Tata Communications Ltd on Wednesday (July 19) reported a 29.8 percent year-on-year (YoY) decline in consolidated net profit at Rs 381.7 crore for the first quarter that ended June 30, 2023.

The net profit was impacted by higher interest costs and lower forex gains against the first quarter of FY23. In the corresponding quarter last year, the company posted a net profit of Rs 544 crore, the company said in a regulatory filing.

In the quarter, total revenue stood at Rs 4,771.4 crore during the period under review, up 10.7 percent against Rs 4,310.5 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA declined 4.9 percent to Rs 1,024 crore in the first quarter of this fiscal over Rs 1,077 crore in the corresponding period in the previous fiscal, Tata Communications said.

The EBITDA margin stood at 21.9 percent in the reporting quarter compared to 25 percent in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

In the first quarter of FY24, the data business registered a growth of 17.1 percent year-on-year, to Rs 3,912 crore. As the acquisition of Switch was completed in this quarter, the data revenue includes two months of revenues from The Switch Enterprises LLC.

A.S. Lakshminarayanan, MD and CEO of Tata Communications, said, "We have had a pivotal first quarter in FY24 – delivering a very strong revenue growth in our data business and the digital portfolio, closing The Switch deal and announcing the Kaleyra acquisition."

The results came after the close of the market hours. Shares of Tata Communications Ltd ended at Rs 1,619.50, up by Rs 19.35, or 1.21 percent on the BSE.