Tata Group Stock Gains Over 8%, Why Is It Rising Sharply Today?

Tata Communications enables the digital transformation of enterprises globally, including 300 of the Fortune 500. The company unlocks opportunities for businesses by enabling borderless growth, boosting product innovation, customer experience, improving productivity, efficiency, building agility and managing risk, according to its official website.

It is part of Tata Group and has been a part of the rich heritage of the internet in India. Today Tata Communications Ltd shares have made big gains in the stock market today. Check below to find more:

1. Tata Communications Shares Gain 8.84%

The shares of Tata Communications have gained 8.84% in trade today till 11:14 pm. The current market price of the stock after the gain is 1063 apiece. The 52-week high of the stock is Rs 1591 apiece and 52-week low is Rs 856 apiece, respectively. It is a company with high TTM EPS growth. The PE of the stock is 20.44 which is lesser than sector PE of 24.74.

2. Tata Communications Q1 Results

Tata Communications declared its first quarter results on Wednesday i.e. July 20, 2022. After the company announced the strong Q1 results, the stock surged more than 8% in trade today. The company reported that profit after tax (PAT) stood at Rs 544 crore in this quarter, which is an uptick of 83.6 per cent on-year from Rs 296 crore in Q1 FY22, according to PTI news.

Consolidated Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at Rs 1,077 crore, an increase of 9.2% from the same period last year. The company reported consolidated revenue of Rs 4,311 crore in Q1 FY23, an increase of 5.1 per cent YoY. Tata Communications' data business revenues were reported at Rs 3,340 crore, which is an increase of 7.6 per cent year-on-year.

The company added that digital platforms and services delivered robust growth of 12.3 per cent YoY. EBITDA stood at Rs 960 crore, which is an increase of 4 per cent on-year, added the PTI report.

The company added that the core connectivity portfolio reported a growth of 3.6 per cent year-on-year in revenue, while EBITDA increased 2.6 per cent YoY, with margins at 42.5 per cent.

3. About Tata Communications Ltd

It has its presence in 190+ countries and territories around the world. Tata Communications serves over 7,000 customers globally that represent over 300 of the Fortune 500. It connects 4 out of 5 mobile subscribers worldwide. The company connects businesses to 80% of the world's cloud giants and operates the largest wholly owned and most advanced subsea fibre network which underpins the internet backbone, where its network carries around 30% of the world's internet routes. The current market capitalization of Tata Communications is Rs 30,316 crore.