Tata Communications, the global communications technology (CommTech) player, announced its financial results for the quarter ended 31st December 2023.
Highlights | Q3 FY2024
- Tata Communications posted quarterly revenue of INR 5,633 crore (USD 677.1 Mn)- up 24.4% YoY – backed by strong performance in Data Revenue
- Data Revenue came in at INR 4,618 crore (USD 555.1 Mn), a rise of 28.5% YoY
- Digital Portfolio Revenue grew by 78.2% YoY, contributing ~45% to the Data portfolio
- India Enterprise revenue grew strongly, increasing 10.4% YoY
- Consolidated EBITDA stood at INR 1,134 crore (USD 136.3 Mn), improving by 5.3% YoY and 11.7% QoQ
Commenting on the results, AS Lakshminarayanan, MD and CEO, Tata Communications, said: “We are pleased to report another quarter of robust growth as data revenue crossed the INR 4,000 crore mark with digital services contributing 45%, in line with our strategy. Even as we increase our impetus on people and platforms to deliver long-term value, our acquisitions of Oasis, The Switch and Kaleyra have created new avenues for growth and innovation. We remain confident about our medium-term ambitions.”
Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications, said: “We are extremely encouraged that Kaleyra has turned EBITDA positive in the first quarter itself, in line with our ‘Fit to Grow’ strategy. We are excited about the medium term as we see multiple levers to maximise value from both our organic and inorganic investments. We continue strongly on the new growth trajectory with robust cash flow generation as the focus.”
| Particulars (INR Crore) | Quarter Ended – Q3 FY24 | Quarter Ended – Q3 FY23 | YoY Growth |
| Gross Revenue | 5,633 | 4,528 | 24.4% |
| Data Revenue | 4,618 | 3,593 | 28.5% |
| EBITDA | 1,134 | 1,077 | 5.3% |
| EBITDA Margin | 20.1% | 23.8% | (370 bps) |
| PAT | 45 | 394 | -88.6% |
| Adjusted PAT | 251 | 394 | -36.2% |
| Adjusted PAT | 4.5% | 8.7% | (420 bps) |
In The News This Quarter
- Singapore Airlines partners with Tata Communications to enhance customer experience for their discerning customers
- JLR to digitally transform organisation through partnership with Tata Communications
Major Awards & Recognitions This Quarter
- Golden Peacock Global Award for Corporate Social Responsibility by the Institute of Directors
- ‘Diversity & Inclusion Initiative of the Year – Technology’ Award at the Singapore Business Review Management Excellence Awards
- Recognised as Best Cyber Security Services Company of the year in India by Data Security Council of India (DSCI)
- Global SD-WAN Managed Service Provider of the Year, APAC Secure Access Service Edge (SASE) Managed Service Provider of the Year, and APAC SD-WAN Managed Service Provider of the Year awards at the 2023 MEF Excellence Awards
An investor data pack providing detailed analysis of the results for the quarter ended 31st December 2023 has been uploaded on the Tata Communications website and can be accessed here.
Ends…
Amit Sinha Roy
Tata Communications
+91 98999 11333
amit.sinharoy@tatacommunications.com
Rajiv Sharma
Tata Communications
+91 98201 36641
rajiv.sharma@tatacommunications.com
About Tata Communications
A part of the Tata Group, Tata Communications (NSE: TATACOMM; BSE: 500483) is a global digital ecosystem enabler powering today’s fast-growing digital economy in more than 190 countries and territories. Leading with trust, it enables digital transformation of enterprises globally with collaboration and connected solutions, core and next gen connectivity, cloud hosting and security solutions and media services. 300 of the Fortune 500 companies are its customers and the company connects businesses to 100% of the world’s cloud giants. For more information, please visit www.tatacommunications.com
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.
TATA COMMUNICATIONS and TATA are trademarks or registered trademarks of Tata Sons Private Limited in India and certain countries.
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