Tata Communications shares zoom 9% post Q1 earnings

Tata Communications shares rose 9 per cent today after the firm announced a 83.6 per cent year-on-year (YoY) rise in net profit to Rs 544 crore in Q1 from Rs 296 crore in Q1 FY22.

Stock of Tata Communications gained 9.07 per cent to Rs 1,068.55 against the previous close of Rs 979.70 on BSE. The stock has gained after two days of consecutive fall. It opened 9.01 per cent higher at Rs 1,010 on BSE. Total 2 lakh shares of the firm changed hands amounting to a turnover of Rs 20.84 crore on BSE.

Tata Communications stock trades higher than 5-day, 20-day, 50-day and 100-day moving averages but lower than 200-day moving averages.

ALSO READ: Tata Communications Q1 results: PAT increases 83.6% to Rs 544 cr on-year

The large cap stock has lost 22.82 per cent in one year and fallen 27.4 per cent since the beginning of this year. However, in a month, the stock has gained 20.18 per cent. Total 2.09 lakh shares of the firm changed hands amounting to a turnover of Rs 30.48 crore on BSE.

Market cap of the Tata Group firm rose to Rs 30,275 crore.

The stock hit a 52-week high of Rs 1,590 on January 17, 2022 and a 52-week low of Rs 856 on June 15 this year.

Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at Rs 1,077 crore, a rise of 9.2 per cent from the same period last year. Consolidated revenue climbed 5.1 per cent YoY to Rs 4,311 crore.

The data business revenues of the Tat Group firm came at Rs 3,340 crore, rising 7.6 per cent YoY.

The company said that digital platforms and services logged robust growth of 12.3 per cent YoY. EBITDA stood at Rs 960 crore, which is an increase of 4 per cent on-year. The EBITDA growth was driven by consistent delivery in the core connectivity and digital platforms and services portfolio.

YES Securities said both revenue and EBITDA margins meet estimates. However, revenue growth remains muted at 1.1 per cent QoQ.

"The firm logged inline performance for the quarter. The commentary on the growth outlook is a key thing to watch out for. We currently have ADD rating on the stock. Trades at EV/ EBITDA of 7x on FY24 estimates," the brokerage said.

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