WELCOME TO MYPRESENTATION

Financial Performance Analysis of Teletalk Bangladesh Limited

A B M Fahad ZituID: UG01-20-09-046

Company Overview

Ratio Analysis

Findings

Comparison

SWOT Analysis

Recommendation

Overview of Teletalk Bangladesh Limited

• TBL is a public limited company in Bangladesh

• It was established on 26 December, 2004• Head Office- House No. 41, Road No. 27,

Banani, Dhaka, Bangladesh• Managing Director-Md. Mujibur Rahman• 100% state owned mobile operator• Authorized Capital- Tk. 20,000,000,000 • Company has decided to go for IPO of

TK.600 crore in the capital market• Subscriber near 2 million

Ratio AnalysisYear 2007-08 2008-09 2009-10 2010-11 2011-12

Current Ratio 0.56 0.49 0.51 0.42 0.49

Quick Ratio 0.54 0.48 0.49 0.48 0.48

Debt to Equity 0.86 1.38 1.57 1.89 6.26

Debt to LIAB 0.21 0.22 0.10 0.23 4.45

ROA (%) -0.27 -1.92 -0.06 0.02 -0.024

ROE (%) -0.45 -0.36 -0.13 0.05 -0.08Total Assetsturnover % 0.25 0.89 0.53 0.56 0.49

Net Profit

Margin (%) -1.07 -0.58 -0.13 0.04 -0.05Revenue Growth

18% 25% 21% 30% 19%

EPS (252.62) (171) (44.87) 17.13 (27.19)

Findings Current and Acid test ratios are less than 1, could be problematic to

pay short term liabilities. Debt to Equity and Debt to liability ratios higher in 2011-12 because

of TBL took huge loan from Government for 3G project. ROA and ROE ratios are negative for consecutively losses held. The

Company only did well at 2010-11.Total Asset Turnover measures a firm's efficiency at using its assets

in generating sales. Here the trend is comparatively steady.Profit Margin ratios consecutively negative. Teletalk only made profit at

2010-11 for 1 taka investment they made a profit of 0.04 taka.TBL’s Revenue Growing rapidly in year by year. In 2011-12 revenue

growing almost 20% but its less then previous year. Here trend is positive.

EPS ratios are negative in 2007 to 2009 until 2010-11, only this financial year TBL earn profit otherwise facing losses.

ComparisonRatios GP Blink Robi TeletalkCurrent Ratio 0.55 0.43 0.33 0.49

Quick Ratio 0.40 0.37 0.38 0.49

Debt to Equity Ratio 0.25 0.28 0.32 2.39

ROA 0.12 0.07 0.05 -0.45

ROE 0.33 0.28 0.18 -0.19

Profit Margin Ratio 0.17 -0.02 -0.002 -0.358

Revenue Growth 19% 21% 20% 23%

EPS 11 - - -85

SWOT AnalysisStrengths• Low cost provider

regarding its competitor

• Subscriber inclination to Teletalk as a government owned organization

• Moreover its contribution to our economy can be notable

• 3G Technology

Weakness• High connection

charge• Lower promotional

activities• Weak management 

system• Poor marketing• Recent time high call

rates• 3G expansion in

slower way

SWOT AnalysisOpportunities• Teletalk can use the

image of local and government owned organization

• Introduction of new technology and services.

• Expand 3G service in the rural area

• Teletalk can use the experience of BTTB

Threats• Strong competition

with another 5 mobile operators

• The invention of technology which is new modern and consumer oriented

• Another invisible threat is land phone operator

Recommendation• Need to increase Current Assets• Try to keep Gross Profit Margin Stable• Increasing Net Profit Margin by holding

market share• Collect Money through IPO early for

network up gradation• Develop TBL’s website• Require of rapid Revenue Growth• Accelerated gain of Earnings per Share• Assign Specialist person for co-ordination

Conclusion Teletalk has achieved great success during last

Four years in the Telecom industry including booming launch of 3G. Some Characteristics of Teletalk-

• Low Sales • High Sales Growth• Very Low Penetration • Moderate Technical Change• Many Segments• Large Competition and • Low Profit  Finally TBL in introduction stage of lifecycle.

THANK YOU