Tata Teleservices (Maharashtra) (532371) Q4 14/15 earnings summary

Executive summary

• FY15 revenue rose 4% YoY to Rs. 2,939 crore; EBITDA increased 5% to Rs. 646 crore, while the net loss widened to Rs. 615 crore.

• Accumulated losses exceeded paid-up equity capital and reserves; GSM and data growth, alongside new 800 MHz spectrum, supported the growth strategy.

Financial highlights

• Total revenue was Rs. 2,939 crore vs. Rs. 2,819 crore in FY14; telecom service revenue reached Rs. 2,837 crore vs. Rs. 2,649 crore.

• EBITDA was Rs. 646 crore vs. Rs. 614 crore; EBITDA margin improved slightly.

• Net loss increased to Rs. 615.25 crore from Rs. 560.08 crore; finance costs rose to Rs. 650.78 crore from Rs. 565.05 crore.

• Basic and diluted EPS was negative Rs. 3.15 vs. negative Rs. 2.86; no current income tax provision was required due to no taxable income.

• Other income fell to Rs. 46.27 crore from Rs. 87.49 crore, including prior-year write-backs of excess provisions and sundry credit balances.

Outlook and guidance

• Outlook was described as positive over the long term; priorities include profitable revenue growth, data, shifting voice-only users toward voice-plus-data and improving customer experience.

• GSM growth was expected to outpace CDMA decline; non-voice services, including home surveillance, smart tracking, m-commerce and M2M, were positioned as future revenue and margin drivers.

• Spectrum investments were intended to support new-generation technology launches; no quantified earnings or revenue guidance was stated.