Tata Communications Reports Stable Q3 FY24-25 Results Amid Liquidity Concerns

Tata Communications has released its financial results for the third quarter of FY24-25, showcasing a stable performance relative to earlier periods. The company has experienced an adjustment in its evaluation, with its score reflecting a notable shift over the last three months.
In terms of profitability, Tata Communications reported a Profit After Tax (PAT) of Rs 472.93 crore for the half-year, which represents a substantial year-on-year growth of 34.50%. The quarterly net sales reached Rs 5,798.07 crore, marking the highest level in the last five quarters, while the operating profit (PBDIT) also reached a peak at Rs 1,180.95 crore during the same timeframe. Additionally, the Profit Before Tax (PBT) was recorded at Rs 377.57 crore, indicating a growth of 23.6% compared to the average PBT of the previous four quarters.

Despite these positive indicators, Tata Communications is encountering challenges, as its cash and cash equivalents have fallen to Rs 534.96 crore, the lowest in the last six half-yearly periods, which points to concerns regarding short-term liquidity. Furthermore, the Debtors Turnover Ratio has decreased to 5.22 times, suggesting a slowdown in the pace of settling debts.

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