 "Tata Communications Q3 results: Net profit soars 426.5% to Rs 236 crore")
Tata Communications on Wednesday reported a 426.5 per cent year-on-year (Y-o-Y) increase in consolidated net profit to Rs 235.96 crore, attributable to equity holders of the parent, for the third quarter (October–December) of FY25.
The company reported a net profit of Rs 44.81 crore in the same quarter last year. However, the net profit rose only 3.84 per cent sequentially, up from Rs 227.23 crore in the preceding quarter.
The total income grew 4.14 per cent to Rs 5,826 crore, up from Rs 5,594 crore in Q3 FY24. The earnings before interest, tax, depreciation, and amortisation (Ebitda) stood at Rs 1,181 crore, increasing by 4.1 per cent compared to Rs 1,134 crore in the year-ago quarter.
During the December quarter, the company’s data revenues rose 6.2 per cent Y-o-Y to Rs 4,903 crore, compared to Rs 4,618 crore last year. Digital revenue grew by 10.2 per cent Y-o-Y, totalling Rs 2,313 crore during Q3.
“Q3 has been a satisfactory quarter with strong growth in digital revenues, improved margins, and enhanced free cash flow. We are advancing well in our review of subsidiaries, with a clear focus on optimising their performance and unlocking value, as demonstrated in the case of Tata Communications Payment Solutions Limited,” managing director and CEO AS Lakshminarayanan said.
The company remains open to acquiring strategic assets, Chief Financial Officer Kabir Ahmed Shakir told Business Standard during an interaction after the Q3 results.
Last year, the company acquired Nasdaq-listed global Communications Platform as a Service (CPaaS) player Kaleyra and US-based live video production company Switch Enterprises. Shakir added that the company continues to review its subsidiaries, aiming to optimise performance and unlock value.
On Wednesday, the Board of Directors approved the transfer of the step-down wholly owned subsidiary, Tata Communications (Netherlands) BV, to direct ownership under the parent company. This intra-group transaction will not alter the ultimate beneficial economic interest and ownership of the company in Tata Communications Netherlands.