Tata Communications continues to build business momentum buoyed by strong demand in data services
Q3 net profit at INR 219 million
February 2, 2016
Tata Communications today announces its financial results for the quarter and nine months ended December 31st 2015.
Highlights for Q3 FY2016
Highlights for 9M FY2016
The Core business (comprising of data and voice segments) reported yet another quarter of strong performance in revenues and profitability. Q3 FY16 Core business revenues increased by 6.1% while EBITDA was up 2.1% YoY. Q3 FY16 Core business PAT at Rs. 910 million (USD 14 million), up 134.1% YoY.
Data has continued to drive Core business performance, with both network and managed services offerings showing enhanced traction. Enterprise business has grown by 21% YOY for the 9 month period on the back of strong demand for digital transformation solutions layered on top of our global infrastructure. Q3 FY16 data revenue increased by 16.7% YoY and EBITDA margins for the corresponding business stood at 21.7%, an expansion of 70 bps YoY. The data services portfolio coupled with improved profitability in the payment services business has been the key growth driver. The new services portfolio is also beginning to gain momentum.
Global voice segment continues to be adversely impacted by structural industry-level headwinds namely the growing acceptance of Voice over Internet Protocol (VoIP) delivered by over the top carriers (OTTs) coupled with a steep decline in tariffs.
Commenting on the Q3 & 9M FY16 results, Vinod Kumar, MD and CEO, Tata Communications, says, “We are happy to have delivered yet another quarter of steady growth despite volatility in the macro-economic environment. We have seen a 16.7% YoY increase in Q3 data revenues. Data especially cloud enablement and collaboration services will continue to be the growth driver in the coming quarters.”
Commenting on the results, Pratibha K. Advani, CFO, Tata Communications, says, “Our Q3 performance reflects continued business momentum in line with our strategic direction and investments. Our data business offering is growing at a significant pace ahead of the industry. This strong momentum in our data segment, both in traditional and growth services is driving our business performance. The robust and predictable data performance has provided headroom to absorb volatility in the voice segment.”
A fact sheet and results presentation providing a detailed analysis of the results for the quarter and nine months ended December 31th 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.
PR Archives: Latest, By Company By Date
Press Release -- February 3rd, 2016