Tata Communications Ltd.'s consolidated net profit declined 82% in the first quarter for this fiscal, missing analysts' estimates.
The company recorded a profit of Rs 189.98 crore in the quarter ended June, according to an exchange filing on Thursday. Analysts tracked by Bloomberg had a consensus estimate of Rs 351.1 crore.
The decline comes as the company posted a gain of Rs 311.2 crore in the previous quarter from the sale of its subsidiary, Tata Communications Payments Solutions.
Tata Communications Q1 Highlights (Consolidated, QoQ)
Revenue down 0.5% to Rs 5,959.9 crore versus Rs 5,990.4 crore (Bloomberg estimate: Rs 6,043.7 crore).
Ebitda rises 1% to Rs 1,136.8 crore versus Rs 1,122.1 crore (Estimate: Rs 1,307 crore).
Margin expands to 19.1% versus 18.7% (Estimate: 21%).
Net profit falls 82% to Rs 189.98 crore versus Rs 1,040.5 crore (Estimate: Rs 351.1 crore).
"Despite ongoing macroeconomic headwinds and continued pressures across the industry, we delivered a stable performance this quarter — with a healthy double-digit growth in our order book and modest uptick in margins," said AS Lakshminarayanan, chief executive officer of Tata Communications.
Tata Communications also received approval from its board of directors to raise up to Rs 1,000 crore through issuance of non-convertible debentures on a private placement basis.
The business update was shared after market hours. The stock settled 0.44% higher at Rs 1,731.6 apiece on the NSE, compared to a 0.40% decline in the benchmark Nifty 50. Tata Communication's shares have fallen 6.45% in the last 12 months and risen 1.66% year-to-date.
Out of nine analysts tracking the company, six maintain a 'buy' rating, one recommends 'hold' and two suggest 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 2161,902 implies an upside of 9.8%.
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