Tata Communications on Thursday reported its fastest quarterly growth in nine years. The revenue grew by 24.4 per cent, surpassing the ₹5,000 crore milestone in the third quarter that ended on December 31.
The company reported a quarterly revenue of ₹5,633 crore in the quarter, backed by strong performance in data revenue. The year-on-year EBITDA grew by 5.3 per cent. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization.
Revenue from the data services segment, which contributes more than 80% to the total, climbed 28.3% on robust demand in its core connectivity and digital portfolio segments.
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“We are pleased to report another quarter of robust growth as data revenue crossed the ₹4,000 crore mark with digital services contributing 45%, in line with our strategy. Even as we increase our impetus on people and platforms to deliver long-term value, our acquisitions of Oasis, The Switch and Kaleyra have created new avenues for growth and innovation. We remain confident about our medium-term ambitions,”AS Lakshminarayanan, MD and CEO, Tata Communications, said in a statement.
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“We are extremely encouraged that Kaleyra has turned EBITDA positive in the first quarter itself, in line with our ‘Fit to Grow’ strategy. We are excited about the medium term as we see multiple levers to maximise value from both our organic and inorganic investments. We continue strongly on the new growth trajectory with robust cash flow generation as the focus,” Kabir Ahmed Shakir, the company’s chief financial officer (CFO), said.
The shares of Tata Communications closed in green at ₹1775.00, this despite the stock market closing in red on Thursday. Sensex and Nifty fell for the third day running on Thursday, dragged by continuous selling in HDFC Bank and profit-taking in consumer durables and utility shares.
The Sensex fell by 313.90 points or 0.44 per cent to settle at 71,186.86. During the day, it tanked 835.26 points or 1.16 per cent to 70,665.50.
The Nifty declined 109.70 points or 0.51 per cent to 21,462.25. During the day, it plunged 286.4 points or 1.32 per cent to 21,285.55.