Tata Teleservices (Maharashtra) Sees Pressure On Profits In Q3FY13

Tata Teleservices (Maharashtra), better known among investors as TTML, has come out with its financial performance for Q3FY13, where its performance company has remained muted.

Particulars (Rs/Cr)	Q3FY13	Q3FY12	% Charge
Net Sales	650.9	624.72	4.19
EBITDA	76.08	127.09	-40.14
Net Profit/(Loss)	-197.16	-144.62	-36.33

For Q3FY13, the company’s topline grew by 4.19% on a YoY basis to stand at Rs 650.90 crore as against Rs 624.72 crore for Q3FY12. However, it disappointed on the EBITDA as well as on the bottomline front. Both saw de-growth by 40.14% and 36.33% respectively on a YoY basis for the elapsed quarter.

TTML’s finance cost went down from Rs 138.20 crore as against Rs 141.25 crore for Q3FY12. The depreciation cost went up from Rs 139.36 crore during Q3FY12 to Rs 149.20 crore for Q3FY13.

In the last quarter, TTML had launched a wide array of unlimited plans for postpay and prepay customers, offering data and roaming plans in addition to local and national voice calls. These are expected to start showing results from the next quarter onwards. However, the company has maintained a strong focus on wireless broadband services. Its VAS and data revenues accounted for 37% of total wireless revenues in Q3FY13.

However, we feel that the pressure on the bottomline of this company will persist and there is still time left before it sees some positive development on the profits and margins. Till then, we suggest that investors stay away from the counter.