Tata Communications reports 1.5% y-o-y decline in Q4 net profit

18 Apr 2024 , 11:26 AM

Tata Communications announced on Thursday that the company logged a 1.5% (YoY) decrease in overall net profit for the quarter ended March 2024 to ₹321 Crore. Meanwhile, income from operations increased 25% year-on-year to ₹5,692 Crore.

According to the latest financial report filed with the exchanges, the company’s EBITDA increased by 2% to ₹1,056 Crore, but the EBIT margin fell from 23% to 19%.

The Board of Directors has also proposed a final dividend of ₹16.70 per share for the fiscal year ended March 31, 2024, subject to shareholder approval.

The company also said that A S Lakshminarayanan has been re-appointed as the company’s Managing Director and CEO for a second term, beginning November 26, 2024 and ending April 13, 2026.

Tata Communications’ shares have gained about 51% in the last year and 11% in the last three months. However, on a monthly basis, the stock is down 4%.

In the March quarter, ace investor Rekha Jhunjhunwala reduced her interest in Tata Group firms, including Tata Communications. She lowered her interest in the firm by 0.3% during the last quarter, bringing her total holding to 1.6%.

Consolidated sales for FY24 increased by 17.5% to ₹20,969 Crore, while data revenue reached ₹17,000 Crore, up 21.9%. However, earnings almost halved to ₹969.6 Crore for FY24, from ₹1,800 in FY23, due to rising costs in its international activities. The company’s board proposed a ₹16.7 dividend per share.

Macroeconomic headwinds from conflicts and turbulence in certain regions of the world might have an influence on business. “While our funnel is effective, conversion is taking longer since our clients are wary. With the conflict underway, caution will only grow,” MD and CEO A S Lakshminarayanan said in an interaction following the results.

At around 11.23 AM, Tata Communications was trading 0.84% higher at ₹1,899.50 per piece, against the previous close of ₹1,883.75 on NSE. The counter touched an intraday high of ₹1,924.30.

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