Mumbai (BSE), May 27, 2016
Mumbai (BSE) – May 27, 2016
Dividend of INR 4.30 per share announced
Mumbai – May 27th 2016 Tata Communications today announces its financial results for the quarter and year ended March 31st 2016.
Highlights | Q4 FY2016
Highlights | FY2016
FY16 marked another year of sustained growth in the Core business (comprising of data and voice businesses). Both the revenue and earnings profile have been shaped by improved growth acceleration in the data business. During FY16, Core revenues registered 5% growth and EBITDA margins grew by 80 bps Y-o-Y.
FY16 data business EBITDA margins stood at 20.8%, 90 bps higher Y-o-Y. The Company continues to make gains in the Enterprise business, which delivered 23% growth in FY16 (Y-o-Y) on the back of strong demand for its innovative suite of solutions. The growth services in the data portfolio is also beginning to gain momentum and registered a 31% growth in FY16.
Neotel (Start-Up business) performance in FY16 was weak given the depreciation in the local currency and slower momentum in project based revenues, resulting in a Y-o-Y decline of 11.2% in revenues and hence lower profitability.
Commenting on the Q4 & FY16 results, Vinod Kumar, MD and CEO, Tata Communications, says, “It has always been our clear strategy to build an agile organisation with a strong portfolio of services to enable the digitisation and globalisation journeys of large businesses. Our adjacent incubations are beginning to attain critical mass and we are excited about the potential they hold. Industry accolades such as the AON Best Employer Award and our inclusion for the third time in a row as a Leader in the Gartner Magic Quadrant for Network Services endorse our belief in our strategy and execution going forward. We are well positioned to deliver value to our stakeholders from a long term perspective.”
Commenting on the results, Pratibha K. Advani, CFO, Tata Communications, says, “Our financial performance continues to reflect healthy operational trends with core PBT before exceptional items growing at over 27% in FY16. The data business is continuing to outpace industry growth significantly both in terms of revenues and margins. Our focus remains on harnessing this growth to step up free cash generation and deleverage the balance sheet while continuing to invest for future growth.”
Business highlights | Q4 FY2016
A fact sheet and presentation providing a detailed analysis of the results for the quarter and year ended March 31st 2016 has been uploaded on the Tata Communications website and can be accessed at:
About Tata Communications
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.
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.
www.tatacommunications.com | @tata_comm
© 2017 Tata Communications Ltd. All rights reserved. TATA COMMUNICATIONS and TATA are trademarks of Tata Sons Limited in certain countries.