Tata Communications Ltd. share price target

Revenue decreased by 3.31% to Rs. 4360.05 Cr in Q3FY17 when compared to the previous quarter

ICICI Securities Ltd | Retail Equity Research On a like-to-like basis (including the Neotel & data centre), the topline came in came in at | 4872.4 crore vs. our estimate of | 4836.1 crore, aided by higher-than-expected revenues from Neotel. Voice revenues continued to remain subdued at | 1652.4 crore, down 16.7% YoY vs. our expectation of | 1710.3 crore. Overall data revenues came in at | 2766.4 crore (our estimate: | 2723 crore), down 5.1% QoQ, impacted by subdued performance in the payment...

Deleveraging Drive To Continue

ICICI Securities Ltd | Retail Equity Research The company reported continuing operation revenues of | 450.9 crore. However, on a like-to-like basis (including the Neotel & Data Centre), the topline came in at | 5091.1 (down 1.2% YoY) vs. our expectation of | 5156.6 crore. The slight miss on the topline largely emanated from revenues from the data business, which were at | 2915.7 crore, up 12.7% YoY vs. our expectation of | 3014.9 crore. Data revenues came in at | 1773.8 crore (down 14.3% YoY), albeit...

Data business, the major growth driver of telecom industry, is growing at rapid pace both in domestic and international market as modern life is increasingly depending on internet and...

Tata Communications (TCL) continues to enjoy investor interest visible in the ~40% run up in the stock in the last three months. The stock was weighed down by several uncertainties related to land monetisation, Neotel deal and the highly leveraged situation of TCL's balance sheet. In the recent past, the company has battled these issues. Also, the combined debt reduction post consummation of Neotel & data centre deal is expected at ~| 5000-5500 crore, enabling it to move towards its stated objective of debt reduction. However, we will factor in the same in...

Q1FY17 revenues came in at | 5031.7 crore, down 3.4% YoY and 2.2% QoQ, lower than our expectation of a topline of | 5146.2 crore. The topline miss came from the miss in the voice business, which came in at | 1789 crore, down 12.9% YoY as realisations declined sharply to | 1.6/minutes (down 14.5% YoY). Data continued to grow at a robust pace at | 2841.6 crore, up 14.4% YoY. Neotel revenues came in higher at | 401 crore vs. estimated | 348.5 crore • EBITDA came in at | 862.7 crore, up 13.3% YoY vs. expectation of | 809.2 crore. EBITDA margins came in at 17.1%, up 252 bps YoY and higher than our expectation of 15.7%. Margins came in higher due to lower network, employee and administrative expenses • PAT came in at | 41.8 crore (vs. expectation of | 67.4 crore) as there was an exceptional item with respect to impairment of goodwill of Neotel amounting to | 92 crore, which adversely affected the PAT despite superior operating profits

Tata Communications Limited - TATACOMM has entered into an agreement with Liquid Telecom, owned by Econet Wireless Global, to sell its stake in the African subsidiary Neotel at a consideration of ~ZAR 6.55 billion(~| 2900 crore). Liquid Telecom is partnering with Royal Bafokeng Holdings (RBH), a South African empowerment investment group, which has committed to take a 30% equity stake in Neotel. The deal value at ~ZAR 6.55 billion, though lower than the previous deal consideration.ICICI Securities Limited maintain BUY recommendation on Tata Communications with a target price of | 543, which implies FY18 EV/EBITDA of 6.6x.

Trendlyne has 11 reports on TATACOMM updated in the last year from 2 brokers with an average target of Rs 534. Brokers have a rating for TATACOMM with 3 price upgrades and 2 price downgrades in past 6 months.

Consolidated revenues and EBITDA were in line, despite sharp fall in Neotel margins. Operating performance of the core-business improved significantly revenue/EBITDA growth at 10%/20% were ahead of estimates. EBITDA margins at 15.5% were the...

ICICI Securities Ltd | Retail Equity Research Revenues from the voice business were at | 1949.1 crore, down 5.0% YoY as total minutes continued to decline, down 9.4% YoY to...