Tata Communications Q2 up 7-fold at Rs386cr

Tata Communications reported a smart recovery in profits which was up nearly 7 times at Rs.386 crore for the Sep-20 quarter.

Oct 16, 2020 06:10 IST India Infoline News Service

Tata Communications reported a smart recovery in profits which was up nearly 7 times at Rs.386 crore for the Sep-20 quarter. Even the operating profits of Tata Communications were up nearly 3 fold on a yoy basis on lower expenses in the books.
The impact of the pandemic on the top line was quite limited but even on a sequential basis, the company managed to grow its net profits by 44% and its operating profits by over 20.4%. The operating profit margin of Tata Comm. was up 3-fold at over 12% in Q2.

Here are the financial highlights

Particulars Sep-20 Quarter Growth (YOY) Growth (QOQ)
Total Revenues Rs4401cr +3.01% -0.04%
Operating Profit Rs532cr +203.23% +20.46%
Net Profits Rs386cr +634.96% +49.28%
Key Ratios Sep-20 Quarter Sep-19 Quarter Jun-20 Quarter
Diluted EPS Rs13.49 Rs1.89 Rs9.05
Operating Margins 12.08% 4.10% 10.02%
Net Profit Margin 8.77% 1.23% 5.87%


Key takeaways from the Sep-20 quarter results
  • For the Sep-20 quarter, data and managed services accounted for a bulk of 80% of the total revenues of the company. Voice accounted for another 16% of revenues with the balance 4% being split among other services including payment solutions.
  • The net operating cash flows at Rs.1447 crore is enough the cover the current net profit nearly 3.5 times which is a very healthy scenario for a services company.
  • During the Sep-19 quarter, the company had made a provision of Rs.337 crore towards the license fees payable to the DOT and that is one reason why the incredible growth in net profits may not be too suggestive, although the operating profit growth is real.

 

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