Tata Communications’ Progress Analyzed

Key Points

• Strong data growth helped Tata Communications succeed.
• Overall revenue increased slightly, but was affected by global changes.
• Profitability improved thanks to better data and cost savings.
• Debt decreased, showing the company is getting stronger financially.
• A new CEO is coming in to lead the company’s digital future.
• Brokers have different opinions about whether the stock’s value will rise.

Tata Communications, a company that helps other businesses send information, had a good quarter. They’re trying to become more focused on using data to improve their business. It was like building a solid foundation for the future, even if some parts of their older business weren’t doing as well.

They made ₹6,190 crore (that’s like about $750 million) in sales during this time. This was a little bit more than people expected, and it grew by 6.7% compared to last year. However, because of changes in money values (like exchange rates), the sales didn’t grow as much as they wanted.

The part of the business that uses data was really strong. They made ₹5,360 crore from this. This was because more people were using their services to connect information and because they were selling new digital products. But some older parts of the business, like voice calls and some support services, didn’t do as well.

They had a lot of new deals helping large companies connect their data centers together, which was a good thing. But because of problems with undersea cables, things were a little tricky. They also started selling more digital services like helping businesses work together, using cloud computers, and protecting information.

The company’s voice calls went down a lot, which is a problem because it shows that fewer people are making regular phone calls. The services they offered to help businesses improve themselves (TCTS) also didn’t do as well. It’s like a few parts of the business were struggling.

Some experts said the company did okay, while others worried. One group thought the data business was doing great, and the company would keep getting better. Another group thought they needed to grow faster and that things weren’t as good as they seemed.

Even though sales weren’t amazing, the company made more money. Their profits went up by 60% because they cut costs and a new part of the company called Tata Communications Reimagined did really well.

They spent more money on things like building better internet cables and upgrading their systems. But this also meant they had to pay more for things like electricity and staff. Despite this, they still made a good profit.

The company’s debt got smaller, which is good news. This means they are in a better financial position. They are also getting a new boss, Ganesh Lakshminarayanan, who has a lot of experience in technology and telecom. He’s going to lead the company into the future, especially using data.

Some experts think the stock price might go up, but others are more cautious. They want to see the data business keep growing and for the company to make more money.

The best way to understand a company’s future is to see how it’s using new technologies and data.