Downloaded 10 times
Economics (tata communication)
- 1. Presented by: Zeel Shah,Dipesh Sanspara, Yogesh Jage, Zain Shaikh and Zubin Daver
- 2. Head office: Mumbai,India Industry Categories: Network services, Managed services provided including tele-presence, hosting, data centres, security, enterprise voice, publicly available tele-presence. Key Partners: Partners:Telefonica, Cisco, Dimension Data, Glowpoint, Starwood Hotels, Rendezvous Hotel Group, Neotel, and Taj Hotels. History ofTata Communications
- 3.
- 4. Name Designation Srinath NarasimhanManaging Director & CEO Vinod Kumar President and COO Michel Guyot President GlobalVoice Solutions David Wirt SVP, Global Managed Services,Tata Communications Peter Quinlan Vice PresidentTelepresence Services Charlotte Sturman Manager,Telepresence Marketing
- 5. What doesTata Communication actuallyprovide to end consumers and other companies?
- 7. What is newthat is happening inTata Communications?
- 8. The accolades andrecognition that Tata Communications has got? What does the future hold forTata Communications?
- 10. 74.99% 10.63% 4.53% 3.41% 1.48%0.90%0.13% 00 0 Promoters FinancialInstitutions ForeignInstitutions GeneralPublic NBanksMutualFunds OtherCompanies ForeignNRI
- 11. 2009 2010 20112012 2013 Net Sales 3,283.30 3,749.43 3,218.04 3,611.77 4,091.77 0.00 500.00 1,000.00 1,500.00 2,000.00 2,500.00 3,000.00 3,500.00 4,000.00 4,500.00 Net Sales In Rs. Cr.
- 12.
- 13.
- 14.
- 16.
- 18.
- 19. How do wecalculate the Debt equity ratio : Debt equity ratio =Total Debt/Shareholders’ Funds
- 20. How do wecalculate the Current Ratio : Current Ratio = Current Assets/ Current Liabilities
- 21. How do wecalculate the ROCE : ROCE = EBIT/Capital Employed
- 22. How do wecalculate the EPS: EPS = Profit/ Weighted Average of Common Shares
- 23. How do wecalculate the Dividend / share : Dividend / share = Dividend/ No. of Shares
- 28. Link or Nameof articles referenced http://www.moneycontrol.com/financials/tatacommunications/results/quarterly- results/TC17 http://money.livemint.com/IID64/F100483/Financial/Ratios/Company.aspx http://in.reuters.com/finance/stocks/TATA.BO/key-developments?pn=2 http://in.reuters.com/finance/stocks/TATA.BO/key-developments http://www.linkedin.com/title/asst-manager/at-tata-communications-ltd http://www.google.com/search?q=current+development+in+TATA+communicati ons&btnG=&client=ms-opera-mini-android&channel=new&gws_rd=cr http://www.jagranjosh.com/search/tata-communications_current-affairs
- 29. Thanks a tonfor being a wonderful audience!
Editor's Notes
- #3 Tata Communications is one of India’s largest tele-communication companies. The total net-worth of the Tata Group is 100.9 billion US DollarsIt was founded as VSNL (VideshSanchaar Nigam Limited) in 1986. Tata Communications Limited is an Indian global telecommunications company located in Mumbai. It owns a submarine cable network, a Tier-1 IP network, and also rents data center and colocation space. It operates India's largest data center in Pune. Tata Communications acquired Teleglobe, a company based in Canada, and DishnetDSL, an Indian company, and is the largest shareholder in South African operator Neotel.Tata Communications currently has a cable network of more than 235,000 kilometres.
- #4 These are the terms that the company abide by and what is a basic gist of what the company has to convey to two of the most important stake holders of the company, the employees and the customers.Company Mission:Tata Communications is a leading global provider of IP, telepresence and wholesale communications services. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multi-national enterprises, service providers and Indian consumers.Vision:Deliver a new world of communications to advance the reach and leadership of our customers.Commitment: Invest in building long-lasting relationships with customers and partners and lead the industry in responsiveness and flexibility.Strategy: Build leading-edge IP-leveraged solutions advanced by our unmatched global infrastructure and leadership in emerging markets.The subsidiaries of Tata Communications are:1) Tata Communications Transformation Services (TCTS)2) Tata Communications Internet Services (TCIS)3) Tata Communications Payment Solutions Limited (TCPSL)
- #5 This is the list of all the important people who work night and day behind the scenes. Without them the company would not be able to function properly. All of them report to the new head of the Tata Group – Cyrus Mistry.
- #6 What does Tata Communication actually provide to end consumers and other companies?The precise word in a nutshell is ‘Tele-communication services’ but the elaborate a little, they provide, Transmission, Ethernet Services, Mobile Data, Messaging, Calling, IP VPN, Dedicated Global Ethernet, IP Services etc.
- #7 This is a network map of Tata communications representing the 80 cities in which Tata Communications either provide their services or have their regional offices!
- #8 Current Affairs:Top ten news items and press releases!September 12, 2013: Tata Communications and PCCW Global bring Voice over IPX and HD voice to mobile operators worldwideJuly 26, 2013: Q1 FY2014 Consolidated gross revenues up 10% YoY; EBITDA grows 22%; Start-up gross revenues increase 4%; EBITDA up by 70% YoYJuly 18, 2013: World's first cross-border Silicon Valley / Bangalore hackathon unveils 'The Future of Collaboration'July 9, 2013: Tata Communications launches Jamvee™ An easy-to-use, on-demand business video service for enterprises and professionals that brings together all video platforms, devices and operating systemsJuly 2, 2013: Tata Communications launches world's first cloud-based broadcast-quality video transcoding and delivery serviceJune 27, 2013: Tata Communications Payment Solutions Limited (TCPSL) launches Indicash- India's first ever white label ATM networkJune 19, 2013: World's first cross-border Silicon Valley / Bangalore hackathon focuses on 'The Future of Collaboration'June 7, 2013: Tata Communications Limited confirms its delisting from the New York Stock Exchange and termination of ADR programJune 7, 2013: Tata Communications announces world's first LTE™ roaming peering with Telecom Italia SparkleJune 4, 2013: Shanghai joins Tata Communications' global Telepresence network via partnership with China Mobile and JW MarriottMay 30, 2013: Tata Communications completes successful unified communications deployment for KPIT Cummins
- #9 Accolades:Enterprise Data Service Provider of the Year (fifth year in a row) Hosted Contact Centre Service Provider of the Year (third year in a row)Third-Party Managed Service Provider of the Year (second year in a row) Managed Video Conferencing Service Provider of the YearFuture prospects:- The growth of emerging new market economies, with an emphasis on India, Asia, the Middle East and Africa;- The growth of IP and cloud-based communication and IT solutions; and- The shift towards managed services, which allows our client businesses to focus on their core competencies.
- #11 Shareholding pattern of tata communications: as you can see in the pie chart, 74.99% is held by promoters, followed by 10.63% is held by financial institutions.,and remaining 13 odd % is held by rest of the others.
- #12 Net sales: this is the chart which shows the total net sales of the company. As you see the lowest net sales is in the year 2011, whereas the higher net sales is in the year 2013. Therefore,higher the net sales will consider more profit for the company and vice-versa.
- #13 This is a year-wise chart comparing the total income that the company has made over the last few years. The income has ranged between 3,456 crores and 4,268 crores. As you can see the hightest total income is in the year 2013 with 4268.39 and the lowest total income is in the year 2009 with 3456.55.
- #14 This is a year-wise chart comparing the total expenses that the company has made over the last few years. The income has ranged between 2,467 crores and 3,103 crores. The highest total expenses is in the year 2013(3103.80) as compared to 2010(2898.15) and the lowest total expenses is in the year 2009(2637.75).
- #15 This is the chart that shows the earning before earning before depreciation, interest and tax. How do you find it, EBDIT is the total expenses deducted from the total income.This clearly shows that the company was profitable year after year. We can see that earnings had a significant 60% growth in 2010. Such growth generally comes from potential one time payouts such as sale of real estate or infra structure. The next two years saw negative growth which was most probably due to the overall recessionary environment and normalization of the sporadic growth seen in 2010.
- #16 This is a pie comparison of the Total Expenses for various reasons and Income from various sources in the year of 2012. This chart shows the breakup of total income and expenses for 2012. The breakup shown in the total income is 95% of net sales and rest 5% is other incomes. Whereas the breakup in total expenses is 60% of thermanf. Exp,20% is of employee cost, and rest 20% as you can see.
- #17 Reported profit is the profit calculated afterdeducting Depreciation, Interest and Tax from the Earning Before Depreciation Interest and Tax. Reported profit is nothing but profit after tax. As u can see in the year 2011 & 2012 the profit is relatively high as compared to rest of the years that is 2009 2010 & 2013. The profit in the current is low due to there is high income and expenses.
- #19 This slide shows the revenue got from the three major segments of Tata Communications. The three major sectors are Neotel, Data Services and Voice over IP.48% contributed by Voice, followed by 40% Data and 12% Neotel.
- #20 The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.Debt equity ratio = Total Debt/Shareholders’ Funds Ratio 2:1When the debt equity ratio is high it indicates that the company has aggressively used debts in order to finance its growth. Low debts, better for the company because it will also mean that the amount of interest payable will be low.
- #21 Current ratio is the ratio of current assets of a business to its current liabilities. Current Ratio = Current Assets/ Current LiabilitiesIdeal Ratio: Current ratio below 1 shows critical liquidity problems because it means that total current liabilities exceed total current assets. The current Ratio should be 2:1.
- #22 ROCE is used to prove the value the business gains from its assets and liabilities. It basically can be used to show how much a business is gaining for its assets, or how much it is losing for its liabilities.ROCE = EBIT/Capital Employed *100The higher the percentage of return on the capital employed, the better it is for the company.
- #23 EPS are the earnings returned on the initial investment amount. Earning per Share decides how much of a company's profit is allotted to the Company's outstanding stocks. Outstanding stock is the shares held by the investors. Re-purchased shares is not included in the outstanding stock.
- #24 Dividend / share = Dividend/ No. of SharesDividend is a payment made by a company to its shareholders usually as a distribution of profits. When a company makes profit it can either re-invest it in the business or it distribute it to its shareholders by way of dividends. The dividend pay-out ratio is the amount of dividends paid to shareholders relative to the amount of total net profit of a company.A reduction in dividends paid is not appreciated by investors and usually the stock price moves down as this could point towards difficult times ahead for the company. On the other hand a stable dividend pay-out ratio indicates a solid dividend policy by the company's management.
- #26 The share price of Tata Communications fell during the economic meltdown. Stock prices in the year 2008-2009 were on the higher compared to all other years! However, after 2009, the stock prices declined. In the year 2010, the stock prices recovered only to a certain extent. One of the major reason for the decline in their share price was due to the take over of companies like Land Rover, Jaguar and Chorus between 2008-2010, for an estimate of 6 billion US Dollars! After 2010,the share price showed some amount of stability but it was really low compared to the performance in 2008-09. 2011 was a bearish year overall. International economies were having recessionary environments. The biggest impact coming from the downgrade of the United States Treasury Securities. The BSE sensex as whole went down 27% during that year. In that regard Tata Communications stock price moved in conjunction with the broader market.
- #27 This has been the condition of the stock in the stock market over the last six months. As you can see the stock fell considerably after June 2013. However due to bad market conditions, most of the stocks fell, but Tata Communications have somehow managed to recover to a certain extent. As the chart shows, August was a bad month for the company, after which it managed to recover and get back to average of what it was clocking in the last year.
- #28 This is a chart that compares the performance of the stock of Tata Communications to that of the Sensex. As you can see there was a vast difference between the prices. The Blue line shows Tata Communications and the orange line represents the Sensex.