Tata Communications Ltd
Tata Communications was incorporated on March 19, 1986 as VSNL. In February 2002, the Government of India, as per their disinvestments plan, sold 25% of their holding in the company to the strategic partner. Consequently, the company was taken over under the administrative control of TATA. [1] It is the leading global digital ecosystem enabler. It has a leadership position in emerging markets, and an infrastructure that spans the globe. It delivers managed solutions to multinational companies and service providers. It partners with 300 of the Fortune 500 companies with their state-of the-art solutions, including a wide range of communication, collaboration, cloud, mobility, connected solutions, network and data center services. [2]
- Market Cap ₹ 45,155 Cr.
- Current Price ₹ 1,584
- High / Low ₹ 2,175 / 1,291
- Stock P/E 74.5
- Book Value ₹ 367
- Dividend Yield 1.05 %
- ROCE 6.42 %
- ROE 5.96 %
- Face Value ₹ 10.0
Pros
- Company has been maintaining a healthy dividend payout of 77.4%
Cons
- Stock is trading at 4.32 times its book value
- The company has delivered a poor sales growth of 4.82% over past five years.
- Company has a low return on equity of 7.32% over last 3 years.
- Earnings include an other income of Rs.825 Cr.
* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.
Peer comparison
Sector: Telecomm-Service Industry: Telecommunications - Service Provider
Part of BSE MidCap BSE Dollex 200 BSE 500 Nifty 500 Nifty 200
Quarterly Results
Standalone Figures in Rs. Crores / View Consolidated
Profit & Loss
Standalone Figures in Rs. Crores / View Consolidated
Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
4,376 | 4,319 | 4,790 | 5,068 | 5,252 | 5,389 | 5,750 | 6,225 | 6,587 | 7,236 | 7,992 | 7,278 | |
3,378 | 3,291 | 3,598 | 3,875 | 3,982 | 4,163 | 4,178 | 4,242 | 4,632 | 5,390 | 6,088 | 5,682 | |
Operating Profit | 998 | 1,028 | 1,192 | 1,193 | 1,270 | 1,226 | 1,572 | 1,984 | 1,956 | 1,846 | 1,904 | 1,596 |
OPM % | 23% | 24% | 25% | 24% | 24% | 23% | 27% | 32% | 30% | 26% | 24% | 22% |
545 | 719 | 187 | 807 | 89 | -575 | -166 | 325 | 569 | 221 | 230 | 825 | |
Interest | 60 | 25 | 31 | 31 | 40 | 36 | 55 | 107 | 89 | 90 | 156 | 236 |
Depreciation | 680 | 719 | 743 | 765 | 830 | 891 | 977 | 973 | 916 | 996 | 1,038 | 984 |
Profit before tax | 803 | 1,003 | 605 | 1,205 | 489 | -276 | 374 | 1,229 | 1,520 | 981 | 940 | 1,202 |
Tax % | 32% | 33% | 35% | 43% | 45% | 60% | 44% | 22% | 23% | 32% | 32% | 13% |
542 | 675 | 393 | 690 | 267 | -442 | 209 | 963 | 1,167 | 666 | 639 | 1,051 | |
EPS in Rs | 19.03 | 23.67 | 13.78 | 24.20 | 9.36 | -15.52 | 7.33 | 33.78 | 40.96 | 23.37 | 22.41 | 36.87 |
Dividend Payout % | 24% | 23% | 31% | 25% | 48% | -29% | 55% | 41% | 51% | 90% | 75% | 68% |
Compounded Sales Growth | |
---|---|
10 Years: | 5% |
5 Years: | 5% |
3 Years: | 3% |
TTM: | -9% |
Compounded Profit Growth | |
---|---|
10 Years: | 0% |
5 Years: | 12% |
3 Years: | -19% |
TTM: | -18% |
Stock Price CAGR | |
---|---|
10 Years: | 19% |
5 Years: | 34% |
3 Years: | 12% |
1 Year: | -9% |
Return on Equity | |
---|---|
10 Years: | 6% |
5 Years: | 9% |
3 Years: | 7% |
Last Year: | 6% |
Balance Sheet
Standalone Figures in Rs. Crores / View Consolidated
Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
Equity Capital | 285 | 285 | 285 | 285 | 285 | 285 | 285 | 285 | 285 | 285 | 285 | 285 |
Reserves | 7,601 | 8,067 | 8,611 | 8,970 | 8,518 | 7,914 | 7,936 | 8,782 | 9,518 | 9,576 | 9,605 | 10,166 |
941 | 581 | 684 | 737 | 524 | 451 | 1,012 | 1,032 | 948 | 962 | 3,176 | 3,902 | |
2,702 | 2,800 | 2,942 | 3,153 | 3,575 | 3,964 | 4,257 | 4,100 | 3,970 | 4,442 | 4,717 | 4,529 | |
Total Liabilities | 11,529 | 11,733 | 12,522 | 13,145 | 12,903 | 12,614 | 13,490 | 14,198 | 14,720 | 15,265 | 17,784 | 18,882 |
4,237 | 4,174 | 3,810 | 3,997 | 4,112 | 4,597 | 5,252 | 5,061 | 5,060 | 5,005 | 5,334 | 5,279 | |
CWIP | 310 | 236 | 358 | 496 | 376 | 210 | 149 | 205 | 448 | 701 | 731 | 598 |
Investments | 3,003 | 4,124 | 4,688 | 5,366 | 4,211 | 3,873 | 4,038 | 4,736 | 4,277 | 4,417 | 6,083 | 7,095 |
3,979 | 3,198 | 3,667 | 3,286 | 4,204 | 3,933 | 4,050 | 4,196 | 4,936 | 5,142 | 5,636 | 5,910 | |
Total Assets | 11,529 | 11,733 | 12,522 | 13,145 | 12,903 | 12,614 | 13,490 | 14,198 | 14,720 | 15,265 | 17,784 | 18,882 |
Cash Flows
Standalone Figures in Rs. Crores / View Consolidated
Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
1,204 | 1,461 | 908 | 971 | 1,029 | 1,248 | 1,108 | 1,647 | 2,173 | 2,087 | 2,106 | 1,597 | |
-1,014 | -1,278 | -850 | -865 | -61 | -1,450 | -1,093 | -1,454 | -1,708 | -1,224 | -3,500 | -1,381 | |
2 | -553 | -127 | -90 | -442 | -263 | 1 | -159 | -563 | -710 | 1,410 | -290 | |
Net Cash Flow | 193 | -371 | -69 | 16 | 525 | -466 | 17 | 35 | -99 | 153 | 16 | -74 |
Ratios
Standalone Figures in Rs. Crores / View Consolidated
Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
Debtor Days | 57 | 61 | 64 | 58 | 85 | 88 | 82 | 64 | 61 | 59 | 56 | 60 |
Inventory Days | ||||||||||||
Days Payable | ||||||||||||
Cash Conversion Cycle | 57 | 61 | 64 | 58 | 85 | 88 | 82 | 64 | 61 | 59 | 56 | 60 |
Working Capital Days | -128 | -100 | -62 | -94 | -97 | -112 | -102 | -103 | -20 | -91 | -94 | -59 |
ROCE % | 8% | 10% | 7% | 4% | 8% | 5% | 9% | 13% | 15% | 12% | 11% | 6% |
Documents
Announcements
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Grant Of Stock Options Under 'Tata Communications Limited - Stock Unit Plan 2023'.
10h - Grant of 7.47 lakh RSUs to employees under 2023 Stock Unit Plan, vesting over 1-3 years.
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Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Outcome
10h - Earnings call recording for FY25 Q4 uploaded on Tata Communications website.
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Intimation Under Regulation 30 Of SEBI (LODR) Regulations, 2015 - Dilution Of Stake In Subsidiary Company
16h - Tata Communications dilutes NetFoundry stake to 11.49% via new share issuance to VCs.
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Incorporation Of A Wholly Owned Step - Down Subsidiary Of The Company.
17h - Tata Communications incorporated wholly owned Shanghai subsidiary TC (Shanghai) Network Services with RMB 10 million capital.
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Appointment Of Secretarial Auditor Of The Company.
1d - Appointment of M/s. Parikh & Associates as Secretarial Auditor for FY 2025-26 to FY 2029-30.
Annual reports
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Financial Year 2024
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Financial Year 2023
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Financial Year 2022
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Financial Year 2021
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Financial Year 2020
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Financial Year 2019
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Financial Year 2018
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Financial Year 2017
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Financial Year 2016
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Financial Year 2015
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Financial Year 2014
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Financial Year 2013
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Financial Year 2012
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Financial Year 2012
from nse
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Financial Year 2011
from bse
Concalls
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Jan 2025TranscriptPPT
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Oct 2024TranscriptPPTREC
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Jul 2024TranscriptPPT
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Apr 2024Transcript PPT REC
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Jan 2024Transcript PPT
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Jul 2023Transcript PPT
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Jun 2023TranscriptNotesPPT
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Apr 2023Transcript PPT
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Oct 2021TranscriptPPT
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Aug 2021TranscriptPPT
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Apr 2021TranscriptPPT
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Jan 2021Transcript PPT
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Nov 2020TranscriptPPT
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Aug 2020TranscriptPPT
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Jun 2020Transcript PPT
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Nov 2019TranscriptPPT
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Aug 2019TranscriptPPT
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Dec 2018TranscriptPPT
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Nov 2018TranscriptPPT
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Aug 2018TranscriptPPT
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May 2018Transcript PPT
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Feb 2018TranscriptPPT
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Nov 2017TranscriptPPT
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Aug 2017TranscriptPPT
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May 2017TranscriptNotesPPT
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May 2016TranscriptNotesPPT
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May 2016TranscriptNotesPPT
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Apr 2016TranscriptNotesPPT
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Mar 2016TranscriptNotesPPT
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Feb 2016TranscriptNotesPPT
Overview & History[1]
The company was incorporated in 1986, as VSNL (a wholly owned government entity). TATA group acquired 50% stake in the company in 2002 and changed its name to TCL in 2008. In FY21, Government of India divested its entire shareholding of 26.12%, of which 16.12% was sold to the general public, while the balance 10% was sold to PFL (a WOS of TSPL) through an off-market inter se transfer of shares between the promoters. As of FY23, TS holds a 58.86% stake. TCL owns and operates the world’s only wholly owned fibre optic sub-sea network ring around the globe and is the world’s largest wholesale voice provider. It offers international and national voice and data transmission services, selling and leasing of bandwidth
on undersea cable systems, Internet dial up, and broadband services and other value-added services comprising mainly mobile
global roaming and signalling services, transponder lease, telex and telegraph, and television up linking.
TCL’s businesses are primarily divided into the following segments: DMS, Voice Services (VS), transformation services, payment
solutions, and real estate.