Tata Communications: An outlier in telecom space

Strong data business growth, asset sales & expansion should keep revenue growth at robust levels

In a sector wracked with volatility and stock price spikes, Tata Communications has been one of the few telecom stocks which has seen a secular uptrend in prices over the last one year. While business to consumer sector (B2C) peers have posted December quarter results which reflect multi-year operational lows, Tata Communications (B2B model) has stood out. Robust growth in data services segment (revenues up 11 per cent, operating profit up 20 per cent year-on-year) helped the company post adjusted consolidated revenues and operating profit ahead of estimates.

Going ahead, strong traction in data, cost cutting efforts and expansion in growth