Near-term margin pressures to persist for Tata Communications stock

The consolidated operating profit grew 12 per cent Q-o-Q to Rs 1,130 crore led by Kaleyra, which turned the operating profit positive

Tata Communications has seen analyst upgrades after reporting Q3FY24 results. The biggest factor is the visible signs of a turnaround in its new acquisition, Kaleyra. The consolidated revenue grew 16 per cent Q-o-Q to Rs 5,630 crore led by 15 per cent Q-o-Q improvement in the data segment.

Adjusted for the 3 acquisitions, Switch, Kaleyra, and Oasis revenue of Rs 910 crore, the consolidated data revenue was flat Q-o-Q. In the last 4 quarters, data revenue reported a revenue growth of 2.5 per cent.

The consolidated operating profit grew 12 per cent Q-o-Q to Rs 1,130 crore led by Kaleyra,