Market

Tata Communications Q2 results: Net profit jumps 10.6%, revenue dips 5.2%

Mumbai: ’ consolidated profit jumped 10.6 per cent on year to Rs 425 crore in the fiscal second quarter due to lower operating cost and taxes, while consolidated revenue was down 5.2 per cent to Rs 4,174 crore, on a decline in its voice business and moderation in the data segment.

The company’s services were impacted in the first quarter due to the Covid-19 pandemic’s second wave.

Sequentially, profit was up 43.7 per cent and revenue grew 1.7 per cent on account of a gradual recovery across both data and voice segments.



Earnings Before Interest and Tax (EBIT) margin for the quarter rose to 13.7 per cent compared to 11.1 per cent during the first quarter.

“Delivering a sequential growth on a quarter-on-quarter basis after three-quarters of decline is a positive indicator which we will continue to build on,” AS Lakshminarayanan, managing director and chief executive of Tata Communications, said in a statement.

“The second quarter was marked by recovery with favourable underlying trends as economic activities normalise,” he added.

Data revenue stood at Rs 3,140 crore, up 1.1 per cent sequentially and 2.2 per cent lower year on year.

Earnings before interest, taxes, depreciation, and amortization (Ebitda) for the quarter stood at Rs 1,113 crore due to cost benefits from the timing difference in hiring new employees to fulfill open positions in the organization, and a reversal of provisioning for doubtful debts due to better collection efforts, the company said.

“Our continuous focus is on improving profitability to maintain healthy margins. Ebitda margin for the quarter was at 26.7 per cent, margins improved by 40 bps on YoY basis and 260 bps sequentially,” it said in a statement.

The company said net debt at the end of the quarter was Rs 7,761 crore, down by Rs 240 crore sequentially and Rs 870 crore compared to the corresponding period last year, on the back of a better working capital mix and improvement in operating profit, it said.

This came despite a dividend payout of Rs 399 crore in the quarter.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button