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%.
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