Tata Communications rings in a solid Q1 performance; posts net profit of INR 323 Million

Tata Communications announces its financial results for the quarter ended June 30^th 2017.

Highlights | Q1 FY2018

• Data services revenues improved by 4.6% YoY. In USD terms Data revenue growth improved by 8.5% YoY. Growth services continue with their upward trajectory growing at 25% YoY. Traditional services grew by 7% YoY.
• Core revenues grew 0.4% QoQ reflecting impact due to currency translation; in USD terms core revenues improved by 4.4% QoQ. EBITDA was higher by 12.6% QoQ with margins at 13%, up 140 bps.
• On a YoY basis core revenues declined, as expected, primarily due to de-growth in the Voice business; in-line with the industry trends.
• Free Cash flow after capex, interest and tax was at INR 107 Crore (USD 17 Mn); a 45% increase YoY.

* All the prior period numbers have been re-cast without data centre to enable like to like comparison.

Commenting on the results, Vinod Kumar, MD and CEO, Tata Communications, said, “Digitalisation continues to create new avenues for growth across our entire business portfolio, and our investments in digital competencies hold us in good stead for the future. Having established a broad and deep portfolio that enables digital and global transformations, we are now pivoting our customer engagement around business themes rather than just technology.  We are also proactively investing into futuristic workflows and systems that will boost our productivity and enhance the customer experience. These investments will positively impact the medium to long term margins.”

Commenting on the results, Pratibha K. Advani, CFO, Tata Communications, said, “Our free cash flow generation remains robust notwithstanding investments into new growth services and for our in-house business transformation projects. We are at the forefront of digital transformation and fully geared to capitalise on this opportunity.”

Business highlights | Q1 FY2018

• Tata Communications ushers in a new era for VICE Media with global cloud-based media platform: Tata Communications is building for VICE Media, a high-performance, completely cloud-based platform for global media asset management, storage, content contribution and distribution. It will enable VICE Media to capture content anywhere in the world, and quickly make it available to hundreds of editors in production centres in New York City, Los Angeles, Washington DC, Toronto and London, for publishing and broadcasting across VICE Media channels.
• Tata Communications and Mercedes-AMG Petronas Motorsport explore the potential of the Internet of Things to boost team performance: Tata Communications launched the 2017 F1® Connectivity Innovation Prize and unveiling the first challenge of this year’s competition – with a focus on the Internet of Things (IoT). The first challenge, set by Mercedes-AMG Petronas Motorsport, asks F1® fans and technology enthusiasts to come up with ideas for IoT solutions that could be used by the team to deliver peak performance at each Grand Prix.
• Tata Communications and Alibaba Cloud partner to empower and transform global businesses: Tata Communications announced a partnership with Alibaba Cloud, the cloud computing arm of Alibaba Group, to enable customers from over 150 countries, including India, to connect to Alibaba Cloud’s ExpressConnect via Tata Communications’ IZO™ Private Connect service.
• Tata Communications expands IZO™ Private Cloud footprint in Europe, Middle East and Asia Pacific to address enterprises’ data sovereignty concerns: Tata Communications launched three new nodes for its IZO™ Private Cloud service to support enterprises’ hybrid cloud adoption while ensuring regulatory compliance. The new private cloud nodes in Germany, United Arab Emirates (UAE)1 and Malaysia enable CIOs to gain unprecedented control over all their applications by creating a truly hybrid, high-performance IT infrastructure where different cloud, colocation and managed hosting environments work together as one.

An Investor fact sheet providing a detailed analysis of the results for the quarter ended June 30th 2017 has been uploaded on the Tata Communications website and can be accessed at: http://www.tatacommunications.com/sites/default/files/FIN-investorfactsheet-PDF-20170724.pdf

Ends…

[1] Traditional services include Virtual Private Network, International Private Line, Internet Leased Line, Ethernet, Internet Protocol –Transit, Inmarsat, Content Delivery Network, National Private Line, Mobility.

[2] Growth services include IZO™, Managed Hosting, Managed Security Services, Broadcast, Video Connect, Unified Collaboration and Conferencing, SIP Trunking, Global Hosted Contact Center, Video Streaming, Mobile New Services, Healthcare, Media Management and Mobile Innovation.