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Press Release -- May 28th, 2013
Source: Tata Communications

Tata Communications’ FY2013 Consolidated Gross Revenues up 21% YoY FY2013 Consolidated EBITDA improves 15% YoY Recommends dividend of Rs.3 per share

FY2013 core gross revenues up 23% YoY
FY2013 Start-up Business gross revenues up 9% YoY

  • Q4 FY2013 consolidated gross revenues up 11%, EBITDA up 0.3% YoY
  • Q4 FY2013 core gross revenues up 12%, EBITDA down 2% YoY
  • Q4 FY2013 Start-up Business gross revenues up 3%, EBITDA up 43% YoY

Mumbai (NSE & BSE) & New York (NYSE) – May 28th 2013 – Tata Communications today announces its financial results for the fourth quarter and year ended March 31st 2013.

Consolidated gross revenues improved by 21% to Rs. 172,130 million (USD 3,165 million @avg. Fx of INR/USD 54.38) in FY2013 as compared to Rs. 141,961 million (USD 2,963 million @avg. Fx of INR/USD 47.91) last year. The Core Business revenues stood at Rs. 153,181 million (USD 2,817 million) from Rs. 124,580 million (USD 2,600 million) in FY2012, marking a growth of 23%.

GVS registered a total of 62 bn voice minutes compared to 55 bn minutes in FY2012. GDS revenues grew 20% at Rs. 67,534 million (USD 1,242 million) in FY2013 from Rs. 56,462 million (USD 1179 million) in the same period last year.

In the Start-up Business, revenue improvement was at 9% at Rs. 18,948 million (ZAR 2,956 million @ avg. Fx of INR/ZAR 6.41) from Rs. 17,381 million (ZAR 2,699 million @ avg. Fx of INR/ZAR 6.44) in FY2012. The Start-up EBITDA margins stood at 10.3% in FY2013 – a significant turnaround from (0.8)% in FY2012.

Commenting on the performance of Q4 & FY2013, Vinod Kumar, MD and Group CEO, Tata Communications says, “We witnessed strong revenues and EBITDA growth of 21% and 15% respectively in FY13. We have outpaced our peers and gained market share in almost every market segment and geography that we operate in. This is impressive given the economic and industry conditions that we operated under. During the course of the year, we held our course and continued to invest in sales and marketing as well as services innovation. These investments will start yielding fruit in the current year and beyond.”

Q4 FY2013
Consolidated gross revenues grew by 11% to Rs. 44,005 million (USD 812 million @avg. Fx of INR/USD 54.19) in Q4 FY2013 from Rs. 39,613 million (USD 787 million @avg. Fx of INR/USD 50.34) in Q4 FY2012. The Core Business revenues improved by 12% at Rs. 39,345 million (USD 726 million) from Rs. 35,091 million (USD 697 million) in the same quarter last year.

Global Voice Services (GVS) reported a healthy growth of minutes in Q4 FY2013. The total voice minutes carried in Q4 FY2013 advanced to 15.4 bn from 15.2 bn minutes in Q4 FY2012. Global Data Services (GDS) revenues showed a growth of 8% at Rs. 17,463 million (USD 322 million) in Q4 FY2013 as compared to Rs. 16,126 million (USD 320 million) in Q4 FY2012; supported by improved sales traction and increased pipeline activity.

The Start-up Business, comprising primarily of Neotel, posted a growth in revenues of 3% at Rs. 4,660 million (ZAR 768 million @ avg. Fx of INR/ZAR 6.07), from Rs. 4,522 million (ZAR 698 million @ avg. Fx of INR/ZAR 6.48) in Q4 FY2012. Start-up EBITDA margins stood at 7.4% in Q4 FY2013, a marked improvement from 5.3% in the corresponding quarter last year.

FY2013 Business highlights

  • Tata Communications supports the mobile industry migration to 4G with one of the industry’s widest reaching managed service offerings for mobile broadband enablement. Building on its extensive portfolio of mobile services, including IPX+ connectivity, voice, messaging, and signalling, Tata Communications introduced two new solutions: 1) the Virtual Private Roaming Hub which consolidates roaming operations and 2) the LTE Roaming Service to streamline roaming for 4G networks

FY2013 Customer highlights

  • MERCEDES AMG PETRONAS selected Tata Communications to deliver world-class trackside connectivity at all of its Formula One® race locations using the Tata Communications global network. Through this implementation, Tata Communications enables the team to transfer vital real-time data from the Silver Arrow cars at any Grand Prix location to its headquarters in the UK, three times faster. The improved trackside connectivity will enable the team to react more quickly to developments at the track and help to increase car performance.


  • Tata Communications was positioned in the Leaders’ Quadrant in the Gartner Magic Quadrant for Asia Pacific Network Service Providers 2012. The Magic Quadrant evaluates Network Service Providers based on their completeness of vision and ability to execute
  • Tata Communications was honoured with four prestigious awards in the Enterprise Telecom Services category at the 2013 Frost & Sullivan, India, Information & Communications Technology (ICT) Awards:
    • Enterprise Data Service Provider of the Year (fifth year in a row)
    • Hosted Contact Centre Service Provider of the Year (third year in a row)
    • Third-Party Managed Service Provider of the Year (second year in a row)
    • Managed Video Conferencing Service Provider of the Year

A fact sheet providing a detailed analysis of the results for the quarter and year-ended March 31st 2013 has been uploaded on the Tata Communications website and can be accessed at Communications – Q4 FY13 Investor Fact

About Tata Communications

Tata Communications Limited 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 more than 200 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, leadership in global international voice, and strategic investments in South Africa (Neotel), Sri Lanka (Tata Communications Lanka Limited) and Nepal (United Telecom Limited). Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India and its ADRs are listed on the New York Stock Exchange (NYSE: TCL).

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’ various filings with the United States Securities and Exchange Commission. These filings are available at Tata Communications is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements.

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