Tata Communications reported a 3.9 per cent sequential growth in profit to ₹236 crore, led by growth in digital revenues, margins and free cash flows during the quarter ended December 31, 2024. Revenue from operations grew marginally (0.6 per cent) to ₹5,798 crore, largely led by campaign registry and data services segments.

On an annual basis, profits went up 424 per cent, with a 363-bp jump in margins to 4.4 per cent and operational revenue increased 3.7 per cent.

The company’s EBITDA increased 4.1 per cent on-year to ₹1,181 crore and EBITDA margins grew 23 bps to 20.4 per cent.

Diluting stake

Commenting on the results, A.S. Lakshminarayanan, MD and CEO, Tata Communications, said, “We are advancing well in our review of subsidiaries, with a clear focus on optimising their performance and unlocking value, as demonstrated in the case of Tata Communications Payments Solutions (TCPSL). In the world of AI, digital infrastructure will be even more critical and our investments in our Digital Fabric will hold us in good stead.”

During the quarter, Tata Communications sold its entire stake in the wholly-owned subsidiary TCPSL and is considering a potential dilution of its stake in a foreign subsidiary under the data services vertical, which is expected to make the group a minority shareholder.

Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications, said, “The strategic actions to streamline and make our business future-ready has begun paying off. Over and above the divestiture of our payment solutions business, we continue to pursue other monetisation opportunities and strategic evaluation of assets.”