Tata Communications has announced its financial results for the quarter ended December 31, 2021. The company posted a consolidated net profit of Rs 3.95 billion for the third quarter (Q3) ended December 2021. Previously, the company had reported a net profit of Rs 3.09 billion in the same period a year ago.
The total income of Tata Communications declined marginally during the reported quarter from Rs 42.31 billion to Rs 42.03 billion in the corresponding quarter of 2020-21.
Meanwhile, the data segment contributed nearly about 77.3 per cent to the company’s total revenue, while voice service accounted for 13.2 per cent of its gross revenue. The Digital Platforms and Solutions continued to improve and gain growth momentum, contributing revenues growth by 5.2 per cent Q-o-Q and 6.7 per cent Y-o-Y. Also the Core Connectivity witnessed a revenue growth of 1.6 per cent Q-o-Q and 1.3 per cent Y-o-Y. Consolidated EBITDA for the company during Q3FY’22 stood at Rs 10.82 billion witnessing an increase of 3.5 per cent Y-o-Y, with margins in at 25.9 per cent, expanding by 110 BPs as compared to same quarter last year.
During the reported quarter, Tata Communications obtained a virtual network operator license for all services with a validity of 10 years. The company’s net debt at the end of the quarter was Rs 71.89 billion, shrinking by Rs 5.72 billion compared to the previous quarter and Rs 7.83 billion on Y-o-Y basis. Tata Communications made a total capital expenditure of Rs 4 billion during the reported quarter, with Rs 3.45 billion going into the data business.
Commenting on the results, A.S Lakshminarayanan, MD and CEO, Tata Communications, said, “We witnessed another quarter of good sequential growth in our data business, with digital platforms and solutions delivering robust results. We continue to focus on providing holistic solutions to our customers and accelerating their digital transformations.”
Also, Kabir Ahmed Shakir, chief financial officer, Tata Communications, said, “We are pleased with the growth in revenue as well as profitability during Q3 FY’22. Our performance demonstrates sustained progress in our journey towards our financial fitness. Healthy improvement in free cash flows and reduction in net debt provides us headroom to invest for future growth.”
