Tata Communications recently announced its financial results for the second quarter, ending September 30, revealing a significant drop in its consolidated profit after tax. The company’s net profit declined by approximately 27%, settling at ₹183.21 crore, a decrease from the ₹251.02 crore reported during the same period last year.
Despite this dip in profitability, the company experienced a healthy rise in its operational income. Consolidated income from operations grew by 6.49% to ₹6,099.75 crore in the reported quarter, up from ₹5,727.85 crore in the September 2024 quarter.
A.S. Lakshminarayanan, MD and CEO of Tata Communications, highlighted the company’s sustained momentum, driven by strong double-digit growth within its digital portfolio. He noted that the quarter also brought about notable successes in government projects, reinforcing their contribution to the “Digital India” initiative. Furthermore, newly introduced products, particularly in strategic areas like Voice AI and Cloud Networking, are garnering significant interest and adoption from customers.
Breaking down the revenue streams, data services proved to be a strong performer, with revenue increasing by 7.3% to ₹5,179 crore compared to ₹4,826 crore a year ago. Conversely, revenue from voice solutions saw a decline of 4.5%, falling to ₹405.96 crore from ₹425.48 crore in the September 2024 quarter.