets β Inventories
Current Liabilities
Cash ratio: The ratio of the liquid assets of a Company to its current liabilities.
ππ’πππ πππ‘ππ =Current Assets β Inventories β Account Recievables
Current Liabilities
Working Capital Turnover ratio: The working capital turnover ratio is also referred to as net sales to working capital. It indicates
a Company's effectiveness in using its working capital.
πππππππ πΆππππ‘ππ ππ’ππππ£ππ πππ‘ππ =πππππ ππ’ππππ£ππ
Current Assets β Current Liabilities
Debt to Equity ratio: The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of
shareholders' equity and debt used to finance a company's assets.
π·πππ‘ π‘π πΈππ’ππ‘π¦ πππ‘ππ =πβπππ‘ ππππ π·πππ‘ + πΏπππ ππππ π·πππ‘
πππ‘ ππππ‘β
Interest Coverage ratio: The Interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a
Company can pay interest on outstanding debt.
πΌππ‘ππππ π‘ πΆππ£πππππ π ππ‘ππ =πΈππππππ π΅πππππ πΌππ‘ππππ π‘ πππ πππ₯
πΉππππππ πΆππ π‘
Market Cap/Sales ratio: Market Cap/sales ratio, Priceβsales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is
calculated by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per-
share stock price by the per-share revenue.
ππππππ‘ πΆππ/πππππ πππ‘ππ =ππππππ‘ πΆππ
πππππ ππ’ππππ£ππ
Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Companyβs market cap to net worth.
ππππππ‘ πΆππ/πππ‘π€πππ‘β πππ‘ππ =ππππππ‘ πΆππ
πππ‘π€πππ‘β
Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Companyβs market cap to net profit.
ππππππ‘ πΆππ/ππ΄π πππ‘ππ =ππππππ‘ πΆππ
πππ‘ ππππππ‘
Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Companyβs market cap to EBITDA.
![Page 7: STAKEHOLDERS EMPOWERMENT SERVICES TATA ......Tata Teleservices (Maharashtra) Limited provides basic and cellular telecommunication services. The Company is engaged in wired and wireless](https://reader030.vdocuments.mx/reader030/viewer/2022040521/5e7c27dfe7d761031f246a1c/html5/thumbnails/7.jpg)
Stakeholdersβ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
7 | P A G E
SECTOR: TELECOM SERVICES REPORTING DATE: 25TH JANUARY, 2018
TATA TELESERVICES (MAHARASHTRA) LTD. www.tatateleservices.com
ππππππ‘ πΆππ/πΈπ΅πΌππ·π΄ πππ‘ππ =ππππππ‘ πΆππ
πΈπ΅πΌππ·π΄
Trading Volume (shares) (avg. of 1 year): Average number of shares/day traded in 1 year
Trading volume (shares) (high in 1 year): Highest number of shares/day traded in 1 year
Trading volume (shares) (minimum in 1 year): Lowest number of shares traded on any one day in 1 year
![Page 8: STAKEHOLDERS EMPOWERMENT SERVICES TATA ......Tata Teleservices (Maharashtra) Limited provides basic and cellular telecommunication services. The Company is engaged in wired and wireless](https://reader030.vdocuments.mx/reader030/viewer/2022040521/5e7c27dfe7d761031f246a1c/html5/thumbnails/8.jpg)
Stakeholdersβ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
8 | P A G E
SECTOR: TELECOM SERVICES REPORTING DATE: 25TH JANUARY, 2018
TATA TELESERVICES (MAHARASHTRA) LTD. www.tatateleservices.com
DISCLAIMER
Sources Company Information
Only publicly available data has been used while making the factsheet. Our data sources include: BSE, NSE, SEBI, Capitaline, Moneycontrol, Businessweek, Reuters, Annual Reports, IPO Documents and Company Website.
Analyst Certification
The analysts involved in development of this factsheet certify that no part of any of the research analystβs compensation was, is, or will be directly or indirectly related to the contents of this factsheet.
Disclaimer
While SES has made every effort and has exercised due skill, care and diligence in compiling this factsheet based on publicly available information, it neither guarantees its accuracy, completeness or usefulness, nor assumes any liability whatsoever for any consequence from its use. This factsheet does not have any approval, express or implied, from any authority, nor is it required to have such approval. The users are strongly advised to exercise due diligence while using this factsheet. This factsheet in no manner constitutes an offer, solicitation or advice to buy or sell securities, nor solicits votes or proxies on behalf of any party. SES, which is a not-for-profit Initiative or its staff, has no financial interest in the companies covered in this factsheet except what is disclosed on its website. The factsheet is released in India and SES has ensured that it is in accordance with Indian laws. Person resident outside India shall ensure that laws in their country are not violated while using this factsheet; SES shall not be responsible for any such violation. All disputes subject to jurisdiction of High Court of Bombay, Mumbai.
SEBI Reg. No. INH000000016
This factsheet or any portion hereof may not be reprinted, sold, reproduced or redistributed without the written consent of Stakeholders Empowerment Services
Contact Information
Stakeholders Empowerment Services
A 202, Muktangan, Upper Govind Nagar,
Malad East, Mumbai β 400 097
Tel +91 22 4022 0322
www.sesgovernance.com
Research Analyst: Kirti Dhokiya