ETMarkets.comShares of Tata Communication in which the Jhunjhunwala family owns a stake, fell nearly 4% to Rs 1,330 in Tuesday's trade after the company reported a consolidated net profit of about Rs 394 crore for the quarter ended December 2022, a tad lower than the year-ago period.
The Q3 FY23 net profit was 0.3% lower than last year's figure of about Rs 395 crore.
The company recorded consolidated revenue for Q3FY23 at about Rs 4,528 crore, 8.2% higher on-year. Data business revenues stood at Rs 3,593 crore, recording a jump of 11.1% on-year, as strong momentum in the digital platforms and services segment continued, the company said in a statement.
The core connectivity portfolio reported growth of over 6% year-on-year in revenue, and the digital platforms and services delivered growth of over 17.2%, according to the statement.
At 9.59 am, the scrip was trading 2.7% lower at Rs 1,346. However, in the last six months, the stock has risen over 27%.
Should you buy, sell or hold stock? Here's what analysts say:
ICICI Securities has a neutral call on .
"While revenue growth is on a recovery trajectory along with continued cash flow generation, margin weakness has been more than expected, this quarter. We seek management commentary on the growth and margins trajectory ahead. Tata Communication remains a key beneficiary of the new normal of hybrid work structure, increased conferencing needs thereof and overall digitisation at enterprise levels. We will soon come up with an update post the conference call tomorrow," it said.
Yes Securities
"Overall, mixed performance but revenue growth trajectory needs to pick up further. We currently have a neutral rating on the stock. Trades at EV/ EBITDA of 8.9x on FY24E," it said.
Domestic brokerage firm Motilal Oswal also has a neutral call on Tata Communications.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The Q3 FY23 net profit was 0.3% lower than last year's figure of about Rs 395 crore.
The company recorded consolidated revenue for Q3FY23 at about Rs 4,528 crore, 8.2% higher on-year. Data business revenues stood at Rs 3,593 crore, recording a jump of 11.1% on-year, as strong momentum in the digital platforms and services segment continued, the company said in a statement.
The core connectivity portfolio reported growth of over 6% year-on-year in revenue, and the digital platforms and services delivered growth of over 17.2%, according to the statement.
At 9.59 am, the scrip was trading 2.7% lower at Rs 1,346. However, in the last six months, the stock has risen over 27%.
Should you buy, sell or hold stock? Here's what analysts say:
ICICI Securities has a neutral call on .
"While revenue growth is on a recovery trajectory along with continued cash flow generation, margin weakness has been more than expected, this quarter. We seek management commentary on the growth and margins trajectory ahead. Tata Communication remains a key beneficiary of the new normal of hybrid work structure, increased conferencing needs thereof and overall digitisation at enterprise levels. We will soon come up with an update post the conference call tomorrow," it said.
Yes Securities
"Overall, mixed performance but revenue growth trajectory needs to pick up further. We currently have a neutral rating on the stock. Trades at EV/ EBITDA of 8.9x on FY24E," it said.
Domestic brokerage firm Motilal Oswal also has a neutral call on Tata Communications.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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