Tata Communications net profit rises 28% to Rs 395 crore in Q3

Tata Communications on Wednesday posted a 27.8 per cent increase in consolidated net profit at Rs 395.21 crore for the third quarter ended December 2021.

The company had a net profit of Rs 309.41 crore in the same period a year ago.

"We witnessed another quarter of good sequential growth in our data business, with digital platforms and solutions delivering robust results. We continue to focus on providing holistic solutions to our customers and accelerating their digital transformations," Tata Communications MD and CEO A S Lakshminarayanan said in a statement.

Total income of Tata Communications declined marginally during the reported quarter to Rs 4,203.69 crore from Rs 4,231.05 crore in the corresponding quarter of 2020-21.

"We are pleased with the growth in revenue as well as profitability during the third quarter, financial year 2022. Our performance demonstrates sustained progress in our journey towards our financial fitness. Healthy improvement in free cash flows and reduction in net debt provides us headroom to invest for future growth," Tata Communications chief financial officer Kabir Ahmed Shakir said.

Data segment contributed 77.3 per cent to the company total revenue while voice service accounted for 13.2 per cent of Tata Communication's gross revenue.

During the reported quarter, Tata Communications obtained a virtual network operator license for all services with 10 years validity.

Net debt at the end of the quarter on the company was Rs 7,189 crore, down by Rs 572 crore compared to the previous quarter and Rs 783 crore on a year-on-year basis.

Tata Communications made total capital expenditure of Rs 400 crore during the reported quarter with Rs 345 crore going into data business.