Mumbai (BSE) – October 27, 2015
Tata Communications today announces its financial results for the quarter and half year ended September 30th 2015.
Highlights for Q2 FY2016
Highlights for H1 FY2016
Core business reported its strongest quarterly performance in terms of normalised operating profitability. Q2 FY16 core business revenues increased by 3.6% while EBITDA was up 15.5% Y-o-Y. Q2 FY16 core business PAT was at Rs 334 million, up 9.7% Y-o-Y.
Data business continued its upward trajectory with a strong, broad-based growth with an uptake in solution led offerings across various industries. Q2 FY16 data revenue increased by 16.9% Y-o-Y and EBITDA margin for the corresponding business stood at 19.2%. Transformation services for carriers, new business models in the media and entertainment industry, growth in the data centre business, VPN connectivity and internet transit have been the key drivers for growth.
The enterprise segment continues to witness strong impetus with healthy Y-o-Y growth across Forbes 2000, ET 500 and Next-gen customers. Tata Communications’ brand equity, an indispensable element in the enterprise segment continues to benefit from the recent Heathrow Express branding campaign as well as recent wins. The Service Provider (carrier) segment has also seen improved momentum especially in the Media and Entertainment industry.
Voice business net revenues during Q2 were up 9.0% Y-o-Y and voice segment EBITDA margin stood at 8.3%.
Commenting on the Q2 & H1FY16 results, Vinod Kumar, MD and CEO, Tata Communications, says, “We are encouraged by the upswing in customer demand globally. As one of the leading global providers of network services, we continue to focus on creating the right partner ecosystems and transformational services such as cloud and mobility for our customers.”
Commenting on the results, Pratibha K. Advani, CFO, Tata Communications, says, “Our results are indicative of our resilient and transformative business model. Both, the voice and data businesses have continued to generate free cash flow in-line with our expectations. We remain focused on progressively improving our financial and operational performance, while ensuring that we remain aggressive in the market place in terms of innovation, market coverage and raising brand awareness.”
Business highlights for Q2 FY2016
A fact sheet and results presentation providing a detailed analysis of the results for the quarter ended September 30th 2015 have been uploaded on the Tata Communications website and can be accessed at:
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 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.
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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