Tata Communications reported 424 percent year-on-year (YoY) growth in its consolidated net profit at Rs 236 crore in the third quarter, compared with Rs 45 crore in the year-ago period.
The company's revenue from operations in the reporting period jumped 4 percent year-on-year to Rs 5,798 crore as against Rs 5,588 crore in the same period last year.
EBITDA for the quarter increased 4 percent YoY to Rs 1,181 crore while margins expanded 23 bps to 20.4% in the December quarter.
"The third quarter has been satisfactory, with strong growth in digital revenues, improved margins, and enhanced free cash flow. I believe in the world of AI, digital infrastructure will be even more critical, and our investments in our Digital Fabric will hold us in good stead," Lakshminarayanan, MD and CEO of Tata Communications, said in the statement.
Lakshminarayanan said the company is advancing well in its review of subsidiaries with a clear focus on optimising their performance and unlocking value, as demonstrated in the case of Tata Communications Payments Solutions.
Segment-wise, revenue from data grew by 6% YoY, coming in at Rs 4,903 crore, while digital revenue was up 10 percent YoY to Rs 2,313 crore.
The company's board approved the proposal to invest in its step-down wholly owned subsidiary, Tata Communications (Netherlands) BV.
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