Can Tata Communications Cross the 2K Level by Next Year or Will it Take Longer?

Tata Communications (NS:) announced Q2FY23 results:

Consolidated: Consolidated revenue stood at Rs 4,431 crore ($ 555.5 million); increasing +6.2% YoY. Sequentially, growth in revenue followed upsides in the Data business
Consolidated EBITDA came in at Rs 1,130 crore ($ 141.7 million); rising +1.5% YoY, where margins stood at 25.5%, growing by 50 Bps sequentially.
Consolidated PAT stood at Rs 532 crore ($ 66.7 million) from INR 425 crore ($ 57.4 million) in Q2 FY22, marking an increase of +25.1% YoY Committed CAPEX for this quarter stood at $ 52.7 million relative to $ 52.9 million in Q2 FY22

Data services portfolio: Data business revenues came in at Rs 3,493 crore ($ 438 million), recording an increase of +4.6% QoQ and +11.2% YoY. Strong momentum was witnessed across all offerings in the Data portfolio. EBITDA stood at Rs 1,007 crore ($126.3 million), up +3.9% QoQ on the back of strong operational efficiencies.

The Core Connectivity portfolio reported growth of +5.9% YoY in revenue; EBITDA enhanced by +7.5% YoY, with margins coming in at 46.6% Digital Platforms and Services delivered robust growth of +16.5% YoY and +6.1% QoQ. Declaring the results, A.S Lakshminarayanan, MD and CEO, of Tata Communications, said, “We are pleased to announce robust data revenue growth and healthy profits in the second quarter of this fiscal. Our international markets are witnessing good growth and our continued efforts of shifting from products to platforms are yielding positive results.”

Commenting on the results, Kabir Ahmed Shakir, Chief Financial Officer, of Tata Communications, said, “Our performance in the second quarter demonstrates our broad-based growth, continued strong performance on profitability and free cash flow. We are further strengthening our position as a trusted partner to our customers helping them evolve in their digital transformation journeys. So the main question is after the results are announced Can Tata Communication cross the 2000 levels next year? Please add your comments below.

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