Tata Communications Reports Mixed Performance in Q2 FY25 Financial Results

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

According to the financials, Tata Communications has seen a negative performance in the quarter, with a score of -12 compared to -3 in the previous quarter. However, there are some positive aspects to the company’s performance. The net sales for the quarter were the highest in the last five quarters at Rs 5,767.35 crore, indicating a positive trend in sales. Additionally, the company has a high dividend payout ratio of 49.15%, showing that it is distributing a higher proportion of its profits as dividends.

On the other hand, there are some areas of concern for Tata Communications. The profit after tax for the quarter has fallen by 17.1% compared to the average of the previous four quarters. The company’s operating cash flow has also been declining, with the lowest figure in the last three years. The interest cost has increased by 11.82% compared to the previous quarter, indicating higher borrowings. The company’s short-term liquidity has also deteriorated, with the lowest cash and cash equivalents in the last six half-yearly periods. Additionally, the debtors turnover ratio has slowed down, indicating a slower pace of settling debts.

Overall, Tata Communications has seen a mixed performance in the quarter ending September 2024. While there are some positive aspects, there are also areas of concern that the company needs to address. Investors should carefully consider these financials before making any investment decisions.