Tata Comm gains after turnaround Q1 results

Tata Communications rose 0.92% to Rs 472 at 11:27 IST on BSE after the company reported a consolidated net profit of Rs 78.37 crore in Q1 June 2019 compared with a net loss of Rs 58.49 crore in Q1 June 2018.

The result was announced after market hours on Friday, 2 August 2019.

Meanwhile, S&P BSE Sensex was down 539.90 points or 1.45% at 36,578.32.

On BSE, 23,000 shares were traded in Tata Communications counter, compared to a 2-week average of 17,000 shares. The stock hit an intraday high of Rs 510.80 and an intraday low of Rs 471. It hit a 52-week high of Rs 626.65 on 2 April 2019 and a 52-week low of Rs 435.95 on 26 October 2018.

Consolidated net sales rose 5.7% to Rs 4,168.62 crore in Q1 June 2019 over Q1 June 2018. Consolidated EBITDA surged 40.7% to Rs 825.6 crore in Q1 June 2019 over Q1 June 2018, mainly backed by strong profitable growth in data business and steady voice margins. Data Services contributed 79% of the total overall revenues in Q1 June 2019 as against 74% in Q1 June 2018. The consolidated EBITDA margin also improved by 490 bps to 19.8% this quarter as against the same quarter last fiscal year.

The chief financial officer of Tata Communications, Pratibha K. Advani, has said, Our strategic focus on offering best-in-class digital infrastructure solutions is showing results. The overall share of profitable Data services is increasing and performance during the quarter reflects the continued momentum. Robust growth in our Enterprise business (+20%) and Growth services (+29%) is testament to the fact that we are considered as a preferred digital transformation partner. With our continued market focus, we have won large deals across our product portfolio from some of the biggest global enterprises, which are in different stages of execution. Our Data business has witnessed robust performance both in terms of revenue and profitability. We have a strong order book and we expect this trend to continue as we keep executing large deals. We are reimagining and transforming our systems, processes and cost structure to achieve even higher level of efficiencies and profitability.

Tata Communications is a global digital infrastructure provider that powers today's fast- growing digital economy. The company mainly deals with network, cloud, mobility, Internet of Things (IoT), collaboration and security services.

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