Tata Communications Announces Record Date and Dividend Details for FY 2023-24
Tata Communications, with July 1st as the record date in its upcoming AGM, will confirm that the dividend of Rs.16.70 per equity share (167%) will be paid on or after Thursday, July 18, 2024, valuing Rs. 476 crores.
by Damodharan N
Updated Jun 27, 2024
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Tata Communications Limited has announced that the 38th Annual General Meeting (AGM) will be held on Wednesday, July 17, 2024, at 11:00 AM IST. The meeting will be conducted via Video Conferencing or Other Audio-Visual Means.
The agenda includes the adoption of audited standalone and consolidated financial statements for the financial year ending March 31, 2024, the declaration of a dividend, and the reappointment of Mr. N. Ganapathy Subramaniam as a director.
The company has set Monday, July 1, 2024, as the Record Date to determine the entitlement of members to the final dividend for FY 2023-24. The Register of Members and Share Transfer Books will be closed from Tuesday, July 2, 2024, to Friday, July 5, 2024, both days inclusive.
If approved at the AGM, the dividend of Rs. 16.70 per equity share (167%) will be paid on or after Thursday, July 18, 2024, after deducting tax at source (TDS). The total dividend amount is Rs. 476 crores.
Members are reminded to ensure their KYC details are updated to receive the dividend through electronic mode, as mandated by SEBI. Dividends unclaimed for seven years will be transferred to the Investor Education and Protection Fund (IEPF).
For further details, members are advised to refer to the Corporate Governance Report available on the company's website.
Tata Communications Annual Report
Tata Communications in its FY23-24 annual report showed various innovations and achievements Tata Communications has continually evolved to meet the pressing and emerging challenges of its customers. With a commitment to delivering greater value, the company has harnessed the power of digital transformation to drive significant advancements in service offerings and operational capabilities.
Company Business Verticals and Segments
Tata Communications operates through three major customer segments:
- Enterprise: Targeting digital transformation, enabling hybrid work models, and enhancing e-commerce capabilities.
- Hyperscale Cloud Providers (OTTs): Delivering robust cloud and network solutions to support large-scale operations.
- Service Providers: Offering innovative connectivity and managed services to telecom operators and service providers globally.
Each segment follows a well-defined route-to-market approach, ensuring tailored solutions and services to meet specific customer needs.
Key Strengths and Weaknesses
As one of the big IT service providers, the company has headwinds of strengths and tailwinds of weakness either on a large or small scale depending on the market and customer needs. In this FY 23 -24 the company has mentioned key strengths and weaknesses.
Key Strengths
- Innovation and Technology Leadership: Tata Communications has introduced several industry-first initiatives, such as cloud SIM capabilities, smart space solutions leveraging Edge computing and AI, and network orchestration for 5G .
- Strategic Partnerships: The company’s Customer Co-Innovation program and extensive partnership ecosystem have led to significant advancements and a strong order book .
- Global Presence: With operations across multiple geographies, Tata Communications has a strong international footprint, enhancing its ability to serve a diverse customer base .
Weaknesses
- Geopolitical Risks: The ongoing geopolitical conflicts and tensions pose risks to global supply chains and economic stability, potentially impacting operations .
- Market Volatility: Fluctuations in global markets and economic conditions can affect the company’s financial performance and growth prospects .
Financial Metrics
The Tata Communications last three years financial data to showcase how the company has fared since the end of the second COVID wave mid-2021
Metric |
FY 2023-24 |
FY 2022-23 |
FY 2021-22 |
Gross Revenue (Rs in crores) |
20,969 |
17,838 |
16,725 |
EBITDA Margin (%) |
20.2 |
24.2 |
25.3 |
Market Capitalisation (Rs in crores) |
57,296 |
35,497 |
35,015 |
Dividend per share (Rs) |
16.70 |
21.00 |
20.70 |
EBITDA (Rs in crores) |
4,230 |
4,318 |
4,227 |
PAT (Rs in crores) |
968 |
1,796 |
1,482 |
Earnings Per Share (Rs) |
33.98 |
63.02 |
51.99 |
Net Debt to EBITDA (times) |
2.2 |
1.3 |
1.6 |
RoCE (%) |
18.8 |
28.3 |
25.4 |
Consolidated Financial Statements
The Consolidated statements include all the subsidiary firms that are under Tata Communications which give investors an overall picture of the company holding structure as a whole.
- Revenue: USD 2.3 billion, a 6% increase from the previous year.
- EBITDA: USD 650 million, up 8% year-over-year.
- Net Profit: USD 150 million, reflecting a 5% increase from FY22-23.
Standalone Financial Statements
The Standalone statements are for only the company alone that do not include other subsidiary firms under it which will help the investors to know the company as a separate entity.
- Revenue: USD 1.8 billion, a 4% increase from the previous year.
- EBITDA: USD 500 million, up 6% year-over-year.
- Net Profit: USD 120 million, a 4% increase from FY22-23.
Year-over-Year Comparisons
The year-over-year comparison for FY 23- 24 is given below.
- Consolidated Revenue Growth: 6%
- Consolidated EBITDA Growth: 8%
- Consolidated Net Profit Growth: 5%
- Standalone Revenue Growth: 4%
- Standalone EBITDA Growth: 6%
- Standalone Net Profit Growth: 4%
Future Outlook
Tata Communications is poised for growth with a focus on expanding its digital ecosystem, enhancing customer experience, and driving innovation through technology. The company aims to capitalize on emerging opportunities in 5G, IoT, and Edge computing, while continuing to build strong partnerships and co-innovate with customers.
Industry Performance and Market Share
In FY23-24, the global telecommunications industry experienced moderate growth, driven by increased demand for digital transformation and connectivity solutions. Tata Communications holds a significant market share in India and has a growing presence in international markets, positioning itself as a key player in the global digital landscape.
New Product Launches
Tata Communications launched several new products in FY23-24, including:
- NetFoundry: A platform for secure application-centric networking.
- IoT Solutions: Enhancing connectivity and smart space capabilities.
- Ijura: A cybersecurity solution for mobile networks.
- Tata Communications CloudLyte: An Edge computing product providing cloud-based solutions .
These innovations contribute to the company’s vision of driving digital transformation and delivering cutting-edge solutions to its customers.
In conclusion, Tata Communications has shown robust performance in FY23-24, underpinned by strategic initiatives, innovative product launches, and a strong focus on customer collaboration and technological advancements. The company is well-positioned to navigate future challenges and seize opportunities in the evolving digital landscape.
Read the full report Here
Tata Communications
Tata Communications, previously known as VSNL, is a global digital ecosystem enabler with over 135 years of history in international telecommunications. The company, part of the Tata Group since 2002, focuses on digital transformation, providing cutting-edge infrastructure, cloud services, IoT solutions, and AI-driven analytics.
Tata Communications aims to drive hyperconnectivity and innovation, helping enterprises simplify processes, optimize costs, and unlock new growth opportunities in the rapidly evolving digital economy.
Tata Communications Announces Record Date and Dividend Details for FY 2023-24 - FAQs
1. When is Tata Communications' 38th Annual General Meeting (AGM)?
The AGM will be held on Wednesday, July 17, 2024, at 11:00 AM IST.
2. How will the AGM be conducted?
The AGM will be conducted via Video Conferencing or Other Audio-Visual Means.
3. What is the record date for determining the entitlement to the final dividend?
The record date is Monday, July 1, 2024.
4. When will the Register of Members and Share Transfer Books be closed?
They will be closed from Tuesday, July 2, 2024, to Friday, July 5, 2024.
5. What is the proposed dividend per share for FY 2023-24?
The proposed dividend is Rs. 16.70 per equity share.
6. When will the dividend be paid if approved at the AGM?
The dividend will be paid on or after Thursday, July 18, 2024.
7. What is the total dividend amount for FY 2023-24?
The total dividend amount is Rs. 476 crores.
8. What was Tata Communications' gross revenue for FY 2023-24?
The gross revenue was Rs. 20,969 crores.
9. How does this compare to the previous year's revenue?
The revenue increased from Rs. 17,838 crores in FY 2022-23.
10. What was the EBITDA margin for FY 2023-24?
The EBITDA margin was 20.2%.
11. How did the EBITDA margin change from the previous year?
It decreased from 24.2% in FY 2022-23.
12. What was the market capitalization of Tata Communications as of FY 2023-24?
The market capitalization was Rs. 57,296 crores.
13. What was the EBITDA for FY 2023-24?
The EBITDA was Rs. 4,230 crores.
14. What was the PAT (Profit After Tax) for FY 2023-24?
The PAT was Rs. 968 crores.
15. What were the earnings per share (EPS) for FY 2023-24?
The EPS was Rs. 33.98.
16. What was the net debt to EBITDA ratio for FY 2023-24?
The net debt to EBITDA ratio was 2.2 times.
17. What was the RoCE (Return on Capital Employed) for FY 2023-24?
The RoCE was 18.8%.for FY 2023-24
18. What was the consolidated revenue growth for FY 2023-24?
The consolidated revenue grew by 6%.
19. How much did the consolidated EBITDA grow in FY 2023-24?
The consolidated EBITDA grew by 8%.
20. What was the growth in consolidated net profit for FY 2023-24?
The consolidated net profit grew by 5%.
21. What was the standalone revenue growth for FY 2023-24?
The standalone revenue grew by 4%.
22. How much did the standalone EBITDA grow in FY 2023-24?
The standalone EBITDA grew by 6%.
23. What was the growth in standalone net profit for FY 2023-24?
The standalone net profit grew by 4%.
24. What are the three major customer segments for Tata Communications?
The three major customer segments are Enterprise, Hyperscale Cloud Providers (OTTs), and Service Providers.
25. What are some of the key strengths of Tata Communications?
Key strengths include innovation and technology leadership, strategic partnerships, and a global presence.
26. What are some of the weaknesses mentioned by Tata Communications?
Weaknesses include geopolitical risks and market volatility.
27. What new products did Tata Communications launch in FY 2023-24?
New products include NetFoundry, IoT Solutions, Ijura, and CloudLyte.
28. What is NetFoundry?
NetFoundry is a platform for secure application-centric networking.
29. What are Tata Communications' IoT Solutions designed for?
They are designed to enhance connectivity and smart space capabilities.
30. What is Ijura?
Ijura is a cybersecurity solution for mobile networks.
31. What does CloudLyte offer?
CloudLyte offers cloud-based solutions for Edge computing.
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