Earnings Alerts

Tata Communications (TCOM) Earnings: 1Q Net Income Misses Estimates Despite Revenue Growth

  • Net Income: 3.33 billion rupees, down 13% year-over-year, missed the estimate of 3.55 billion rupees.
  • Revenue: 56.3 billion rupees, up 18% year-over-year, but below the estimate of 57.87 billion rupees.
  • Total Costs: 53.3 billion rupees, an increase of 20% year-over-year.
  • EBITDA: 11.2 billion rupees, up 9.8% year-over-year, beating the estimate of 10.95 billion rupees.
  • EBITDA Margin: 20%, compared to 21.5% year-over-year.
  • Fund Raising: Approved INR20 billion via bonds.
  • Bond Sale: Approved for INR20 billion.
  • UK Investment: Approved an investment of $26.8 million in its UK unit.
  • Analyst Ratings: 4 buys, 2 holds, and 2 sells.

A look at Tata Communications Smart Scores

FactorScoreMagnitude
Value2
Dividend5
Growth3
Resilience2
Momentum2
OVERALL SMART SCORE2.8

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Looking ahead, Tata Communications appears to have a mixed long-term outlook based on the Smartkarma Smart Scores. While the company receives a high score of 5 for Dividends, indicating a strong payout relative to its share price, it falls slightly short in areas such as Value, Resilience, and Momentum, with scores of 2 across the board. This suggests that Tata Communications may not be currently perceived as an undervalued investment option, and it may face challenges in terms of market resilience and momentum compared to its peers.

Despite these considerations, with a Growth score of 3, Tata Communications shows promising potential for expansion and development in the future. As a provider of telecommunications services offering a wide range of international communication solutions, including internet access and electronic data interchange services, the company maintains a diversified portfolio that could support its growth trajectory over the long term.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.


 

πŸ’‘ Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • βœ“ Unlimited Research Summaries
  • βœ“ Personalised Alerts
  • βœ“ Custom Watchlists
  • βœ“ Company Analytics and News
  • βœ“ Events & Webinars