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Press Release -- July 26th, 2013
Source: Tata Communications

Q1 FY2014 Consolidated gross revenues up 10% YoY; EBITDA grows 22% Start-up gross revenues increase 4%; EBITDA up by 70% YoY

Mumbai – July 26th 2013 –Tata Communications today announces its financial results for the quarter ended June 30th 2013.

Q1 FY2014 
Tata Communications’ consolidated gross revenues grew by 10% at Rs. 44,980 million (USD 806 million @avg. Fx of INR/USD 55.83) in Q1 FY2014 compared to Rs. 41,074 million (USD 761 million @avg. Fx of INR/USD 53.98) in the same quarter last year. The gross revenues for the Core Business improved by 10% at Rs. 40,188 million (USD 720 million) from Rs. 36,464 million (USD 676 million) during Q1 FY2013.

Global Voice Services (GVS) maintained its growth trend in volume of International Long Distance (ILD) minutes. The ILD voice minutes carried in Q1 FY2014 were at 13.9 bn, up from 13.1 bn minutes in Q1 FY2013. GVS net revenues registered a 12% YoY growth in Q1 FY14. Global Data Services (GDS) gross revenues maintained its growth momentum at 12% with Rs. 17,958 million (USD 322 million) during the reporting quarter, up from Rs. 15,980 million (USD 296 million) last year in Q1 FY2013.

The Start-up Business, primarily Neotel, posted a further revenue improvement of 4% at Rs. 4791 million (ZAR 813 million @ avg. Fx of INR/ZAR 5.89), up from last year – which stood at Rs. 4610 million (ZAR 693 million @ avg. Fx of INR/ZAR 6.65). In local currency (ZAR) terms, Neotel抯 Q1 FY14 revenues were up by 17.7% YoY. The Start-up Business EBITDA margins were at 21.0% in Q1 FY2014 compared to 12.8% in Q1 FY2013. Neotel’s performance benefitted from market-share gains, an evolving business mix in favour of recurring revenues and sustained cost optimisation efforts.

Commenting on the performance of Q1 FY2014, Vinod Kumar, MD and CEO, Tata Communications, says, “We抳e surpassed last year’s performance on all financial parameters with strong revenue and EBITDA growth which sees us continue to outpace our peers in the market. Our focus on talent, service innovation and marketing is enabling our business with wider market appeal and allows us to offer greater value to our customers. Despite the continued softness in economic conditions, our business is pushing ahead with good momentum.”

Q1 FY2014 business highlights

Q1 FY2014 customer highlights

A presentation and fact sheet providing a detailed analysis of the results for the quarter ended June 30th 2013 has been uploaded on the Tata Communications website and can be accessed at:

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.

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 Tata Communications is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements.

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