Telecom firm Tata Communications is expected to post recovery in revnue aided by data revenue which expected to grow. Tata Communication wil post its December quarter results on 23 jaunuary, 2023.
Tata Communications is expected to post recovery in its revenue 7.5 per cent year-on-year and 1.5 per cent quarter-on-quarter to ₹4,497.4 crore, albeit normalising of costs will lead to margins decline said ICICI Direct in its brokerage report.
However, profit after tax (PAT) is expected to decline by 3.9 per cent year-on-year and 28.6 per cent quarter-on-quarter to ₹380 crore in December 2022 quarter.
The data revenue is expected to grow 10.3 per cent year-on-year and 2.1 per cent quarter-on-quarter at ₹2565 crore. While the overall Overall margins are expected at 24.9%, down 60 bps QoQ, 100 bps YoY.
The firm is expected to post an EBITDA of ₹1,119.9 crore up by 3.5 per cent YoY while it could decline by 0.9%.
"For Tata Communications (TCom), we expect gradual revenue growth recovery to continue, albeit normalising of costs will lead to margins decline QoQ and YoY. The data revenue is expected to grow 2.1% QoQ (up ~10.3% YoY) at ₹3565 crore. The voice revenues are anticipated to continue to remain weak, down 4.7% QoQ (10 % YoY decline) at ₹500 crore. The overall revenue is expected to grow 1.5% QoQ (7.5% YoY) at ₹4497 crore. Data segment margins are expected at 29% (flattish QoQ). Overall margins are expected at 24.9%, down 60 bps QoQ and down 100 bps YoY. Key monitorable : Growth outlook commentary," said ICICI Direct brokerage report.
Tata Communications net consolidated profit fell by 2.1% to ₹532.29 crore in Q2 from ₹543.36 crore in Q1. The company's consolidated revenue from operations reduced to ₹4,467 crore in the quarter under review. On Friday, the company's scrip was down by 2.04 per cent to ₹1,342.55 at BSE.
