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Below are Quote on Tata Communications Q4FY21 results by Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd

Tata Communications (TCOM) reported 7.4% YoY degrowth in revenues to ₹4,073 crore for Q4FY21. However the company reported a 16.8% YoY growth in EBIDTA for the quarter stood to ₹1015 crore while EBIDTA margins expanded by 517bps to 24.9%. Profit before tax and exceptional items was up by 3x YoY to ₹385 crore. Due to exceptional items of ₹378 crore in Q4FY20the company had posted a loss of ₹275 crore in the quarter. Against a loss in Q4FY21 the company registered a PAT of ₹299.2 crore in Q4FY21. Despite the de growth in revenues the company has registered strong growth in operating profits due to sharp increase in margins in the data and managed services business. Tata Communications has been one of the biggest beneficiaries of the data boom due to 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.

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