Accelerates Data Revenue growth by 17.1% YoY I Digital Portfolio grows +37.5% YoY
Mumbai, INDIA ,
July 19, 2023
Tata Communications, a global digital ecosystem enabler today announces its financial results for the quarter ended 30th June 2023. The Data business grows to INR 3,912 Crores in Q1FY24, registering a growth of 17.1% YoY. As the acquisition of Switch was completed in this quarter, the Data Revenue include two months of revenues from The Switch Enterprises LLC.
Highlights | Q1 FY2024
Consolidated financial highlights
- Consolidated revenue stood at INR 4,711 crore (USD 580.5 Mn); increasing +10.7% YoY
- Consolidated EBITDA came in at INR 1,024 crore (USD 124.6 Mn); where margins stood at 21.5%; Underlying EBITDA Margins stood at 22.1%
- Consolidated PAT stood at INR 382 Crores (USD 46.4 Mn) from INR 544 crore (USD 70.5 Mn) in Q1 FY23; impacted by higher interest costs and lower forex gains vs Q1 FY23
- Cash CAPEX for this quarter stood at INR 431 Crores (USD 52.4) Mn relative to INR 329 Crores (USD 42.7 Mn) in Q1 FY23
The Board has recommended a dividend of INR 21 per share as a result of the Company’s strong and consistent profitability.
| – Underlying
Data Services Portfolio
- Data business revenues came in at INR 3,912 crore (USD 475.9 Mn), recording an increase of + 17.1% YoY; Underlying Data Revenue growth came in at 14.2% YoY
- Data EBITDA stood at INR 929 crore (USD 113 Mn), down 4.2% YoY largely due to inorganic costs coming in this quarter
- The Core Connectivity portfolio reported growth of +8.1% YoY in revenue
- Digital Portfolio delivered robust growth of +37.5% YoY driven by growth across all portfolios and integration of The Switch Enterprises LLC
Commenting on the results, A.S Lakshminarayanan, MD and CEO, Tata Communications, said, “We have had a pivotal first quarter in FY24 – delivering a very strong revenue growth in our data business and the digital portfolio, closing The Switch deal and announcing the Kaleyra acquisition. We are on track with the execution of our strategy; and the strengthening of our portfolio will increase the relevance quotient with our enterprise customers. On the recently announced ESG goals, Lakshmi added, “Sustainability is at the core of our business strategy and we are committed to be Net Zero by 2035 across our global operations.”
Kabir Ahmed Shakir said, “We are on a robust growth trajectory in Q1 FY24 with our Data Revenue. I am very pleased to see the Finance Strategy enabling the company’s performance and fueling the growth momentum. Financial discipline and rigour built over the last few years is now setting the stage to fund both organic investments and inorganic ambitions while retaining focus on a healthy balance sheet.”
An investor data pack providing detailed analysis of the results for the quarter ended 30th June 2023 has been uploaded on the Tata Communications website and can be accessed here.
About Tata Communications
A part of the Tata Group, Tata Communications (NSE: TATACOMM; BSE: 500483) is a global digital ecosystem enabler powering today’s fast-growing digital economy in more than 190 countries and territories. Leading with trust, it enables digital transformation of enterprises globally with collaboration and connected solutions, core and next gen connectivity, cloud hosting and security solutions and media services. 300 of the Fortune 500 companies are its customers and the company connects businesses to 80% of the world’s cloud giants. For more information, please visit 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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