Tata Communications up 9% as co posts stellar 84% rise in profit in June quarter

Consolidated Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) - a measure of a company's overall financial performance - came in at Rs 1,077 crore - a 9.2 percent YoY increase, where margin stood at 25 percent, growing by 95 basis points YoY.

Consolidated revenue was reported 5.1 percent up, year-on-year, at Rs 4,311 crore. Tata Communications’ data business revenues were 7.6 percent up at Rs 3,340 crore.

Data Services segment continues to be the biggest contributor to the company’s business with revenue of Rs 3,353.44 crore followed by voice solution which contributed Rs 561.4 crore and transformation service of Rs 345.29 crore.

EBITDA increased to Rs 960 crore on the back of consistently delivering core connectivity and digital platforms and services.

AS Lakshminarayanan, MD and CEO, Tata Communications said that the company delivered a profitable data revenue growth as a result of disciplined execution, portfolio enhancements and deeper customer engagements.

“We continue to closely monitor and overcome the original equipment manufacturer (OEM) and supply chain challenges. We are pleased with the healthy growth in the order booking and funnel additions across our portfolio, both in India and international markets.”

In terms of investments and growth, he said, "We are a company that is focused on growth. As I said in quarter three of last year we are going to be investing more in sales and marketing. We have been investing in our platforms over the last several quarters, and those investments will continue. And as we make those investments and focus on growth, there will be costs that will come back in as people travel, both from a sales point of view and marketing expenses. So that is the reason why we said that we would operate in this range of 23-25 percent in the medium term."