Tata Communications shares extend losses for 7th straight day after marginal growth in Q4 net profit
Upstox
2 min read • Updated: April 18, 2024, 6:17 PM
Summary
Tata Communications reported a 1.56% YoY drop in consolidated net profit at ₹321.52 crore for the quarter ending March 31, 2024, while its consolidated revenue from operations surged 24.6% YoY.
Shares of Tata Communications Limited closed lower on Thursday, April 18, extending the losses for the seventh straight day after the company reported marginal growth in net profit in Q4FY24.
The Tata Group company released its earnings report for the quarter and the full financial year ending March 31, 2024, on Wednesday, April 17. As the markets remained closed on account of Ram Navami, Tata Communications shares were in focus on Thursday over investor reaction to the March quarter results.
Tata Communications shares opened lower at ₹1,853 apiece on the NSE compared to the previous close of ₹1,883.75 apiece. The stock gained as much as 2.15% to an intraday high of ₹1,924.3 apiece on the NSE. However, Tata Communications shares closed at ₹1,856.95 apiece, down 1.42 %, extending the losses for the seventh straight day.
The company’s consolidated net profit decreased marginally 1.56% to ₹321.52 crore in the March quarter compared to ₹326.64 crore in the same period last year. Its consolidated revenue from operations rose 24.6% to ₹5,691 crore in the Q4FY24, up from ₹4,568 crore in the corresponding period last year.
The decline in net profit during the March quarter was primarily attributed to a lower share in the profit of associates, as the profit before tax dropped by 24% to ₹259.31 crore, down from ₹345.4 crore in the year-ago quarter.
During the January-March period, the company saw a 2.1% year-on-year increase in its EBITDA at ₹1,056 crore, while the EBITDA margin stood at 18.6%.
For the entire fiscal year 2023-24, Tata Communications reported a 29% increase in income from operations at ₹20,969 crore, compared to ₹17,838 crore in FY 2022-23.
Tata Communications also declared a final dividend of ₹16.7 per share for the fiscal year ending March 31, 2024.
The company also announced the re-appointment of AS Lakshminarayanan for a second term as managing director and CEO. His term will begin on November 26, 2024, and extend until April 13, 2026, subject to shareholder approval.