Stock Market update: Tata Communications shares down by 4% post Q3 results

Consolidated revenue reached Rs 4,185 crore with a growth of 0.3 per cent QoQ and a fell to 0.9 per cent YoY.

Tata communication Ltd. shares were down to 4.55 per cent at Rs 1,455.00 per share (−68.60) today in the Thursday session at 1.10 pm IST on the National Stock Exchange despite having a 27.8 per cent increase in consolidated profit in October-December.

The telecom services provider published a press release revealing the consolidated net profit of Rs 395.21 crore for the third quarter ended December 2021 which was at Rs 309.41 crore in the same period a year ago.

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Consolidated revenue reached Rs 4,185 crore with a growth of 0.3 per cent QoQ and a fell to 0.9 per cent YoY. Consolidated EBITDA at Rs 1,082.5 crore saw an increase of 3.5% YoY, with margins at 25.9%, expanding by 110 BPs as compared to the same quarter last year Consolidated PAT stands at Rs 395 crores at a growth of 27.8 per cent YoY

On a sequential basis, the numbers grew 0.3 per cent while on a year-on-year (YoY) basis, there was a drop of 0.9 per cent. All three segments like core connectivity, digital Platforms, & Incubation services of the data businesses saw healthy growth. Digital Platforms and Solutions continue to improve and gain growth momentum, revenues grew by +5.2 per cent QoQ and +6.7 per cent YoY. Revenues were at INR 3,233 crore, growing by +3.0 per cent QoQ and +3.4 per cent YoY.

Commenting on the results, A.S Lakshminarayanan, MD and CEO, Tata Communications, said, “We witnessed another quarter of good sequential growth in our data business, with digital platforms and solutions delivering robust results. We continue to focus on providing holistic solutions to our customers and accelerating their digital transformations.”
Share of Tata Communications on Wednesday closed 2.62 per cent higher at Rs 1,522.45 apiece on BSE.

“All 3 segments (core connectivity, digital platforms, and incubation services) of data business witnessed healthy growth on digital platforms and solutions continue to improve and gain growth momentum, revenues grew by 5.2% QoQ and 6.7% YoY within digital platforms,” the company noted.