Tata Communications shares jump 6% on strong Q1 profit growth

Tata Communications | CMP: Rs 980 | The scrip ended in the red on July 20. The company reported profit which jumped 47.78% at Rs 544.82 crore against Rs 368.67 crore (QoQ). Revenue was up 1.1% at Rs 4,310.5 crore against Rs 4,263 crore (QoQ). EBIDTA rose 3% at Rs 1,077.01 crore against Rs 1,045.34 crore (QoQ).

Shares of Tata Communications spiked over 6 percent after the company said its net profits for the quarter ended June shot up 84 percent year-on-year (YoY).

The company in its release said its consolidated revenue stood at Rs 4,311 crore (USD 558.9 million); increasing 5.1 percent YoY. Sequentially, growth in revenue followed upsides in the data business.

Consolidated net profits stood at Rs 544 crore (USD 70.5 million) for the quarter, up from Rs 296 crore (USD 40.1 million) in the same quarter last year, registering a growth of 83.6 percent YoY.

Consolidated Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) came in at Rs 1,077 crore (USD 139.7 million), rising 9.2 percent YoY, where margins stood at 25 percent, growing by 95 basis points YoY.

“We delivered a profitable data revenue growth as a result of disciplined execution, portfolio enhancements and deeper customer engagements,” said AS Lakshminarayanan, MD and CEO, Tata Communications. “We continue to closely monitor and overcome the OEM and Supply Chain challenges. We are pleased with the healthy growth in the order booking and funnel additions across our portfolio, both in India and international markets.”

Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications, said, the company continues to maintain our focus on operational efficiencies and balance sheet hygiene which is reflected in our profitability and cash flow.

As of 9.35 am, the stock traded up 6.42 percent at Rs 1042.55.