Tata Communications witnessed a rise in its shares on April 18, a day after reporting a consolidated net profit of Rs 321.20 crore for the quarter ended March 31, 2024. This figure marked a significant increase of 7.2 times sequentially and was nearly in line with Street estimates. The company’s total income also grew by 1.8 percent quarter-on-quarter (QoQ) to Rs 5,748.7 crore.
With an EBITDA margin of 18.6 percent for the March quarter, Tata Communications demonstrated strong profitability. The revenue from its core business segment of data services increased by 0.9 percent sequentially to Rs 4,670.9 crore.
The telecom company’s board recommended a dividend of Rs 16.7 per share, subject to approval by shareholders at the Annual General Meeting (AGM).
Tata Communications also announced the re-appointment of AS Lakshminarayanan as the managing director and CEO for a second term starting from November 26, 2024, until April 13, 2026.
Lakshminarayanan stated, “As we enter the next fiscal, our firm focus will remain on integrating our acquisitions, executing our strategies, and driving sustainable and profitable revenue growth.”
At 10:36 am, Tata Communications stock was trading half a percent higher at Rs 1,894.20 on the National Stock Exchange (NSE). The stock has risen over 7 percent so far this year and logged gains of 56 percent in the last one year, outperforming the benchmark index by 30 percent.
Shilpa Rout of Prabhudas Lilladher recommended a cautious approach to Tata Communications stock, advising investors to sell with a stop loss of Rs 1,920 and targeting Rs 1,880 to Rs 1,850.
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