Tata Communications stock gains on Q4 earnings, rises 56% in one year
Shares of Tata Communications edged higher on April 18, a day after the company reported a consolidated net profit of Rs 321.20 crore for the quarter ended March 31, 2024, up 7.2 times sequentially and almost in line with Street estimates. The company’s total income grew 1.8 percent on-quarter to Rs 5,748.7 crore.
The EBITDA margin, a key measure of profitability, stood at 18.6 percent for the March quarter. As per the regulatory filing, the revenue from Tata Communications’ core business segment of data services increased 0.9 percent sequentially to Rs 4,670.9 crore.
Revenue from voice solutions, campaign registry, real estate and payment solutions also saw an increase, while transformational services revenue declined.
Tata Communications stock gains on Q4 earnings, rises 56% in one year
That’s interesting! Here’s a breakdown of the news about Tata Communications:
- Stock Price Increase:Â Their stock price went up slightly after their Q4 earnings report.
- Strong Annual Performance:Â Despite the small Q4 bump, the bigger story is the significant 56% increase in their stock price over the past year.
Here are some additional insights:
- Q4 Earnings Performance:
- Profit went up significantly (7.2x) compared to the previous quarter.
- Profit was slightly lower than the same quarter last year (down 1.5%).
- Revenue grew by 24.6% year-on-year.
Possible explanations for the strong annual performance:
- Overall market trends:Â The Indian stock market might have performed well in the past year, benefiting Tata Communications.
- Company-specific factors:Â Positive news about the company’s future prospects, new contracts, or successful product launches could have driven the stock price up.
Limitations to consider:
- The news doesn’t specify the reason for the stock price increase.
- Past performance doesn’t guarantee future results.
Recommendations:
- To understand the reasons behind the stock price movement, you can look for further analysis on financial news websites or investment research reports.
- Before making any investment decisions, it’s crucial to do your own research and consider factors like your risk tolerance and investment goals.