Tata Teleservices (Maharashtra) (532371) Q4 17/18 earnings summary

Executive summary

• FY2017-18 revenue fell sharply amid price wars and subscriber losses; EBITDA declined 73.4% YoY and reported net loss widened to Rs. 9,842 crore.

• Strategic focus shifted to transferring Consumer Mobile Business to Bharti Airtel and exploring options for Enterprise and Retail Wireline businesses; approvals remained pending.

Financial highlights

• Total revenue was Rs. 1,904 crore vs Rs. 2,689 crore YoY; telecom service revenue was Rs. 1,843 crore vs Rs. 2,657 crore.

• EBITDA was Rs. 170 crore vs Rs. 640 crore, down 73.4% YoY; EBITDA margin was 9%.

• Loss before exceptional items was Rs. 1,900 crore vs Rs. 1,398 crore; reported net loss was Rs. 9,842 crore vs Rs. 2,356 crore.

• Exceptional items of Rs. 7,942 crore comprised Rs. 7,677 crore CMB asset impairment and Rs. 264 crore restructuring costs.

• Finance cost was Rs. 1,569 crore vs Rs. 1,282 crore; total operating expenses were Rs. 1,734 crore vs Rs. 2,049 crore.

Outlook and guidance

• Consumer mobile demerger to Bharti Airtel was progressing through NCLT, creditor, shareholder and DoT approvals; completion depended on timely regulatory and stakeholder approvals.

• Enterprise services were positioned for growth through fiber infrastructure, customer relationships and customized ICT solutions; sustaining growth without substantial investment could be challenging.

• Options were being explored for Enterprise and Retail Wireline and Broadband businesses; no quantified financial guidance was stated.