Tata Communications today announces its financial results for the quarter ended June 30th 2014 (Q1 FY15).
Highlights for Q1 FY2015
Consolidated revenue from operations increased by 14% to Rs. 51,117 million (USD 855 million @avg. Fx of INR/USD 59.78) in Q1 FY15 as compared to Rs. 44,980 million (USD 806 million @avg. Fx of INR/USD 55.83) in the corresponding quarter last year. Consolidated EBITDA increased by 9% to Rs. 7,127 million (USD 119 million @avg. Fx of INR/USD 59.78) in Q1 FY15 compared to Rs.6,516 million (USD 117 million @avg. Fx of INR/USD 55.83) in the corresponding quarter last year.
Revenue from operations for the core business improved 12% at Rs.45,186 million (USD 756 million) from Rs.40,188 million (USD 720 million) during the corresponding quarter a year ago. Data services continue to be the primary growth driver because of an uptake in demand from global enterprise customers for network and data centre services. Transformation services for global carriers also witnessed an upswing in demand. The economies of scale from the underlying infrastructure and operating capabilities are translating into improved Core business profitability, with Q1 FY15 EBITDA up 7% YoY and Q1 FY15 Profit Before Tax (PBT) and Exceptional Items up 192% YoY.
The start-up business, comprising primarily of Neotel, posted a 24% increase in revenues at Rs. 5,931 million (ZAR 1,046 million @ avg. Fx of INR/ZAR 5.67), as compared to Rs. 4,791 million (ZAR 813 million @ avg. Fx of INR/ZAR 5.89) in Q1 FY14. The start-up business EBITDA increased by 23% to Rs. 1,415 million (ZAR 250 million @ avg. Fx of INR/ZAR 5.67) in Q1 FY15 compared to Rs. 1,154 million (ZAR 196 million @ avg. Fx of INR/ZAR 5.89)
Commenting on the results, Vinod Kumar, MD and CEO, Tata Communications, says, “Tata Communications continues to maintain its growth momentum and build on its strategic evolution into advanced managed services. The improvement in global demand, our comprehensive data services portfolio and an emphasis on operational excellence holds us in good stead. In the coming quarters, we will continue to calibrate our performance against customer expectations, to deliver sustainable value to all stakeholders.”
Sanjay Baweja, Chief Financial Officer, Tata Communications says, “Our Q1 results have set a good momentum for the year ahead and we are confident that we will be able to sustain this trend in the coming quarters. The business continues to benefit from improved asset utilisation, greater leverage on costs and uptrend in our newer services.”
Q1 FY2015 business highlights
A fact sheet and results presentation providing a detailed analysis of the results for the quarter ended June 30th 2014 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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