Tata Communications has announced its financial results for the quarter ended (QE) September 30, 2023. Consolidated revenue stood at Rs 48.72 billion ($589.5 million), increasing 10 per cent year-on-year (YoY). Consolidated earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at Rs 10.15 billion ($122.8 million) where margins stood at 20.8 per cent, while underlying EBITDA margins stood at 21.7 per cent. Consolidated profit after tax (PAT) stood at Rs 2.21 billion ($26.6 million). Cash capex for this quarter stood at $71 million.
The data business revenues of the company grew to Rs 39.95 billion in the reported quarter, registering a YoY growth of 14.4 per cent. Underlying revenue growth came in at 10 per cent YoY. Data EBITDA stood at Rs 9.13 billion ($110.4 million), down 9.3 per cent YoY because of organic and inorganic investments. The core connectivity business reported 6.9 per cent YoY growth in revenue. The digital portfolio delivered robust growth of 30.2 per cent YoY driven by growth across the cloud and next-gen connectivity segments and integration of The Switch.
Commenting on the results, A.S Lakshminarayanan, managing director and chief executive officer, Tata Communications, said, “We are pleased to announce a robust 14 per cent 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.”
Meanwhile, 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.”