Tata Communications on Thursday posted over threefold jump in its consolidated profit after tax to Rs 258 crore in the first quarter ended June 30, on the back of jump in data business. The company had registered a profit of Rs 77 crore in the corresponding period of the previous year.”Due to lockdown and remote working, we are witnessing increased bandwidth usage and higher collaboration traffic. Enterprises have upgraded their capacities and are consuming more data to support this work model,” Tata Communications said in a statement.
Tata Communications Chief Financial Officer Pratibha K Advani said the company’s data portfolio recorded a double-digit growth of 10 per cent y-o-y with a robust margin expansion of 460 basis points.
Its India enterprise business grew 6.7 per cent year-on-year (y-o-y) and the international enterprise business rose 8.3 per cent y-o-y on the back of strong demand which led to an increase in both revenue and profitability, the statement said.
The firm’s consolidated income from operations rose 5.6 per cent to Rs 4,403 crore during the quarter, from Rs 4,168.62 crore a year ago.
“We have started this new financial year with strong performance amid an uncertain and unpredictable economic environment. Digital technology is increasingly defining and shaping the experiences in this new world,” Tata Communications MD and CEO A S Lakshminarayanan said in a statement.
He added that it will become even more strategically core as businesses look to adopt new ways of working and transform how they operate.Source: ET Markets