- Tata Communications reported a net income of 2.27 billion rupees in the second quarter, marking a 2.7% year-over-year increase.
- Analysts estimated the net income to be higher, at 2.71 billion rupees.
- Total revenue for the quarter was 57.7 billion rupees, an 18% increase compared to the previous year, but slightly below the estimate of 57.77 billion rupees.
- Total costs rose by 20% year-over-year, reaching 55 billion rupees.
- The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at 11.2 billion rupees, a 9.8% increase from the previous year, but did not meet the estimated 11.58 billion rupees.
- EBITDA margin decreased to 19.4%, compared to 20.8% from the previous year.
- Tata Communications recorded a one-time gain of 429 million rupees in the second quarter, attributed to the sale of an asset.
- Following the earnings announcement, shares of the company declined by 3.6%, closing at 1,853 rupees, with a trading volume of 368,427 shares.
- Analyst ratings for the stock include 4 buys, 2 holds, and 1 sell recommendation.
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A look at Tata Communications Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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
Based on Smartkarma Smart Scores, Tata Communications appears to have a mixed long-term outlook. While the company scores well in Dividend and Growth, indicating a strong dividend payout and potential for future growth, it lags in Value and Resilience factors. This suggests that Tata Communications may not be currently undervalued compared to its peers and could face some challenges in terms of resilience to market fluctuations. However, with a moderate score in Momentum, there may be some positive market sentiment and upward potential in the near future for the company.
Tata Communications Limited, a telecommunications services provider, offers a range of international communication services such as telephone, telex, and telegraphy services. Additionally, the company provides internet access, email, and data interchange services. With a promising dividend outlook and growth potential, Tata Communications could leverage its offerings to navigate the evolving telecommunications landscape and capitalize on emerging opportunities.
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.
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