This Tata Group firm has piled up over ₹1,200 crore in losses in just a year

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tata Group stocks have been in focus in the earnings season. Most of the Tata Group stocks have remained under the radar of investors amid anticipations over Q4 results. One particular stock has caught the attention of market experts as it has seen a surge in share price recently despite accumulating losses in the last year.

Tata Teleservices Maharashtra Ltd shares have gained more than 13% in the last five sessions since April 19, though the company further plunged into losses in Q4FY24.

In its March quarter results released on April 25, the teleservices firm’s net losses swelled to ₹309.34 crore in Q4FY24. The consolidated net losses of the Tata Group firm expanded in the March quarter compared to a loss of ₹307.69 crore in the December quarter and ₹277.07 crore in the same period last year.

Despite these challenges, the company saw a 9.2% increase in its topline at ₹323.29 crore for the quarter, compared to ₹296.03 crore in the quarter ended December 2023. Year-on-year, the revenue surged by around 15.4%, compared to ₹280.13 crore in the quarter ended March 2023.

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However, Tata Teleservices Maharashtra Ltd saw a decline in other income, which dropped by around 41%, decreasing to ₹1.61 crore from ₹2.73 crore in the previous quarter.

Total expenditure, inclusive of finance cost, reached ₹636 crore, marginally higher than ₹609 crore in the previous quarter. Of this, the finance cost amounted to ₹414.08 crore, compared to ₹410.73 crore in the previous quarter.

For the fiscal year 2023-24, TTML’s net losses amounted to ₹1,228.44 crore in the year ended March 2024, compared to a net loss of ₹1,144.72 crore in the previous year ended March 2023, despite a 7.7% increase in revenue, which reached ₹1,192 crore.

In the regulatory filing to announce its financial results, Tata Teleservices Maharashtra Ltd said, “The accumulated losses of the company as of March 31, 2024, have exceeded its paid-up capital and reserves. The company has incurred a net loss for the quarter and year ended March 31, 2024, and the company’s current liabilities exceeded its current assets as of that date.”

Despite accumulating losses of up to ₹1,200 crore in the last year, the telecommunication services provider has seen a surge in its stock price. In the last year, the stock has gained 36.65% and a significant 588% in the last three years.

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The stock has gained in three of the five sessions since April 19, rising 13% in value. The recent rise in the share price of Tata Teleservices could be attributed to anticipation ahead of the Q4 results.

Earlier this year, the company announced an upgrade in its Smartflo UCaaS (Unified Communication as a Service) voice solution by integrating support for the Operator Connect platform within Microsoft Teams.

Tata Teleservices (Maharashtra) is a leading connectivity and communication solutions provider in India. The company offers connectivity, collaboration, Cloud, SaaS, security and marketing solutions, primarily for small and medium enterprises.

Shares of Tata Teleservices Maharashtra closed at ₹83.55 apiece, down 1.97%, on BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow