Tata Communication net profit down 22% in Q1
Tata Communications on Monday reported a 22.27 % fall in its consolidated net profit at Rs 32.94 crore in the quarter ended June 30, as compared to Rs 42.38 crore in the year-ago period.
Its total income also fell by 4.34 % to Rs 4,354.39 crore during the quarter under review from Rs 4,552.30 crore in the same period a year ago.
"On a year-on-year basis core revenues declined, as expected, primarily due to de-growth in the voice business; in-line with the industry trends," the company said in a statement.
It also said that its data services revenue improved by 4.6 % on year-on-year basis.
"Digitalisation continues to create new avenues for growth across our entire business portfolio, and our investments in digital competencies hold us in good stead for the future. Having established a broad and deep portfolio that enables digital and global transformations, we are now pivoting our customer engagement around business themes rather than just technology," said MD and CEO Vinod Kumar.
The company is also proactively investing into futuristic workflows and systems that will boost its productivity and enhance the customer experience. These investments will positively impact the medium to long term margins, he said.
CFO Pratibha K. Advani said: "Our free cash flow generation remains robust notwithstanding investments into new growth services and for our in-house business transformation projects. We are fully geared to capitalise on this opportunity."