iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Tata Communications Reports 58% Fall in Q2 Net Profit, Focuses on Revenue Growth

20 Oct 2023 , 11:30 AM

Tata Communications Ltd witnessed a nearly 2% drop in its stock price after reporting a 58% decline in net profit for the September quarter. The company’s net profit fell by 58% YoY to Rs 221.3 crore, with a 16% increase in expenses to Rs 4,600 crore, primarily due to network and transmission costs.

However, the data services segment, which contributes over 80% of total income, experienced a 14% revenue increase due to strong demand in connectivity and digital portfolio segments. Overall, income from operations grew by 10% to Rs 4,873 crore as Tata Communications prioritizes revenue growth over margins in the competitive cloud, cybersecurity, and networking market.

EBITDA margins dropped to 20.8% YoY, down 465 basis points, partly attributed to acquisitions, including Kaleyra in June. Tata Communications’ CEO, AS Lakshminarayanan, expressed confidence in long-term opportunities and investment in their product portfolio, with an expectation of a turnaround in the switch next year. The aim is to maintain a 23-25% margin in the medium term.

The company fast-tracked the Kaleyra Inc transaction to establish a new digital platform category, with Kaleyra as a wholly owned subsidiary, and assumed Kaleyra’s debt, although Kaleyra has a negative EBITDA that may impact future margins.

For feedback and suggestions, write to us at editorial@iifl.com

 

Related Tags

  • business
  • news
  • Tata Communications
  • Top News
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More

Most Read News

SBI Card Q4 Profit Slips 20%
25 Apr 2025|11:17 PM
HUL Q4 Net Profit Rises to ₹2,493 Crore
25 Apr 2025|10:59 PM
Sensex and Nifty in Red on April 25, 2025
25 Apr 2025|02:08 PM
Read More

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.