Tata Communications Q2 net profit rises 10.6% to Rs 425 crore

Tata Communications on Wednesday reported a 10.6 per cent year-on-year (YoY) growth in its consolidated net profit at Rs 425 crore for July-September quarter. Sequentially, profit rose 43.7 per cent from Rs 296 crore in the June quarter.
 
While gross revenue grew 1.7 per cent quarter-on-quarter (QoQ) to Rs 4,174 crore, it declined 5.2 per cent on a YoY basis. The company attributed the sequential growth to gradual recovery across data and voice segments.
 
The earnings before interest, tax, depreciation and amortisation (EBITDA) rose 12.9 per cent from June quarter to Rs 1,113 crore, while it declined 3.9 per cent from the year-ago quarter. EBITDA margin expanded by 260 basis points on quarterly basis to 26.7 per cent, while annually also it expanded by 40 basis points.
 
Tata Communications' data revenue stood at Rs 3,140 crore during September quarter, registering a growth of 1.1 per cent QoQ and a decrease of 2.2 per cent YoY. "With COVID situation easing, we have started to witness gradual recovery in business, all segments grew sequentially after three quarters of decline," the company said in a release.
 
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The core connectivity portfolio reported a growth of 0.4 per cent YoY in revenue, while digital platforms and services have started to show gradual recovery on a quarterly basis, with revenue improving by 2.3 per cent QoQ, it said.
 
The Tata Group company's capital expenditure stood at Rs 392 crore during the quarter under review as compared with Rs 318 crore in the corresponding quarter of last year.
 
"Delivering a sequential growth on a quarter-on-quarter basis after three quarters of decline is a positive indicator which we will continue to build on. The second quarter of FY22 was marked by recovery with favourable underlying trends as economic activities normalise," Tata Communications MD and CEO AS Lakshminarayanan said.
 
The company's CFO Kabir Ahmed Shakir said the results demonstrate a continued improvement in revenue supported by improvement in profitability and build-up of free cash flow. "We continue to strengthen our balance sheet and invest for future growth as we evolve as a trusted partner for our customers, enabling their digital transformation journey."
 
Shares of Tata Communications on Wednesday closed 3.48 per cent lower at Rs 1,446.05 on the Bombay Stock Exchange.

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