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1 | P A G E
SECTOR: CABLES REPORTING DATE: 1ST DECEMBER, 2017
TAMIL NADU TELECOMMUNICATIONS LTD. www.ttlofc.in
Tamil Nadu Telecommunications Ltd. NSE Code - TNTELE TABLE 1 - MARKET DATA (STANDALONE) (AS ON 17TH NOVEMBER, 2017)
Sector - Cables NSE Market Price (βΉ) 2.20 NSE Market Cap. (βΉ Cr.) 10.05
Face Value (βΉ) 10.00 Equity (βΉ Cr.) 45.68
Business Group β N.A. 52 week High/Low (βΉ) 4.20/1.85 Net worth (βΉ Cr.)* -79.02
TTM P/E (TTM) N.A. Traded Volume (Shares) 5.00
Year of Incorporation - 1988 TTM P/BV N.A. Traded Volume (lacs) 0.00
Registered Office - Source - Capitaline, TTM - Trailing Twelve Months, N.A. - Not Applicable, *As on 30th September, 2017
No 16 1st Floor Aziz Mulk, COMPANY BACKGROUND
3rd Street Thousand Lights, Tamilnadu Telecommunication Limited manufactures optical fiber cables (OFC) for
telecommunications. The Company's segments include OFC and Tablet PC. Its products
include Nylon Jacketed Metal-Free Duct Cables, Armoured Cables for Direct Burial, Aerial
Cables/ADSS CABLES and Ribbon Cables. Its loose tube cables are used for outdoor
installation, including aerial, duct and direct-buried application, as well as for indoor
applications with a polyvinyl chloride outer jacket with various fire ratings. The Company's
ribbon cables are offered with approximately 10 fiber colors, such as blue, red, orange, black,
green, yellow, brown, violet, pink, aqua and white, and approximately six loose tube colors,
such as blue, green, orange, green, brown and white. The Company's Nylon Jacketed Metal-
Free Duct Cables are designed to be pulled into duct system of an optical fiber cable
communications network. The Company's OFC plant is located in Maraimalai Nagar, over 40
kilometers from Chennai.
Chennai β 600 006, Tamil Nadu
Company Website:
www.ttlofc.in
Revenue and Profit Performance
The revenue of the Company increased from βΉ0.61 crores to
βΉ1.54 crores from quarter ending Sepβ16 to quarter ending
Sepβ17. The Company made a loss of βΉ3.40 crores in quarter
ending Sepβ17 vis-a-vis making a loss of βΉ4.40 crores in quarter
ending Sepβ16.
Source: Moneycontrol
Performance vis-Γ -vis Market
TABLE 2- Returns
1-m 3-m 6-m 12-m
Tamil Nadu Tele-
communications Ltd. -8.33% -9.09% -22.81% -24.14%
Nifty 0.97% 1.92% 8.96% 25.52%
Source - Capitaline/NSE
1.542.53
0.61
-3.40
-12.60
-4.40
-15
-10
-5
0
5
Sep'17 Mar'17 Sep'16
Quarterly revenue and Profit (βΉ CRORE)
Revenue Profit
0.50
0.75
1.00
1.25
1.50
Dec 16 Feb 17 Apr 17 Jun 17 Aug 17 Oct 17 Dec 17
Tamil Nadu Telecommunications Ltd NIFTY
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SECTOR: CABLES REPORTING DATE: 1ST DECEMBER, 2017
TAMIL NADU TELECOMMUNICATIONS LTD. www.ttlofc.in
TABLE 3 - FINANCIALS
(βΉ Cr.) Sepβ17 Marβ17 Sepβ16 % Change
Sep β17 vs Marβ17 Marβ17 vs Sepβ16
Net Worth -79.02 -72.08 -62.45 N.A. N.A.
Current Assets 13.36 12.61 14.99 5.95% -15.88%
Non-Current Assets 9.40 9.55 9.71 -1.57% -1.65%
Total Assets 22.76 22.16 24.70 2.71% -10.28%
Investments 0.00 0.00 0.00 N.A. N.A.
Finance Cost 2.11 5.65 2.09 -62.65% 170.33%
Long Term Liabilities 2.78 2.54 2.53 9.45% 0.40%
Current Liabilities 99.01 91.70 84.62 7.97% 8.37%
Turnover 1.54 2.51 0.58 -38.65% 332.76%
Profit After Tax -3.40 -12.60 -4.40 N.A. N.A.
EPS (βΉ) -0.74 -0.33 -0.96 N.A. N.A.
Source - Money Control/Stock exchange filing
AUDIT QUALIFICATIONS
Audit Qualifications: The Auditors have raised qualifications in their Report for FY 2016-17 as follows:
Basis for Qualified Opinion: The Company has not recognised the following financial liability/asset at Fair Value in terms of Ind
AS 109 (including comparative figures as of 31st March 2016 and 1st April 2015): i) Amounts due to: Fujikura Limited amounting
to Rs. 1,89,45,590; and ii) Trade Receivables (considered good) amounting to Rs.7,43,11,691.
Qualified Opinion: In our opinion and to the best of our information and according to the explanations given to us, except for
the effects of matter described in the Basis for Qualified Opinion paragraph above, the aforesaid lnd AS financial statements
give the information required by the Act in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India including the lnd AS, of the state of affairs (financial position) of the Company
as at 31st March, 2017, and its Loss (financial performance including other comprehensive income), Cash flows and the changes
in equity for the year ended on that date.
Management has given clarifications on the page no 8, AR 16-17 for the same.
Response Comment
Frequency of Qualifications No -
Have the auditors made any adverse remark in last 3 years? No -
Are the material accounts audited by the Principal Auditors? Yes -
Do the financial statements include material unaudited financial statements? No -
TABLE 4: BOARD PROFILE (AS PER ANNUAL REPORT - FY 2016-17)
Regulatory Norms Company
% of Independent Directors on the Board 50% 0%
% of Promoter Directors on the Board - 100%
Number of Women Directors on the Board At least 1 None*
Classification of Chairman of the Board - Not disclosed
Is the post of Chairman and MD/CEO held by the same person? - No
Average attendance of Directors in the Board meetings (%) - 59.09%
*As per Secretarial Auditor Report (Annual Report 2016-17 page 25): The Company has not complied with Section 149(1) of the
Companies Act, 2013 in terms of having woman director in the Board.
Composition of Board: As per Regulation 17(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015 "Listing Regulations, 2015", the Company should have at least 50% Independent Directors as there is no regular Chairman
of the Board. The Company has 0% of Independent Directors and hence, it does not meet the regulatory requirements.
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SECTOR: CABLES REPORTING DATE: 1ST DECEMBER, 2017
TAMIL NADU TELECOMMUNICATIONS LTD. www.ttlofc.in
Board Diversity: The Company has 6 directors all are male Directors.
TABLE 5 - FINANCIAL RATIOS
Ratios Sepβ17 Marβ17 Sepβ16
% Change
Sep β17 vs
Marβ17
Marβ17 vs
Sepβ16
Turn
ove
r
Rat
ios
Inventory Turnover 0.55 0.79 0.18 -30.57% 336.84%
Debtors Turnover 0.17 0.34 0.06 -48.61% 494.68%
Fixed asset Turnover 0.16 0.26 0.06 -37.67% 340.01%
Current Asset Turnover 0.12 0.20 0.04 -42.09% 414.44%
Ret
urn
Rat
ios Operating Profit Margin -77.92% -230.68% -384.48% N.A. N.A.
Net Profit Margin -220.78% -501.99% -758.62% N.A. N.A.
Return on Assets (ROA) N.A. N.A. N.A. N.A. N.A.
Return on Equity (ROE) N.A. N.A. N.A. N.A. N.A.
Return on Capital Employed (ROCE) N.A. N.A. N.A. N.A. N.A.
Liq
uid
ity
Rat
ios
Current Ratio 0.13 0.14 0.18 -1.87% -22.37%
Quick Ratio 0.11 0.10 0.14 3.62% -26.13%
Cash Ratio 0.02 0.02 0.02 -22.20% 17.55%
Working Capital Turnover ratio N.A. N.A. N.A. N.A. N.A.
Solv
ency
Rat
ios Debt to equity ratio N.A. - N.A. N.A. N.A.
Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.
Trad
ing
Rat
ios Market Cap / Sales 7.12 5.00 23.24 42.22% -78.47%
Market Cap/ Net Worth N.A. N.A. N.A. N.A. N.A.
Market Cap/PAT N.A. N.A. N.A. N.A. N.A.
Market Cap/EBITDA N.A. N.A. N.A. N.A. N.A.
Source - Money Control/Stock exchange filing
TABLE 6 - TRADING VOLUME
Particulars Sepβ17 Marβ17 Sepβ16
% Change
Sep β17 vs
Marβ17
Marβ17 vs
Sepβ16
Trading Volume (shares) (avg. of 1 qtr) 1,490 1,714 2,147 -13.06% -20.16%
Trading Volume (shares) (high in 1 qtr) 7,459 22,282 15,901 -66.52% 40.13%
Trading Volume (shares) (low in 1 qtr) 1 1 20 0.00% -95.00%
Ratio - High/low trading volume 7,459.00 22,282.00 795.05 -66.52% 2702.59%
Ratio - High/average trading volume 5.01 13.00 7.41 -61.49% 75.51%
Source - Capitaline
TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS
Sep-17 Mar-17 Sep-16 Comments
Shar
eho
ldin
g (%
)
Promoter shareholding 63.63 63.63 63.63 β’ No new equity shares issued during the period
from Sepβ 2016 to Sepβ 2017.
β’ There was no change in the promoter
shareholding during the said period.
β’ No major change was observed in the
shareholding pattern during the said period.
β’ The promoters have not pledged any shares.
Public - Institutional shareholding 24.02 24.02 24.02
Public - Others shareholding 12.35 12.35 12.35
Non-Promoter Non-Public
Shareholding 0.00 0.00 0.00
Source - NSE
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SECTOR: CABLES REPORTING DATE: 1ST DECEMBER, 2017
TAMIL NADU TELECOMMUNICATIONS LTD. www.ttlofc.in
MAJOR SHAREHOLDERS (AS ON 30TH SEPTEMBER 2017)
S. No. Promoters Shareholding S. No. Public Shareholders Shareholding
1 Telecommunications Consultant Ltd 49.00% 1 State Bank of India 9.30%
2 Tamilnadu Industrial Deve Corp Ltd 14.63% 2 Andhra Bank 4.53%
3 Punjab National Bank 2.77%
Source - NSE
TABLE 7 (B): OWNERSHIP & MANAGEMENT RISKS
Market Activity of Promoters The promoters have not sold/bought any shares during FY 2016-17.
Preferential issue to promoters No preferential issue of shares was made to the promoters during FY 2016-17.
Preferential issue to others No preferential issue of shares was made to other shareholders during FY 2016-17.
GDRs issued by the Company The Company did not issue any GDRs during FY 2016-17.
Issue of ESOPs/ Issue of shares other
than Preferential allotment
The Company did not issue any shares to the employees under its ESOP Scheme
during FY 2016-17
Source - Annual Report FY 16-17
TABLE 8: PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
Sr. No. Name and Description of main products / services % to Total turnover of the Company
1 Manufacturing of Optical Fiber Cables for Telecommunications 100%
Source - Annual Report FY 16-17
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SECTOR: CABLES REPORTING DATE: 1ST DECEMBER, 2017
TAMIL NADU TELECOMMUNICATIONS LTD. www.ttlofc.in
Glossary
Equity: The equity shares capital of the Company
Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholdersβ funds of the Company
Turnover: The revenue earned from the operations of the Company
EPS: Earning Per Share is net profit earned by the Company per share
πΈππ =Profit After Tax
Number of outstanding shares
P/E ratio: It is the ratio of the Companyβs share price to earnings per share of the Company
π/πΈ πππ‘ππ =Price of each share
Earnings per share
Current Assets: Cash and other assets that are expected to be converted to cash in one year
Fixed Assets: assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land,
buildings, and equipment
Total Assets: Current Assets + Fixed Assets
Investments: An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in
the future.
Finance Cost: The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges
incurred during the year in relation to borrowed money.
Long Term Liabilities: Long-term liabilities are liabilities with a maturity period of over one year.
Current Liabilities: A company's debts or obligations that are due within one year.
Inventory Turnover ratio: Inventory Turnover is a ratio showing how many times a company's inventory is sold and replaced
over a period.
πΌππ£πππ‘πππ¦ ππ’ππππ£ππ πππ‘ππ =Sales Turnover
Inventory
Debtors Turnover: Accounts receivable turnover is an efficiency ratio or activity ratio that measures how many times a business
can turn its accounts receivable into cash during a period
π·πππ‘πππ ππ’ππππ£ππ πππ‘ππ =Sales Turnover
Accounts recievables
Fixed Asset Turnover: The fixed-asset turnover ratio is a financial ratio of net sales to fixed assets
πΉππ₯ππ π΄π π ππ‘ ππ’ππππ£ππ πππ‘ππ =Sales Turnover
Fixed Assets
Current Asset Turnover: The current-asset turnover ratio is a financial ratio of net sales to fixed assets
πΆπ’πππππ‘ π΄π π ππ‘ ππ’ππππ£ππ πππ‘ππ =Sales Turnover
Current Assets
Operating Profit Margin: Operating margin is a measurement of what proportion of a Companyβs revenue is left over after
paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Companyβs operating
income (also known as βoperating profitβ) during a given period by its sales during the same period.
ππππππ‘πππ ππππππ‘ ππππππ =Operating profit
Sales Turnover
Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales
πππ‘ ππππππ‘ ππππππ =Net profit
Sales Turnover
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Return on Assets: ROA tells you what earnings were generated from invested capital (assets)
π ππ‘π’ππ ππ π΄π π ππ‘π =Net profit
Total Assets
Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholdersβ
equity.
π ππ‘π’ππ ππ πΈππ’ππ‘π¦ =Net profit
Net worth
Return on Capital Employed: Return on capital employed (ROCE) is a financial ratio that measures a company's profitability
and the efficiency with which its capital is employed.
π ππ‘π’ππ ππ πΆππππ‘ππ πΈπππππ¦ππ =Net profit
Total Debt + Equity share capital
Current ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts
over the next 12 months. It compares a firm's current assets to its current liabilities.
πΆπ’πππππ‘ πππ‘ππ =Current Assets
Current Liabilities
Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities.
ππ’πππ πππ‘ππ =Current Assets β Inventories
Current Liabilities
Cash ratio: The ratio of the liquid assets of a Company to its current liabilities.
ππ’πππ πππ‘ππ =Current Assets β Inventories β Account Recievables
Current Liabilities
Working Capital Turnover ratio: The working capital turnover ratio is also referred to as net sales to working capital. It indicates
a Company's effectiveness in using its working capital.
πππππππ πΆππππ‘ππ ππ’ππππ£ππ πππ‘ππ =πππππ ππ’ππππ£ππ
Current Assets β Current Liabilities
Debt to Equity ratio: 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.
π·πππ‘ π‘π πΈππ’ππ‘π¦ πππ‘ππ =πβπππ‘ ππππ π·πππ‘ + πΏπππ ππππ π·πππ‘
πππ‘ ππππ‘β
Interest Coverage ratio: The Interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a
Company can pay interest on outstanding debt.
πΌππ‘ππππ π‘ πΆππ£πππππ π ππ‘ππ =πΈππππππ π΅πππππ πΌππ‘ππππ π‘ πππ πππ₯
πΉππππππ πΆππ π‘
Market Cap/Sales ratio: Market Cap/sales ratio, Priceβsales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is
calculated by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per-
share stock price by the per-share revenue.
ππππππ‘ πΆππ/πππππ πππ‘ππ =ππππππ‘ πΆππ
πππππ ππ’ππππ£ππ
Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Companyβs market cap to net worth.
ππππππ‘ πΆππ/πππ‘π€πππ‘β πππ‘ππ =ππππππ‘ πΆππ
πππ‘π€πππ‘β
Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Companyβs market cap to net profit.
ππππππ‘ πΆππ/ππ΄π πππ‘ππ =ππππππ‘ πΆππ
πππ‘ ππππππ‘
Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Companyβs market cap to EBITDA.
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ππππππ‘ πΆππ/πΈπ΅πΌππ·π΄ πππ‘ππ =ππππππ‘ πΆππ
πΈπ΅πΌππ·π΄
Trading Volume (shares) (avg. of 1 year): Average number of shares/day traded in 1 year
Trading volume (shares) (high in 1 year): Highest number of shares/day traded in 1 year
Trading volume (shares) (minimum in 1 year): Lowest number of shares traded on any one day in 1 year
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Sources Company Information
Only publicly available data has been used while making the factsheet. Our data sources include: BSE, NSE, SEBI, Capitaline, Moneycontrol, Businessweek, Reuters, Annual Reports, IPO Documents and Company Website.
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Research Analyst: Sudarshan Shetty