Data Revenue grows at 14.4% YoY I Digital Portfolio grows +30.2% YoY
MUMBAI, India, Oct. 20, 2023 /PRNewswire/ — Tata Communications, a global digital ecosystem enabler, today announces its financial results for the quarter ended 30th September 2023. The Data business grows to INR 3,995 Crores in Q2 FY24, registering a growth of 14.4% YoY.
Consolidated financial highlights
Consolidated revenue stood at INR 4,872 crore (USD 589.5 Mn); increasing +10% YoY.
Consolidated EBITDA came in at INR 1,015 crore (USD 122.8 Mn); margins at 20.8%; Underlying EBITDA Margins at 21.7%.Consolidated PAT at INR 221 Crores (USD 26.6 Mn).Cash CAPEX for this quarter stood at USD 71 Mn.
Data Services Portfolio
Data business revenues came in at INR 3,995 crore (USD 483.3 Mn), recording an increase of + 14.4% YoY; Underlying Data Revenue growth came in at + 10% YoY.Data EBITDA stood at INR 913 crore (USD 110.4 Mn), down 9.3% YoY because of organic and inorganic investments.The Core Connectivity business reported + 6.9% YoY growth in revenue.Digital Portfolio delivered robust growth of + 30.2% YoY driven by growth across the Cloud and Next Gen Connectivity segments and integration of The Switch.
Commenting on the results, A.S. Lakshminarayanan, MD and CEO, Tata Communications, said, “We are pleased to announce a robust 14% YoY revenue growth this quarter. With the fast-tracked integration of The Switch, we are witnessing synergies being realised. Besides this, we are happy to announce the accelerated closure of the Kaleyra Inc. transaction which will enable us to create a new digital platform category – Customer Interaction Suite – in line with our ambitions. Overall, we remain confident of the long-term opportunities and will continue to invest in the product portfolio to strengthen our value proposition to enterprises.”
Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications said, “Our planned investments in the organic and inorganic opportunities are in line with our ‘Fit to Grow’ Strategy. Our focus now is on relentless execution of these investments to accelerate the value creation process.”
An investor data pack providing detailed analysis of the results for the quarter ended 30th September 2023 has been uploaded on the Tata Communications website and can be accessed here.
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
Forward-looking and cautionary statements
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.
SOURCE Tata Communications