Tata Comm Q3 results: Net profit rises 28% to Rs 395 crore

Tata Communications posted a 28% jump in consolidated net profit to Rs 395 crore in Q3 FY22 from Rs 309.4 crore reported in Q3 FY21.

Gross revenue from operations declined 0.9% to Rs 4,185 crore in Q3 FY22 over Q3 FY21. The company said all three segments (Core Connectivity, Digital Platforms, & Incubation services) of data business witnessed healthy growth sequentially.

The company’s Digital Platforms and Solutions continued to improve and gain growth momentum, revenues grew by 6.7% year on year. Within Digital Platforms, all segments except Collaboration witnessed double digit year on year growth. Core Connectivity witnessed a revenue growth of 1.3% year on year.

Consolidated profit before tax surged nearly 27% to Rs 483.8 crore in Q3 FY22 from Rs 381.4 crore posted in Q3 FY21. EBITDA grew by 3.5% year on year to Rs 1,0825 crore in Q3 FY22. Meanwhile, the company’s EBITDA margin improved by 110 basis points year on year to 25.9% in period under review.

Commenting on the results, A.S Lakshminarayanan, MD and CEO of Tata Communications said, We witnessed another quarter of good sequential growth in our data business, with digital platforms and solutions delivering robust results. We continue to focus on providing holistic solutions to our customers and accelerating their digital transformations.

Kabir Ahmed Shakir, CFO of the company said, We are pleased with the growth in revenue as well as profitability during Q3 FY22. Our performance demonstrates sustained progress in our journey towards our financial fitness. Healthy improvement in free cash flows and reduction in net debt provides us headroom to invest for future growth.

Tata Communications is a leading global digital infrastructure provider. Its Tier-1 IP network, wholly-owned subsea fibre backbone and consortium cables’ global network carries approximately 30% of the world’s internet routes.

Shares of Tata Communications ended 2.62% higher at Rs 1,522.45 on Wednesday. Capital Market