Tata Communications announces its financial results for QE June 30, 2023

Tata Communications has announced its financial results for the quarter ended (QE) June 30, 2023. Consolidated revenue stood at Rs 47.11 billion ($580.5 million), increasing 10.7 per cent year-on-year (YoY). Consolidated earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at Rs 10.24 billion ($124.6 million) where margins stood at 21.5 per cent, while underlying EBITDA margins stood at 22.1 per cent.

Consolidated profit after tax (PAT) stood at Rs 3.82 billion ($46.4 million) from Rs 5.44 billion ($70.5 million) in Q1 FY23, impacted by higher interest costs and lower forex gains as compared to Q1 FY23. Cash capex for this quarter stood at Rs 4.31 billion ($52.4 million) relative to Rs 3.29 billion ($42.7 million) in Q1 FY23.

The data business of the company grew to Rs 39.12 billion in Q1 FY24, registering a growth of 17.1 per cent YoY. As the acquisition of The Switch Enterprises LLC. was completed in this quarter, the data revenue includes two months of revenues from Switch.

Commenting on the results, A.S Lakshminarayanan, managing director and chief executive officer, Tata Communications, said, “We have had a pivotal first quarter in FY24 – delivering a very strong revenue growth in our data business and the digital portfolio, closing The Switch deal and announcing the Kaleyra acquisition. We are on track with the execution of our strategy, and the strengthening of our portfolio will increase the relevance quotient with our enterprise customers. Sustainability is at the core of our business strategy and we are committed to be net zero by 2035 across our global operations.”

Kabir Ahmed Shakir, chief financial officer, Tata Communications, said, “We are on a robust growth trajectory in Q1 FY24 with our Data Revenue. I am very pleased to see the Finance Strategy enabling the company’s performance and fueling the growth momentum. Financial discipline and rigour built over the last few years is now setting the stage to fund both organic investments and inorganic ambitions while retaining focus on a healthy balance sheet.”