Shares of Tata Communications slipped 5% in the afternoon session today after the firm reported its Q2 earnings. Tata Communications reported a net profit of Rs 227.27 crore in the September 2024 quarter against Rs 221.26 crore in the corresponding quarter of the previous fiscal. On a quarter on quarter basis, profit slipped 32% from Rs 332.93 crore in the June 2024 quarter.
Revenue climbed to Rs 5767.35 crore in Q2 against Rs 4872.50 crore in the corresponding quarter of the previous fiscal.
However, Tata Communications stock slipped 5% to Rs 1822.20 on BSE. Market cap of the Tata Group firm fell to Rs 52,318 crore. Total 0.28 lakh shares of the firm changed hands amounting to a turnover of Rs 5.16 crore on BSE.
Consolidated EBITDA rose 10% YoY to Rs 1,117 crore in Q2 against Rs 1,015 crore in the September 2023 quarter.
AS Lakshminarayanan, MD and CEO, Tata Communications, said: “We are pleased to report a strong year-on-year growth in revenue and EBITDA. Our order book has expanded with some key strategic wins across markets. The adoption of our Digital Fabric (Network, Cloud and Security, Interaction and IoT) by enterprises continues to drive our optimism about future growth.”
EBITDA margin fell to 19.4% in Q2 against 20.8% in the September 2023 quarter.
Data revenue climbed 21% YoY to Rs 4,834 crore
Expenses in Q2 climbed to Rs 5503.47 crore against Rs 4599.59 crore in the September 2023 quarter. Earnings per share rose to Rs 7.97 in the last quarter against Rs 7.74 in the corresponding quarter of the previous fiscal.
Tata Communications is engaged in the business of providing international telecommunications services. The company’s segments include Voice Solutions (VS), Data and Managed Services (DMS) and Real Estate (RE). The VS segment includes international and national long distance voice services. The DMS segment includes corporate data transmission services, virtual private network signaling and roaming services, television, and other network and managed services. The RE segment includes lease rentals for premises given on lease and does not include premises held for capital appreciation.