Tata Communications surges 5% on robust Q1 earnings; PAT rises by 236% yoy

Consolidated revenue was at Rs4,403cr witnessing a growth of 5.6% yoy on the back of strong performance in Data business.

Jul 31, 2020 03:07 IST India Infoline News Service

Tata Communications
Tata Communications registered a whopping 236% rise in consolidated net profit to Rs258cr during June 2020 (Q1FY21) quarter, compared to Rs77cr a year ago same period. Meanwhile, consolidated EBITDA at Rs1,042cr up by 26.2% yoy and margin expansion of 390bps on the back of strong profitable growth in the data business and focus on cost efficiencies.

Consolidated revenue was at Rs4,403cr, witnessing a growth of 5.6% yoy on the back of strong performance in Data business.

Pratibha K. Advani, Chief Financial Officer, Tata Communications, said, “We have registered another quarter of strong growth. Data portfolio, which has been the key driver for our business, recorded double-digit growth of 10% YoY with robust margin expansion of 460bps."

Consolidated CAPEX for this quarter was at Rs372cr in the latest period as compared to Rs342cr in Q4 FY20.

A.S Lakshminarayanan, MD and CEO, Tata Communications, said, “We have started this new financial year with strong performance amidst an uncertain and unpredictable economic environment. Digital is increasingly defining and shaping the experiences in this new world. It will become even more strategically core as businesses look to adopt new ways of working and transform how they operate, and how they engage with their audiences and with each other. We continue to be a key partner for our customers as they look to now focus on business recovery, acceleration, and growth."

Lakshminarayanan added, "Our new proposition, Secure Connected Digital Experience, is aimed at enabling customers to adopt new
digital working models by providing a holistic ecosystem of solutions that are suited for this digital-first environment and are built for the long term. We’re seeing good interest in the market for these solutions. We remain focused on our strategy to deliver profitable growth and to be a preferred digital partner to our customers.”

At around 3.13 pm, Tata Communications was trading at the upper circuit limit of Rs759.80 per piece, surging by 5% on Sensex. 

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