This Tata Group stock deals in a wide range of communication, cloud, mobility, collaboration, network, connected solutions, and data center services.was in focus after the company launched Kaleyra AI to define customer interactions.
Price Action
With a market capitalization of Rs.52,313.18 Crores, the shares of Tata Communications Limited were up by 1.17 percent in the day’s trade touching a day’s high of Rs. 1,861.65 per share. The stock reiterated from the day’s high and was trading at Rs. 1,835.55 per share which is 0.24 percent lower than the previous closing price of Rs. 1,839.95 apiece.
What Happened
The stocks of Tata Communications rose after the company launched Kaleyra AI which defines customer interactions. This is an addition to the company’s portfolio. This is designed to integrate communication channels through agent interfaces and use GenAI to streamline, personalize, and engage customer interactions.
The capabilities include a GenAI template generator for WhatApp which crafts message variants for WhatsApp and extends it to SMS and rich communication services, Conversational AI Data Reporting which enables complex data queries and processes natural language for customers and Conversational AI No-Code Builder which is helpful for business users to create “Interaction Assistants” offering conversational responses in text and rich media format for customers and workforces.
Management Commentary
On this recent development, Mauro Carobene, the head of Customer Interaction Suite for Tata Communications said “For customer-facing roles, the portfolio will significantly improve engagement and interaction rates. In early controlled demos, we observed marked reductions in the mean time to respond and resolve issues, especially during peak query volumes. For C-suite decision-makers, our generative AI-powered reporting and insights will enhance visibility into enterprise performance, all via a simple natural language interface.”
About the Company
Tata Communications Ltd which was formerly Videsh Sanchar Nigam Limited, is a leading telecommunications provider headquartered in Mumbai. They specialize in voice and data transmission services which include international long-distance voice, bandwidth leasing
on undersea cables, and managed security services. Their business model focuses on enabling digital transformation for enterprises globally, leveraging its extensive subsea fiber network that carries around 30 percent of the world’s internet routes. Tata Communications aims to improve connectivity and efficiency across various industries through innovative solutions and cutting-edge technology.
Financials & Ratios
Its Revenue from operations increased by 18.37 percent year on year from Rs. 4,872 Crore in Q2FY24 to Rs. 5,767 Crore in Q2FY25, accompanied by profits of Rs. 221 Crore to Rs. 227 Crore.
In terms of Return ratios, it has reported a return on equity (ROE) of 30.62 percent and a return on capital employed (ROCE) of 12.14 percent. It has a net profit margin of 5.05 percent as of FY24.
Shareholding Pattern
As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 58.86 percent in Tata Communications, Foreign Institutional Investors (FII) holding around 18.07 percent, Domestic Institutional Investors (DII) holding around 13.45 percent, and public holdings standing at 9.62 percent.
Written by Santhosh S
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