Tata Communications Q3FY24 Earnings: Tata Communications Q3 Results: The company recorded its fastest quarterly revenue growth in nine years.

BENGALURU – Tata Group-owned Tata Communications on Thursday reported its fastest quarterly revenue growth in nearly nine years, driven by strength in its core data services business.

Revenue for the quarter ended December 31 rose 24.4 per cent to Rs 56.33 billion, according to an exchange filing.

The company, which provides services such as data connectivity and cybersecurity to businesses, has seen quarterly revenue surge for the eighth straight year.

The company’s stock price closed 4.3% higher following the results. After two consecutive quarters of gains, it fell 8.4% in the December quarter.

Tata Communications has been focusing on growing revenue above margins over the past few quarters, partly through acquisitions, to capture a larger share of the highly competitive cloud, networking services, and media and entertainment markets.

Earnings margin before interest, taxes, depreciation and amortization (EBITDA) decreased to 20.1% from 23.8% in the year-ago quarter. Net profit fell 88.6% to ₹448.1 million due to one-off costs.

Revenues from the Data Services segment, which accounts for more than 80% of the total, increased 28.3% due to strong demand from the Core Connectivity and Digital Portfolio segments.