Tata Communications Ltd. consolidated net loss of Rs58.5cr in Q1FY19 vs. net profit of Rs32.3cr in Q1FY18: In-line with Estimates

The company’s consolidated revenue stood at Rs3,912cr, down 9.2% yoy and 2.4% qoq.

Aug 09, 2018 02:08 IST India Infoline Research Team

Tata Communications Ltd Q1FY19

Consolidated Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
Revenue 3,912 [9.2]
EBITDA 555 [0.6]
EBITDA Margin (%) 14.2 123
Net Loss (adjusted) 58.5 0
***EBITDA margin change is bps

Tata Communications Ltd reported EBITDA in line with estimates for Q1FY19, however profitability was lower than expected. Revenue dropped  9.2% yoy to Rs3,912cr (expectation Rs4,011cr). EBITDA stood at Rs555cr, down 0.6% yoy against estimates of Rs553cr. EBIDTA margin rose 123bps yoy to 14.2%. Net Loss stood at Rs58.5cr against  estimate of Rs43.4cr.
  • Segmental revenue for the quarter was as follows:
    • Voice Solutions                               Rs1,027cr       (down 33% yoy)
    • Data and Managed Services         Rs2,790cr       (up 4.1% yoy)
    • Payment Solutions                          Rs96.8cr      (down 1.2% yoy)
  • Segmental EBIT for the quarter was as follows:
    • Voice Solutions                               Rs60.4cr       (down 21.1% yoy)
    • Data and Managed Services         Rs40.3cr       (up 54.5% yoy)
    • Payment Solutions (loss)               Rs30cr      (against a loss of Rs51cr in Q1FY18)
  • Data business grew in spite of industry headwinds. Revenue from the Data segment grew 3.9% yoy and fell 0.3% QoQ. This was due to operator consolidation in India. Data Services contributed 73.8% of overall revenues in Q1FY19, against 64.4% in Q1FY18.
  • Consolidated revenues fell due to lower volume and price compression in Voice segment.
  • Capex for the quarter stood at$72.3mn, an increase of 39.8% qoq. This rise in capex was due to expansion of the Indian access network.

Technical View:

Tata Communications Ltd is currently trading at Rs. 587, up by 5.25 points or 0.9% from its previous closing of Rs. 581.75 on the BSE.
The scrip opened at Rs. 585 and has touched a high and low of Rs. 598.95 and Rs. 576.60 respectively. So far 3,00,942 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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