For immediate release
Investor Contact:Mahesh Pratap Singh
+91 981 916 2113
Tata Communications reports PAT positive results on the back of strong core business performance
Tata Communications today announces its financial results for the quarter and half year ended September 30th 2015.
Highlights for Q2 FY2016
- Consolidated revenue at INR 51,301 million, up 1.2% Y-o-Y (USD 790 million @average INR/USD exchange rate of 64.91)
- Consolidated EBITDA at INR 7,720 million (USD 119 million), up 1.8% Y-o-Y and resulting in EBITDA margin of 15.0%
- Consolidated PAT stood at INR 60 million (USD 1 million)
Highlights for H1 FY2016
- Consolidated revenue at INR 103,099 million, up 1.2% Y-o-Y (USD 1,607 million @average INR/USD exchange rate of 64.17)
- Consolidated EBITDA at INR 15,072 million (USD 235 million), up 2.4% Y-o-Y and resulting in EBITDA margin of 14.6%
Core business reported its strongest quarterly performance in terms of normalised operating profitability. Q2 FY16 core business revenues increased by 3.6% while EBITDA was up 15.5% Y-o-Y. Q2 FY16 core business PAT was at Rs 334 million, up 9.7% Y-o-Y.
Data business continued its upward trajectory with a strong, broad-based growth with an uptake in solution led offerings across various industries. Q2 FY16 data revenue increased by 16.9% Y-o-Y and EBITDA margin for the corresponding business stood at 19.2%. Transformation services for carriers, new business models in the media and entertainment industry, growth in the data centre business, VPN connectivity and internet transit have been the key drivers for growth.
The enterprise segment continues to witness strong impetus with healthy Y-o-Y growth across Forbes 2000, ET 500 and Next-gen customers. Tata Communications’ brand equity, an indispensable element in the enterprise segment continues to benefit from the recent Heathrow Express branding campaign as well as recent wins. The Service Provider (carrier) segment has also seen improved momentum especially in the Media and Entertainment industry.
Voice business net revenues during Q2 were up 9.0% Y-o-Y and voice segment EBITDA margin stood at 8.3%.
Commenting on the Q2 & H1FY16 results, Vinod Kumar, MD and CEO, Tata Communications, says, “We are encouraged by the upswing in customer demand globally. As one of the leading global providers of network services, we continue to focus on creating the right partner ecosystems and transformational services such as cloud and mobility for our customers.”
Commenting on the results, Pratibha K. Advani, CFO, Tata Communications, says, “Our results are indicative of our resilient and transformative business model. Both, the voice and data businesses have continued to generate free cash flow in-line with our expectations. We remain focused on progressively improving our financial and operational performance, while ensuring that we remain aggressive in the market place in terms of innovation, market coverage and raising brand awareness.”
Business highlights for Q2 FY2016
- Tata Communications aims to interconnect businesses to the cloud using Office 365: Tata Communications has teamed up with Microsoft Corp. to connect businesses to Office 365. Tata Communications’ IZO™ Private – a game-changing platform designed to maximise network performance in the cloud – will connect businesses via Azure ExpressRoute for Office 365, overcoming common reliability and security concerns associated with the public Internet.
- Tata Communications and MasterCard join forces to empower 100 million women: Tata Communications and MasterCard announced a Clinton Global Initiative (CGI) Commitment to Action to financially empower 25,000 women in the developing world, which is part of a larger vision to ultimately reach 100 million women. Both partners aim to bring their shared vision to life over the next five years through access to transformative mobile platforms comprising a range of financial, health and education applications and services.
- Tata Communications teams up with Salesforce to interconnect businesses to the cloud: Tata Communications announced it is partnering with Salesforce, the Customer Success Platform and world's #1 CRM company, to connect businesses to Salesforce’s cloud CRM solutions, empowering employees to increase engagement and productivity. Through this global partner interconnect agreement, Tata Communications’ IZO™ Private platform will connect businesses to Salesforce’s Customer Success Platform, giving customers access to a one-stop-shop for end-to-end management that offers exceptional network performance and end-user experience.
A fact sheet and results presentation providing a detailed analysis of the results for the quarter ended September 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.