November 1, 2014
FY15 net profit up 15% YoY
Consolidated EBITDA margins improve 110 bps led by robust data performance
Tata Communications today announces its financial results for the quarter and half year ended September 30th 2014.
Highlights for Q2 FY2015
Highlights for H1 FY2015
Revenue from operations for the core business grew 1.7% at INR 44,950 million (USD 742 million @average INR/USD exchange rate of 60.58) from INR 44,187 million (USD 710 million @average INR/USD exchange rate of 62.21) during the corresponding quarter in the previous year. Data continues to be the growth driver; broad based, enterprise segment solutions improved significantly to post an increase in revenues of 8.3% YoY. Connectivity solutions like MPLS-VPN and IP transit led the network services growth story while Unified Communications and Collaboration (UCC) and transformation services (TCTSL) were the front runners in the growth of the managed services segment. During the quarter, the data business also crossed the 20% EBITDA margin milestone. Core business continues to be firmly PBT positive.
The start-up business continued its upward trajectory and posted a robust growth of 8% increase in revenues at INR 5,766 million (ZAR 1,024 million @average INR/ZAR exchange rate of 5.63) compared to INR 5,339 million (ZAR 858 million @average INR/ZAR exchange rate of 6.22) in Q2 FY14. The start-up business EBITDA margin stood at 31.3% during the quarter, compared to 30.8% in Q2 FY14.
Commenting on the Q2 & H1 FY15 results, Vinod Kumar, MD and CEO, Tata Communications, says, “Enterprises across geographies are beginning to harness the digital transformation to power their growth trajectories. They are expanding and restructuring their portfolios and service offerings while looking to scale globally. Capitalising on this positive trend in the ICT space, we’ve developed some compelling cloud enablement offerings, all of which, positions us well for future growth. Our recent IZO launch is one we have high hopes for as we take the necessary steps towards making the Internet Fit For Business™ by bringing a new level of predictability and reliability to the public Internet that does not exist today. We will continue our focus on driving innovation across our service portfolio.”
Sanjay Baweja, Chief Financial Officer, Tata Communications says “The composition of revenue, and by extension, the quality of our EBITDA is improving as the share of the more sustainable and lucrative, data and managed services segment grows. We continue to be focused on driving robust revenues through long-term engagements with global enterprises and sustaining profitability with a vigilant cost regime.”
Business highlights for Q2 FY2015
A fact sheet providing a detailed analysis of the results for the quarter and half year ended September 30th 2014 has 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 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 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’ various filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. Tata Communications is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements.
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