Tata Communications Q4 Profit Slips 1.5%, Revenue Up 24.6%; Dividend Announced

Tata Communications on Wednesday reported fourth-quarter (Q4) results for the financial year 2023-24. The company's consolidated net profit soared over sevenfold sequentially, reaching Rs 321 crore.

This remarkable surge in profit was buoyed by a 1.8 percent quarter-on-quarter increase in total income, which stood at Rs 5,748.7 crore, as reported in a regulatory filing.

The company declared a final dividend of Rs 16.70 per share (face value Rs 10 each) for the fiscal year ending March 31, 2024. Pending shareholder approval at the upcoming Annual General Meeting (AGM), eligible shareholders will receive the dividend post the meeting's conclusion, as stated in a regulatory filing.

Despite a slight dip in EBITDA margin to 18.6 percent for the March quarter compared to 22.6 percent in the previous quarter, Tata Communications demonstrated resilience and growth across various business segments.

Revenue from its core data services segment increased by 0.9 percent to Rs 4,670.9 crore, while revenue from voice solutions improved by 1.4 percent to Rs 429 crore. The campaign registry revenue surged by 9.1 percent to Rs 138 crore, although transformational services revenue experienced a slight decline to Rs 397.3 crore.

Tata Communications to achieve a consolidated net profit of Rs 321 crore, with revenue hitting Rs 5,692 crore for the January-March period. The company surpassed expectations with its robust financial performance.

Furthermore, revenue from real estate and payment solutions units witnessed marginal growth, indicating the company's diversified revenue streams. For the full financial year ended March 31, 2024, Tata Communications recorded a consolidated net profit of Rs 968.3 crore, compared to Rs 1,796 crore in the previous year.

Despite this decrease, the company's revenue expanded to a record Rs 21,251.3 crore, driven by a remarkable 21.9 percent year-on-year growth in data revenue, surpassing the Rs 17,000 crore mark.

"We are pleased to report the significant revenue milestone of INR 20,000 crore. We closed FY24 with strong execution, and our digital fabric is witnessing increased relevance from enterprise customers. As we enter the next fiscal year, our firm focus will remain on integrating our acquisitions, executing our strategies, and driving sustainable and profitable revenue growth." AS Lakshminarayanan, CEO, Tata Communications, said in a statement.

Looking ahead, Lakshminarayanan reaffirmed the company's commitment to integrating acquisitions, executing strategies, and driving sustainable and profitable revenue growth in the coming fiscal year. Tata Communications' relentless focus on innovation and customer-centric solutions positions it strongly in an increasingly competitive telecommunications landscape.

Tata Communications' stellar financial performance in Q4 and FY24 underscores its resilience, strategic focus, and commitment to delivering value to shareholders amidst evolving market dynamics.