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Tata Communications Delivers Strong Revenue, EBITDA And PAT Growth, With Accelerated Performance In Growth Services

Tata Communications announces its financial results for the quarter ended September 30th, 2018

Photo Credit : Reuters

1455187715_LWmjgX_tata.jpg

· Consolidated revenue grew sequentially by 3.2% QoQ, led by strong growth in Data Services.

· Data business revenues grew by 9.1% YoY and 5.2% QoQ, on the back of strong performance in Growth Services portfolio.

· Growth Services witnessed QoQ revenue growth of 9.1%, with good traction in IZO™ cloud enablement, media and entertainment, Global Hosted Contact Centre, and mobility services. Growth services portfolio is now EBITDA neutral.

· Data Services now contribute over 75% of overall revenue - an increase of 9% compared to September 2017.

· Consolidated EBITDA increased by 7.4% QoQ and 6.1% YoY, and margins expanded by 150 BPS over the same quarter last year. This was primarily due to focus on boosting operational efficiencies and driving down costs, and reduction of losses in Growth Services.

· Data EBIDTA grew by 10.0% YoY and 4.1% QoQ primarily due to Growth Services turning EBITDA neutral this quarter.

· Rental income from real estate (INR 31 crores) has been reclassified as business income from this quarter and is part of the data business. All previous quarter numbers have been restated to enable like-for-like comparison.

· Consolidated PAT was INR 1.6 crore compared to a loss of INR 58.5 crore in Q1 FY19.

· Free Cash Flow (EBITDA less Capex) for the quarter came in at INR 172 crores – an increase of 67.2% over Q1.

· CAPEX for this quarter was USD 65 Mn compared to USD 72 Mn in Q1 FY19.

· Consolidated net debt for the quarter is at USD 1,251 Mn, a reduction of USD 17 Mn compared to last quarter. Net debt has declined despite dividend payment of USD 22 Mn in Q2.

Consolidated

Nos.

INR

crore

QoQ

growth

YoY growth

USD Mn

QoQ

growth

YoY growth

Gross revenue

4,068.2

3.2%

(4.2%)

580.1

(1.5%)

(12.2%)

EBITDA

630.2

7.4%

6.1%

89.9

2.6%

(2.7%)

EBITDA margin

15.5%

60 BPS

150 BPS

15.5%

60 BPS

150 BPS

PAT

1.6



0.4

 

Commenting on the results, Vinod Kumar, MD and CEO, Tata Communications, said: “Our Growth Services portfolio turning EBITDA neutral this quarter demonstrates that our new services are gaining steady operating leverage. Equally, it is proof that our broadened portfolio is appealing to customers, as they need a dependable digital infrastructure to ensure success in their digital journeys. Our funnel and delivery pipeline for Growth Services is strong, which gives us further confidence for the quarters ahead.”

Commenting on the results, Pratibha K. Advani, CFO, Tata Communications, said: “Our investments in our digital capabilities have started to show results, and we witnessed a double-digit growth of 10.7% sequentially in our Growth Services portfolio on a constant currency basis. This is in line with our strategic intent and long-term vision. Our growth driver in the future will be Innovation Services, we continue to invest in that portfolio while maintaining a balance of profitability and healthy free cash flow generation.”


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