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Tata Communications Q2 numbers show growth in a difficult market

Tata Communications

Tata Communications Q2 numbers growth

With a portfolio of products focused on voice and data, Tata Communications is an active participant in the digital technology ecosystem. Tata Communications Payment Solutions and Tata Communications Transformation Services are part of a smaller division. WAN ethernet, a global VPN, and international private lines are a few of the services the organization provides.

Following are some key insights from the most recent financial results:

On a consolidated basis, net profit decreased by 2.1% to Rs 532 crore in the second quarter (Q2) of the current fiscal year from Rs 544 crore in the first quarter. EBITDA and gross sales both increased during the same time period, from Rs 4,311 crore to Rs 4,431 crore.

Business segments: The company’s two sectors, voice and data, had an increase in revenue, with the latter accounting for 79% of the total. The management of the company mentioned the robust expansion of the global markets and the success of its ongoing efforts to move its products to platforms.

Tata Communications

Importantly, Tata Communications’ management reiterated at the analyst meeting in June of this year its platform transformation plan with a focus on product innovation, new launches, more consumer wallet share, and financial fitness to accelerate topline growth. Then, according to a report released by Emkay, the business has met its financial fitness targets over the past two years, despite a delay in income recovery. “The executives appeared optimistic.”

Outlook: The company’s outlook appears optimistic, but, in the words of Deven Choksey, MD, K R Choksey Securities, “there is a need to listen to the management.” He believes that the business strategy is sound and that growth is occurring steadily. Since the stock, along with a sizable portion of the market, is fully priced, “we need to be cautiously optimistic.” He does not express surprise about the results for Q2 and notes that they are the result of “a revamped pricing model and better yield pricing.”