News: Tata Communications in its analyst meet reiterated its previously stated guidance of 23-25% margins, 25-30% RoCE and a stepped-up capex of US$300 mn vs. earlier rate of US$200 mn. It also reiterated that growth funnel (pre-stage of order book) has increased, deal win rate has improved (with higher win in digital segment) and the company has expanded product offerings in next gen connectivity, cloud, etc and put feet on street with new hiring and expanded regional leads presence.
Views: We note that absence of revenue guidance is owing to delay that it faces owing to client slower decision making, and thus, remains a key dampener. The recovery, in our view, could be back ended vs. front ended revenues growth expected in FY23, earlier.
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