Tata Communications Ltd Share Price – NSE /  BSE

Telecomm-Service, Small Cap

Tata Communications today announced a transformative upgrade to its AI cloud infrastructure in India, powered by NVIDIA Hopper GPUs. The strategic collaboration marks a significant milestone in the country's AI journey, positioning Tata Communications as a key player in enabling AI applications across a wide spectrum of industries — including manufacturing, healthcare, retail, and banking and financial services — and equipping them with the computing power needed to handle complex AI workloads.

As part of the initiative, Tata Communications will integrate cutting-edge NVIDIA software solutions such as NVIDIA NIM microservices, and the NVIDIA Omniverse and NVIDIA Isaac platforms, into its AI Cloud offerings. These technologies will provide businesses with an extensive suite of tools and services designed for AI-driven simulation, automation and more.

At the end of this year, Tata Communications will begin the first phase of its large-scale deployment of Hopper GPUs, establishing itself as one of the largest NVIDIA Hopper GPU cloud-based supercomputers in India. The second phase, planned for 2025, will further expand the infrastructure with Blackwell GPUs.

Tata Communications is poised to disrupt the AI landscape with an AI studio, a groundbreaking, all-in-one platform designed to transform how businesses use AI, by offering tools like AI Workbench, Model Garden, Responsible AI and serverless functions.

Further, its advanced tools will simplify distributed data management, allowing businesses to efficiently collect and curate data across various enterprise systems and move it to the AI Cloud using Tata Communications' IZO™ Multi Cloud Connect platform. This approach will ensure cost-effectiveness and scalability for enterprises, while maintaining their existing data structures.

Complementing this is Tata Communications' CloudLyte Edge Computing platform, which enables low-latency inferencing, allowing businesses to deploy models at the edge for real-time responses. Together, these innovations empower enterprises to fully harness the power of AI.

Tata Communications customers will also gain access to the NVIDIA AI Enterprise software platform on its accelerated infrastructure, which is designed to let users build, customize and run generative and agentic AI applications in production. This includes NVIDIA NIM Agent Blueprints, which provide customisable reference architectures for use cases like digital human technologies or AI virtual assistants for customer service, multimodal PDF extraction workflows for enterprise data retrieval and container security workflows for cybersecurity.

Enterprises can also create their own AI models using the NVIDIA NeMo end-to-end platform for developing custom generative AI, and run efficient AI inference through NVIDIA's NIM microservices –both part of the NVIDIA AI Enterprise – offering unparalleled flexibility and performance for AI workloads.

By integrating NVIDIA technologies, Tata Communications will continue to demonstrate its commitment to building next-generation AI infrastructure and services, positioning the company to lead India's AI transformation and make AI more accessible across industries.

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Net profit of Tata Communications rose 2.98% to Rs 227.23 crore in the quarter ended September 2024 as against Rs 220.66 crore during the previous quarter ended September 2023. Sales rose 18.37% to Rs 5767.35 crore in the quarter ended September 2024 as against Rs 4872.50 crore during the previous quarter ended September 2023.

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Income from operations jumped 18.36% year on year (YoY) to Rs 5,767.35 crore in the quarter ended 30 September 2024.

During Q2 FY25, profit before exceptional items and tax stood at Rs 278 crore, down 6.79% from Rs 298.27 crore posted in corresponding quarter previous year. The firm reported exceptional items of Rs 42.90 crore during the quarter under review.

During the quarter, EBITDA stood at Rs 1,117 crore, reflecting a growth of 10.04% compared to Rs 1,015 crore in the same quarter last year. However, the EBITDA margin fell to 19.4% in Q2 FY25 from 20.8% in Q2 FY24.

Data revenue increased 21% YoY to Rs 4,834 crore in Q2 FY25. In addition, revenue from the digital portfolio surged 52.4% YoY, representing 46% of total data revenue during the quarter.

On half-year basis, the company's net profit declined 7.01% to Rs 560.07 crore in H1 FY25 as against to Rs 602.35 crore posted in H1 FY24. However, the income from operations jumped 18.21% YoY to Rs 11,400.72 H1 FY25.

AS Lakshminarayanan, MD and CEO, Tata Communications, said, “We are pleased to report a strong year-on-year growth in revenue and EBITDA. Our order book has expanded with some key strategic wins across markets. The adoption of our Digital Fabric (Network, Cloud and Security, Interaction and IoT) by enterprises continues to drive our optimism about future growth.”

Kabir Ahmed Shakir, chief financial officer, Tata Communications, said, “The fundamentals of the business continue to be strong. We are executing multiple strategic measures, including land monetisation, which will help us create capacity for future opportunities and reposition our assets to capture medium to long term profitable growth.”

Tata Communications is a global digital ecosystem enabler powering today's fast-growing digital economy in more than 190 countries and territories. Leading with trust, it enables digital transformation of enterprises globally with collaboration and connected solutions, core and next gen connectivity, cloud hosting and security solutions and media services.

The scrip dropped 4.51% to Rs 1,834.30 on the BSE.

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Tata Communications will hold a meeting of the Board of Directors of the Company on 17 October 2024.

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