On Wednesday, Tata Communications posted its Q1 2021-22. In the quarterly report, the company has reported a jump of about 15% in consolidated profit, accounting for Rs 296.11 crores in the quarter that ended June 2021. In comparison, in the same quarter last year, the profit of the company was Rs 257.8 crores.
In a statement, A S Lakshminarayanan, the Tata Communications Managing Director and CEO, expressed content as the company delivered a robust performance and gendered profit despite the challenging quarter that was impacted by the second wave of the pandemic. He added that the global markets are gradually opening up, and Tata Communications is witnessing greenshoots of demand recovery.
Tata Communications Profit In 2021
In the reported quarter that ended June 2021, Tata Communications’ consolidated revenue dropped by 7 per cent accounting for Rs. 4,103 crores. In comparison, in the same period last year, the consolidated revenue was Rs 4,403 crore. Also, data business revenue dropped by 2.2% on a year-on-year basis accounting for Rs 3,104 crores.
The stated from the executive added that the data business continues to be impacted by the slowdown due to COVID-19. Enterprise decisions have witnessed a slow down due to the macroeconomic headwinds resulting in a relatively long lead time for successful deals. Also, the service delivery was impacted by lockdowns caused by the second wave of the pandemic.
Furthermore, Tata Communications’ digital platforms, as well as a services business, were impacted by the moderation of collaboration traffic. This was at its peak in the quarter that ended June 2020. Eventually, the revenue of the segment dropped by 12.8 per cent on a year-on-year basis.
While there has been a drop in the consolidated revenue and data business revenue in the recently concluded quarter as compared to the same period last year, the increase in profit by 15% shows early signs of recovery. Also, it is evident that there is an uptake of usage-based services in regions where the economies have opened up despite the COVID-19 pandemic crisis still clinging on across the world.