Blitz Bureau
NEW DELHI: Tata Communications on Wednesday reported a net profit of Rs 236.08 crore in Q3 FY25, a significant growth of 424 per cent compared to Rs 45.05 crore in the same quarter last fiscal (Q3 FY24). The company’s revenue from operations for the quarter stood at Rs 5,798.07 crore, which is a 3.76 per cent increase year-on-year from Rs 5,587.78 crore reported in the previous fiscal.
The company reported a growth in its earnings before interest, tax, depreciation, and amortisation (EBITDA), which stood at Rs 1,181 crore, a 4.1 per cent rise from Rs 1,134 crore in the corresponding quarter of the previous year.
“Q3 has been a satisfactory quarter with strong growth in digital revenues, improved margins, and enhanced free cash flow. We are advancing well in our review of subsidiaries, with a clear focus on optimising their performance and unlocking value,” said A.S. Lakshminarayanan, MD and CEO, Tata Communications.
In Q3, the company witnessed growth in data revenues, which amounted to Rs 4,903 crore, a 6.2 per cent increase compared to Rs 4,618 crore in the same period last year.
Furthermore, the company’s digital revenues saw a 10.2 per cent year-on-year rise, totalling Rs 2,313 crore.
In terms of consolidated financials, the company reported gross revenue of Rs 5,798 crore for the quarter, a 2.9 per cent increase from Rs 5,633 crore in the same quarter last year.
The EBITDA margin improved slightly to 20.4 per cent, up by 23 basis points from 20.1 per cent. PAT margin also saw a sharp improvement, rising to 4.4 per cent, up by 363 basis points from 0.8 per cent in the year-ago quarter.
Additionally, the company’s board has approved a proposal for investing in its step-down wholly-owned subsidiary, Tata Communications (Netherlands) B.V. Tata Communications, without changing the ultimate ownership and economic interest in the subsidiary, said the company.
