Tata Communications' investors optimistic ahead of Q2 results, stock gains 2%

Tata Communications share price: Ahead of the Q2 result announcement Tata Communications’ share traded in green on both the exchanges. At noon, the share price of Tata Communications quoted a price of Rs 1216, up 1.76 per cent on NSE. On the BSE, the stock climbed 1.54 per cent to trade at Rs 1214 per share.

Tata Communications is slated to announce its second quarter earnings today, October 18. 

Tata Communications in Q1 consolidated earned a good YoY Data Revenue growth of 7.6% with very strong profits, albeit supply chain and OEM lead time issues being worse in the quarter, seeing a stretch of almost 4x from the initial 12-16 weeks delays. The company recorded a revenue of Rs 4,311 Crores. The EBITDA for the quarter stood at Rs. 1,077 Crores, and the EBITDA Margin stood at 25 per cent.

The profit for the quarter was at Rs 544 Crores. Data revenue for the quarter stood at Rs 3,340 Crores. Payment business revenue for the quarter was Rs 44 Crores. Voice business continues to degrows in line with industry trends. The business declined by 4.7% YoY and improved 4.6% QoQ.

Company’s Core Connectivity Services grew by 3.6 per cent YoY and 1 per cent QoQ powered by consistent performance, high reliability and resilience, predictable routing, and faster restoration. Digital Platforms and Services portfolio saw a growth of 12.3 per cent YoY.

Tata Communications stock is in the consolidation phase for the past phase. The Tata Group company has delivered a negative return of 15 per cent year-to-date. Tata Communications stock price 52-week range is Rs 1,591.95 - Rs 856.25.