Are Tata Comm latest results good or bad?

Tata Communications has released its financial results for the quarter ending March 2025, showcasing a mixed performance. The company reported net sales of Rs 5,990.35 crore, which is the highest figure in the last five quarters, indicating a positive near-term sales trend. Additionally, the Profit After Tax (PAT) reached Rs 348.20 crore, reflecting a growth compared to the average PAT of Rs 286.06 crore over the previous four quarters. This growth in PAT corresponds with an earnings per share (EPS) of Rs 36.50, also the highest in the last five quarters.
However, the results also reveal significant challenges. The Profit Before Tax less Other Income (PBT) was reported at Rs -12.19 crore, marking a decline compared to the average PBT of Rs 317.59 crore from the previous four quarters, which is the lowest PBT in the last five quarters. This situation raises concerns regarding the sustainability of the company's income sources, particularly as non-operating income accounted for a substantial percentage of PBT.

In terms of quarterly performance, the net sales showed a growth of 3.32% compared to the previous quarter. The consolidated net profit exhibited a notable growth of 340.90% quarter-on-quarter. However, the operating profit (excluding other income) experienced a decline of 4.98%, and the operating profit margin (excluding other income) saw a slight decrease of 1.72%.

Overall, Tata Communications has experienced an adjustment in its evaluation, reflecting the complexities of its operational performance amidst both growth in sales and profitability, alongside notable challenges in core profitability metrics.