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Tata Communications delivers strong profit for 8th consecutive quarter; PAT rises 18.5% YoY | Board recommends dividend of INR 20.7 per share

Tata Communications delivers strong profit for 8th consecutive quarter; PAT rises 18.5% YoY | Board recommends dividend of INR 20.7 per share

FY22 PAT at INR 1,482 Crores | Consolidated FY22 EBITDA at INR 4,227 Crores I Healthy performance in Core Connectivity, Digital Platforms & Services, and Incubation services of Data business I Focus on continued growth and innovative solutions

Mumbai, April 21, 2022

Tata Communications, a global digital ecosystem enabler, today announces its financial results for the quarter and full year ended 31st March 2022.

Highlights | Q4 & FY2022

Consolidated financial highlights

  • Consolidated revenue for FY22 came in at INR 16,725 Crores (USD 2,244.9 Mn) and at INR 4,263 Crores (USD 567.0 Mn) for Q4 FY22
  • Most of the segments across Core Connectivity, Digital Platforms & Services, and Incubation services of Data business witnessed healthy growth:
    • Data business grew by 2.1% QoQ and 1.4% YoY
    • Within Digital Platforms, all segments except Collaboration witnessed double digit YoY growth and strong sequential growth
    • Core Connectivity witnessed a revenue growth of +0.5% QoQ and +1.4% YoY
    • Incubation portfolio grew by 49.1% QoQ and 67.6% YoY
  • Consolidated EBITDA stood at INR 4,227 Crores (USD 567.3 Mn); with margins in at 25.3%, expanding by 40 Bps YoY. For the quarter, margin came in at 24.5%
  • Consolidated PAT stood at INR 1,482 Crores (USD 198.9 Mn) as compared to a profit of INR 1,251 Crores (USD 168.4 Mn) in FY21, registering a growth of +18.5% YoY
  • CAPEX for this year was INR 1,608 Crores (USD 216.9 Mn) as compared to INR 1,421 Crores (USD 191.4 Mn) in FY21; Free Cash Flow for FY22 was at INR 2,619 Crores (USD 345.6 Mn)

The Board has recommended a dividend of INR 20.7 per share as a result of the Company reporting strong profitability.

Consolidated Nos. INR Crore YoY Growth
Gross Revenue 16,725 -2.2%
EBITDA 4,227 -0.8%
EBITDA margin 25.3% 40 Bps
PAT 1,482 18.5%

 

“Overall, our full year performance has been steady with three consecutive quarters of growth,” said A.S. Lakshminarayanan, MD and CEO, Tata Communications. “We are focused on executing on our strategy and capturing tremendous opportunities ahead of us. I am proud of the team and the significant improvements we have made in our Net Promoter Score® (NPS®). We also earned several industry recognitions for our portfolio as well as for sustainability and workplace.”
Speaking on the occasion, Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications, said, “With a steady sequential upswing in profitability and revenue, FY22 has been a healthy year. Our strong cash flows give us the confidence to compete in global markets and take on a stronger posture. We are now focused on accelerating growth, improving operating efficiencies while remaining committed to further strengthening our portfolio with innovative and differentiated offerings.”

 

An investor fact sheet providing detailed analysis of the results for the quarter and full year ended 31st March 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. Its Tier-1 IP network, wholly-owned subsea fibre backbone and consortium cables’ global network carries ~30% of the world’s internet routes. 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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