Tata Communications Q4 Results: Profit Jumps Over Fourfold On Exceptional Gain
The board of Tata Communications proposed a final dividend of Rs 25 per share for the financial year ended March 31.
Tata Communications Ltd.'s consolidated net profit surged more than fourfold in the fourth quarter for the last financial fiscal, beating analysts' estimates.
The company recorded a profit of Rs 1,040.5 crore for the quarter ended March, according to an exchange filing on Tuesday. Analysts tracked by Bloomberg had a consensus estimate of Rs 305.2 crore.
It recorded a gain of Rs 311.2 crore from the sale of its subsidiary, Tata Communications Payments Solutions.
Tata Communications Q4 Highlights (Consolidated, QoQ)
Revenue up 3.3% to Rs 5,990.4 crore versus Rs 5,798.1 crore (Bloomberg estimate: Rs 5,966.8 crore).
Ebitda down 5% to Rs 1,122.1 crore versus Rs 1,181 crore (Estimate: Rs 305.2 crore).
Margin narrows to 18.7% versus 20.4% (Estimate: 18.3%).
Net profit up 341% to Rs 1,040.5 crore versus Rs 236.1 crore (Estimate: Rs 305.2 crore).
Dividend
The board of Tata Communications proposed a final dividend of Rs 25 per share for the financial year ending March 31 at a face value of Rs 10 each.
Following the approval received in the annual general meeting, the dividend will be paid to the eligible shareholders.
Shares of Tata Communications closed 1.58% higher at Rs 1,598.70 apiece on the NSE, compared to a 0.17% rise in the benchmark Nifty 50. The stock has fallen by 7.21% in the past 12 months and 6.15% on a year-to-date basis.
Out of eight analysts tracking the company, five maintain a 'buy' rating on the stock, one recommends 'hold' and two suggest 'sell', according to Bloomberg data. The average of the 12-month analysts' price target implies a potential upside of 15.2%.
