Tata Teleservices may have slipped further on Tuesday, but for the fact that it has a low floating stock.
In fact, despite the dismal results, the scrip of the basic-telecom service provider lost just 1.01% to Rs 4.90 by 11:42 IST. Its intra-day high was Rs 5. A total of 11,851 Tata Teleservices shares were traded on BSE by then.
Analysts also don't see a major upside or a downside in the stock from the current levels. They feel the stock should continue to hover around the Rs 5-mark.
For the fourth quarter ended 31 March 2003, the company extended losses to Rs 124.70 crore (Rs 1.24 billion). Revenues jumped 45.4% to Rs 100.60 crore (Rs 1 billion).
For the full year ended 31 March 2003, the company registered a net loss of Rs 205 crore (Rs 2.05 billion) compared with a net loss of Rs 148.5 crore (Rs 1.48 billion). The company recorded a 42% jump in revenues to Rs 359.6 crore (Rs 3.59 billion). During the year ended 31 March 2003, the company achieved a customer line growth of 46% to reach 2,32,000 lines.
Going forward, the company expects margins to be pressured following the launch of limited mobility services (due to high capital expenditure and promotional expenses) in the next three months. However, this service should be the subject of more opportunities in the long run.
There have been reports in the recent past that the company is looking at investing Rs 3,500 crore (Rs 35 billion) in Maharashtra, in its basic and limited mobility projects.
On 6 December 2002, TTL completed the acquisition of 50.83% stake in Hughes Tele.com (India) - including that from the erstwhile promoters and a 20% stake through an open offer. Tata Teleservices made an open offer to Hughes Tele's shareholders to acquire 28.1 crore shares at Rs 7.11 each in August 2002. The offer closed on 24 September 2002.
Tata Teleservices, a broadband network based telecommunications operator, currently provides basic telephony services through lines connected to business and residential customers in 10 cities of Maharashtra and Goa. In addition to conventional voice telephony services, it provides a full suite of broadband services focused on sophisticated communication-intensive customers. It is also the first service provider to provide network based audio and Web conferencing services in India
As on 31 March 2003, public and institutions held 5.52% and 22.26% in Tata Teleserices' equity, respectively.
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