Business integration impacts EBITDA

Company

19 Apr 2024 | 5 Min Read

Tata Communications reported 1% growth in revenue and a 7% decline in EBITDA in 4QFY24.

The decline in EBITDA was due to higher integration expenses from business acquisitions.

Adjusted for the acquisitions, data revenue and data EBITDA were flat QoQ.

The company aims to drive margin-accretive growth in the long term.

The management reiterates the target of 23-25% EBITDA margin and aims to double data revenue by FY27.

The stock is rated as Neutral with limited upside potential.