Tata Communications Reports Modest Q2 Profit Growth Amid Market Dynamics

Tata Communications reported a 2.98% annual increase in consolidated net profit for the September quarter, reaching Rs 227.23 crore. Despite the year-on-year rise, profits fell 31.73% compared to the previous quarter. Revenues surged 18.36% to Rs 5,767.3 crore. Shares dipped by 4.51% following these announcements.

Tata Communications announced a minor uptick in consolidated net profit for the September quarter, marking a 2.98% increase year-on-year, reaching Rs 227.23 crore. However, this figure represents a 31.73% decline from the previous quarter's Rs 332.84 crore.

The company's revenues for Q2 FY25 saw an 18.36% boost year-on-year, amounting to Rs 5,767.3 crore, a considerable rise from Rs 4,872.5 crore in the same period last year. This growth is attributed to strategic wins and increased adoption of their Digital Fabric.

Despite these financial metrics, Tata Communications' stock saw a 4.51% drop, closing at Rs 1,834.30 on the BSE on Thursday. CEO A S Lakshminarayanan remains optimistic, citing the expanding order book and future growth prospects.

(With inputs from agencies.)