- 23 Apr 2025
- ICICIdirect Research
TATA COMMUNICATIONS TOPLINE CAME IN AT ₹ 5990 CRORE, UP 6.1% YOY
TATACOMM - 1565 Change: -2.10 (-0.13 %)News: Topline came in at ₹ 5990 crore, up 6.1% YoY & 3.3% QoQ. Data revenues (85% of mix) reported growth was 9.6% YoY and 3.9% QoQ. Within data revenues, reported digital portfolio segment saw a growth of 17.5% YoY at ₹ 2440 crore and Core connectivity was up 3.2% YoY at ₹ 2656 crore. Voice segment continued to remain weak with revenues down 12.8% YoY at ₹ 374 crore. Consolidated EBITDA came in at ₹ 1122 crore, up 4.3% YoY and down 5% QoQ with margin at 20.4% (up 23 bps YoY and 100 bps QoQ). Data EBITDA margin, which was at 18.7%, was down 33 bps YoY and 164 bps QoQ. One-offs sale of asset of ₹ 578 crore and profit on sale of payment solutions business pf ₹ 311 crore led the reported PAT growth in Q4. Adjusted PAT at ₹ 310 crore was down 17% YoY. Net debt at ₹ 9377 crore, down ₹ 1091 crore QoQ, aided by asset monetisation and ATM business sale.
View: FY25 witnessed weak underlying revenue (excluding acquisition) with margins decline. We highlight that management had earlier guided for its long-term growth aspirations to reach data revenues of ₹ 28000 crore by FY27, implying a CAGR of ~20% over FY25-27, driven by digital portfolio. This looks tough to achieve at current situation. We await management commentary on outlook ahead. Tata Communication remains a key beneficiary of overall digitisation at enterprise levels, albeit continues to disappoint as growth-margin construct is not in sync with guidance
Impact: Neutral