Tata Communications drives profitability

September 15, 2019

  • Strong growth in Data business; revenue grew by +12.4% YoY on the back of robust performance across all segments, despite industry headwinds
  • Growth services witnessed robust momentum; revenue grew by +29.2% YoY on the back of strong execution and large deal wins
  • Traditional services saw an upsurge in revenue and profitability; revenue grew by +6.1% YoY with EBITDA margins at 38.5%
  • Data services contribute 79% of the overall revenues, up from 74% in Q1 FY19
  • Data EBITDA was at INR 736 crore (USD 106 Mn); growth of +42.7% YoY led by strong profitability in Traditional services
  • Consolidated revenues was at INR 4,169 crore (USD 599 Mn); growth of +5.7% YoY. Growth in Data business has helped mitigate the decline in the Voice business
  • Consolidated EBITDA at INR 826 crore (USD 119 Mn); increase of +40.7% YoY on the back of strong profitable growth in the Data business and steady Voice margins
  • Consolidated PAT at INR 77 crore (USD 11 Mn) as compared to a loss of INR 199 crore (USD 29 Mn) in Q4 FY19
  • CAPEX for this quarter was USD 45 Mn as compared to USD 60 Mn in Q4 FY19

Commenting on the results, Pratibha K. Advani, Chief Financial Officer, Tata Communications, said,

“Our strategic focus on offering best-in-class digital infrastructure solutions is showing results. The overall share of profitable Data services is increasing and performance during the quarter reflects the continued momentum. Robust growth in our Enterprise business (+20%) and Growth services (+29%) is testament to the fact that we are considered as a preferred digital transformation partner. With our continued market focus, we have won large deals across our product portfolio from some of the biggest global enterprises, which are in different stages of execution. Our Data business has witnessed robust performance both in terms of revenue and profitability. We have a strong order book and we expect this trend to continue as we keep executing large deals. We are reimagining and transforming our systems, processes and cost structure to achieve even higher level of efficiencies and profitability.”

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