Shares of Tata Communications Ltd. rose the most in 27 months after its profit jumped and margin expanded in the first quarter.
Revenue up 1% at Rs 4,310.5 crore
Ebitda up 3% at Rs 1,077.03 crore
Ebitda margin at 25% against 24.5%
Net profit up 49% at Rs 543.76 crore
According to analysts, the voice segment aided Ebitda growth in the first quarter, while higher other income led to an uptick in net profit. Also, the company's cost control measures have yielded margin benefits.
Shares of Tata Communications jumped 12% in intraday gains before settling with gains of more than 10%, the most since April 30, 2020. The trading volume was more than 11 times the 30-day average.
Of the nine analysts tracking the company, seven suggest a 'buy' and one each recommends a 'hold' and a 'sell', according to Bloomberg data. The 12-month consensus price target implies an upside of 14.8%.
Here's what brokerages have to say about Tata Communications' Q1 FY23 results.
Reiterates 'neutral' with a target price of Rs 1,060, an implied upside of 8.77%.
Improvement in voice segment aided Ebitda growth and strong free cash flow.
Revenue from both transformation and payment solutions declined.
Average daily transactions fell to 49 in Q1 compared to 53 YoY.
High other income (due to accrued interest and income tax refund) aided PAT in Q1.
Maintains 'add' with a target price of Rs 1,316 apiece, an implied upside of 50.4%.
Both revenue and Ebitda margin met estimates .
Cost control measures and voice business segment aided margins.
The commentary on growth outlook is crucial factor to watch out for.
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