Tata Communications Ltd's Q4FY25 Quarter Results
- 23 Apr 2025
Result Summary
- Tata Communications Ltd reported a 1.3% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Mar (Q4FY25). On a year-on-year (YoY) basis, it witnessed a growth of 24.1%.
- Its expenses for the quarter were up by 0.9% QoQ and 28.1% YoY.
- The net profit increased 36.2% QoQ and decreased 1.6% YoY.
- The earnings per share (EPS) of Tata Communications Ltd stood at 11.3 during Q4FY25.
Financial Statments for Q4FY25
| (₹ crores) | Q4FY25 | Q3FY25 | Q4FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total Income | 5748.70 | 5826.80 | 4630.45 | -1.3% | 24.1% |
Total Expenses | 5489.39 | 5441.15 | 4285.05 | 0.9% | 28.1% |
Profit Before Tax | 207.20 | 370.72 | 345.40 | -44.1% | -40.0% |
Tax | -108.48 | 126.19 | 28.05 | -186.0% | -486.7% |
Profit After Tax | 321.52 | 236.08 | 326.64 | 36.2% | -1.6% |
Earnings Per Share | 11.30 | 8.30 | 11.40 | 36.1% | -0.9% |
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
Company Overview
Tata Communications Ltd is a global telecommunications company that provides a wide range of products and services. The company operates in the telecommunications industry, offering network services, data center services, cloud and security solutions, and IoT solutions. Tata Communications plays a critical role in the global telecommunications landscape, supporting enterprises with digital transformation and connectivity needs. As of the latest available data up to October 2023, no specific recent major developments are available to highlight. However, the company continues to focus on expanding its digital infrastructure and enhancing its connectivity solutions to meet the demands of an ever-evolving market.
Revenue
In the fourth quarter of the fiscal year 2025 (Q4FY25), Tata Communications Ltd reported a total income of ₹5748.70 crores. This represents a slight decrease of 1.3% quarter-over-quarter (QoQ) compared to ₹5826.80 crores in the third quarter of the fiscal year 2025 (Q3FY25). However, on a year-over-year (YoY) basis, the total income increased by 24.1% from ₹4630.45 crores in the fourth quarter of the fiscal year 2024 (Q4FY24). This significant YoY growth reflects an improvement in revenue generation, indicating the company's ability to capture market opportunities and enhance its service offerings over the year.
Profitability
The profitability metrics of Tata Communications Ltd for Q4FY25 show a complex picture. The company recorded a Profit Before Tax (PBT) of ₹207.20 crores, which marks a 44.1% decline QoQ from ₹370.72 crores in Q3FY25 and a 40.0% decrease YoY from ₹345.40 crores in Q4FY24. Despite this, the Profit After Tax (PAT) for Q4FY25 was ₹321.52 crores, which is a 36.2% increase QoQ from ₹236.08 crores in Q3FY25 but a slight decline of 1.6% YoY compared to ₹326.64 crores in Q4FY24. The Earnings Per Share (EPS) stood at ₹11.30 in Q4FY25, reflecting a 36.1% rise QoQ, while showing a marginal decrease of 0.9% YoY. The contrasting movements in PBT and PAT can be attributed to tax adjustments, as evidenced by the tax position, which shows a significant negative value in Q4FY25 compared to previous quarters.
Operating Metrics
For Q4FY25, Tata Communications Ltd's total expenses were ₹5489.39 crores, representing a 0.9% increase QoQ from ₹5441.15 crores in Q3FY25 and a 28.1% rise YoY from ₹4285.05 crores in Q4FY24. This increase in expenses, both quarterly and annually, indicates an upward trend in operational costs, potentially linked to business expansion or increased input costs. The company’s operational efficiency can be further analyzed by considering the Profit Before Tax margin and Profit After Tax margin, which have been impacted by the variations in both income and expenses over the periods in question. The notable tax refund in Q4FY25 has also played a crucial role in affecting the net profitability for the quarter.
