Net profit for the quarter was impacted due to an exceptional loss of ₹106 crore, compared to a loss of ₹20 crore last year. Majority of the exceptional loss came from a ₹50 crore provision for a contractual obligation, and a ₹30.1 crore provision for a fire incident at a co-located third party data center.
The company’s revenue was up 10.5% to ₹6,582.8 crore from ₹5,959 crore in the first quarter of the previous fiscal.Earnings before interest taxes depreciation and amortization (EBITDA) increased by 8.2% to ₹1,230.2 crore from ₹1,136.8 crore last fiscal, while EBITDA margin contracted by 30 basis points to 18.7% from 19% last year.
Last month, the company announced investments of $152 million to expand its subsea cable infrastructure between India and Singapore, to strengthen connectivity between emerging AI hubs and meeting the growing enterprise demand for high-speed data networks.
The company said it will invest $63 million in the MIST cable system, connecting Mumbai and Singapore during the ongoing financial year and $89 million in Project CS, a new subsea cable linking Chennai and Singapore from FY27 to FY31. Both projects would be funded via internal accruals, it added.
Shares of Tata Communications declined 7.6% to hit an intraday low of ₹1,680 apiece on Wednesday. The stock was down 7.2% at ₹1,687.9 apiece at 1.22 pm. It has fallen 17.9% in the past month and is down 6.4% this year, so far.
The company’s MD & CEO has reiterated that they stay on track to delivery double-digit EBITDA growth this year.
The decline has resulted in a 20% decline from its 52-week high, which it hit exactly a month ago.
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