Motilal Oswal: Tata Communications’ Cost Efficiency Aids Ebitda Growth  
Signage for Tata Group is displayed atop of the Tata Communication Ltd. office building in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Motilal Oswal: Tata Communications’ Cost Efficiency Aids Ebitda Growth  

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.

Motilal Oswal Report

Tata Communications Ltd.’s Q1 FY21 revenues were in line. Consolidated revenues at Rs 44 billion (in-line), voice segment revenue at Rs 8 billion and data segment revenues at Rs 36 billion were flat QoQ.

Selling general and administrative expenses declined 18% QoQ due to one-time benefits owing to drop in travel and office expenses. Thus, overall operating costs declined 5% QoQ.

Consolidated Ebitda jumped 20% QoQ (15% beat) to Rs 10.4 billion. Ebitda margin expanded by 390 basis point QoQ to reach 23.7%.

Pre Indian accounting standards (Ind AS-116) Ebitda is estimated at approximately Rs 9.7 billion (up 22% QoQ) with margins at 22.1%.

Reported profit after tax stood at Rs 2.6 billion. Adjusted PAT (for exceptional items) was up 2.6 times QoQ to Rs 2.7 billion.

Capex for Q1 FY21 was Rs 3.7 billion (versus Rs 3.4 billion in Q4 FY20). Net Debt as at Q1 FY21 reduced by Rs 1.7 billion QoQ to Rs 90 billion.

Data Ebitda was up 19% QoQ to Rs 9.8 billion (contributing 94% of total Ebitda). Ebitda margin expanded 420 basis point to 27.1%, on the back of continued focus on cost efficiencies and lower cost due to the lockdown.

Click on the attachment to read the full report:

Motilal Oswal Tata Communications Q1FY21 Result Update.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.