Tata Communications Q4 Results: Profit Jumps On Lower Exceptional Cost, Meets Estimates
The rise in net profit was due to lower exceptional costs of Rs 52 crore clocked during the period, contrasting with the third quarter's exceptional costs of Rs 185.5 crore.
Tata Communications Ltd.'s fourth quarter net profit jumped significantly, meeting analysts' estimates. The company's net profit rose to Rs 321 crore from Rs 45 crore on a sequential basis, according to an exchange filing issued on Wednesday. Analysts tracked by Bloomberg had estimated it at Rs 310 crore.
The rise in net profit was due to lower exceptional costs of Rs 52 crore clocked during the period, contrasting with the third quarter's exceptional costs of Rs 185.5 crore. The bottomline was also accelerated by lower tax expense.
The company's total expenses during Q4 rose to Rs 5,489 crore sequentially from Rs 5,305 crore in the previous quarter.
Tata Communications Q4 FY24 Highlights (QoQ)
Revenue from operations rose 1% to Rs 5,691.7 crore, as compared with a forecast of Rs 5,721.5 crore.
Ebitda down 7% to Rs 1,056 crore, as against an estimate of Rs 1,125 crore.
Margin was at 18.5% vs 20.13%.
The company's board also approved a final dividend of Rs 16.7 per share for the financial year ended March 31, 2024. This dividend, upon approval of the shareholders at the ensuing Annual General Meeting (AGM), shall be paid to eligible shareholders after its conclusion.
Further, Tata Telecommunications also approved re-appointment of A.S. Lakshminarayanan as Managing Director and CEO of the company for a second tenure commencing from November 26, 2024 till April 13, 2026, subject to approval of the shareholders and any other as applicable.
Shares of Tata Communications closed 1.3% lower on Tuesday, as compared with a 0.43% decline in the benchmark Nifty 50.