Tata Teleservices Mah. Ltd. (HUGTEL)

Result analysis
Margins improve…
The EBITDA margin of the company improved by 20 bps QoQ to 21.3%
as EBITDA in Q3FY12 included provisions of | 13.3 crore made by the
company. Keeping the provisions aside, the EBITDA margin fell by 190
bps owing to higher network operating expenditure in this quarter.
The PAT margin improved from a negative 22.9% to a negative 18.9% in
Q4FY12 primarily due to lower interest cost. The interest cost fell from
| 141.5 crore to | 127.7 crore.
Exhibit 2: EBITDA & PAT margin trend
120.0
100.0
80.0
60.0
40.0
20.0
0.0
-20.0
-40.0
-60.0
-11.7
ICICI Securities Ltd | Retail Equity Research Page 2
99.6
-8.9
19.5 22.2 18.9 20.2 22.7 21.1 21.3
Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12
-22.7
-17.0 -13.8
-20.2 -21.1 -22.9 -18.9
Source: Company, ICICIdirect.com Research
-50.9
EBITDA Margin PAT Margin