Tata Communications Announces Q1 FY25 Financial Results, Mixed Performance with Positive Sales Growth

Tata Communications, a leading telecom provider in the industry, has recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financial report, Tata Communications has shown a flat performance in the quarter, with a slight improvement in its score from -12 to -3 in the last three months. However, there are some positive aspects to the company’s financials.

One of the highlights is the net sales for the half-yearly period, which has grown by 21.25% year on year, reaching Rs 11,325.07 crore. This indicates a positive trend in the company’s sales in the near term. Additionally, Tata Communications has a high dividend payout ratio of 49.15% in the last five years, showing that the company is distributing a higher proportion of its profits as dividends.

On the other hand, there are some areas of concern in the financial report. The profit after tax for the nine-month period has decreased by 33.49% year on year, standing at Rs 731.69 crore. This indicates a negative trend in the company’s profits in the near term. Moreover, the interest cost has increased by 36.78% over the preceding nine months, indicating a rise in borrowings.

Another concerning aspect is the company’s operating cash flow, which is at its lowest in the last three years, standing at Rs 3,182.00 crore. This shows a decline in the company’s cash revenues from business operations.

Overall, Tata Communications has shown a mixed performance in the quarter ending June 2024. While there are some positive aspects, there are also some areas of concern that the company needs to address. Investors are advised to carefully analyze the financial report before making any investment decisions.