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Tata Communications drives profitability through robust growth in Data business PAT of INR 77 Crore for Q1

Tata Communications drives profitability through robust growth in Data business PAT of INR 77 Crore for Q1

Data services revenue grew by +12.4% YoY | Growth Services revenues grew by +29.2% YoY | EBITDA increased by +40.7% YoY

Mumbai, August 02, 2019

Tata Communications today announces its financial results for the quarter ended June 30th 2019.

 

Highlights|Q1 FY2020

  • 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

 

Consolidated

Nos.

 INR

Crore

 QoQ

Growth

 YoY Growth USD Mn QoQ

Growth

 YoY Growth
Gross Revenue 4,168.6 (1.8%) 5.7% 599.2 (0.5%) 1.7%
EBITDA 825.6 20.5% 40.7% 118.7 22.1% 35.4%
EBITDA margin 19.8% 370 Bps 490 Bps 19.8% 370 Bps 490 Bps
PAT 76.6 é é 11.0 é é

 

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.”

 

An investor fact sheet providing detailed analysis of the results for the quarter ended June 30th, 2019 has been uploaded on the Tata Communications website and can be accessed here.

 

Business highlights | Q1 FY2020

  • Awards:
    • Tata Communications bagged seven awards at Frost & Sullivan’s 2019 India ICT Awards: Tata Communications received top honours at Frost & Sullivan’s 2019 India ICT Awards:
      • Unified Communications Service Provider of the Year Award (Second consecutive year)
      • Managed Security Service Provider of the Year Award (Telco) (First-time winner)
      • Managed Video Services Company of the Year Award (First-time winner—new category)
      • SDWAN Service Provider of the Year Award (Second consecutive year)
      • Managed Multi Cloud Service Provider of the Year Award (Second consecutive year)
      • Cloud Interconnect Service Provider of the Year Award (First-time winner—new category)
      • Enterprise SIP Trunking Service Provider of the Year Award (First-time winner)
    • Great place to work: Tata Communications was recognised among India’s Best Companies to Work For 2019, by the Great Place to Work® Institute

 

  • Partnerships:
    • Batelco and Tata Communications: Batelco, Bahrain’s leading digital communications solutions provider announced an extension of its partnership with Tata Communications, to offer flexible and reliable data connectivity with expanded global reach; to service providers, mobile network operators (MNO) and ISPs in the Middle East
    • Cisco and Tata Communications: Tata Communications extended its partnership with Cisco to redefine enterprise networking in the multi-cloud world with new managed SD-WAN solution. The companies will enable enterprises to transform their legacy network to a customised and secure multi-cloud native hybrid network

 

 

  • Research: Global Talent Competitiveness Index (GTCI)

 

  • Leadership update
Shahnaz Mansoor (Media Contact) Tata Communications +91 98339 96903 shahnaz.mansoor@tatacommunications.com Vipul Garg (Investor Contact) Tata Communications +91  (11) 6625 7431 vipul.garg@tatacommunications.com

About Tata Communications

Tata Communications is a leading global digital infrastructure provider that powers today’s fast- growing digital economy. The company’s customers represent 300 of the Fortune 500 whose digital transformation journeys are enabled by its portfolio of integrated, globally managed services that deliver local customer experiences. Through its network, cloud, mobility, Internet of Things (IoT), collaboration and security services, Tata Communications carries around 30% of the world’s internet routes, and connects businesses to 60% of the world’s cloud giants and 4 out of 5 mobile subscribers. The company’s capabilities are underpinned by its global network, which is the world’s largest wholly owned subsea fibre backbone and a Tier-1 IP network. Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India, and it serves customers in more than 200 countries and territories worldwide through its technology capabilities and partnerships. www.tatacommunications.com

Forward-looking and cautionary statements

Certain words and statements in this release concerning Tata Communications and its prospects, and other statements, including those relating to Tata Communications’ expected financial position, business strategy, the future development of Tata Communications’ operations, and the general economy in India, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, including financial, regulatory and environmental, as well as those relating to industry growth and trend projections, which may cause actual results, performance or achievements of Tata Communications, or industry results, to differ materially from those expressed or implied by such forward-looking statements. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, failure to increase the volume of traffic on Tata Communications’ network; failure to develop new products and services that meet customer demands and generate acceptable margins; failure to successfully complete commercial testing of new technology and information systems to support new products and services, including voice transmission services; failure to stabilize or reduce the rate of price compression on certain of the company’s communications services; failure to integrate strategic acquisitions and changes in government policies or regulations of India and, in particular, changes relating to the administration of Tata Communications’ industry; and, in general, the economic, business and credit conditions in India. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in Tata Communications’ control, include, but are not limited to, those risk factors discussed in Tata Communications Limited’s Annual Reports. The Annual Reports of Tata Communications Limited are available at www.tatacommunications.com. Tata Communications is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements.
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