Tata Communications shares down 4% after Q3 earnings disappoint Street
Free cash flow of the company has reduced by 45 percent sequentially to Rs 3.5 billion from Rs 6.2 billion in the second quarter of FY23
January 24, 2023 / 12:03 PM IST
Digital platforms and services delivered growth of over 17.2 per cent, according to Tata Communications statement.
Tata Communications share price suffered over 4 percent erosion on January 24 after the company’s earnings disappointed the Street.
At 11:47am, shares of the communications company were trading at Rs 1329.95, down 3.8 percent, on the BSE.
The company posted a consolidated net profit of about Rs 394 crore for the quarter ended December. It had reported a profit of Rs 532.29 crore in the previous quarter and Rs 395.21 crore a year ago.
Its income from operations for the reporting quarter increased to Rs 4,528.34 crore from last year’s Rs 4,184.89 crore. In the September quarter, the company had reported a profit of Rs 4,430.74 crore.
Segment wise, only voice solutions witnessed a decline in revenue growth. Whereas data services, payment solutions, transformation services, and real estate witnessed growth in revenues.
Motilal Oswal Financial Services pointed out that free cash flow reduced by 45 percent sequentially to Rs 3.5 billion from Rs 6.2 billion in the second quarter of FY23.
The Tata Group company enables digital transformation of enterprises globally with collaboration and connected solutions, core and next-gen connectivity, cloud hosting and security solutions and media services.
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