Tata Communications reports marginal drop in net profit for Q4 FY2024

Tata Communications even said that its committee had urged a final dividend of Rs 16.70 per share.

Tata Communications Limited announced a 1.5 percent decline in its consolidated net profit for the quarter ending March 31, 2024. The net profit stood at Rs 321.2 crore, compared to Rs 326 crore in the corresponding period last year.

Revenue Growth and EBITDA Performance

Despite the dip in net profit, the company witnessed a substantial increase in revenue from operations, which surged by 24.6 percent to Rs 5,691.7 crore from Rs 4,568.7 crore in the same quarter of the previous fiscal year.

Tata Communications’ EBITDA, a key financial metric representing earnings before various deductions, grew by 2.1 percent to Rs 1,056.3 crore. However, the EBIT margin experienced a slight decline, dropping to 18.6 percent from 22.6 percent in the previous year.

Dividend Declaration and Executive Appointment

The company’s board of directors has proposed a final dividend of Rs 16.70 per share for the financial year ending March 31, 2024. This recommendation is subject to approval by shareholders at the forthcoming Annual General Meeting (AGM).

Furthermore, Tata Communications announced the re-appointment of A.S. Lakshminarayanan as Managing Director and CEO for a second term, starting from November 26, 2024, until April 13, 2026. This decision is contingent upon shareholder approval.

Market Performance

Despite the earnings announcement, shares of Tata Communications closed 1.32 percent lower at Rs 1884.05 apiece on the Bombay Stock Exchange (BSE) on April 17, ahead of the earnings release.