Tata Communications announces Q4 FY15 and Q1 FY16 results
July 28, 2015
Mumbai – July 28th, 2015 Tata Communications today announces its financial results for the year ended March 31st 2015 and the quarter ended June 30th, 2015.
Highlights for FY2015
The delay in filing its financial year end accounts was due to one of its foreign subsidiaries, Neotel (Pty) Ltd., and its associated companies, being unable to finalise their audited accounts. Neotel continues to work with its auditors to resolve the outstanding issues, and hopes to be in a position to approve its audited financial statements soon.
Rather than delaying further the release of its consolidated financial statements, the Company finalised its annual accounts using the management accounts for Neotel, and for this reason, the Company’s statutory auditors have issued a qualified audit opinion on its consolidated financial statements.
The issue at Neotel involves potential reportable irregularities identified by its statutory auditors in respect of a particular third party intermediary engaged by Neotel during the third quarter of FY15 in connection with a customer contract. Upon learning of the auditor’s concern, the Board of Neotel appointed an independent firm to investigate the matter.
The Company has been advised by the Neotel Board that to the best of their knowledge, based on the investigation, there has been no finding of corruption or illegal activities undertaken by employees of Neotel, with the exception of misconduct by one of its employees, who is no longer with Neotel. Pursuant to its obligations under the laws of South Africa, the matter has been referred to the appropriate authorities in South Africa.
The investigation also uncovered that certain employees did not follow the company’s procurement and payment processes, which are in place to ensure compliance with the highest standards of business conduct. Neotel’s Board has extensively reviewed, and is in the process of strengthening its policies, procedures and controls.
Based on the facts known today, the Company believes that these matters will not have a material adverse effect on its business, financial condition, results of operations or cash flow of the Company. It is for these reasons that the Company elected to proceed with the finalisation of its consolidated financial statements by reference to the currently unaudited financial information of Neotel.
Highlights for Q1 FY2016
The data business continues to drive revenue and earnings growth. In an ever evolving digital landscape, Tata Communications’ robust portfolio of innovative services around cloud enablement and mobility is resonating well with enterprise CIOs, translating into significant increase in the sales funnel and order book.
Data revenues showed 10.3% growth during FY15 while the data segment EBITDA margins further expanded by 100 bps to 19.9%. Similarly in Q1 FY16, data revenues were up 14% and data EBITDA was up 18.8% Y-o-Y.
Within data, enterprise and next-gen segments continue to lead growth with several new marquee logos added during the FY15 and Q1 FY16. VPN connectivity services, transformation services for carriers, unified communications and collaboration (UCC), data centre and media services were key contributors to the data growth story. Tata Communications continues to gain market share in the India enterprise segment.
Corporate and business highlights for Q4 FY2015 and Q1 FY2016
A fact sheet providing a detailed analysis of the results for the quarter and year ended March 31st 2015, and quarter ended June 30th 2015 have 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 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.
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.
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Press Release -- July 28th, 2015