Tata Teleservices Ltd: Result Update

In September, 2022 quarter on Q - o - Q basis:

Revenue: ₹2.79b (up 2.8% from 2Q 2022).

Net loss: ₹2.93b (loss narrowed by 6.7% from 2Q 2022).

₹1.50 loss per share (improved from ₹1.60 loss in 2Q 2022).

Financial Results (Half Year Ended FY2023) - Y - o - Y Comparison:

The company has reported total income of Rs.548.12 crores during the 6 Months period ended September 30, 2022 as compared to Rs.541.51 crores during the 6 Months period ended September 30, 2021.

The company has posted net profit / (loss) of Rs.-587.86 crores for the 6 Months period ended September 30, 2022 as against net profit / (loss) of Rs.-632.08 crores for the 6 Months period ended September 30, 2021.

Advantages: Continuous liquidity support from parents, a focus on the SME segment, media reports of potential collaboration with other Tata Group companies, and transformation into a SaaS+connectivity solution provider are just a few of the positives that could be working in Tata Teleservices Ltd's favour. 

Given the rising digital adoption trend, the market opportunity in the SME space is vast. In addition, the company stated in its annual report that it is looking into restructuring options.

Tata Teleservices has seen its revenues rise owing to the adoption of cloud-based solutions by companies. It is now exploring growth in the 5G domain, the report said.

As the world moves towards a digital industry, the company provides solutions that are essential in improving efficiency. For example, it helps companies move to the cloud and secure their networks. It also offers voice solutions to companies of all sizes. 

Besides, there's a speculation in the market that the company could turn out to be a winner replicating the success and business model of Tata Elxsi or Tata Communication, other multibaggers from Tata Group stable.

Moreover, giving a stake to the government by converting debt is always a better option for both the government and the companies.

Accumulate, the shares of Tata Teleservices Ltd (Rs.97.60) for long term perspective, with target prices of Rs.141 - Rs.191. 

Company Profile: A Tata Group company, Tata Teleservices (Maharashtra) Limited (TTML) is a leading player in the connectivity and communication solutions market serving enterprise customers. It offers services ranging from connectivity, collaboration, cloud, security, IoT to marketing solutions as comprehensive portfolio of ICT services for businesses in India under the brand name Tata Tele Business Services (TTBS). 

TTBS provides integrated telecom solutions to enterprises that go beyond the purview of connectivity into offering one-stop-shop business solutions and managed services.