TATACOMM · Telecommunication
A lower tax rate lifted profit. Is the lower rate going to last?
Effective tax rate 30.0% against 40.3% over the previous quarters, worth about ₹33.2 cr of profit.
Source: Quarterly statements
Could not run on this quarter: Exceptional items that recur, Cash behind the profit, Receivables against sales, Inventory against sales, Borrowing while holding cash, Auditor's review or audit report, IPO money used as stated, Related-party transactions, Exits, postponements, restatements, Promoter pledges and allotments, Earlier promises against delivery, When the results were filed. Most need the filing read (balance sheet, cash flow, auditor, disclosures).
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
This quarter's filing carries a balance sheet and a cash flow statement. The cash, receivables and borrowing checks run once the filing read is in.
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹5,588 cr | ₹5,645 cr | ₹5,592 cr | ₹5,728 cr | ₹5,798 cr | ₹5,990 cr | ₹5,960 cr | ₹6,100 cr | ₹6,189 cr | ₹6,554 cr | ₹6,583 cr | ₹6,688 cr |
| YoY | — | — | — | +18% | +4% | +6% | +7% | +6% | +7% | +9% | +10% | +10% |
| EBITDA margin | 20.6% | 19.1% | 20.3% | 19.7% | 20.4% | 18.7% | 19.1% | 19.2% | 19.8% | 19.6% | 18.7% | 21.3% |
| Other income, % of PBT | −138% | −15% | 20% | 9% | −2% | 78% | −18% | −15% | 40% | 15% | −44% | −4% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | 74% | — | 21% | 30% | 36% | 15% | 26% | 32% | 22% | 42% | 41% | 27% |
| Net profit | ₹45.0 cr | ₹322 cr | ₹333 cr | ₹227 cr | ₹236 cr | ₹1,041 cr | ₹190 cr | ₹183 cr | ₹364 cr | ₹259 cr | ₹130 cr | ₹336 cr |
| YoY | — | — | — | +3% | +424% | +223% | −43% | −19% | +54% | −75% | −32% | +84% |
| Core profit YoY | — | — | — | +7% | −2% | +12% | −11% | +0% | −23% | +39% | +3% | +65% |
| EPS | ₹1.57 | ₹11.27 | ₹11.68 | ₹7.97 | ₹8.28 | ₹36.50 | ₹6.67 | ₹6.42 | ₹12.82 | ₹9.24 | ₹4.71 | ₹11.96 |
| Flags | · | 1 | 1 | 1 | 1 | 3 | ✓ | ✓ | 2 | ✓ | ✓ | 1 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Tata Communications Ltd. reported revenue of ₹5,728 cr (+17.6% on the year) and net profit of ₹227 cr (+2.7% on the year) for July to September 2024.
Profit before other income, exceptional items and tax moved +7.0% on the year, against +2.7% for reported profit.
1 check raised a question: A lower tax rate lifted profit. Is the lower rate going to last?
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