Tata Communications shares in focus; here's why

Tata Communications shares were down over half per cent in the morning deals on Thursday (June 13) after the following developments: i) Analysts and investors meet and ii) World Athletics signs a five-year broadcasting services deal with Tata Communications.

At around 10:09 a.m. shares of Tata Communications traded 0.57 per cent lower at Rs 1,885.2.

1) Analysts and investor meeting highlights: 

The Tata group's telecom company in its analysts meet said that it aims to achieve earnings before interest, tax, depreciation, and amortisation (EBITDA) margins at 23-25 per cent till FY27. 

Further, the company targets Net Debt/EBITDA target less than two times till FY27. Additionally, the management has increased its digital portfolio target from 41 per cent to 60 per cent till FY27. The management also aims to $100 crore income from America in the medium term

ii) World Athletics signs five-year broadcasting services deal 

World Athletics on Wednesday announced a five-year global broadcasting services deal with Tata Communications, making the Indian telecom major a partner in the coverage of marquee events from next year, including the Tokyo World Championships.

Tata Communications will be a "key strategic supplier" for the world body with a view to "elevating innovation and audience engagement to new heights", World Athletics said in a statement.

The year 2025 features events such as the World Athletics Indoor Championships in Nanjing in March, World Athletics Relays in Guangzhou in May, and World Athletics Road Running Championships in San Diego in September.

The biennial World Championships will be held from September 13 to 21 next year.

"As the host broadcaster of World Athletics Series events, Tata Communications will take on the pivotal role of crafting immersive coverage, and delivering customised, world-class live content across continents," the release said.

Tata Communications share price: Past performance 

In a year, shares of Tata Communications have given returns of over 18 per cent against Nifty50's rise of 24 per cent.

(With inputs from agencies.)

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