Tata Communications Q3 results: Net profit surges 424% to ₹236 crore, revenue rises 4%

Tata Communications, on Wednesday, reported a 424% year-on-year increase in its consolidated net profit, which jumped to ₹236 crore in the third quarter of the 2024-25 fiscal. In the same period last year, the company’s net profit stood at ₹45 crore.

The company reported a 3.8% rise in its revenue from operations to ₹5,798 crore, compared to ₹5,587.8 crore in the corresponding quarter last year.

The company’s EBITDA stood at ₹1,181 crore, up 2.4% from ₹1,153 crore in the year-ago period.

“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," A.S. Lakshminarayanan, MD and CEO of Tata Communications commented.

Restructuring plans

Additionally, the company's board approved the proposal to invest about $88.78 million (or ₹770 crore) in its step-down wholly owned subsidiary, Tata Communications B.V., based in the Netherlands.

This investment will move TC Netherlands under the company’s direct ownership and thus help simplify the organisation structure, it said in a press release.

Diluting stakes

In Q3FY25, the company sold its entire stake in Tata Communications Payments Solutions (TCPSL). It is also expected to dilute its stake in a subsidiary, which will make it a minority shareholder, the Hindu Business Line reported.

Despite, the massive jump in net profit, the stock closed in the red at ₹1,673.00, down 1.42% on the NSE on Wednesday. The results were announced an hour before market closing.

Tata Communications had a total market capitalisation of ₹47,680.50 crore as of January 22, 2025, on the NSE.