Tata Communications Ltd on Thursday (October 19) reported a 58% year-on-year (YoY) decline in net profit at ₹221.3 crore for the second quarter that ended September 30, 2023.

In the corresponding quarter last year, Tata Communications posted a net profit of ₹534.26 crore, the company said in a regulatory filing. CNBC-TV18 Poll had predicted a profit of ₹325 crore for the quarter under review.

In the quarter, total revenue stood at ₹4,872.5 crore during the period under review, up 10% against ₹4,430.74 crore in the corresponding period of the preceding fiscal. CNBC-TV18 Polls had predicted revenue of ₹4,860 crore for the quarter under review.

At the operating level, EBITDA stood at ₹1,015.4 crore in the second quarter of this fiscal. CNBC-TV18 Poll had predicted an EBITDA of ₹1,050 crore for the quarter under review.

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EBITDA margin stood at 20.8% in the reporting quarter. CNBC-TV18 Poll had predicted a margin of 21.6% for the quarter under review. EBITDA is earnings before interest, tax, depreciation, and amortisation.

The company's data business revenue grew 14.4% on a year-on-year basis to Rs 3,995 crore. "We are pleased to announce a robust 14% year-on-year revenue growth this quarter.

Overall, we remain confident of the long-term opportunities and will continue to invest in the product portfolio to strengthen our value proposition to enterprises," Tata Communications MD and CEO AS Lakshminarayanan said.

The company during the quarter announced to accelerate the closure of the Kaleyra Inc transaction, which will enable it to create a new digital platform category - Customer Interaction Suite.

Kaleyra has become a wholly-owned direct subsidiary of Tata Communications pursuant to the reverse merger with its other subsidiary TC Delaware Technologies Inc, wherein Kaleyra is the surviving entity.

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Tata Communications has assumed all of Kaleyra's outstanding adjusted gross and net debt of approximately ₹1,810.22 crore and ₹1,561.24 crore as of the acquisition date, respectively.

"Kaleyra is now delisted on the New York Stock Exchange. The financial results for the quarter and half year ended September 30, 2023, do not include any impact of such acquisition," Tata Communications said in a regulatory filing.

The results came after the close of the market hours. Shares of Tata Communications Ltd ended at ₹1,775.55, down by ₹11.15, or 0.62 percent on the BSE.

First Published:Oct 19, 2023 11:30 PM IST