Tata Communications Drives Profitability In Data Business

Posted by Tata Communications

Tata Communications announced 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

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

• New launches:
  • Tata Communications’ IoT Marketplace – the first-of-its-kind IoT Marketplace in India: Tata Communications announced the launch of its Internet of Things (IoT) Marketplace – a first-of-its-kind initiative in India to strengthen and accelerate the country’s growing IoT ecosystem
  • CII – Tata Communications Centre for Digital Transformation’s ‘Digital Maturity Appraisal’: The CII-Tata Communications Centre for Digital Transformation launched a digital transformation self-assessment tool – the Digital Maturity Appraisal – to help Indian industries navigate today’s business landscape as it continues to undergo rapid changes, led by digital technologies which are transforming the way systems, processes and people work

• Research: Global Talent Competitiveness Index (GTCI)
  • Produced in partnership with INSEAD, The Adecco Group and Tata Communications, the GTCI is an annual benchmarking report that measures the ability of 125 countries to compete for talent. The 2019 Global Talent Competitiveness Index (GTCI) saw six Asia Pacific countries ranking in the top quartile with Singapore leading the Asia Pacific in talent competitiveness for the 6th straight year

• Leadership update
  • On July 30th 2019, Tata Communications announced that it has selected Amur Swaminathan Lakshminarayanan to be appointed as the Managing Director and Chief Executive Officer (MD & CEO) of the Company―CT Bureau