Tata Teleservices (Maharashtra) (532371) Q4 21/22 earnings summary

Executive summary

• FY22 revenue from operations rose to ₹1,093.80 crore from ₹1,043.66 crore; EBITDA was ₹479.09 crore and net loss ₹1,215 crore.

• Strategy centered on enterprise digital solutions, with launches across cloud communications, secure connectivity, SD-WAN, cloud access, security and collaboration.

Financial highlights

• Telecom service revenue increased to ₹1,078.82 crore from ₹1,023.98 crore; other income was ₹11.46 crore versus ₹11.14 crore.

• Operating and other expenses rose to ₹571.13 crore from ₹505.40 crore; EBITDA declined to ₹479.09 crore from ₹500.03 crore.

• Loss before exceptional items and tax was ₹1,215 crore versus ₹1,216.88 crore; FY22 had no exceptional item, compared with a ₹779.81 crore AGR provision in FY21.

• Net loss narrowed to ₹1,215 crore from ₹1,996.69 crore; basic and diluted loss per share improved to ₹6.22 from ₹10.21.

Outlook and guidance

• Management expects growth from a ~132,000 km combined optical-fibre network, strong customer relationships, customized solutions and channel partners; sustaining growth without substantial investment may be challenging.

• Demand is expected to favor enterprise data, Cloud & SaaS, collaboration, conferencing and secure flexible connectivity; SME ICT spending is expected to recover gradually.

• Management may explore strategic restructuring of certain residual business lines or assets at an appropriate time.