Mumbai, February 12, 2014
Mumbai – February 12th 2014 – Tata Communications today announces its financial results for the quarter and nine months ended December 31st 2013.
Financial highlights for Q3 FY2014
Growth in Q3 was mainly driven by the global data solutions (GDS) business which sustained growth momentum across regions. Ethernet, VPN solutions and managed services continued to be the forerunners and helped global data solutions grow significantly. The Global wholesale voice business delivered stable performance; in-line with its long-term vision of sustainable performance.
Consolidated revenue from operations showed an increase of 12% to Rs. 49,537 million (USD 798 million @avg. Fx of INR/USD 62.06) in Q3 FY14 as compared to Rs. 44,341 million (USD 819 million @avg. Fx of INR/USD 54.12) in the corresponding quarter last year. Consolidated EBITDA improved by 29% to Rs. 7,739 million (USD 125 million @avg. Fx of INR/USD 62.06) in Q3 FY14 compared to Rs. 6,011 million (USD 111 million @avg. Fx of INR/USD 54.12) in the corresponding quarter last year. Net profit turned positive at Rs 365 million (USD 6 million @avg. Fx of INR/USD 62.06) in Q3 FY14 from a net loss of Rs. 2,010 million (USD 37 million @avg. Fx of INR/USD 54.12) in the comparable quarter of the previous year.
Revenue from operations for the core business improved by 12% at Rs. 44,340 million (USD 714 million) from Rs. 39,532 million (USD 730 million) during the corresponding quarter a year ago.
The start-up business, comprising primarily of Neotel, contributed to an 8% rise in revenues at Rs. 5,196 million (ZAR 849 million @ avg. Fx of INR/ZAR 6.12), compared to Rs. 4,810 million (ZAR 772 million @ avg. Fx of INR/ZAR 6.23) in Q3 FY13. The start-up business EBITDA margins stood at 31.1% during the quarter, compared to 10.3% in Q3 FY13.
Commenting on the results, Vinod Kumar, MD and CEO, Tata Communications, says, ‘Tata Communications continues to deliver sustained and profitable growth on the back of investments into innovative services and brand, as well as prudent cost management. Our business mix is favourably trending towards a higher proportion of managed services and consumption by Enterprise customers.”
Sanjay Baweja, Chief Financial Officer, Tata Communications says, “Operationally, we are hitting the right milestones across our businesses. As envisaged, while voice margins have normalised during the quarter, the overall margin profile has remained robust and is being complemented by the data business delivering sustainable margins at 20%. Enhancing operational efficiency at every level of the business and driving free cash generation remain our two key focus areas.”
Tata Communications’ focus on progressive innovation continues to deliver market relevant and transformative solutions focused on enhancing value for its customers. The company has invested in building out customer-centric programmes to drive solutions across mobile broadband, cloud and unified communications; areas that are seeing exponential growth across markets.
Q3 FY2014 business highlights
Q3 FY2014 Awards & Recognition
A fact sheet providing a detailed analysis of the results for the quarter and nine months ended December 31st 2013 has been uploaded on the Tata Communications website and can be accessed at:
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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.
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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