MIRA INFORM REPORT
|
Report No. : |
302631 |
|
Report Date : |
12.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
TATA COMMUNICATIONS LIMITED (w.e.f. February 13, 2008) |
|
|
|
|
Formerly Known
As : |
VIDESH SANCHAR NIGAM LIMITED |
|
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Registered
Office : |
V S B, Mahatma Gandhi Road, Fort, Mumbai – 400001, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2014 |
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|
Date of
Incorporation : |
19.03.1986 |
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Com. Reg. No.: |
11-039266 |
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Capital
Investment / Paid-up Capital : |
Rs. 2850.000 Millions |
|
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|
|
CIN No.: [Company
Identification No.] |
L64200MH1986PLC039266 |
|
|
|
|
TAN No.: [Tax Deduction
& Collection Account No.] |
MUMV07840A |
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|
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PAN No.: [Permanent
Account No.] |
AAACV2808C |
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|
Legal Form : |
A Public Limited Liability company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Subject is engaged in the business of providing International Telecommunications
Services. |
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No. of Employees
: |
9314 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavorable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exists |
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Comments : |
Subject is a well-established and reputed company having excellent
track record. Financial position of the company seems to be sound. Trade relations are fair. Business is active. Payment terms are reported
as regular and as per commitments. The company can be considered good for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Issuer Rating = AA+ |
|
Rating Explanation |
High degree of safety and carry very low credit risk. |
|
Date |
October 29, 2014 |
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|
|
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities = A1+ |
|
Rating Explanation |
Have very strong degree of safety and carry lowest credit risk. |
|
Date |
October 29, 2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION DECLINED
MANAGEMENT NON – COOPERATIVE (91-22-66578765)
LOCATIONS
|
Registered Office : |
V S B, |
|
Tel. No.: |
91-22-66578765 |
|
Fax No.: |
91-22-66395162 |
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E-Mail : |
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|
Website : |
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Corporate Office : |
Plot No. C21 and C36, “G” Block, Bandra Kurla Complex, Mumbai –
400098, Maharashtra, India |
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Overseas Office: |
|
DIRECTORS
As on: 31.03.2014
|
Name : |
Mr. Subodh Bhargava |
|
Designation : |
Chairman (Independent) |
|
DIN: |
00035672 |
|
|
|
|
Name : |
Mr. Vinod Kumar |
|
Designation : |
(Managing Director and Group CEO) |
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|
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|
Name : |
N. Srinath |
|
Designation : |
Managing Director and Chief Executive Officer |
|
DIN: |
01204665 |
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|
|
|
Name : |
Mr. Kishor A. Chaukar |
|
Designation : |
Panatone Nominee |
|
DIN: |
00033830 |
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|
|
|
Name : |
Mr. Amal Ganguli |
|
Designation : |
Director (Independent) |
|
DIN: |
00013808 |
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|
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Name : |
Mr. S. Ramadorai |
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Designation : |
Director (Panatone Nominee) |
|
DIN: |
00000002 |
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|
Name : |
Dr. Ashok Jhunjhunwala |
|
Designation : |
Director (Panatone Nominee) |
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DIN: |
00417944 |
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|
|
|
Name : |
Dr. Uday B. Desai |
|
Designation : |
Director (Independent) |
|
DIN: |
01735464 |
|
|
|
|
Name : |
Mr. Ajay Kumar Mittal |
|
Designation : |
Director (Government Nominee) |
|
DIN: |
03606496 |
|
|
|
|
Name : |
Mr. Saurabh Kumar Tiwari |
|
Designation : |
Independent Non-Executive |
|
DIN |
03606497 |
|
|
|
|
Name : |
Mr. Bharat Ranade |
|
Designation : |
Independent Non-Executive |
|
DIN: |
00040243 |
KEY EXECUTIVES
|
Name : |
Mr. Satish Ranade |
|
Designation : |
Company Secretary and Chief Legal Officer |
|
Address : |
Plot No. C-21 and C-36, G Block, Bandra Kurla Complex, Bandra (East)
Mumbai – 400 098, |
|
Tel. No.: |
91-22-66578765 |
|
Fax No.: |
91-22-67251962 |
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E-Mail : |
|
|
|
|
|
Name : |
Mr. Sanjay Baweja |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.12.2014
|
Name of Category |
No. of Shares |
Percentage of
holding |
|
(1) Indian |
|
|
|
|
74446885 |
26.12 |
|
|
139286330 |
48.87 |
|
|
213733215 |
74.99 |
|
|
|
|
|
Total shareholding of Promoter and Promoter
Group (A) |
213733215 |
74.99 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
12186154 |
4.28 |
|
|
15521151 |
5.45 |
|
|
4353913 |
1.53 |
|
|
20608792 |
7.23 |
|
|
52670010 |
18.48 |
|
|
|
|
|
|
6824355 |
2.39 |
|
|
|
|
|
|
7102181 |
2.49 |
|
|
4272432 |
1.50 |
|
|
397807 |
0.14 |
|
|
9350 |
0.00 |
|
|
7250 |
0.00 |
|
|
380707 |
0.13 |
|
|
500 |
0.00 |
|
|
18596775 |
6.53 |
|
Total Public shareholding (B) |
71266785 |
25.01 |
|
Total (A)+(B) |
285000000 |
100.00 |
|
(C) Shares held by Custodians and against which
Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
285000000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the business of providing International
Telecommunications Services. |
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Products/Services : |
Telecommunications Services |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Available |
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Imports : |
Not Available |
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Terms : |
Not Available |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
9314 (Approximately) |
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Facilities : |
Rs in Millions
NOTE : (i) Secured
Debentures : During the year 2008-09, the Company issued Taxable Rated Secured Non-convertible
Redeemable Debentures in demat form for cash at par on private placement
basis aggregating Rs. 12500.000 Million, IDBI Trusteeship Services Limited
has been appointed as trustee to the debenture issue. Nature of
Security Rs. 2500.000 Millions, debentures (Interest ranging from 11.00% to 11.25%, face value of Rs. 1000000 each) are secured by a first legal mortgage and charge on the Company’s free hold land at Perambur Barracks, Chennai and Plant and machinery. Redemption Terms The outstanding debentures are due for redemption as given below :
For facilitating the above redemptions, and the Company has created a Debenture Redemption Reserve of Rs. 2224.300 Millions (2013: Rs. 1796.000 Millions) and an amount of Rs. 428.300 Millions (2013: Rs. 1744.100 Millions) has been appropriated during the current year. During the previous year, 6,000, 11.70% debentures
aggregating Rs. 6000.000 Millions were redeemed and consequently debenture
redemption reserve of Rs. 6000.000 Millions created to facilitate the
redemption of above debentures has been transferred to General reserve. |
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Auditors : |
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Name : |
S.B. Billimoria and Company Chartered Accountants |
|
Address: |
12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai –
400018, Maharashtra, India |
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Tel No.: |
91-22-66679000 |
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Fax No.: |
91-22-66679100 |
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Investing Parties (Promoters): |
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Subsidiaries (Held
Directly): |
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Subsidiaries (Held
Indirectly) |
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|
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Associate of wholly
owned subsidiary |
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Joint Venture |
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CAPITAL STRUCTURE
As on: 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
400000000 |
Equity Shares |
Rs.10/- each |
Rs. 4000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
285000000 |
Equity Shares |
Rs.10/- each |
Rs. 2850.000 Millions |
NOTE:
A. Issued, Subscribed and paid
up:
There was no movement in the issued,
subscribed and paid up share capital of the Company during the current and past
five financial years.
C. Terms/ rights attached to equity shares:
The Company has only one class of equity shares with a face value of Rs. 10 per share. Each shareholder of equity shares is entitled to one vote per share at any general meeting of shareholders. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.
The Board of Directors have recommended a dividend of ` 4.50 (2013: ` 3) per share for the year ended 31 March 2014.
D. Number of shares held by each shareholder holding more than 5% of the
issued share capital:
As on 31.03.2014
|
Particulars |
Nos. of Shares |
% of Holding |
|
Panatone Finvest Limited |
88626654 |
31.10 |
|
Government of |
74446885 |
26.12 |
|
Tata Sons Limited |
40533297 |
14.22 |
|
Bank of New York Mellon as depository to
Company’s ADR issue |
14107950 |
4.97 |
During the year,
the Company delisted its American Depositary Shares (“ADSs”), from the New York
Stock Exchange (“NYSE”) and terminated its ADR program with effect from 13
August 2013. This action enabled the Company to increase its public
shareholding to 25% as required by Securities and Exchange Board of India.
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
2850.000 |
2850.000 |
2850.000 |
|
(b) Reserves & Surplus |
76006.100 |
72314.200 |
68519.700 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
78856.100 |
75164.200 |
71369.700 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
2100.000 |
6250.000 |
8250.000 |
|
(b) Deferred tax liabilities (Net) |
4286.900 |
3915.600 |
164.200 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
3840.800 |
|
(d) long-term
provisions |
1236.700 |
1221.600 |
1276.800 |
|
Total Non-current
Liabilities (3) |
7623.600 |
11387.200 |
13531.800 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
3161.800 |
1497.000 |
1258.300 |
|
(b)
Trade payables |
11445.600 |
10828.100 |
12021.400 |
|
(c)
Other current liabilities |
9824.800 |
7026.600 |
9526.900 |
|
(d)
Short-term provisions |
3292.300 |
2819.900 |
853.000 |
|
Total Current
Liabilities (4) |
27724.500 |
22171.600 |
23659.600 |
|
|
|
|
|
|
TOTAL |
114204.200 |
108723.000 |
108561.100 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
41126.200 |
46949.100 |
46611.000 |
|
(ii)
Intangible Assets |
1245.600 |
1385.400 |
909.000 |
|
(iii)
Capital work-in-progress |
3100.400 |
1746.600 |
3033.400 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
20686.600 |
20305.100 |
17882.700 |
|
(c) Deferred tax assets
(net) |
929.200 |
87.100 |
0.000 |
|
(d) Long-term Loan
and Advances |
22128.200 |
18544.900 |
27619.400 |
|
(e)
Other Non-current assets |
80.800 |
80.800 |
80.800 |
|
Total Non-Current
Assets |
89297.000 |
89099.000 |
96136.300 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
9343.100 |
4624.100 |
0.000 |
|
(b)
Inventories |
41.500 |
42.000 |
4.500 |
|
(c)
Trade receivables |
6854.400 |
8564.900 |
8457.700 |
|
(d)
Cash and cash equivalents |
5226.300 |
3286.200 |
533.200 |
|
(e)
Short-term loans and advances |
3347.700 |
2903.900 |
3183.100 |
|
(f)
Other current assets |
94.200 |
202.900 |
246.300 |
|
Total
Current Assets |
24907.200 |
19624.000 |
12424.800 |
|
|
|
|
|
|
TOTAL |
114204.200 |
108723.000 |
108561.100 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
43764.000 |
44161.200 |
40917.700 |
|
|
|
Other Income |
4639.500 |
3802.200 |
1791.000 |
|
|
|
TOTAL |
48403.500 |
47963.400 |
42708.700 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Network and transmission |
18759.500 |
19632.000 |
17365.000 |
|
|
|
Employees Benefits Expenses |
6408.100 |
6394.600 |
6222.400 |
|
|
|
Operating and other expenses |
8617.000 |
8132.500 |
7450.600 |
|
|
|
TOTAL |
33784.600 |
34159.100 |
31038.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
14618.900 |
13804.300 |
11670.700 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
595.100 |
1196.900 |
1948.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) |
14023.800 |
12607.400 |
9722.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
6802.300 |
7624.000 |
7070.800 |
|
|
|
|
|
|
|
|
|
Add |
EXCEPTIONAL
ITEMS (LOSS) / GAIN |
813.300 |
1583.500 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX |
8034.800 |
6566.900 |
2651.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
2610.500 |
1814.500 |
937.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
5424.300 |
4752.400 |
1713.400 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Revenue from telecommunication services |
10944.600 |
11060.100 |
100858 |
|
|
|
Interest income |
118.700 |
336.800 |
127.600 |
|
|
|
Dividend income |
277.100 |
261.600 |
47.600 |
|
|
|
Guarantee fees |
1526.600 |
1179.200 |
0.000 |
|
|
|
Other income |
13.600 |
4.900 |
106.200 |
|
|
TOTAL EARNINGS |
12880.600 |
12842.600 |
101139.400 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
8.500 |
14.200 |
16.600 |
|
|
|
Capital Goods |
2308.100 |
2743.400 |
1508.400 |
|
|
TOTAL IMPORTS |
2316.600 |
2757.600 |
1525.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
19.03 |
16.68 |
6.01 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT / Sales) |
(%) |
12.39 |
10.76 |
4.19 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
33.40 |
31.26 |
28.52 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.98 |
7.58 |
3.02 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10 |
0.09 |
0.04 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.07 |
0.10 |
0.13 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.90 |
0.89 |
0.53 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
2850.000 |
2850.000 |
2850.000 |
|
Reserves & Surplus |
68519.700 |
72314.200 |
76006.100 |
|
Net
worth |
71369.700 |
75164.200 |
78856.100 |
|
|
|
|
|
|
long-term borrowings |
8250.000 |
6250.000 |
2100.000 |
|
Short term borrowings |
1258.300 |
1497.000 |
3161.800 |
|
Total
borrowings |
9508.300 |
7747.000 |
5261.800 |
|
Debt/Equity
ratio |
0.133 |
0.103 |
0.067 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
40917.700 |
44161.200 |
43764.000 |
|
|
|
7.927 |
(0.899) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
40917.700 |
44161.200 |
43764.000 |
|
Profit |
1713.400 |
4752.400 |
5424.300 |
|
|
4.19% |
10.76% |
12.39% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG-TERM DEBT DETAILS:
|
Particulars |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
(Rs. In Millions) |
||
|
Current maturities of long-term debt |
(41.500) |
0.000 |
0.000
|
|
|
|
|
|
|
Total |
|
|
|
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
------ |
|
26] |
Buyer visit details |
------ |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION DETAILS
|
CASE DETAILS BENCH BOMBAY LODGING NO:
ITXAL/1447/2014 FILLING DATE:
01.08.2014 PETITIONER: THE
COMMISSIONER OF INCOME TAX – 1 RESPONDENT:
TATA COMMUNICATION LIMITED (FORMER) PETN. ADV: PRAKASH
CHANDRA CHHOTARY (I3415) DISTRICT: MUMBAI BENCH: DIVISION STATUS:
PRE-ADMISSION CATEGORY: TAX APPEALS LAST DATE: 08.01.2015 LAST CORAM: ACCOURDING TO SITTING LIST
ACCOURDING TO SITTING LIST ACT : INCOME TAX
ACT, 1961 |
UNSECURED LOANS:
(Rs in Millions)
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
|
Long term
borrowings |
|
|
|
Taxable Rated
Unsecured Non-Convertible Redeemable Debentures |
|
|
|
1500, 9.85% Rated Debentures of face value Rs. 1.000 Million each |
1500.000 |
1500.000 |
|
1500, 9.50% Rated Debentures of face value Rs. 1.000 Million each |
1500.000 |
1500.000 |
|
Term Loan |
|
|
|
From Bank ((rate of interest 9% p.a, repayable by June 2014)) |
750.000 |
750.000 |
|
From Others (rate of interest 5.95% to 6.90% p.a, repayable by July
2012) |
|
0.000 |
|
Less: Current maturities of long term borrowings |
(4150.000) |
0.000 |
|
Short term
borrowings : |
|
|
|
From banks (rate of interest – 1.09 % to 2.60 %) |
3161.800 |
1497.000 |
|
Total |
2761.800 |
5247.000 |
NOTE:
Unsecured
Debentures
During the year 2009-10, the Company issued Taxable Rated Unsecured Non-Convertible Redeemable Debentures of face value Rs. 1,000,000 each, in demat form for cash at par on a private placement basis.
Redemption Terms:
The outstanding debentures are due for redemption as given below:
|
Date
of redemption as per terms of issue |
1500,
9.50% Debenture |
1500,
9.85% Debentures |
|
02 July 2019 |
-- |
150 |
|
08 June 2014 |
150 |
-- |
|
Total |
150 |
150 |
For facilitating the above redemptions, the Company has created a debenture redemption reserve of Rs. 2155.100 Millions (2013: Rs.1705.300 Millions) and an amount of Rs. 449.800 Millions (2013: Rs. 449.800 Millions) has been appropriated during the current year.
OPERATIONS:
SEGMENT DISTRIBUTION:
Over the last few
years, the Company has been successful in its goal of diversifying revenues, to
tap new opportunities and reduce any risks of an overly concentrated portfolio.
Accordingly, the Company’s revenues are now broadly diversified across its
various products and segments, especially by taking advantage of greater
opportunities in the data market in new segments such as media and
entertainment, financial services, health care, etc. During 2013-14, consolidated
revenue from voice services contributed 49% (50% last year) of total revenue,
while data services contributed 40% (39% last year) and 11% from Neotel.
Voice:
In the voice business,
the Company remains one of the largest players worldwide in terms of market
share. The trend of declining margins continues due to traffic shifting to VoIP
based calling and therefore, the Company is focused on developing innovative
commercial offerings and optimizing costs to maintain free cash flow generation
from this business. Year on Year (YOY) ILD voice traffic declined by 2%,
however the traffic mix is better. YoY EBITDA margins improved by 1% and YoY
EBITDA grew by 24%. Free cash flow generated during the year from the voice
business was Rs. 8040.000 Millions (previous year Rs.6690.000 Millions).
Data:
Data continues to
present substantial opportunities for rapid growth and improved profitability.
The launch of cloud enablement solutions, including network and data centre
service, helped the Company to grow its data portfolio and strengthen its
presence in this high growth business. The Company has also been strengthening
its Unified Communications Services portfolio encompassing all forms of
communications, as well as its industry solutions for the Media &
Entertainment Sector and the Banking & Financial Services Sector. The
Company’s strategy of expanding into managed services continues to pay off, as
managed services now contribute 5.2% to the data services segment (Previous
Year 4.6%).
Neotel:
Neotel, a subsidiary
of the Company in South Africa, though still in its gestation period, continued
to achieve growth. During the year 2013-14, Neotel turned the corner with several
major achievements: its revenues grew 23% year-on-year and it remained
profitable at the operating (EBIT) level. EBITDA for Neotel for 2013-14 was
Rs.6180.700 Millions as against an EBITDA of Rs. 3222.300 Millions in the
previous year, a jump of 92%.
In May 2014, the
shareholders of Neotel and Vodacom SA concluded an agreement on the commercial
structure and terms to proceed for Vodacom to acquire 100 per cent of the
shares of Neotel valued at an enterprise value of ZAR 7.0 billion. This
decision is in line with the Company’s financial objectives, while paving the
way for Neotel to continuously improve its value proposition in the South
African market. The structure of the deal and its commercial terms remain
subject to regulatory and competition authority approvals and the parties have
commenced the necessary processes in that regard.
Customer
Satisfaction and Business Excellence:
Providing an
excellent customer experience remains an important pillar of the Company’s
strategy to generate sustainable advantages. In 2013-14, according to an
independent survey, the Company’s customer loyalty ratings stood at the 87th
percentile of its global peer set, an improvement of 3% over the previous year.
The Company continues with several other initiatives such as customer portal
that enables real-time customer interaction, obtaining better feedback through
the “Customer Voice” initiative etc.
The Company continues
to transform itself in tandem with market and regulatory changes, using
successfully the framework of the Tata Business Excellence Model (TBEM). The
Company has further extended the validity of its TL 9000 certification for
Quality Management by three years, commencing 31 March 2013, for the India and
Singapore offices. The company also has ISO 14001 Environmental Management
certification for the 13 key office premises in India, valid till 10 April
2017.
The Company’s Global
Managed Services Operations Centre (MSOC) of the Company at Chennai, all eleven
data centres in India and seven data centres at international locations
(totalling eighteen) have received ISO 20000 and ISO 27001 certifications
through until 14 March 2017. In addition, during the year, the Company has been
certified to ISO 22301 Business Continuity Management (BCM) for some of its critical
operations. This provides further confidence to various stakeholders and
customers about the organization’s ability to recover from catastrophic events
and demonstrate sustainability.
MANAGEMENT
DISCUSSION AND ANALYSIS:
Macro-Economic
Situation:
FY 2013-14 was
another sluggish year for the Indian economy, which continued to grapple with
one of its worst slowdowns, on the back of global weaknesses and domestic
macro-economic fiscal imbalances. While the declining GDP trend of the previous
year was arrested, quarterly growth still remained unexciting at 4.4-4.8%.
Unsatisfactory economic growth and persistent high inflation remained the
economy’s pain points. Consumer inflation reached 13.8% in September 2013,
accompanied by GDP growth of just 4.8%. Other worries included higher fiscal
and current account deficits and sluggish industrial growth. Although the
government’s measures for revival in export growth and its restrictions on gold
imports brought some relief, the economic scenario and business atmosphere
remained largely unchanged. Funding scarcities and high borrowing costs also
persisted. During the year, the global economy showed two positive trends.
First, the structural shift from the developed world towards the emerging world
continued, though at a slightly slower pace as both China and India grew at
their slowest rates in over a decade. Second, the cyclical climb out of the
prolonged recession progressed. The recovery in developed markets strengthened,
although it was still uneven and patchy. While the US and UK improved over the
previous year, the rest of the Eurozone reported mixed signals. Over the longer
term, globalization, demographic shifts and technology are expected to drive
economic growth. Despite the recent slowdown in emerging markets and the
improved outlook in developed ones, many emerging markets have younger
populations and more favourable dependency ratios. These factors should
contribute to a global economic rebalancing.
Indian Telecom
Industry Situation: India’s telecom sector and subscriber base have grown
strongly and steadily over the past decade, on the back of rising fixed and
mobile network coverage and competition-induced tariff declines. These factors
have driven up demand, as has growing broadband Internet access, the quick
spread of smart mobile devices and higher video traffic on consumer and
business networks. The key factors which are likely to fuel future growth are a
still-growing subscriber base, mobile applications and technologically advanced
end-user devices that will drive exponential growth in Internet usage and
substantial growth in data centre colocation services. However, traffic growth
will remain counter-balanced by severe price erosion, especially for basic
voice and connectivity services, further exacerbated by competition from
next-generation service providers. In the Business-to-Business (B2B) space,
data and video traffic are growing rapidly, due to increased adoption of
information technology and network services to drive business productivity and
innovation.
Indian
Telecom Market:
In 2013-14, the
Indian telecom market grew to Rs 456430.000 Millions, at a rate of ~8% year on
year. During FY14- 19, the market is expected to grow at a compounded annual
growth rate (CAGR) of ~9%, on the back of the mid-teens growth forecast in the
mobile services and managed services space. Growth in the Indian market is
mainly driven by higher penetration of mobile services, growth in consumer
broadband services and increased adoption of network services by Indian
businesses. The Company leads the Indian market in several segments. In the
financial year 2013-14, the Indian International Long Distance (ILD) voice
market had eight major operators, a total inbound market size of 85 billion
minutes and outbound market size of 4.5 billion minutes. The Company’s market
share was 21% in both inbound and outbound traffic. India’s National Long
Distance (NLD) voice market size was 372 billion minutes during the year and
consisted of 10 major operators. The Company’s NLD addressable market size was
15 billion minutes, of which its market share was 39%. In 2013-14, the Company
had a 28% market share of the Indian data market and a 25% market share of the
Indian data centre market.
Global
Telecom Market:
In 2013, the global telecom
market was relatively flat, growing just 0.2% year-on-year to USD 2.2 trillion.
Telecom services accounted for 75% of the total market while mobile devices
accounted for 16% and telecom infrastructure for 9%. The near-flat growth rate
of the past year is likely to improve, with the total telecom market expected
to grow at a CAGR of 2.5% from 2013 to 2018. During 2013-14, the Company’s
addressable market in voice services witnessed a slight decline because of
declining call rates, while the data market showed healthy growth. We expect
the Company’s addressable market to continue to grow at an attractive pace, due
to the growth of data and video services in both the consumer and business
domains.
SEGMENT
WISE PERFORMANCE:
Company
Segmentation:
Tata Communications’
business and revenues are well diversified across business segments, customer
profiles and geographies. Being largely a B2B (business-to business) player,
the Company serves two customer segments: service providers and enterprise customers.
In the service provider segment, the Company provides an integrated set of
services including wholesale voice, domestic and international data
connectivity, Internet backbone connectivity (also known as IP transit),
value-added roaming services for mobile operators and carrier specific business
process outsourcing services. In the enterprise segment, the Company’s main
offering comprises a comprehensive suite of connectivity, IT infrastructure and
managed communication and collaboration solutions for businesses seeking voice,
data and video connectivity between their distributed offices, within India or
globally. These services are aimed at improving the operational efficiencies of
business through the adoption of the latest networking and IT technologies, on
a managed solutions basis. Tata Communications also continues to build industry
specific solutions, with a current focus on Banking & Financial Services
and Media & Entertainment.
The Company
classifies its operations into three main business segments – Global Voice
Solutions, Global Data and Managed Services and Neotel (its subsidiary in South
Africa). As mentioned in the Directors’ Report, the Company has concluded an
agreement with Vodacom SA for the latter to acquire Neotel, subject to necessary
approvals.
INDEX
OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10158962 |
17/10/2014 * |
884,042,277.92 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI
MARG,, BALLARD ESTATE,, MUMBAI, MAHARASHTRA - 400001, INDIA |
C32113334 |
|
2 |
90145554 |
10/12/2004 |
600,000,000.00 |
THE HONGKONG AND SHANGHAI BANKING
CORPORATION LIMI |
52/60. MAHATMA GANDHI ROAD, FORT, MUMBAI,
MAHARASHTRA - 400001, INDIA |
- |
|
3 |
90228711 |
09/12/1993 |
1,000,000,000.00 |
BANK OF BARODA |
INDUSTRIAL FINANCE BRANCH, 42; C.P. PATEL
ROAD; FORT, BOMBAY, MAHARASHTRA - 400023, INDIA |
- |
|
4 |
90228397 |
16/03/1993 * |
500,000,000.00 |
INDIAN OVERSEAS BANK |
ELIPHINSTONE BLDG., 2/10 VEER NARIMAN ROAD;
FORT, BOMBAY, MAHARASHTRA, INDIA |
- |
Note: * Date of charge modification
CONTINGENT LIABILITIES AND COMMITMENTS:
Rs in Millions
|
Particulars |
31.03.2014 |
|
Guarantees given on behalf of subsidiaries |
1251.609 |
|
Claims for taxes on income (Refer 1) |
|
|
-- Income tax disputes where department is in appeal against the company |
40.163 |
|
-- Other disputes related to income tax |
187.051 |
|
Claims for other taxes |
0.128 |
|
Other claims (Refer 2) |
82.729 |
STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND
HALF YEAR ENDED SEPTEMBER 30, 2014
(Rs. In Millions)
|
Particular |
For the Quarter Ended |
For the Half Year Ended |
|
|
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
Income
from Operations |
|
|
|
|
Revenue from operation |
10978.100 |
10695.400 |
21673.500 |
|
Other operating income |
0.000 |
0.000 |
0.000 |
|
Total |
10978.100 |
10695.400 |
21673.500 |
|
Expenses |
|
|
|
|
a. Network and transmission |
4462.200 |
4114.700 |
8576.900 |
|
b. Employee benefit |
1849.000 |
1851.700 |
3700.700 |
|
c. Depreciation and amortization |
1775.100 |
1768.400 |
3543.500 |
|
d. Other |
2111.300 |
2123.300 |
4234.600 |
|
e. Total
Expenditure |
10197.600 |
9858.100 |
20055.700 |
|
Profit /
(Loss) from Operations before Other Income, Finance costs and Exceptional
Items |
780.500 |
837.300 |
1617.800 |
|
Other Income |
3056.100 |
1173.200 |
4229.300 |
|
Profit /
(Loss) from Ordinary Activities before Finance costs and Exceptional Items |
3836.600 |
2010.500 |
5847.100 |
|
Finance Cost |
47.000 |
118.100 |
165.100 |
|
Profit / (Loss)
from Ordinary activities after Finance costs but before Exceptional Items |
3789.600 |
1892.400 |
5682.000 |
|
Exceptional Items loss/(gain) |
- |
- |
- |
|
Profit /
(Loss) from Ordinary Activities before Tax |
3789.600 |
1892.400 |
5682.000 |
|
Tax Expense |
1109.200 |
635.900 |
1745.100 |
|
Net Profit
/ (Loss) from Ordinary Activities after Tax |
2680.400 |
1256.500 |
3936.900 |
|
Extraordinary
Items (net of Tax Expense) |
- |
- |
- |
|
Net
Profit/(Loss) for the period |
2680.400 |
1256.500 |
3936.900 |
|
Paid up
Equity Share Capital (Face value of 10 per share) |
28500 |
28500 |
28500 |
|
Paid up
Debt Capital |
- |
- |
52853 |
|
Reserves
excluding Revaluation Reserve |
- |
- |
- |
|
Debenture
Redemption Reserve |
- |
- |
- |
|
Earnings Per
Share (EPS) Basic and
diluted earnings per share before and after Extraordinary Items (Rs.) |
9.40 |
4.41 |
13.81 |
|
Part II |
For the quarter ended |
Half year ended |
|
|
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
|
A)
Particulars of Shareholding |
|
|
|
|
1. Public
shareholding |
|
|
|
|
a. Number
of shares |
71266785 |
71266785 |
71266785 |
|
b.
Percentage of shareholding |
25.01 |
25.01 |
25.01 |
|
2.
Promoters and Promoter Group |
|
|
|
|
Shareholding |
|
|
|
|
a. Pledged
/ Encumbered |
|
|
|
|
- Number
of Shares |
10000000 |
10000000 |
10000000 |
|
-
Percentage of Shares
(as a % of the total shareholding of promoters and promoter group) |
4.68 |
4.68 |
4.68 |
|
-
Percentage of Shares
(as a % of the total share capital of the Company) |
3.51 |
3.51 |
3.51 |
|
b.
Non-encumbered |
|
|
|
|
- Number
of Shares |
203733215 |
203733215 |
203733215 |
|
-
Percentage of Shares (as a % of the total shareholding of promoters and
promoter group) |
95.32 |
95.32 |
95.32 |
|
-
Percentage of Shares (as a % of the total share capital of the Company) |
71.48 |
71.48 |
71.48 |
|
Particulars |
Quarter ended on 31.03.2014 |
|
B)
Investor complaints |
|
|
Pending at
the beginning of the quarter |
Nil |
|
Received
during the quarter |
1 |
|
Resolved
during the quarter |
1 |
|
Remaining
unresolved at the end of the quarter |
Nil |
Standalone Business
Segment Information:
(Rs. In
Millions)
|
|
For the Quarter Ended |
For the Half Year Ended |
|
|
Particulars |
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
Income
from Operations |
|
|
|
|
Global
Voice Solutions |
2303.100 |
2013.000 |
4316.100 |
|
Global
Data and Managed Services |
8675.000 |
8682.400 |
17357.400 |
|
Total |
10978.100 |
10695.400 |
21673.500 |
|
Segment
result |
|
|
|
|
Global
Voice Solutions |
(1120.700) |
(1014.600) |
(2135.300) |
|
Global
Data and Managed Services |
1901.200 |
1851.900 |
3753.100 |
|
Total |
780.500 |
837.300 |
1617.800 |
|
Less
: |
|
|
|
|
(i)Finance
Cost |
47.000 |
118.100 |
165.100 |
|
(ii)
Other Unallowable Expenses (net |
(3056.100) |
(1173.200) |
(4229.300) |
|
Profit
/ (Loss) before Taxes |
3789.600 |
1892.400 |
8682.000 |
|
Global
Voice Solutions |
1475.400 |
1361.600 |
1475.400 |
|
Global
Data and Managed Services |
31934.900 |
31617.100 |
31934.900 |
|
Allocated |
49208.100 |
46841.800 |
49208.100 |
If the Company had
continued with the earlier method the segment results for the periods would
have been as under: .
|
|
For the Quarter Ended |
For the Half Year Ended |
|
|
Segment result |
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
Global
Voice Solutions |
(615.100) |
(513.100) |
(1128.200) |
|
Global
Data and Managed Services |
6964.400 |
6876.600 |
13841.000 |
|
Total
|
6349.300 |
6363.500 |
12712.800 |
STATEMENT OF STANDALONE ASSETS AND LIABILITIES AS AT 30.09.2014
|
SOURCES
OF FUNDS |
30.09.2014 |
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
(1)Shareholders' Funds |
|
|
(a) Share Capital |
2850.000 |
|
(b) Reserves & Surplus |
79768.400 |
|
(c) Money received against
share warrants |
0.000 |
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
82618.400 |
|
|
|
|
(3) Non-Current Liabilities |
|
|
(a) long-term borrowings |
2100.000 |
|
(b) Deferred tax liabilities
(Net) |
0.000 |
|
(c) Other long term
liabilities |
1361.900 |
|
(d) long-term provisions |
1361.900 |
|
Total
Non-current Liabilities (3) |
7499.500 |
|
|
|
|
(4) Current Liabilities |
|
|
(a) Short term borrowings |
3185.300 |
|
(b) Trade payables |
10422.600 |
|
(c) Other current liabilities |
7089.600 |
|
(d) Short-term provisions |
3396.500 |
|
Total
Current Liabilities (4) |
24094.000 |
|
|
|
|
TOTAL |
|
|
|
|
|
II.
ASSETS |
|
|
(1) Non-current assets |
|
|
(a) Fixed Assets |
|
|
(i) Tangible assets |
39921.100 |
|
(ii) Intangible Assets |
1320.900 |
|
(iii) Capital work-in-progress |
3538.300 |
|
(iv) Intangible assets under
development |
0.000 |
|
(b) Non-current Investments |
28887.100 |
|
(c) Deferred tax assets (net) |
1380.200 |
|
(d) Long-term Loan and Advances |
17151.800 |
|
(e) Other Non-current assets |
80.800 |
|
Total
Non-Current Assets |
92280.200 |
|
|
|
|
(2) Current assets |
|
|
(a) Current investments |
9100.900 |
|
(b) Inventories |
106.100 |
|
(c) Trade receivables |
7723.600 |
|
(d) Cash and cash equivalents |
1160.800 |
|
(e) Short-term loans and
advances |
3801.400 |
|
(f) Other current assets |
38.900 |
|
Total
Current Assets |
21931.700 |
|
|
|
|
TOTAL |
114211.900 |
1. The
above standalone and consolidated financial results of the Company for the
quarter and half year ended September 30, 2014 have been subjected to a limited
review by the statutory auditors, recommended by the audit committee and taken
on record and approved by the Board of Directors at their meeting held on
November 01, 2014.
2. Other
Income includes:
A. For
the quarter and half year ended September 30, 2014, an amount of Rs 1274.800
Millions towards interest on income tax refund in the standalone and the consolidated
financial results.
B. Foreign
Exchange Fluctuation
(Rs. In Millions)
|
Net Foreign Exchange
gain/(Loss) |
For the Quarter Ended |
For the Half Year Ended |
|
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
|
|
(unaudited) |
(unaudited) |
(audited) |
|
Standalone |
19.300 |
3.900 |
23.200 |
|
Consolidated |
(188.500) |
97.500 |
(91.000) |
3. Other
operating income in the standalone and consolidated financial results for the
year ended March 31, 2014, comprises an amount of Rs 463.500 Millions in
respect of export benefits received.
4. Consequent
to the order of the Bombay High Court dated January 24, 2014, approving the
Scheme of Arrangement, the transfer of the IDC division (Colocation service
division of the Company) to Tata Communications Data Centres Private Limited
(“TCDC”) was effected from January 01, 2013 in terms of the Scheme during the
quarter ended March 31, 2014.
Accordingly
the results for the standalone quarter and half year ended September 30, 2013
include the results of the IDC division and are not comparable with the results
of the other periods.
5. The
estimated useful lives of fixed assets have been reviewed and revised generally
to align with the provisions of Schedule II to the Companies Act 2013,
effective 1st April 2014. Consequently (after considering the transitional
provisions specified in Schedule II), the depreciation expense for the quarter
and half year ended September 30,2014 is higher by Rs 94.100 Millions and RS
215.000 Millions respectively in the standalone financial results and is higher
by Rs 165.100 Millions and Rs 370.500 Millions respectively in the consolidated
financial results. Further depreciation of RS 292.400 Millions (Net of Deferred
Tax of Rs 150.600 Millions) in the standalone financial results and Rs 389.500
Millions (Net of deferred tax of Rs 197.000 Millions) in the consolidated
financial results, on account of assets whose useful life is already exhausted
as on 1st April 2014 has been deducted from the retained earnings.
6. During
the quarter ended June 30, 2014, Vodacom Group Limited and all the shareholders
of Neotel including VSNL SNOSPV Private Limited have agreed on the commercial
structure and terms for Vodacom Group Limited to acquire 100% shares of Neotel
from all such shareholders. The structure of the deal and its commercial terms
are subject to regulatory and competition authority approvals and the parties
have commenced necessary process in this regard.
Consequently,
the disclosures pertaining to discontinuing operations as required under
Accounting Standard 24 in respect of consolidated financial results are given
below:
(Rs. In Millions)
|
|
For the Quarter Ended |
For the Half Year Ended |
|
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
|
Revenue from
Operations |
(unaudited) |
(unaudited) |
(audited) |
|
Profit/(Loss) before Tax |
337.600 |
(97.200) |
240.400 |
|
Profit/(Loss)
After Tax |
337.600 |
(97.200) |
240.400 |
7. Results
include exceptional items:
A. For
the year ended March 31, 2014, a charge amounting to Rs 1500.000 lakhs
representing the impairment of Neotel goodwill, in the consolidated financial
results.
B. For
the quarter and half year ended September 30, 2013 and year ended March 31,
2014, in respect of the standalone financial results, an amount of Rs 1348.900
Millions relating to the provision for diminution in carrying amount of
investments and advances in Neotel.
A. For
the half year ended September 30, 2013 and year ended March 31, 2014, in
respect of the standalone and consolidated financial results, an amount of Rs
2162.200 Millions being input credits against certain statutory obligations
relating to earlier periods that have been accounted on crystallization of the
entitlements to such credits.
8. The
Company does not have any extraordinary item to report for the above periods.
9. Previous
periods figures have been rearranged wherever necessary to conform to the
current period classifications/disclosures.
FIXED ASSETS:
- Land
- Building
- Plant and Machinery
- Furniture and Fixture
- Office Equipment
- Computers
- Motor Vehicle
PRESS RELEASE:
Tata Communications posts PAT positive results; Q2
Mumbai -November 1, 2014: Tata Communications today announces its financial results for the quarter and half year ended September 30th 2014.
- Highlights for Q2 FY2015:
- Consolidated PAT stood at INR 924 million
- Consolidated revenue up 2.4% YoY at INR 50,716 million
- Consolidated EBITDA margins improved by 110 basis points QoQ to 15%
- Consolidated PBT up 343% QoQ and 61% YoY to INR 2,120 million
Highlights
for H1 FY2015”
- Consolidated revenue from operations improved 7.8% YoY to INR 101,833 million (USD 1,692 million @average INR/USD exchange rate of 60.18)
- Core business revenue from operations increased 6.8% YoY while the start-up business revenues were up 15.5% YoY
Revenue from operations for the core business grew 1.7% at INR 44950 million (USD 742 million @average INR/USD exchange rate of 60.58) from INR 44,187 million (USD 710 million @average INR/USD exchange rate of 62.21) during the corresponding quarter in the previous year. Data continues to be the growth driver; broad based, enterprise segment solutions improved significantly to post an increase in revenues of 8.3% YoY. Connectivity solutions like MPLS-VPN and IP transit led the network services growth story while Unified Communications and Collaboration (UCC) and transformation services (TCTSL) were the front runners in the growth of the managed services segment. During the quarter, the data business also crossed the 20% EBITDA margin milestone. Core business continues to be firmly PBT positive.
The start-up business continued its upward trajectory and posted a robust growth of 8% increase in revenues at INR 5,766 million (ZAR 1,024 million @average INR/ZAR exchange rate of 5.63) compared to INR 5,339 million (ZAR 858 million @average INR/ZAR exchange rate of 6.22) in Q2 FY14. The start-up business EBITDA margin stood at 31.3% during the quarter, compared to 30.8% in Q2 FY14.
Commenting on the Q2 & H1 FY15 results, Vinod Kumar, MD and CEO, Tata Communications, says, “Enterprises across geographies are beginning to harness the digital transformation to power their growth trajectories. They are expanding and restructuring their portfolios and service offerings while looking to scale globally. Capitalising on this positive trend in the ICT space, we’ve developed some compelling cloud enablement offerings, all of which, positions us well for future growth. Our recent IZO launch is one we have high hopes for as we take the necessary steps towards making the Internet Fit For Business™ by bringing a new level of predictability and reliability to the public Internet that does not exist today. We will continue our focus on driving innovation across our service portfolio.”
Sanjay Baweja, Chief Financial Officer, Tata Communications says “The composition of revenue, and by extension, the quality of our EBITDA is improving as the share of the more sustainable and lucrative, data and managed services segment grows. We continue to be focused on driving robust revenues through long-term engagements with global enterprises and sustaining profitability with a vigilant cost regime.”
Business highlights for Q2 FY2015:
- Tata Communications ushers in a new era of internet to drive hybrid cloud adoption: Tata Communications launched IZO™, a global network platform for enhanced hybrid cloud enablement. A game changing new network platform – IZO™ brings a new way of tackling the complications and challenges that businesses face in realising the potential of the cloud. For the first time, a single provider offers access to a full ecosystem of network, cloud and data centre connectivity making it simple for a business to connect and build its cloud, their way – be it private, hybrid or public. Bringing together a growing ecosystem of over 20 service providers reaching 85% of the world’s GDP, two of the largest cloud platforms - Amazon Web Services (AWS) and Microsoft Azure - and over 50 data centres across the globe, the IZO™ network delivers the most comprehensive cloud enablement platform available today.
- Tata Communications achieves first ever live 4K feed of a Formula 1® event over fibre: Tata Communications continues to drive technology innovation by becoming the first company to deliver a live 4K feed from a Formula 1® event. This landmark was achieved during practice session at the 2014 FORMULA 1 SINGAPORE AIRLINES SINGAPORE GRAND PRIX, where live footage was delivered end-to-end over Tata Communications’ Global Video Connect Network, to Formula One Management’s (FOM) Technical HQ in Biggin Hill, UK. Demonstrated to an exclusive group of broadcasters, the live delivery highlighted the next generation 4K broadcast capabilities afforded by fibre-optic cable, as well as illustrating how the future of 4K sports broadcasting could look.
- Tata Communications and PCCW Global join forces to expand global network capabilities for video and data: Tata Communication and PCCW Global, the international operating division of HKT, Hong Kong’s premier telecommunications service provider, signed a high definition video conferencing (HDVC) interconnect agreement to interconnect the two companies’ IPX and MPLS networks via a Network-to-Network Interface (NNI). This will allow both companies to offer global enterprise customers enhanced network data services and the highest quality HD video conferencing capability.
A fact sheet providing a detailed
analysis of the results for the quarter and half year ended September 30th 2014
has been uploaded on the Tata Communications website and can be accessed
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.39 |
|
|
1 |
Rs.94.17 |
|
Euro |
1 |
Rs.73.61 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Done by
: |
RSM |
|
|
|
|
Report Prepared
by : |
MTN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILITY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
66 |
This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.