You are currently viewing Tata Comms’ Q2 Net Profit Drops 58% on Growth Investments

Tata Comms’ Q2 Net Profit Drops 58% on Growth Investments

Tata Communications Ltd reported a 58% year-on-year drop in net profit to 221.3 crore for the second quarter ending September 30, 2023, on Thursday. The business had a net profit of 534.26 crore in the same period the previous year. The overall revenue for the quarter was 4,872.5 crore, a 10% increase over the previous fiscal’s similar period of 4,430.74 crore. The company’s data business revenue increased 14.4% year on year to Rs 3,995 crore.

At the operating level, EBITDA was ₹1,015.4 crore in the second quarter, with an EBITDA margin of 20.8%. EBITDA represents earnings before interest, tax, depreciation, and amortization. The CNBC-TV18 Poll had predicted a profit of ₹325 crore, revenue of ₹4,860 crore, and an EBITDA of ₹1,050 crore for the quarter under review.

Tata Communications MD and CEO AS Lakshminarayanan expressed satisfaction with the robust 14% year-on-year revenue growth in the quarter. He affirmed the company’s confidence in long-term opportunities and its commitment to investing in the product portfolio to strengthen its value proposition to enterprises.

During the quarter, Tata Communications announced the acceleration of the Kaleyra Inc. transaction’s closure, creating a new digital platform category called the Customer Interaction Suite. Following a reverse merger with its subsidiary TC Delaware Technologies Inc., Kaleyra has become a wholly-owned direct subsidiary of Tata Communications. The company has assumed all of Kaleyra’s outstanding adjusted gross and net debt of approximately ₹1,810.22 crore and ₹1,561.24 crore as of the acquisition date, respectively. The delisting of Kaleyra from the New York Stock Exchange has been completed, and the financial results for the quarter and half-year ended September 30, 2023, do not include any impact from the acquisition. The market closed with Tata Communications Ltd shares at ₹1,775.55, down by ₹11.15 or 0.62 percent on the BSE.

Read More: https://cioworldindia.com/

Leave a Reply