Tata Communications Q2 Results: Net profit plummets 57% YoY to Rs 221.26 crore
The company reported net profit of Rs 221.26 crore for the quarter under consideration as compared to Rs 534.26 crore in the same period last fiscal.
The fall in net profit comes even as revenue from operations saw a 10% jump on year at Rs 4872.5 crore in the September quarter of this fiscal as compared to Rs 4430.74 crore in the second quarter of FY23.
Revenue growth was driven by Tata Communications’ data business growth which came in at Rs 3, 995 crore, up 14.1% from the previous year.
“With the fast tracked integration of The Switch, we are witnessing synergies being realised. Besides this, we are happy to announce the accelerated closure of the Kaleyra Inc.
transaction which will enable us to create a new digital platform category — Customer Interaction Suite — in line with our ambitions,” A.S. Lakshminarayanan, managing director and chief executive, Tata Communications said.
“Overall, we remain confident of the long-term opportunities and will continue to invest in the product portfolio to strengthen our value proposition to enterprises,” he added.
Tata Communications’ EBITDA (earnings before interest, taxation, depreciation, and amortization) came in at Rs 1, 015 crore, down 10.1% from Q2FY23 due to elevated network and employee costs while EBITDA margin was down 465 basis points year on year at 20.8%.
“Our planned investments in the organic and inorganic opportunities are in line with our ‘Fit to Grow’ Strategy.
