Tata Communications Ltd share Price Today

Tata Communications (TCOM) is the leading global digital ecosystem enabler.

• It provides its clientele with state-of-the-art solutions across a wide range of communication, collaboration, cloud, mobility, connected solutions, network and data centre services

TCOM reported a weak quarter on the margins front.

•  Topline came in at ₹ 4569 crore, up 7.2% YoY & up 0.9% QoQ, driven by data revenues (forming ~80% of revenues), which was up ~11.2% YoY (up 2.2% QoQ) at ₹ 3670 crore. Incubation services and Digital Platforms segment of data business grew ~65% and 16% YoY, respectively. Voice revenues were down 13.9% YoY (down 8.6% QoQ) at ₹ 462 crore
• Consolidated EBITDA at ₹ 1034 crore, was down 1.1% YoY and down 4% QoQ. The consequent margin was at 22.6% (down 190 bps YoY and down 115 bps QoQ) owing to lower data EBITDA margin, which was at 24%, down 240 bps QoQ. We highlight that it is the lowest margin in the last 12 quarters despite revenue growth picking up

Telecom Services company Tata Communications announced Q4FY24 & FY24 results:

Q4FY24 Financial Highlights:

• Gross Revenue: Achieved Rs 5,692 crore, exhibiting a growth of 24.6% compared to Rs 4,569 crore in Q4FY23.
• Data Revenue: Recorded Rs 4,656 crore, marking a growth of 26.9% from Rs 3,670 crore in Q4FY23.
• EBITDA: Stood at Rs 1,056 crore, indicating a slight increase of 2.1% from Rs 1,034 crore in Q4FY23.
• EBITDA Margin: Reported at 18.6%, down from 22.6% in Q4FY23, reflecting a decrease of 408 basis points (bps).
• PAT: Recorded Rs 321 crore, showing a decrease of 1.5% from Rs 326 crore in Q4FY23.
• PAT Margin: Reported at 5.6%, down from 7.1% in Q4FY23, representing a decrease of 149 bps.

FY24 Financial Highlights:

• Gross Revenue: Reached Rs 20,969 crore, reflecting a growth of 17.5% from Rs 17,838 crore in FY23.
• Data Revenue: Stood at Rs 17,181 crore, showing a growth of 21.9% from Rs 14,096 crore in FY23.
• EBITDA: Amounted to Rs 4,230 crore, slightly decreasing by 2.0% from Rs 4,318 crore in FY23.
• EBITDA Margin: Reported at 20.2%, down from 24.2% in FY23, indicating a decrease of 403 bps.
• PAT: Recorded Rs 968 crore, a significant decrease of 46.1% from Rs 1,796 crore in FY23.
• PAT Margin: Reported at 4.6%, down from 10.1% in FY23, reflecting a decrease of 545 bps.

Commenting on the results, AS Lakshminarayanan, MD and CEO, Tata Communications, said: “We are pleased to report the significant revenue milestone of Rs 20,000 crore. We closed FY24 with strong execution and our digital fabric is witnessing increased relevance from enterprise customers. As we enter the next fiscal, our firm focus will remain on integrating our acquisitions, executing our strategies, and driving sustainable and profitable revenue growth.”

Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications, said: “FY24 was an eventful year as we witnessed our finance strategy in action, enabling us to successfully complete three strategic acquisitions on the back of a strong balance sheet. Our financial performance is in line with our expectations as we continue to capture newer business opportunities and accelerate our growth path. With the right operating levers in place, we are confident of our financial performance indicators returning to their ambition range in the medium term.”

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