- Tata Communications‘ net income for the second quarter was 1.83 billion rupees, which is a 19% decrease compared to the previous year and below the estimated 3.1 billion rupees.
- Revenue increased by 6.5% year-on-year, reaching 61 billion rupees, slightly higher than the estimated 60.79 billion rupees.
- Total costs rose by 6.8% year-on-year, totaling 58.1 billion rupees.
- EBITDA grew by 4% year-on-year to 11.74 billion rupees, but this was below the estimated 12.17 billion rupees.
- The EBITDA margin slightly decreased to 19.2% from 19.7% the previous year, missing the estimate of 20.3%.
- A one-time cost of 210 million rupees in the second quarter was noted, related to staff cost optimization provisions and a gain from asset sales.
- Despite the earnings miss, Tata Communications shares rose by 3.2% to 1,933 rupees, with 4.95 million shares traded.
- The stock has received 6 buy recommendations, 2 hold recommendations, and 1 sell recommendation.
A look at Tata Communications Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
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 the Smartkarma Smart Scores for Tata Communications, the company seems to have a positive long-term outlook. With a strong dividend score of 5, investors can expect good returns in the form of dividends. Momentum, also rated at 5, indicates that the company is exhibiting positive upward momentum in its performance. While the value score is moderate at 2, the growth and resilience scores of 3 suggest a balanced blend of growth potential and the ability to withstand market challenges. Overall, Tata Communications appears to be a solid investment option in the telecommunications sector.
Tata Communications Limited offers a range of telecommunications services, including international telephone, telex, and telegraphy services. The company also provides internet access, electronic mail, and electronic data interchange services, showcasing its diversification within the industry. With strong scores in dividends and momentum, Tata Communications seems well-positioned for continued growth and stability in the long term. Investors might find Tata Communications an attractive choice based on its Smartkarma Smart Scores and diversified service offerings.
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.
💡 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
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
