Shares of Tata Communications experienced a 1.3% decline as investors opted to secure profits at the opening on January 19, following the company’s report of its fastest quarterly growth in nine years. Despite closing 6% higher at Rs 1,800 after the earnings announcement, the stock was trading at Rs 1,746.20 at 9:20 am on January 19.
Tata Communications, in a regulatory filing, disclosed a robust 24.4% year-on-year growth in revenue, amounting to Rs 5,633 crore. The EBITDA (earnings before interest, taxes, depreciation, and amortisation) also witnessed a 5.3% year-on-year increase. However, the PAT (profit after tax) for the period saw an 88.6% decline to Rs 45 crore compared to Rs 394 crore in the previous year.
During the reporting period, data revenue demonstrated a significant 28.5% year-on-year growth, reaching Rs 4,618 crore. The digital portfolio revenue experienced a remarkable surge of 78.2%, and India Enterprise revenue grew by 10.4%.
Lakshminarayanan, MD and CEO of Tata Communications, expressed satisfaction with another quarter of robust growth, highlighting the crossing of data revenue beyond the Rs 4,000-crore mark. He emphasized that digital services contributed 45%, aligning with the company’s strategic goals, and he remains confident about their medium-term ambitions.
In a conversation with CNBC TV-18, Lakshminarayanan maintained their aspiration for a double-digit margin for Kaleyra in the medium term. Despite a slowdown in data revenue compared to the last few quarters, he mentioned that the deal funnel has reached an all-time high.
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