Press Releases

Tata Communications rings in a solid Q1 performance; posts net profit of INR 323 Million

Growth services witness robust 25% growth Y-O-Y led by Cloud enablement services

Mumbai (BSE) – July 24, 2017

Tata Communications announces its financial results for the quarter ended June 30th 2017.

Highlights | Q1 FY2018

  • Data services revenues improved by 4.6% YoY. In USD terms Data revenue growth improved by 8.5% YoY. Growthservices continue with their upward trajectory growing at 25% YoY. Traditional services grew by 7% YoY.
  • Core revenues grew 0.4% QoQ reflecting impact due to currency translation; in USD terms core revenues improved by 4.4% QoQ. EBITDA was higher by 12.6% QoQ with margins at 13%, up 140 bps.
  • On a YoY basis core revenues declined, as expected, primarily due to de-growth in the Voice business; in-line with the industry trends.
  • Free Cash flow after capex, interest and tax was at INR 107 Crore (USD 17 Mn); a 45% increase YoY.

 

Core Nos.* INR Crore QoQ Growth YoY Growth USD Mn QoQ Growth YoY Growth
Gross Revenue 4310 0.4% (3.3%) 668 4.4% 0.3%
EBITDA 559 12.6% (15.6%) 87 17.2% (12.5%)
EBITDA margin 13.0% 140 Bps (190 Bps) 13.0% 140 Bps (190 Bps)
PAT 32 5

* All the prior period numbers have been re-cast without data centre to enable like to like comparison.

Commenting on the results, Vinod Kumar, MD and CEO, Tata Communications, said, “Digitalisation continues to create new avenues for growth across our entire business portfolio, and our investments in digital competencies hold us in good stead for the future. Having established a broad and deep portfolio that enables digital and global transformations, we are now pivoting our customer engagement around business themes rather than just technology.  We are also proactively investing into futuristic workflows and systems that will boost our productivity and enhance the customer experience. These investments will positively impact the medium to long term margins.”

Commenting on the results, Pratibha K. Advani, CFO, Tata Communications, said, “Our free cash flow generation remains robust notwithstanding investments into new growth services and for our in-house business transformation projects. We are at the forefront of digital transformation and fully geared to capitalise on this opportunity.”

Business highlights | Q1 FY2018

An Investor fact sheet providing a detailed analysis of the results for the quarter ended June 30th 2017 has been uploaded on the Tata Communications website and can be accessed at: FIN-investorfactsheet-PDF-20170724

Ends…

FOR IMMEDIATE RELEASE

PRESS RELEASE

Natalie Chak
Tata Communications
+44 (0)7833 043 779
natalie.chak@tatacommunications.com
Neil Thomas
Hill & Knowlton Strategies
+44 207 413 3454
neil.thomas@hkstrategies.com

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.

http://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.


© 2017 Tata Communications Ltd. All rights reserved. TATA COMMUNICATIONS and TATA are trademarks of Tata Sons Limited in certain countries.

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