Tata Communications stock cools off on muted revenues

Shares of telecom services provider Tata Communications Ltd were among the top performers in the post-covid rally, rising about 500% from their March 2020 lows. But the shares have cooled off a bit from their highs in early March this year.

After a 3% drop post its March quarter results, Tata Communications shares are now down 16% from their all-time highs. The drop on Thursday was after the company reported muted March quarter earnings.

Operating margins and revenue growth both missed expectations.

Revenue at ₹470 crore was down 3.5% sequentially and below analysts’ estimates, impacted by a decline in the voice and data business. The former was down 17% quarter-on-quarter and the latter fell by 1% sequentially.