Research Insight: 2: A Research Report of Telecom Sector ON Tata Communications Limited

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RESEARCH INSIGHT: 2

A RESEARCH REPORT OF TELECOM SECTOR

ON

TATA COMMUNICATIONS LIMITED

SUBMITTED TO: SUBMITTED BY:

TANU SINGH

FINLATICS.COM
TATA COMMUNICATIONS LIMITED

OVERVIEW

Tata Communications Limited is one of the Indian telecommunications company. It gives network

platforms and software-defined network stages, for example, Ethernet, SD-WAN, content conveyance

organizations (CDNs), the web, Multiprotocol Label Switching (MPLS), and private lines. It has in

excess of 400 purposes of quality (PoPs) with server farm and co-area in 44 sites.

It is the part of the Tata Group. The company headquarters in Pune and it is listed on both Bombay stock

exchange and National stock exchange of India. The business was established as Videsh Sanchar Nigam

Limited (VSNL) in 1986. VSNL is credited to have carried the web into the country.

In, after the Government of India Disinvestment of Public Sector Units in India The worldwide arm of

VSNL, VSNL International, was dispatched in 2004. VSNL was totally obtained by the Tata Group and

renamed as Tata Communications on 13 February 2008. In 2012, the organization finished its

organization across Egypt connecting Europe to India, making a subsea fiber network that

circumnavigates the world.

Tata Communications furnishes its clients with a full set-up of Access Services, that spread 105 nations.

Clients can get complementary calls from both fixed and cell phones in excess of 90 nations with ITFS.

They can give a solitary number that is open from in excess of 45 nations around the world, with UIFN. It

additionally empowers clients to buy enormous volumes of numbers through its Bulk Local Number

Service offering.

In June 2016, Tata Communications dispatched its Wi-Fi+, cloud correspondences solutions for its

portable organization administrator customers. Operators can furnish their clients with boundless calling,

informing and information over high-caliber, secure Wi-Fi. It saddles Tata Communications' Cloud RTC

skill and iPass' in excess of 21 million Wi-Fi hotspots in more than 100 countries.
In January 2017, Tata Communications declared its organization with Bharat Sanchar Nigam Limited

(BSNL) to give 44 million Wi-Fi hotspots in more than 100 countries, including rail frameworks and

global flights.

Financials of Tata Communications Limited

 52 weeks price as mentioned in BSE (SENSEX)

1000
900
800
700
600
500
400
300
200
100
0

 sales Turnover (in million)

70000

60000

50000

40000
SALES
30000 YEAR

20000

10000

0
1 2 3 4 5 6 7
 PAT and % of sales

8000
6000
4000
year
2000
PAT
0 % of sales
1 2 3 4
-2000
-4000
-6000
SHAREHOLDING PATTERN OF THE COMPANY

Chart Title
Promoters ForeignInstitutions NBanksMutualFunds
CentralGovt Others GeneralPublic
FinancialInstitutions
0% 0% 1% 5%

17%

76%
MANAGEMENT OF THE COMPANY

Madhusudhan Mysore is the Chief Executive Officer of Tata Communications


Transformation Services Ltd. (TCTS), a wholly owned subsidiary of Tata Communications
Limited. Madhusudhan’s professional career spans over 29 years in Telecom and IT with challenging roles
across various multi-national organisations like AT&T, Lucent and BPL.
 

Pratibha K Advani is Chief Financial Officer at Tata Communications. She is responsible for the

strategic financial management of the company, including investor relations & corporate affairs. Pratibha has

over two decades of varied experience ranging from financial strategy, project financing, M&A, risk management, and legal

and secretarial.

Srinivasan CR is the Chief Digital Officer for Tata Communications . Srini’s experience spans over 25
years in enabling business technology solutions. He has worked in large enterprises, co-founded a start-up, custom-
created new platform based solutions and leveraged technology to help build sharper customer experiences and
differentiated business models.
SWOT ANALYSIS

Strength Weaknesses
Increasing net cash flow and cash from operating Book Value Per Share surged for last 2
years
activities
Growth in net profit with good profit margin Weak financials

Opportunities Threats
Highest recovery from 52 week low Stock with high PE
Loss to profit QoQ

COMPETITIVE ANALYSIS

Airtel Reliance Idea

communications
Emerging local as well Foreign players High 3G service charges

as foreign players with may negative impact on

attractive business demand.

environment.
Due to faster growth of Provide services with ARP failing due to price

industry always attract more opportunities war

to foreign customers
Latest technology Excellent growth of Hugh capacity

services in rural sector requirements hamper

the fast growth in

mobile sector.

CONCLUSION

Tata communications Limited businesses are prioritizing communications and digital infrastructure as a

critical part of their operations. The ability to manage those communications and to ensure reliability

and security requires a level of global, and in particular, emerging market experience.
From the point of view of telecommunications suppliers the challenges are they need to invest for the

long term, building a robust global network that can support expansion as and when it is needed. They

need to encourage local innovation for global benefit.

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