Tata Communications Q3 Results: PAT skyrockets 424% YoY to Rs 236 crore, revenue up 4%

Tata Communications on Wednesday reported 424% year-on-year (YoY) growth in its consolidated net profit at Rs 236 crore in the third quarter, compared with Rs 45 crore in the last year period.

Revenue from operations in the reporting period jumped 4% YoY to Rs 5,798 crore as against Rs 5,588 crore in the same period of last year.

"The third quarter has been a satisfactory quarter with strong growth in digital revenues, improved margins, and enhanced free

cash flow. I believe 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," said Lakshminarayanan, MD and CEO, Tata Communications.

EBITDA for the quarter rose 4% YoY to Rs 1,181 crore while margins expanded 23 bps to 20.4% in the quarter ended December quarter.

"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," said Lakshminarayanan.

Segment wise, revenue from data grew 6% YoY, coming in at Rs 4,903 crore, while the digital revenue was up 10% YoY to Rs 2,313 crore.

The company said strategic actions to streamline and make our business future-ready has begun paying off. Over and above the divestiture of its payment solutions business, Tata Communications continues to pursue other monetisation opportunities and strategic
evaluation of assets.

"With disciplined capital allocation and our ‘Fit to Grow’ strategy we remain confident of delivering sustainable value to shareholders and customers alike," said Kabir Ahmed Shakir, CFO, Tata Communications.

The Board also approved the proposal for making an investment in its step down wholly owned subsidiary, Tata Communications (Netherlands) BV.

The proposed investment is intended to simplify the existing group structure of the company and its subsidiaries by moving TC Netherlands under direct ownership of the company without any change in the ultimate ownership.

On Wednesday, Tata Communications shares were trading nearly 4% lower at Rs 1,633 on NSE.