Tata Communications has reported financial highlights for QE Dec 2019. The company reported a consolidated revenue of Rs 42.29 billion during the reported quarter, down 1 per cent when compared to quarter ended December 2018. This is primarily due to one-time AFA benefit that the company registered in Q3 of 2018. Normalised growth in consolidated revenues stood at 1.2 per cent YoY.
Meanwhile, consolidated EBITDA at Rs 7.60 billion was 9.7 per cent lower YoY. When adjusted for one-time AFA benefit and exceptional expenses in Q3 FY19, the normalised consolidated EBITDA grew by 20.3 per cent YoY on the back of strong growth in traditional services and margin expansion in growth services.
On sequential basis, the consolidated PAT stood at Rs 585 million as compared to a profit of Rs 539 million reported in Q2 FY20. The capex for quarter under consideration stood at Rs 4.90 billion as compared to Rs 4.54 billion in Q2.
Data service portfolio
The company has recorded strong growth in data business as revenue grew by 2.8 per cent year-on-year (YoY) on the back of steady performance across all segments. Since the company had reported a one-time benefit of Rs 910 million because of AFA during QE December 2018; on a normalised basis, revenue grew by 5.7 per cent YoY.
Meanwhile, data EBITDA at Rs 7.14 billion was down 6.9 per cent YoY. Q3 of 2018 had an exceptional one-time gain of Rs 2.10 billion which led to high EBITDA; on a normalised basis data EBITDA has grown by 28.2 per cent YoY.
Growth services continued to scale and witness profitable growth as revenue grew by 7.5 per cent YoY. The company is witnessing operating leverage in this portfolio; EBITDA for the quarter came in at Rs 511 million as compared to a loss of Rs 327 million in the same quarter last year.
Traditional services delivered a steady performance in revenue and profitability. The revenue grew by 0.1 per cent YoY. Within this portfolio, the India business continues to deliver strong growth after being affected by operator consolidation last year. Normalised for AFA, traditional services grew by 4.5 per cent YoY.