tata communications q1 results: Tata Communications Q1: Profit slides 30% YoY to Rs 382 cr on higher interest costs

Tata Communications reported a 30% fall in net profit to Rs 382 crore for the first quarter ended June, impacted by higher interest costs and lower forex gains. The company’s profit was at Rs 544 crore in the same period last year.

Revenue from operations, however, jumped 11% to Rs 4,771 crore during the first quarter as against Rs 4,310 crore in the corresponding quarter of previous fiscal year.

Its EBITDA (earnings before interest, tax, depreciation and amortisation) fell 5% to Rs 1,024 crore in the June quarter, while EBITDA margins declined 352 basis points to 21.5%.

Data business revenues came in at Rs 3,912 crore, recording an increase of 17% year-on-year, while underlying data revenue growth came in at 14% YoY.

Data EBITDA stood at Rs 929 crore for the first quarter, down 4.2% YoY largely, due to inorganic costs coming in this quarter.

The core connectivity portfolio reported growth of 8.1% YoY in revenue. Digital portfolio, meanwhile, delivered robust growth of 37% YoY driven by all portfolios, and integration of Switch Enterprises.

Further, the Board has approved the proposal for raising funds through issuance of non-convertible debentures (NCDs) on private placement basis, for an amount up to Rs 1,800 crore.The Board has also authorised an internal committee to take all actions in respect of finalization of terms of issuance and allotment of NCDs.

“We have had a pivotal first quarter in FY24 – delivering very strong revenue growth in our data business and the digital portfolio, closing The Switch deal and announcing the Kaleyra acquisition,” said Lakshminarayanan, MD and CEO.

“We are on track with the execution of our strategy; and the strengthening of our portfolio will increase the relevance quotient with our enterprise customers,” he added.

On Wednesday, the company’s shares closed 1.01% higher at Rs 1,618 on NSE.

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