Mumbai, INDIA , January 22, 2025
Tata Communications, announced its financial results for the third quarter of FY25.
Highlights | Q3 FY2025
- Data revenue grows 6.2% YoY, coming in at INR 4,903 crore
- Digital revenue up 10.2% YoY, totalling INR 2,313 crore
- PAT up 12.9% QoQ, coming in at INR 256.6 crore
Commenting on the results, A.S. Lakshminarayanan, MD and CEO, Tata Communications, said: “Q3 has been a satisfactory quarter with strong growth in digital revenues, improved margins, and enhanced free cash flow. We are advancing well in our review of subsidiaries, with a clear focus on optimising their performance and unlocking value, as demonstrated in the case of Tata Communications Payments Solutions Limited. I believe in the world of AI, digital infrastructure will be even more critical and our investments in our Digital Fabric will hold us in good stead.”
Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications, said: “The strategic actions to streamline and make our business future-ready has begun paying off. Over and above the divestiture of our payment solutions business, we continue to pursue other monetisation opportunities and strategic evaluation of assets. With disciplined capital allocation and our ‘Fit to Grow’ strategy we remain confident of delivering sustainable value to shareholders and customers alike.”
Consolidated financial highlights
Q3 FY25
| Particulars (INR Crore) | Quarter Ended – Q3 FY24 | Quarter Ended – Q3 FY25 | YoY Growth |
| Gross Revenue | 5,633 | 5,798 | 2.9% |
| Data Revenue | 4,618 | 4,903 | 6.2% |
| EBITDA | 1,134 | 1,181 | 4.1% |
| EBITDA Margin | 20.1% | 20.4% | +23bps |
| PAT | 45 | 257 | 472.7% |
| PAT Margin | 0.8% | 4.4% | +363bps |
In The News This Quarter
- JLR and Tata Communications strengthen partnership to deliver smarter, data-driven connected cars
- Findi Ltd, Via its Subsidiary TSI, Signs Strategic Deal to Acquire Tata Communications’ White Label ATM Business
- Tata Communications Readies Kaleyra AI: The Game Changing, AI-Powered Future of Customer Interactions
- Tata Communications Unveils AI Infrastructure with NVIDIA Accelerated Computing, Built for New Era of Computing in India
- ‘We will not exit voice, but change its functionality’
A.S. Lakshminarayanan tells Financial Express that core digital services like network transformation and CPaaS services will continue to evolve as the business environment changes and enterprises adopt cloud - Legacy lähmt: Schrittweise und sicher zu KI und Edge Computing
Kim Byberg, Vice President and Head of Continental Europe, speaks to Germany’s IT-Finanazmagazin on how BFSI companies need to adopt new technologies with a gradual and phased approach, owing to the vulnerability of the sector
Major Awards & Recognitions This Quarter
Digital Fabric Analysts Recognitions
- Tata Communications MOVE™ won the Connected Car Platform of the Year at the AutoTech Breakthrough Awards 2024
- Honoured with multiple awards the MEF NaaS Excellence Awards 2024, including MEF 3.0 CE Service Provider of the Year – Asia Pacific, 2024 SASE Service Provider of the Year – Asia Pacific, SD-WAN Service Provider of the Year – Asia Pacific
- Won the Runner Up – Champions Track, Runner Up – Enterprise Segment and Best Conversion Winner awards at the AWS Indian Prospecting League
- Recognised as an ‘Established Leader’ in the Juniper Research RCS Business Messaging Leaderboard 2024
- Awarded the Service Provider Partner of the Year FY24 for India & SAARC at the Palo Alto Networks FY25 Partner Summit
- Recognised as the Champion Roaming Vendor by Kaleido Intelligence
Other recognitions
-
- Featured in the 2024 Avtar & Seramount 100 Best Companies for Women in India for the 8th consecutive time, along with being recognised in the ‘100 Best – Hall of Fame’
- Received the Sustainable Growth Award for Organisation in the Telecom Ecosystem 2024 at the 2024 India Mobile Congress
- Won the Indian CSR Award for Project Nanneer — Tata Communications’ transformative water conservation initiative
- Honoured with the Jagjivan Ram Award under the Governance category at the 34th IISSM Annual Global Conclave
- Genius Wong, Executive Vice President – Core and Next-Gen Connectivity Services & Chief Technology Officer, Tata Communications, recognised as a Gold Winner at 2024 Stevie® Awards in the category of Female Executive of the Year – Business Products – More Than 2,500 Employees
- Recognised in the Very Large Category (10,001+ employees) for exceptional volunteer efforts at the Tata Engage Awards 2024
- Honoured with Coursera 2024 Talent Transformation Award for India
An investor data pack providing detailed analysis of the results for the quarter ended 31st December 2024 has been uploaded on the Tata Communications website and can be accessed here.
Mansi Somvanshi
Tata Communications
+91 98198 18462
mansi.tiwari@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 80% 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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