Shares of Tata Communications were trading 3% lower on 20 October after the company announced its quarterly report for the July-September quarter.

The company reported a 58% year-on-year (YoY) decline in its net profit to Rs 221.3 crore for the quarter under review against Rs 534.26 crore reported in the year-ago quarter.

The Consolidated revenue from operations increased by 10% on a yearly basis to Rs 4,872.5 crore during Q2 against Rs 4,430.74 crore reported in Q2 of the previous fiscal year. The company’s data services segment had a major contribution of over 80% of its total income. The data business revenue grew by 14.4% YoY to Rs 3,995 crore, which was driven by strong demand in the connectivity and digital portfolio segment.

The EBITDA margins of the company fell by 465 basis points to 20.8% following several acquisitions.

Tata Communications MD and CEO AS Lakshminarayanan said, “We are pleased to announce a robust 14 per cent year-on-year revenue growth this quarter. Overall, we remain confident of the long-term opportunities and will continue to invest in the product portfolio to strengthen our value proposition to enterprises.”

During the quarter, the company announced accelerating the closure of the Kaleyra Inc transaction, enabling the company to create a new digital platform category of Customer Interaction Suite.

The company has acquired all of Kaleyra’s outstanding adjusted gross debt of Rs 1,810.22 crore and net debt of Rs 1,561.24 crore as of the date of acquisition, which is expected to impact margins in the future.

At 11:44 am, the shares of Tata Communications were trading 3.10% below at Rs 1,721.95 on NSE.