Tata Communications reports a 424% year-on-year increase in Q3 net profit, driven by growth in digital and data revenues. The company is restructuring to simplify its corporate structure.
India-based Tata Communications, a leading global provider of communication services and network solutions, has reported impressive growth for the quarter ending December 2024. The company announced a consolidated net profit of ₹236.08 crore, marking a 424% year-on-year increase compared to ₹45.05 crore during the same period last year. This exceptional rise in net profit was largely attributed to strong performance from both continuing and discontinued operations.
The net profit from continuing operations stood at ₹256.6 crore, reflecting a significant 227% year-on-year growth. On a sequential basis, the net profit from continuing operations grew 12.9%, signaling sustained momentum. Tata Communications’ revenues for the December 2024 quarter reached ₹5,798.07 crore, a growth of 3.76% compared to ₹5,587.78 crore in the previous year.
The company’s Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) for the quarter was ₹1,181 crore, up 4.1% from ₹1,134 crore in the year-ago quarter, indicating operational efficiency.
Tata Communications’ data revenues for the quarter grew by 6.2%, totaling ₹4,903 crore compared to ₹4,618 crore in December 2023. The digital revenue segment saw a 10.2% increase year on year, contributing ₹2,313 crore to the total revenues for the quarter.
A.S. Lakshminarayanan, the Managing Director and CEO of Tata Communications, expressed satisfaction with the Q3 performance, highlighting strong digital revenue growth, improved margins, and enhanced free cash flow. He further emphasized that the company’s focus on digital infrastructure would prove crucial, especially as artificial intelligence (AI) continues to expand. Tata Communications’ investments in its “Digital Fabric” were noted as a strategic move to capitalize on this growing trend.
Tata Communications is also in the process of restructuring, with plans to simplify its corporate structure. The company is moving its Netherlands-based subsidiary, Tata Communications (Netherlands) B.V., directly under the ownership of Tata Communications, an intra-group transaction aimed at optimizing the organization’s operational structure. This restructuring process is part of Tata Communications’ broader efforts to enhance performance and unlock further value from its subsidiaries, including Tata Communications Payments Solutions Limited.
The company’s focus on optimizing its operations and expanding its digital offerings aligns with its long-term strategy to strengthen its position as a key player in the global digital infrastructure space.
Tata Communications is headquartered in Mumbai, Maharashtra, India, and is a key subsidiary of the Tata Group, specializing in providing communication services to businesses and telecommunications companies worldwide.
