ICICI Direct: Tata Communications’  Upward Shift Of Data Segment Margin Continues  
Signage for Tata Group is displayed atop of the Tata Communication Ltd. office building in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

ICICI Direct: Tata Communications’ Upward Shift Of Data Segment Margin Continues  

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

Tata Communications Ltd. reported a better-than-expected performance on the operating front led by superior margins in the data segment.

The topline was at Rs 4,401 crore, up 3% YoY, flattish QoQ, with data revenues (forming approximately 83% of revenues) growing at 7.2% YoY, a tad lower than expectations.

Ebitda came in at Rs 1,158 crore, up 26.3% YoY, with margins at 26.3% (up 680 basis points YoY) driven by strong data margins of 30.4% (up 830 basis points YoY), aided by structural cost savings and continued Covid-19 led benefits such as savings in travel costs, lower selling, general and administrative costs etc.

The company reported a profit after tax of Rs 384.5 crore, up approximately 6.1 times YoY.

Click on the attachment to read the full report:

ICICI Direct Tata Communication Q2FY21 Result Update.pdf

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