Tata Communications PAT falls 30% to Rs 382 crore in Q1FY24

Tata Communications has announced its financial results for the quarter ended 30th June 2023 where the Data business of the company rose to Rs 3,912 crore in Q1FY24, registering a growth of 17.1% YoY. 

As the acquisition of Switch was completed in this quarter, the Data Revenue include two months of revenues from The Switch Enterprises LLC, the company informed.

Highlights of Q1 FY2024

Consolidated financial highlights:

• Consolidated revenue stood at Rs 4,711 crore, increasing 10.7% YoY 
• Consolidated EBITDA came in at Rs 1,024 crore where margins stood at 21.5%; Underlying EBITDA Margins stood at 22.1%
• Consolidated PAT stood at Rs 382 crore, down 30% from Rs 544 crore in Q1FY23; impacted by higher interest costs and lower forex gains vs Q1 FY23 
• Cash CAPEX for this quarter stood at Rs 431 crore relative to Rs 329 crore in Q1FY23

Data Services Portfolio:

• Data business revenues came in at Rs 3,912 crore, recording an increase of 17.1% YoY; Underlying Data Revenue growth came in at 14.2% YoY 
• Data EBITDA stood at Rs 929 crore, 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 delivered robust growth of 37.5% YoY driven by growth across all portfolios and integration of The Switch Enterprises LLC

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

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. "

On the recently announced ESG goals, Lakshmi added, “Sustainability is at the core of our business strategy and we are committed to be Net Zero by 2035 across our global operations.”

During morning session, shares of Tata Communications were trading in the green by 0.18% at Rs 1621.10 per share on the BSE.

Source: Media Reports