Tata Comm Q1 PAT slides 13% YoY to Rs 333 crore

Tata Communications' consolidated net profit fell 12.79% to Rs 332.84 crore in Q1 FY25 as compared with Rs 381.69 crore in Q1 FY24.

However, revenue from operations jumped 18.06% year on year (YoY) to Rs 5,633.37 crore in the quarter ended June 2024.

During Q1 FY25, profit before exceptional items and tax stood at Rs 330.98 crore, down 34.05% from Rs 501.90 crore posted in corresponding quarter previous year. The firm reported exceptional profit of Rs 85.71 crore during the quarter under review.

EBITDA stood at Rs 1,124 crore during the quarter, registering a growth of 9.8% as compared with Rs 1,024 crore posted in same quarter last year. EBITDA margin reduced by 150 bps to 20% in Q1 FY25 as against 21.5% in Q1 FY24.

Data revenue jumped 20% to Rs 4,694 crore during the quarter as compared with Rs 3,912 crore posted in corresponding quarter last year.

AS Lakshminarayanan, MD and CEO, Tata Communications, said: We are pleased to announce a strong and positive start to FY25, with our quarterly performance indicators showing promising results. We remain bullish about the market opportunities and with our expanded product capabilities and increasing customer relevance, we are confident in our ability to achieve our medium-term growth objectives.

Kabir Ahmed Shakir, chief financial officer, Tata Communications, said: "Our financial prudence, anchored in our 'Fit to Grow' framework, has yielded profitable growth and delivered margin expansion this quarter. As our products continue to gain traction and scale, we anticipate operating leverage, positioning us to achieve our margin aspirations in the medium term."

Meanwhile, The companys board has approved the proposal for raising of funds through issuance of Non-Convertible Debentures (NCDs) on private placement basis, for an amount up to Rs 2,000 crores. The board also authorized an internal committee, to take all actions in respect of finalization of terms of issuance and allotment of NCDs.

Further, The Board considered and approved the proposal for making an investment in its step down wholly owned subsidiary, Tata Communications (UK) (TC UK). The proposed investment is intended to simplify the existing group structure of the company and its subsidiaries by moving TC UK under direct ownership of the company without any change in the ultimate ownership and beneficial economic interest of the Company in TC UK.

Tata Communications is a global digital ecosystem enabler powering today's fast-growing digital economy in more than 190 countries and territories. Leading with trust, it enables digital transformation of enterprises globally with collaboration and connected solutions, core and next gen connectivity, cloud hosting and security solutions and media services.

The scrip rose 1.14% to end at Rs 1,871.95 on the BSE.

Powered by Capital Market - Live News