Tata Communications’ data business continues its upward trajectory led by strong momentum in ‘Growth Services’

Growth Services revenue increased by 40.5% YoY | EBITDA improves QoQ, margin expansion of 40 BPs

Mumbai, October 25, 2017

Mumbai – October 25th 2017 Tata Communications today announces its financial results for the quarter ended September 30th 2017.

 Highlights |Q2 FY2018

 Data business continues to build on the momentum and posts a revenue growth of 2.2% YoY. ‘Growth services’ witnessed strong growth traction with a 40.5% increase in revenues YoY and 16.7% QoQ. Traditional services posted a 1.7% improvement in revenues YoY

  • EBITDA increased by 1.1% QoQ with a margin expansion of 40 BPs over the last quarter aided by increase in Voice margins and a one-time gain in Payment Solutions (TCPSL)
  • Consolidated business revenues declined by 2.1% QoQ and 6.5% YoY primarily due to a continuing decline in the Voice business revenues coupled with a decline in Transformation services (TCTSL) QoQ on account of lower revenues from Tata Teleservices
  • EBITDA margins declined by 110 BPs YoY due to Payment Solutions (TCPSL) (30 BPs), adverse forex impact (30 BPs) and higher investments in Innovation, Transformation and access charges impact (60 BPs)
  • PAT recorded negative at Rs. 250 crore on account of additional provision of Rs. 186 crore as per the contractual obligation to Tata Sons on the Tata Teleservices investment and due to other one-time exceptional provisions of Rs. 27 Crores


Consolidated Nos.* INR Crore QoQ YoY USD Mn QoQ YoY
Gross Revenue 4,218 (2.1%) (6.5%) 656 (1.9%) (2.6%)
EBITDA 565 1.1% (13.7%) 88 1.3% (10.1%)
EBITDA margin 13.4% 40 Bps (110 Bps) 13.4% 40 Bps (110 Bps)
PAT (250) (39)    

* All the prior period numbers have been re-cast without data centre to enable like to like comparison.

Commenting on the results, Vinod Kumar, MD and CEO, Tata Communications, said, “Our portfolio continues to transform in line with our strategic intent to grow our digital infrastructure services.  In addition to the accelerating performance of growth services, we are buoyed by the market response to our new cyber-security and IoT services. We continue to invest in our internal digitalisation program to enhance future productivity and customer experience.”

Commenting on the results, Pratibha K. Advani, CFO, Tata Communications, said, “The performance delivered during H1 largely captures impact of transformative initiatives that we have taken in the past few quarters. Our growth services portfolio is driving strong and sustained expansion in the revenue profile of the business. The focus is clearly on driving solutions that can evolve, grow and serve enterprise customers effectively.”


[1] Traditional services include Virtual Private Network, International Private Line, Internet Leased Line, Ethernet, Internet Protocol –Transit, Inmarsat, Content Delivery Network, National Private Line, Mobility, Data Centre, Unified Collaboration and Conferencing

2 Growth services include IZO™, Managed Hosting, Managed Security Services, Broadcast, Video Connect, SIP Trunking, Global Hosted Contact Center, Video Streaming, Mobile New Services, Healthcare, Media Management and Mobile Innovation.


Business highlights | Q2 FY2018 

An Investor fact sheet providing a detailed analysis of the results for the quarter and half-year ended September 30th 2017 has been uploaded on the Tata Communications website.





Media Contact :


                                                            Investor Contact :

          Divya Anand

Tata Communications

+94 (0) 713361744


Vipul Garg

Tata Communications

+91 11 66257431



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 network to deliver managed solutions to multi-national enterprises and communications service providers.

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 more than 240 countries and territories across 400 PoPs.

Tata Communications’ depth and breadth of reach in emerging markets includes leadership in Indian enterprise data services and leadership in global international voice communications. 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.