ICRA has reaffirmed LA rating assigned to the Rs 1,012 crore bank limits of Tata Teleservices (Maharashtra) (TTML). The outlook on the long-term rating is stable.
The rating factors in the company’s strong operational linkage with Tata Teleservices, the economies of scale and cost synergies arising out of synchronization of GSM services with its existing CDMA operations and the company’s relatively lower capital expenditure requirements as it created a 3G-compatible network while launching its GSM services in 2009.
TTML posted a net profit of Rs 49.90 crore for the year ended March 31, 2011 as compared to a net loss of Rs 298.01 crore for the year ended March 31, 2010. The net sales increased by 8.68% to Rs 2248.74 crore for the year ended March 31, 2011 from Rs 2069.10 crore for the year ended March 31, 2010.
| Company Name | CMP |
|---|---|
| Bharti Airtel | 1870.00 |
| Vodafone Idea | 9.25 |
| Indus Towers | 437.85 |
| Tata Communications | 1508.25 |
| Bharti Hexacom Ltd. | 1523.95 |
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