Are Tata Comm latest results good or bad?

Tata Communications has reported its financial results for the quarter ending March 2025, revealing a mixed performance. The company achieved 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 notable increase compared to the average PAT of the previous four quarters, with earnings per share (EPS) also reaching the highest level in the last five quarters at Rs 36.50.
However, the results also presented significant challenges. The Profit Before Tax less Other Income (PBT) was reported at Rs -12.19 crore, marking a drastic decline compared to the average PBT from the previous four quarters. This figure is the lowest PBT in the last five quarters, suggesting a negative near-term trend. Furthermore, non-operating income constituted a substantial portion of PBT, raising concerns about the sustainability of the company's income sources.

In terms of quarterly growth, net sales showed a 3.32% increase compared to the previous quarter, while consolidated net profit exhibited a remarkable growth of 340.90%. However, operating profit (excluding other income) declined by 4.98%, and the operating profit margin experienced a slight decrease.

Overall, Tata Communications has seen an adjustment in its evaluation, reflecting the complexities of its financial performance amid both positive sales growth and significant challenges in profitability metrics.