Tata Communications shares register mild gains after better-than-expected Q1 results
Tata Communications shares rose on Thursday after the telecom company reported a largely strong set of numbers for the April-June period.
Tata Communications shares registered mild gains on Thursday, a day after the telecom company reported a largely strong set of quarterly numbers. Tata Communications shares gained by as much as Rs 28.8 or 1.8 per cent to Rs 1,647 apiece on BSE in morning deals, coming within Rs 27 of a 52-week high touched last month.
After market hours on Wednesday, Tata Communications reported a 17.2 per cent year-on-year increase in net profit to Rs 382 crore for the April-June period. Its revenue grew 4.4 per cent to Rs 4,771 crore but margin slipped by 110 basis points to 21.5 per cent, according to a regulatory filing.
According to Zee Business research, Tata Communications' quarterly net profit was estimated at Rs 310 crore, revenue at Rs 4,700 crore and margin at 22.3 per cent.
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EDITOR'S TAKE | Good results
Zee Business Managing Editor Anil Singhvi pointed out that Tata Communications' data revenue growth was strong at 17 per cent and margin was a slight miss on account of operational expenses.
The company reported data revenue of Rs 3,931 crore and voice revenue of Rs 418 crore for the three-month period. Zee Business analysts had estimated the telecom company's data revenue at Rs 3,862 crore and voice revenue at Rs 453 crore.
The Tata Communications management said it is on a robust growth trajectory with data revenue.
Tata Communications shares: Past performance
Tata Communications shares finished the June quarter with a gain of 28 per cent, sharply outperforming a 10.5 per cent rise in the benchmark Nifty index.
As of July 19, the stock grew 62.7 per cent in the past one year while the Nifty climbed up 21.4 per cent.