Tata Communications Ltd. share price target

Growth to be driven by platforms viz. a) cloud, edge, security b) next generation connectivity c) NetFoundry d) MOVE & IoT wherein each having robust market size growth potential of 15-25% CAGR in next four to five years We expect ~10.3% revenue CAGR in FY22-24E in the overall data segment, driven by likely acceleration in growth from FY23 onwards. We expect overall margins to be stable at 25.5% in FY24 vs. 25.3% in FY22, with some...

Consolidated EBITDA was at | 1082 crore, up 3.5% YoY and down 2.7% QoQ. The consequent margin was at 25.9% (up 109 bps YoY, 20 bps QoQ on adjusted basis). Data EBITDA margin was at 32.2%, down 80 bps QoQ (up 40 bps on adjusted basis) and flattish YoY. PAT was at | 395 crore, up 28% YoY. Net debt at | 7,189 crore, was down by | 572 crore QoQ and...

We expect 10% revenue CAGR over FY22-24E as Connectivity (~70% revenue mix) has a low growth outlook. We factor in an improvement in margin on a favorable Data mix, curbing of losses in the Incubation business, and 15% EBITDA CAGR. We maintain our Neutral rating....

Consolidated EBITDA margin was at 26.7% (up 36 bps YoY, 263 bps QoQ) aided by one-off | 50 crore for timing difference led employee cost benefit and reversal of provisions. PAT of | 425 crore was up 10.6% YoY and 43.7%...

Adjusted EBITDA, after an INR500m one-off gain in 2QFY22, rose 8% QoQ (2% above our estimate) on healthy cost optimization, despite slower revenue growth of 1.7% QoQ, which is slowly recovering. We expect low revenue growth visibility given the low growth outlook in Connectivity (71% of revenue mix). This, coupled with weak EBITDA margin guidance of 23-25% v/s 26.7% at present, suggests double-digit growth could be challenging. However, we expect an improvement in margin from the curtailing of loses in the Incubation business, building in...

Tata Communication (TCom) in its investor day revisited (and revised some of) its strategic growth path. The core growth path remained same with steps like deeper engagement with key clients (along with dedicated team for remaining clients), revamped operating structure, transformation from product to platform and Focus on Fixed + Usage model for digital platforms. On the medium term financial targets, there were few upgrades with a) RoCE target of 25-30% (vs. 20% target earlier), b) EBITDA margin of 23-25% (earlier guidance: 22-25%), c) maintaining optimal debt (vs. debt reduction...

Ambitious targets, but needs to tread carefully TCOM's analyst webinar provided a detailed deep-dive into the global enterprise growth opportunity, management's growth focus, margin outlook,...