Tata Communications profit jumps 84% to Rs 543.76 crore in June quarter

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).

Tata Communications on Wednesday posted an increase of 83.63 per cent in consolidated profit to Rs 543.76 crore in the June quarter.

The company had reported a profit of Rs 296.11 crore in the same period a year ago, it said in a regulatory filing.

”We delivered profitable data revenue growth as a result of disciplined execution, portfolio enhancements and deeper customer engagements. 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,” Tata Communications Managing Director and CEO A S Lakshminarayanan said in a statement.

The consolidated income from operations of Tata Communications grew by 5 per cent to Rs 4,310.52 crore during the reported quarter from Rs 4,102.79 crore in the year-ago period.

”We continue to maintain our focus on operational efficiencies and balance sheet hygiene which is reflected in our profitability and cash flow. We are pleased to see a strong impact of our finance strategy in the company’s performance,” Tata Communications Chief Financial Officer Kabir Ahmed Shakir said.

Data Services segment continues to be the biggest contributor to the company’s business with revenue of Rs 3,353.44 crore followed by voice solution which contributed Rs 561.4 crore and transformation service of Rs 345.29 crore.