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Steering on the right course toward financial goals

Tata Communications reported its consolidated revenue at Rs 4,269.5 crore. Grew 4.9 percent QoQ and 3 percent YoY with data services contributing 78 percent of the overall revenue (+8% YoY). EBITDA at Rs 842.6 crore – increased by 33.7 percent QoQ, 31 percent YoY with a margin of 19.7 percent. Profit-after-tax (PAT) was at Rs 173 crore as compared to Rs 1.6 crore in 2Q FY19. Data business saw strong growth across all parts of the portfolio – revenues grew 8.4 percent QoQ and 14.1 percent YoY. EBITDA was at Rs 766.7 crore, +42.6 percent QoQ, and +35.2 percent YoY. Growth services revenue witnessed solid momentum, +4.6 percent QoQ and 13.2 percent YoY. EBITDA was marginally negative due to upfront costs for a large deal and lower usage-based revenue as a result of a traditionally seasonally slower quarter.

There is a strong deal pipeline and contracts under execution that gives the company a strong visibility on future growth. Traditional services stabilized with revenue growth of 4.2 percent QoQ. Operator consolidation in India has affected this portfolio. While the revenue impact is largely over, the company is still affected by higher access and co-location cost. CapEx is at Rs 469 crore compared to Rs 442 crore in the last quarter.

“The platform business model exhibited by 70 percent of the world’s top ten valuable companies is synonymous with digital transformation – one that many businesses around the world are making a shift to. Our digital infrastructure services enable this shift and our relevance is reflected in our sales funnel, order book, and in the steady increase in adoption of our growth and innovation services.”

Vinod Kumar
MD and Group CEO,
Tata Communications

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