Objective: ₹ 1,618
CMP: ₹ 1,607.15
Tata Communications offered mixed performance for Q4Fy25. The reported revenues stood at ₹ 5,990 million rupees, 3.3 percent QOQ.
As for the segment, voice income decreased by 8.9 percent of QOQ, while the data increased 3.9 percent qoq. Voice contributed with 6.2 percent to income, while the data contributed with 85.1 percent. Central connectivity contributed with 52.1 percent to income (2.5 percent QOQ), while the digital portfolio contributed 47.9 percent (5.5 percent QOQ).
The Ebitda margin hired by 170 PB QOQ to 18.7 percent compared to 20.4 percent in Q3-fy25. Capex stood at ₹ 730 million rupees compared to ₹ 490 million rupees in Q3-fy25. The net debt decreased to ₹ 9,377 million rupees compared to ₹ 10,470 million rupees in the third quarter of 2000. The company has disincted all its participation in TCPSL, resulting in a gain of ₹ 311 million rupees. Yo
The order funnel saw robust additions H1, but the delivery deadlines extended, which brought some agreements of agreements to Q1. The tariff uncertainty of the United States has pushed some offers towards the first quarter, but there are no cancellations; The client funny is still robust.
We hope you have an Ebitda margin of about 22 percent in the short term. We await income/EBITDA/PAT a clock 10.8/19.8/51.5 percent Cag on FY25-FY27E. We have reviewed our EPS FY26E/FY27E in (10.3 percent)/(3.9 percent) and maintain our reduction rating with a revised objective price of ₹ 1.618 (US ₹ 1,713 before).
Posted on April 24, 2025
