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Tata Comm firms up after Q1 PAT spurts 245% YoY

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Tata Communications rose 2.62% to Rs 742.60 after consolidated net profit surged 245.40% to Rs 258.58 crore on 5.6% increase in net sales to Rs 4,402.94 crore in Q1 June 2020 over Q1 June 2019.

Consolidated profit before tax (PBT) soared 112.2% to Rs 339.79 crore in Q1 June 2020 as against Rs 160.10 crore in Q1 June 2019. Current tax expense for the quarter rose 1.9% at Rs 118.82 crore as against Rs 116.58 crore paid in Q1 June 2019. The result was declared after trading hours yesterday, 30 July 2020.

Consolidated EBITDA soared 26.2% to Rs 1,042 crore in Q1 FY21 over Q1 FY20. EBITDA margin grew 390 bps to 23.7% in Q1 FY20, on the back of strong profitable growth in data business and focus on cost efficiencies. CAPEX for the quarter stood at Rs 372 crore as compared to Rs 342 crore in Q4 FY20, recording an increase of 8.77% Q-o-Q (quarter-on-quarter).

Commenting on the Q1 performance, A.S Lakshminarayanan, the managing director (MD) and chief executive officer (CEO) of Tata Communications, has said that: "We have started this new financial year with strong performance amidst an uncertain and unpredictable economic environment. Digital is increasingly defining and shaping the experiences in this new world. It will become even more strategically core as businesses look to adopt new ways of working and transform how they operate, and how they engage with their audiences and with each other. We continue to be a key partner for our customers as they look to now focus on business recovery, acceleration, and growth."

"Our new proposition, Secure Connected Digital Experience, is aimed at enabling customers to adopt new digital working models by providing a holistic ecosystem of solutions that are suited for this digital-first environment and are built for the long term. We're seeing good interest in the market for these solutions. We remain focused on our strategy to deliver profitable growth and to be a preferred digital partner to our customers," he added.

Tata Communications is a leading digital infrastructure service provider and is one of the world's largest telecommunication companies with a global network reaching over 200 countries and territories.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, July 31 2020. 11:56 IST