Tata Communications has announced its financial results for the quarter and full year ended March 31, 2023. The consolidated revenue for FY23 stood at Rs 178.38 billion ($2.22 billion) and at Rs 45.69 billion ($555.2 million) for Q4 FY23.
The company witnessed healthy growth across core connectivity, digital platforms and services, and incubation services of data business. Data business grew by 2.2 per cent quarter-on-quarter (QoQ) and 10.3 per cent year-on-year (YoY). Digital platforms and services grew by 2.3 per cent QoQ and 15.5 per cent YoY. Core connectivity revenue grew by 1.7 per cent QoQ and 5.7 per cent YoY. Incubation portfolio grew by 9.4 per cent QoQ and 116.6 per cent YoY.
Meanwhile, consolidated earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at Rs 43.18 billion ($537.5 million); with margins at 24.2 per cent, declining by 110 Bps YoY. For the quarter, margin came in at 22.6 per cent. Consolidated profit after tax (PAT) stood at Rs 17.96 billion ($223.5 million) as compared to a profit of Rs 14.82 billion ($198.9 million) in FY22, registering a growth of 21.2 per cent YoY.
Further, the committed capex for the year was Rs 16.89 billion ($210.2 million) as compared to Rs 16.08 billion ($215.9 Mn) in FY22. Free cash flow for FY23 was at Rs 25.39 billion.
Commenting on the results, A.S. Lakshminarayanan, managing director and chief executive officer, Tata Communications, said, “I am pleased that we have met the company ambition of double-digit data growth for the past three consecutive quarters and for the full year. Our expanding digital portfolio coupled with improving relevance quotient across India and international markets is helping us reposition the company as a ‘CommTech’ leader. We remain committed to our reimagine strategy to deliver profitable growth by creating sustainable value for our customers.”
Meanwhile, Kabir Ahmed Shakir, chief financial officer, Tata Communications, said, “Our business results are proof that the ‘Fit to Grow’ strategy is now in motion from concept to action and its success is evident in the full year double-digit data revenue growth. We are now building the company for a new growth trajectory enabled by our strong cash flow generation.”