Press Releases

Tata Communications posts INR 173 Crore profit-after-tax in Q3

Data business revenues grew 14% YoY ; Growth Services revenue grew 13% YoY; EBITDA increased 31% YoY

Mumbai - January 30, 2019

 

Tata Communications, a leading global digital infrastructure provider reported its consolidated financial results for the quarter ending December 31st, 2018.

 

Highlights | Q3 FY2019

 

  • Consolidated revenue at INR 4,269.5 crore: grew 4.9% QoQ and 3.0% YoY with data services contributing 78% of the overall revenue (+8% YoY).
  • EBITDA at INR 842.6 crore: increased by 33.7% QoQ, 31.0% YoY with a margin of 19.7%.
  • PAT at INR 173 crore as compared to INR 1.6 crore in Q2 FY19.
  • Data business saw strong growth across all parts of the portfolio: Revenues grew 8.4% QoQ and 14.1% YoY. EBITDA at INR 766.7 crore: +42.6% QoQ and +35.2% YoY.
  • Growth Services[1] revenue witnessed solid momentum: +4.6% QoQ and 13.2% YoY. EBITDA was marginally negative due to upfront costs for a large deal and lower usage-based revenue as a result of a traditionally seasonally slower quarter. There is a strong deal pipeline and contracts under execution that give us a strong visibility on future growth.
  • Traditional Services[2] stabilised with revenue growth of 4.2% QoQ. Operator consolidation in India has affected this portfolio. While the revenue impact is largely over, we are still affected by higher access and co-location cost.
  • CAPEX at USD 69 Mn compared to USD 65 Mn in last quarter.

Consolidated

Nos.

INR

Crore

QoQ

Growth

YoY GrowthUSD MnQoQ

Growth

YoY Growth
Gross Revenue4,269.54.9%3.0%592.12.1%(7.5%)
EBITDA842.633.7%31.0%117.830.9%18.6%
EBITDA margin19.7%420 Bps420 Bps19.9%440 Bps440 Bps
PAT173.325.0

 

Commenting on the results, Vinod Kumar, MD and Group CEO, Tata Communications said, “The platform business model exhibited by 70% of the world’s top ten valuable companies is synonymous with digital transformation – one that many businesses around the world are making a shift to. Our digital infrastructure services enable this shift and our relevance is reflected in our sales funnel, order book, and in the steady increase in adoption of our growth and innovation services. These trends show that the strategy we have adopted is steering us on the right course towards our financial goals.”

Pratibha Advani, CFO, Tata Communications continues, “We have seen a steady ramp-up in our financial performance over the past year and have delivered strong numbers across all parameters. Our Data business continues to be strong and our Growth Services have been instrumental in our overall revenue growth. Despite operator consolidation headwinds our Traditional services business is steady. As we grow scale we are confident of an upward momentum in our revenue growth and profit trajectory in coming quarters.”

 

Business highlights | Q3 FY2019

 

 

For more information, download Tata Communications’ FY19 Q3 investor fact sheet here.

 

[1] 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.

[2] 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

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