Tata Communication Q3 Review - Mixed Performance With Digital Segment Driving Growth Momentum: Yes Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Tata Communication Ltd. reported inline performance for the quarter. The sequential revenue growth was as per expectation; while Ebitda margin was slightly above expectation.It reported sequential revenue growth of 15.6% QoQ, led by increase in the data revenue by 15.6% QoQ. Voice revenue declined by 24.4% YoY, inline with trend.There was sequential decline in Ebitda margin (down 70 basis points QoQ) led by increase in network costs. Reported profit after tax decreased by 79.6% QoQ to Rs 453 million, on account of extraordinary expenses for the quarter. Net debt increased by Rs 23.5 billion QoQ to Rs 93.1 billion..We expect the voice business to continue to decline as per the industry trend; while data segment, especially the digital segment would continue to drive the overall performance of the company. Data core connectivity is expected to grow around mid single digit YoY. Private 5G related capex going ahead should also drive opportunities for the company. Ebitda margin will be under pressure in near term as it integrates Kaleyra, a communication platform-as-a-service player. We expect Ebitda margin to be around 20% for FY24. Net debt remains under control with strong operating cash flow generation. We estimate revenue CAGR of 17.5% over FY23‐26E with average Ebitda margin of 25.3%. We maintain our 'Add' rating on the stock with revised target price of Rs 1,990/share based on enterprise value/Ebitda of 6.5 times on FY26E. The stock trades at EV/Ebitda of 7.3 times/5.8 times on FY25E/FY26E..Click on the attachment to read the full report:.South Indian Bank Q3 Results Review - Strong Quarter, ~1% RoA Sustainable; Maintaining A 'Buy': Anand Rathi.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Tata Communication Q3 Review - Mixed Performance With Digital Segment Driving Growth Momentum: Yes Securities

Quarterly runrate for revenue crossed Rs 5,000 crore milestone and quarterly data revenue runrate crossed Rs 4,000 crore milestone.

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Tata Communication Q3 Review - Mixed Performance With Digital Segment Driving Growth Momentum: Yes Securities

Quarterly runrate for revenue crossed Rs 5,000 crore milestone and quarterly data revenue runrate crossed Rs 4,000 crore milestone.

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