Mumbai, October 29, 2013
Mumbai – October 29th 2013 – Tata Communications today announces its financial results for the quarter and half-year ended September 30th 2013.
Financial highlights for Q2 FY2014
Q2 FY2014
Growth in Q2 was mainly attributed to the global increase in demand across all segments. Tata Communications’ wholesale voice business continues to outpace the global market growth rate. Revenues from enterprises increased by 29% YoY. Operating income and margin were positively impacted by Tata Communications’ continued focus on cost-management.
Consolidated gross revenues showed an increase of 16% to Rs. 49,526 million (USD 796 million @avg. Fx of INR/USD 62.21) in Q2 FY2014 from Rs. 42,710 million (USD 774 million @avg. Fx of INR/USD 55.21) in the corresponding quarter last year. Net profit improved substantially to Rs 804 million (USD 13 million @avg. Fx of INR/USD 62.21) in Q2 FY14 compared to a net loss of Rs. 2,742 million (USD 50 million @avg. Fx of INR/USD 55.21) in the same quarter last year.
Gross revenues for the Core Business improved by 17% at Rs. 44,187 million (USD 710 million) against Rs. 37,840 million (USD 685 million) during Q2 FY2013.
Global Voice Services (GVS) continued on its growth path with a total of 15.4 bn minutes carried on the network in Q2 FY14 – up from 15.2 bn minutes in Q2 FY13. GVS net revenues showed a 30% YoY improvement in Q2 FY14. Gross revenues for Global Data Services (GDS) also saw an upswing with a revenue growth of 19% at Rs. 19,897 million (USD 320 million) in Q2 FY14 from Rs. 16,703 million (USD 303 million) last year in Q2 FY13.
The Start-up Business, comprising primarily of Neotel, witnessed a 10% rise in revenues at Rs. 5,339 million (ZAR 858 million @ avg. Fx of INR/ZAR 6.22), up from Rs. 4,870 million (ZAR 729 million @ avg. Fx of INR/ZAR 6.68) in Q2 FY13. The Start-up Business’ EBITDA margins stood at 24.9% in Q2 FY14 against 10.6% in Q2 FY13. In local currency (ZAR) terms, Neotel’s Q2 FY14 revenues improved by 18% YoY.
H1 FY2014
Consolidated gross revenues were up by 13% at Rs. 94,506 million (USD 1,601 million @avg. Fx of INR/USD 59.02) in H1 FY2014 as against Rs. 83,784 million (USD 1,535 million @avg. Fx of INR/USD 54.6) in the same period last year. Net profit improved substantially to Rs 1,749 million (USD 30 million @avg. Fx of INR/USD 59.02) in H1 FY14 compared to a net loss of Rs. 4,171 million (USD 76 million @avg. Fx of INR/USD 54.60) in the same period last year.
Gross revenues for the Core Business were up by 14% at Rs. 84,376 million (USD 1,430 million) from Rs. 74,305 million (USD 1,361 million) during H1 FY13.
GVS net revenues delivered a 20% YoY growth in H1 FY14. GDS gross revenues were up by 16% at Rs. 37,855 million (USD 641 million) in H1 FY14 from Rs. 32,682 million (USD 599 million) in the same period last year.
The Start-up Business revenues improved by 7% at Rs. 10,130 million (ZAR 1,672 million @ avg. Fx of INR/ZAR 6.06), from Rs. 9,479 million (ZAR 1,421 million @ avg. Fx of INR/ZAR 6.67) in H1 FY13. The Start-up Business EBITDA margins stood at 23% in H1 FY14 against 11.7% in H1 FY13.
Commenting on the results, Vinod Kumar, MD and CEO, Tata Communications, says, “We’ve recorded solid growth across both our managed services and voice offerings and newer services such as jamvee™ conferencing in the video space see our business continuing to innovate. This coupled with local market offerings such as our aggressive ATM roll out across India have all contributed to a strong quarter and H1.”
“The explosion of rich media delivery channels and organisations’ increasing demand for unified and integrated communications services is also allowing us to offer greater value to our customers,” he added.
Sanjay Baweja, CFO, Tata Communications says, “Our financial performance reflects our commitment to benchmarking and focus on optimising cost structures and operational efficiencies.”
Q2 FY2014 business highlights
Q2 FY2014 customer highlights
FY2013 AWARDS & RECOGNITION
A fact sheet providing a detailed analysis of the results for the quarter and half year ended September 30th 2013 has been uploaded on the Tata Communications website and can be accessed at: https://www.tatacommunications.com/downloads/investors/InvestorFactSheet-Q2FY14.pdf
¹ jamvee is available anywhere with the exception of sanctioned countries.
Ends…
FOR IMMEDIATE RELEASE |
PRESS RELEASE |
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Natalie Chak Tata Communications +44 (0)7833 043 779 natalie.chak@tatacommunications.com |
Neil Thomas Hill & Knowlton Strategies +44 207 413 3454 neil.thomas@hkstrategies.com |
Tata Communications Limited (CIN no: L64200MH1986PLC039266) along with its subsidiaries (Tata Communications) is a leading global provider of A New World of Communications™. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multi-national enterprises, service providers and Indian consumers.
The Tata Communications global network includes one of the most advanced and largest submarine cable networks and a Tier-1 IP network with connectivity to over 240 countries and territories across 400 PoPs, as well as nearly 1 million square feet of data centre and collocation space worldwide.
Tata Communications’ depth and breadth of reach in emerging markets includes leadership in Indian enterprise data services and leadership in global international voice. Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India.
https://www.tatacommunications.com
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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