Tata Communications Ltd posts consolidated net profit of Rs1.7cr in Q2FY19 vs. net loss of Rs250cr in Q2FY18 : Beats Estimates

The company’s consolidated revenue stood at Rs4,068cr, down 4.2% yoy but up 3.2% qoq

Nov 01, 2018 07:11 IST India Infoline Research Team

Tata Communications Ltd Q2FY19

Consolidated Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 4,068 [4.2]
EBITDA 630 6.0
EBITDA Margin (%) 15.5 150
Net Profit (adjusted) 1.7 NA
***EBITDA margin change is bps

Tata Communications Ltd beat estimates for Q2FY19 as higher revenue from the growth services segment translated to higher earnings. Revenue grew by 3.2% qoq to Rs4,068cr (expectation Rs3,992cr). EBITDA stood at Rs630cr, up 7.4% qoq against estimates of Rs581cr. EBIDTA margin rose by 61bps qoq to 15.5%. Net Profit stood at Rs1.7cr against an estimated Net Loss of Rs4.4cr.
  • Net revenue for the Data business grew by 5.9% qoq to Rs3,069cr in Q2FY19. EBITDA for the segment stood at Rs537cr, with EBITDA margin at 17.5% for the quarter.
  • Gross revenue for the Voice business declined by 2.7% qoq to Rs999cr in Q2FY19. EBITDA for the segment stood at Rs92.7cr, with EBITDA margin at 9.3% for the quarter.
  • Capex for the quarter stood at $65mn, a decrease of 10% qoq. This rise in capex was due to lower sequential capex for the data segment, given a high capex of $72mn in Q1FY19 (up 40% qoq).
  • Consolidated net debt stood at $1,251mn (Rs8,770cr). Average cost of borrowing currently stands at 3.67%, up from 1.97% in Q1FY19.

Technical View:

Tata Communications Ltd is currently trading at Rs. 496.35, up by 5.8 points or 1.18% from its previous closing of Rs. 490.55 on the BSE.
The scrip opened at Rs. 495 and has touched a high and low of Rs. 508.05 and Rs. 491.40 respectively. So far 7,01,243 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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