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Tata Communications Q3 Review - Seasonality, Slower Deal Conversions Impact Earnings: Motilal Oswal

Tata Communications Q3 Review - Seasonality, Slower Deal Conversions Impact Earnings: Motilal Oswal

Signage for Tata Group is displayed atop of the Tata Communication Ltd. office building in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)
Signage for Tata Group is displayed atop of the Tata Communication Ltd. office building in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. 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 Q3 FY21 revenue/Ebitda was a miss due to lower-than-expected earnings reported in both the data and voice segments – due to seasonality and slower deal conversions.

However, excluding a one-time cost benefit from Q2 FY21, the Ebitda miss stands at 5.9% (versus 9.5% on total Ebitda).

We reduce our revenue/Ebitda estimates for FY21 by 3%/4% and for FY22 by 7%/5% due to lower-than-expected earnings and slower deal conversions.

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Motilal Oswal Tata Comunications Q3FY21 Result Update.pdf

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