Tata Communications Q2 profit tanks 58% to Rs 221 crore

Tata Communications on Thursday reported a 58 per cent decline in its consolidated profit after tax to Rs 221.26 crore for the second quarter ended September 30. The company had posted a profit after tax of Rs 534.26 crore a year ago.

Revenue rises 10%

Its consolidated income from operations grew by about 10 per cent to Rs 4872.5 crore during the reported quarter from Rs 4,430.74 crore in the September 2022 quarter.The company's data business revenue grew 14.4 per cent on a year-on-year basis to Rs 3,995 crore.

Robust growth

We are pleased to announce a robust 14 per cent year-on-year revenue growth this quarter. Overall, we remain confident of the long-term opportunities and will continue to invest in the product portfolio to strengthen our value proposition to enterprises, Tata Communications MD and CEO AS Lakshminarayanan said.

Acquisition of Kaleyra Inc

The company during the quarter announced to accelerate the closure of the Kaleyra Inc transaction, which will enable it to create a new digital platform category - Customer Interaction Suite.Kaleyra has become a wholly-owned direct subsidiary of Tata Communications pursuant to the reverse merger with its other subsidiary TC Delaware Technologies Inc, wherein Kaleyra is the surviving entity. Tata Communications has assumed all of Kaleyras outstanding adjusted gross and net debt of approximately Rs 1,810.22 crore and Rs 1,561.24 crore as of the acquisition date, respectively.Kaleyra is now delisted on the New York Stock Exchange.

Financial results

The financial results for the quarter and half year ended September 30, 2023, do not include any impact of such acquisition, Tata Communications said in a regulatory filing.

Despite the decline in profit, Tata Communications remains confident in its long-term growth prospects and will continue to invest in its product portfolio to strengthen its value proposition to enterprises.