Synopsis:
Telecommunications company saw a 424% increase in Q3 FY25 net profit, supported by revenue growth, reduced exceptional losses, and a one-time income. Strong performance highlights improved financial health.
Introduction:
Leading telecommunications firm has reported a remarkable 424% year-on-year increase in net profit for Q3 FY25, driven by strong revenue growth, reduced exceptional losses, and a one-time income contribution. The company’s financial position continues to improve significantly.
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Share price movement of Tata Communications:
On January 22, 2025, Tata Communications Ltd opened at ₹1,697.30, unchanged from its previous close of ₹1,697.30. The stock reached a high of ₹1,702.00 and a low of ₹1,590.00. By 3:00 PM, it traded at ₹1,672.30 with a market cap of ₹47,660.55 crore.
Tata Communications Reports 424% Profit Growth:
Tata Communications reported a remarkable 424% YoY increase in net profit for Q3 FY25, reaching ₹236 crore, up from ₹45 crore in the same period last year. This substantial growth was driven by higher revenue, reduced exceptional losses, and a one-time income.
The company’s total revenue for the quarter amounted to ₹5,798 crore, marking a 3.8% YoY increase from ₹5,587.8 crore in Q3 FY24. A one-time income of ₹115 crore contributed significantly to these figures, with data services revenue at ₹4,917 crore, including the one-time contribution.
EBITDA for Q3 FY25 rose to ₹1,181 crore, reflecting a 2.4% YoY increase. Adjusting for the one-time income, the EBITDA margin stood at 18.8%, slightly lower than the previous year’s 20.6%, signaling effective cost management despite the drop.
Recent news on Tata Communications:
As of January 14, 2025, Tata Communications has partnered with JLR to enhance driving experiences by providing continuous connectivity and intelligent services across 120 countries, utilizing its MOVE™ platform for seamless network transitions and secure data exchange in upcoming electric vehicles.
Ace investor holding in Tata Communications:
Rekha Jhunjhunwala
Rekha Jhunjhunwala holds a 1.58% stake in Tata Communications Ltd., amounting to 4,500,687 shares valued at ₹752.5 crore. This investment highlights her significant interest in the company’s growth and potential in the telecom sector.
Stock performance of Tata Communications for Period of 1 week, 6 months and 1 year:
Tata Communications Ltd has shown a modest 1.30% return over the past week, but its performance has faced challenges, with a -10.00% return over six months and a slight -0.41% decline over the past year.
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Shareholding pattern of Tata Communications:
| All values in % | Dec 2024 | Sep 2024 | Jun 2024 |
| Promoter | 58.90% | 59% | 58.90% |
| FII | 17.80% | 18.10% | 18.10% |
| DII | 13.70% | 13.50% | 13.20% |
| Public | 9.70% | 9.60% | 9.90% |
About Tata Communications:
Tata Communications Ltd. (NSE: TATACOMM) is a global digital ecosystem leader, providing managed solutions to multinational companies. With a strong presence in emerging markets, it offers services in communication, cloud, mobility, and data centers, partnering with Fortune 500 companies.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
