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Tata Communications delivers profitable growth. Consolidated EBITDA enhanced +9.2% YoY

Tata Communications delivers profitable growth. Consolidated EBITDA enhanced +9.2% YoY

Mumbai, July 20, 2022

Tata Communications, a global digital ecosystem enabler, today announces its financial results for the quarter ended 30th June 2022.

Highlights | Q1 & FY2023

Consolidated financial highlights

  • Consolidated revenue stood at INR 4,311 crore (USD 558.9 Mn); increasing +5.1% YoY.  Sequentially, growth in revenue followed upsides in the Data business
  • Consolidated EBITDA came in at INR 1,077 crore (USD 139.7 Mn); enhanced +9.2% YoY,  where margins stood at 25%, growing by 95 Bps YoY
  • Consolidated PAT stood at INR 544 crore (USD 70.5 Mn) from INR 296 crore (USD 40.1 Mn)  in Q1 FY22, marking an increase of +83.6% YoY
  • Cash CAPEX for this quarter stood at USD 42.7 Mn relative to USD 46.2 Mn in Q1 FY22

Data services portfolio

  • Data business revenues came in at INR 3,340 crore (USD 433.1 Mn), recording an increase of +7.6% YoY. Digital Platforms and Services delivered robust growth of +12.3% YoY
  • EBITDA stood at INR 969 crore (USD 125.7 Mn), up +4% YoY backed by consistent delivery in Core Connectivity and Digital Platforms and Services
  • The Core Connectivity portfolio reported growth of +3.6% YoY in revenue; EBITDA enhanced by +2.6% YoY, with margins coming in at 42.5%
Consolidated Nos. INR Crore QoQ Growth YoY Growth
Gross Revenue 4,311 1.1% 5.1%
EBITDA 1,077 3% 9.2%
EBITDA margin 25% 46 Bps 95 Bps
PAT 544 49% 83.6%

 

Announcing the quarter results, A.S. Lakshminarayanan, MD and CEO, Tata Communications, said,  “We delivered a profitable data revenue growth as a result of disciplined execution, portfolio  enhancements and deeper customer engagements. We continue to closely monitor and overcome the OEM and Supply Chain challenges. We are pleased with the healthy growth in the  order booking and funnel additions across our portfolio, both in India and international markets.”

Commenting on the results, Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications,  said, “We continue to maintain our focus on operational efficiencies and balance sheet hygiene  which is reflected in our profitability and cash flow. We are pleased to see a strong impact of our finance strategy in the company’s performance.”

An investor fact sheet providing detailed analysis of the results for the quarter and full year ended  30th June 2022 has been uploaded on the Tata Communications website and can be accessed  here.

Ends...

Media Contact: Arati Mukerji Tata Communications +91 9958895759 arati.mukerji@tatacommunications.com Investor contact: Chirag Jain Tata Communications +91 9597370559 chirag.jain@tatacommunications.com

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 t o 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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