Tata Communications Q3 Results Review - Focus On Growth To Dilute Near-Term Earnings: Motilal Oswal

"BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Tata Communications Ltd. consolidated revenue grew 2.1% QoQ to Rs 45.3b (inline), led by 3% QoQ growth in the data segment. Voice segment revenue declined 4% QoQ, while other revenue grew 4% QoQ. The tailwind from Indian rupee depreciation of 3% QoQ supported revenue growth.Tata Communications' Ebitda declined 5% QoQ to Rs 10.8 billion (5% miss), affected by a 6% QoQ decline in data segment Ebitda. As a result, consolidated Ebitda margin declined 170 bps QoQ to 23.8% (100 bps miss), in line with the management’s guidance of the 23-25% margin range.Interest costs jumped 26% QoQ due to an increase in the borrowing cost amid rate hikes globally. Accordingly, adjusted profit after tax fell 14% QoQ to Rs 4 billion (inline). Committed capex decreased 7% QoQ to Rs 3.9 billion in Q3 FY23 from Rs 4.2 billion in Q2 FY23. Net debt/gross debt declined marginally by Rs 1.3 billion/Rs 0.9 billion to Rs 63 billion/Rs 77 billion. Free cash flow declined by 45% QoQ to Rs 3.5 billion from Rs 6.2 billion in Q2 FY23, led by an 18% QoQ decline in cash flow from operation due to working capital changes. However, nine months-FY23 free cash flow yields stood at 7% (annualised) versus 6% in FY22..Click on the attachment to read the full report:.Tata Communications Plunges As Q3 Profit Declines.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Tata Communications Q3 Results Review - Focus On Growth To Dilute Near-Term Earnings: Motilal Oswal

Tata Communications' revenue grew inline, but Ebitda declined 5% QoQ due to weak data Ebitda margin.

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Tata Communications Q3 Results Review - Focus On Growth To Dilute Near-Term Earnings: Motilal Oswal

Tata Communications' revenue grew inline, but Ebitda declined 5% QoQ due to weak data Ebitda margin.

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