The share price of Tata Communications declined over 3 percent on Thursday after the company reported a weak set of numbers for the quarter ended March 2021, missing street estimates.

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Tata Communications' net profit in Q4FY21 fell 12.5 percent to Rs 270.6 crore from Rs 309.4 crore, while revenue declined 3.5 percent to Rs 4,073.3 crore from Rs 4,222.8 crore, QoQ.

The profit and revenue of the company were below CNBC-TV18 analysts' poll estimates of Rs 301.7 crore and Rs 4,334 crore, respectively.

On the operational front, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) declined sequentially, while EBITDA margin increased.

EBITDA decreased 3 percent to Rs 1,015.2 crore from Rs 1,046.1 crore, but EBITDA margin expanded by 15 bps to 24.92 percent from 24.77 percent, QoQ.

"Despite the de growth in revenues the company has registered strong growth in operating profits due to a sharp increase in margins in the data and managed services business," said Jyoti Roy - DVP- Equity Strategist, Angel Broking.

According to Roy, Tata Communications has been one of the biggest beneficiaries of the data boom due to the greater proliferation of work from anywhere post the Covid-19 pandemic.

"While we expect demand for data services will continue to remain strong we believe that post the rally the stock is expensive at current levels and warrants caution," he said.

At 12:25 pm, the shares of Tata Communications were trading 2.72 percent lower at Rs 1,117.95 apiece on the BSE.

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