Tata Communications Limited on Tuesday reported a 428.2% YoY surge in consolidated profit after tax (PAT) to Rs309cr in Q3FY21, on the back of strong growth in profitability.
The telecom operator’s consolidated revenue was at Rs4,223cr flat YoY, due to growth in data business compensated for decrease in voice business.
The company stock was however struggling in early morning trade. At around 9.45 am, each Tata Communications Limited stock was tradind at Rs1053.00 down Rs76.95 or 6.81%.
The company posted a consolidated operating profit or Ebitda of Rs1,046cr during the quarter, up 37.5% from the same period last financial year, on the back of margin expansion in data business and cost optimisation initiatives. Ebitda margin, which was at 24.8%, increased 680 basis points (bps) yoy, while it fell 150 bps sequentially.
Data business contributes 98% to overall EBITDA of Tata Communications.
The telco’s data revenue grew 3.8% from a year ago due to strong performance of traditional services, Tata Communications said in a regulatory filing on Tuesday.
Traditional services clocked a revenue growth of 6% y-o-y, while its earnings before interest, tax, depreciation and amortisation (EBITDA) rose 20.7% and margin was up 42.9% during October-December.
CAPEX for this quarter was Rs339c as compared to Rs490cr in Q3FY20.
“Our disciplined execution has helped us deliver good results in a seasonally weak quarter. Our Secure Connected Digital Experience (SCDx) offering continues to be relevant as we reimagine the New World for our customers. At the same time, our investments in products and services are positioning us well in our customers’ digital transformation journeys, an example being our investment in Oasis. I am happy to share that during the quarter, our efforts in Sustainability for Climate Change placed Tata Communications in the leadership band of the Carbon Disclosure Project (CDP) Report encouraging us to continue to make a difference to our Planet,” A.S Lakshminarayanan, MD and CEO, Tata Communications, said.
Commenting on the results, Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications, said, “We continue to deliver on our goal of profitable growth. Both profitability and cash flow generation has improved significantly in the last few quarters on the back of cost efficiencies and improved business processes. This agility has given us headroom to compete more effectively in the market and cater to our customer’s changing needs. Our focus continues to remain on generating a healthy order book coupled with strong execution to drive our growth.”