After Q1 result, Tata Communications shares down by 8 per cent
Manjiri Meshram / 29 Jul 2015
Recently Tata Communications announced its First Quarter FY16 result, where the revenue from operations of the company marginally rose by 8.11 per cent to Rs 5206.27 crore compared to Rs 4815.52 crore on sequential basis. The revenue from Voice Solutions segments rose by 1.66 per cent and Data and Managed Services segment rose by 8.65 per cent Q-o-Q basis.
Tata Communications is a global provider of communication. The company delivers managed solutions to multi-national enterprises, service providers and Indian consumers. The company has its presence in data services, global international voice and it also has strategic investments in South Africa, Sri Lanka, and Nepal.
Recently Tata Communications announced its First Quarter FY16 result, where the revenue from operations of the company marginally rose by 8.11 per cent to Rs 5206.27 crore compared to Rs 4815.52 crore on sequential basis. The revenue from Voice Solutions segments rose by 1.66 per cent and Data and Managed Services segment rose by 8.65 per cent Q-o-Q basis. The total expenses of the company increased by 1.52 per cent to Rs 5003.81 crore compared to Rs 4655.57 on a quarterly basis.
The EBITDA increased by 5.54 per cent to Rs 761.57 crore against Rs 721.62 crore, EBITDA margin contracted by 36 basis points. The other income reduced by 17.52 per cent. The finance cost increased by 7.75 per cent in Q1Fy16 compared to Q4FY15. This resulted in the highly reduced PAT of the company, wherein the company reported a net loss of Rs 33.86 crore for the first quarter ended June, 2015.
Commenting on the results, Vinod Kumar, MD and CEO, Tata Communications, says, “Tata Communications continues to maintain its growth momentum and build on its strategic evolution into advanced managed services. The improvement in global demand, our comprehensive data services portfolio and an emphasis on operational excellence holds us in good stead. In the coming quarters, we will continue to calibrate our performance against customer expectations, to deliver sustainable value to all stakeholders.”
During the quarter, Tata Communications partnered with Kaltura to provide next generation online video and content delivery platform. Tata Communications announced next steps in proposed Neotel and Vodacom transaction.
Sanjay Baweja, Chief Financial Officer, Tata Communications says, “Our Q1 results have set a good momentum for the year ahead and we are confident that we will be able to sustain this trend in the coming quarters. The business continues to benefit from improved asset utilisation, greater leverage on costs and uptrend in our newer services.”
After the result announcement, today the shares of Tata Communications are trading lower by more than 8 per cent at Rs 437.
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