Tata Communication - Q1 FY22 Concall Highlights - YES Securities

- SIP trunking revenue which was impacted due to Covid19 has started recovering, but nowhere near the precovid level. There has been some uptick in usage based revenue as economies open across the globe.

- Larger deals are taking more time for closure in Covid19 environment

- Continues to expand its IZO cloud platform and its takes into data security needs, which have become critical in the current environment.

- It will be launching a cloud communication platform with CPaaS capabilities and has already started working with few pilot customers. It will be a omnichannel full stack platform accessible through API enabled functions.

- UCaaS solution on Cisco and Team platform are getting traction with customers

- The deal funnel size continues to improve and its a matter of time before it shows in financials

- Media segment is showing recovery with resumption of sporting events across the globe and the segment performance has reached precovid level.

- Continues to maintain strong control on cost and profitability and expects to sustain EBITDA margin in 23-25% band in near term.

- Is working with sister company, TCS in pursuing large sized deals and there has been some initial green shoots.

- On 31st March, DoT through a notification included revenue from pure internet services in AGR definition and accordingly a provision of Rs 330 mn was included in financials. It has filed a petition in TDSAT against DoT notification.

- Has guided for capex of $215 mn , a major part of which will be used in driving innovation in product portfolio.

Shares of Tata Communications Limited was last trading in BSE at Rs. 1491.05 as compared to the previous close of Rs. 1504.8. The total number of shares traded during the day was 28799 in over 2751 trades.

The stock hit an intraday high of Rs. 1509 and intraday low of 1454.45. The net turnover during the day was Rs. 42783651.

Source : Equity Bulls

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