Tata Comm Q2 net profit zooms to Rs 53.9 crore

Digital infrastructure provider Tata Communications on Friday posted manifold growth in its net profit to Rs 53.91 crore for the September 2019 quarter. This is against a net profit of Rs 1.65 crore in the July-September 2018 period, a statement said.

The company's revenue increased 5 percent to Rs 4,272.76 crore in the quarter under review from Rs 4,068.22 crore in the year-ago period, it added. "As the market continues to evolve at an unprecedented rate, the need to accelerate digital transformation across all layers of the enterprise is the reality businesses face to remain competitive today," Tata Communications MD and CEO - Designate A S Lakshminarayanan said.

He added that the company's focus on providing digital infrastructure solutions that align with this customer need is showing results. "This is evident in the growth and profitability of our data business which now drives 79 percent of business revenues. By being a part of our customers' digital journeys, we remain committed to steering the business towards sustainable profit and ultimately, demonstrable stakeholder value," he said.

The company saw strong growth in its data business with revenue growing by 10.7 percent year-on-year on the back of robust performance in traditional services and transformation services portfolio, despite industry headwinds. "We have witnessed a robust trend over last few quarters with strong financial performance delivered across all key parameters. Our Data business has continued to witness strong performance in revenue as well as profitability, despite industry headwinds," Tata Communications Chief Financial Officer Pratibha K Advani said.

She added that the company has a strong order book and expects this trend to continue as it keeps executing on large deals.

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