Tata Communications has announced its financial results for the quarter ended December 31, 2020.

Highlights|Q3 FY2021

Consolidated financial highlights

  • Consolidated revenue was at Rs 42.23 billion; flat YoY, growth in data business compensated for decrease in voice business
  • Consolidated EBITDA at Rs 10.46 billion; increase of over 37.5 per cent YoY on the back of robust growth and margin expansion in data business and cost optimisation initiatives
  • Consolidated PAT at Rs 3.09 billion as compared to a profit of Rs 590 million in Q3 FY20, growth of over 428 per cent YoY, on the back of strong growth in profitability
  • Net debt has come down on the back of strong free cash flow generation; Net debt to EBITDA at 1.9x as compared to 2.9x for same quarter last year
  • CAPEX for this quarter was Rs 3.39 billion as compared to Rs 4.9 billion in Q3 FY20

Data services portfolio

  • Stable growth in data business despite seasonally slow quarter; revenue grew by over 3.8 per cent YoY on the back of robust performance in traditional services
  • Data EBITDA was at Rs 10.26 billion; up by over 43.8 per cent YoY led by strong growth in traditional services and profitable gain in growth services. Data business now contributes 98 per cent to overall EBITDA
  • Traditional services witnessed strong growth in revenue and profitability; revenue grew by over 6 per cent YoY and EBITDA grew by 20.7 per cent YoY with margins at 42.9 per cent. We are witnessing strong demand from OTT and Enterprise segment for our services.
  • Growth services continue to scale and witness profitable growth; revenue grew by over 2.6 per cent YoY. We continue to witness operating leverage in this portfolio; EBITDA grew by over 145.7 per cent YoY with a margin expansion of 910 Bps.

Announcing the results, A.S Lakshminarayanan, MD and CEO, Tata Communications, said, “Our disciplined execution has helped us deliver good results in a seasonally weak quarter. Our Secure Connected Digital Experience (SCDx) offering continues to be relevant as we reimagine the New World for our customers. At the same time, our investments in products and services are positioning us well in our customers’ digital transformation journeys, an example being our investment in Oasis. I am happy to share that during the quarter, our efforts in Sustainability for Climate Change placed Tata Communications in the leadership band of the Carbon Disclosure Project (CDP) Report encouraging us to continue to make a difference to our planet.”

Commenting on the results, Kabir Ahmed Shakir, chief financial officer, Tata Communications, said, “We continue to deliver on our goal of profitable growth. Both profitability and cash flow generation has improved significantly in the last few quarters on the back of cost efficiencies and improved business processes. This agility has given us headroom to compete more effectively in the market and cater to our customer’s changing needs. Our focus continues to remain on generating a healthy order book coupled with strong execution to drive our growth.”