Tata Communications delivers steady growth in Q3

Tata Communications announces its financial results for the quarter ended December 31st, 2019

Highlights|Q3 FY2020 Data services portfolio

  • Strong growth in Data business; revenue grew by +2.8% YoY on the back of steady performance across all segments. Q3 of last year had a one-time benefit of INR 91 crore because of AFA; on a normalised basis, revenue grew by +5.7% YoY.
  • Data EBITDA at INR 714 crore (USD 100 Mn); down -6.9% YoY. Q3 of last year had an exceptional one-time gain of INR 210 crore which led to high EBITDA; on a normalised basis Data EBITDA has grown by 28.2% YoY.
  • Growth services[1] continue to scale and witness profitable growth; revenue grew by +7.5% YoY. The company is witnessing operating leverage in this portfolio; EBITDA for the quarter came in at INR 51.1 crore as compared to a loss of INR. 32.7 crore in the same quarter last year. 
  • Traditional services[2] delivered a steady performance in revenue and profitability; revenue grew by +0.1% YoY. Within this portfolio, the India business continues to deliver strong growth after being affected by operator consolidation last year. Normalised for AFA, Traditional services grew by 4.5% YoY.

Consolidated financial highlights

  • Consolidated revenue at INR 4,229 crore (USD 593.5 Mn); down -1.0% YoY due to decline in Voice business and one-time AFA benefit in Q3 of last year. Normalised growth +1.2% YoY.
  • Consolidated EBITDA at INR 760.8 crore (USD 106.7 Mn); decrease of -9.7% YoY. When adjusted for one-time AFA benefit and exceptional expenses in Q3 FY19, the normalised consolidated EBITDA grew by +20.3% YoY on the back of strong growth in Traditional services and margin expansion in Growth services.
  • Consolidated PAT at INR 58.5 crore as compared to a profit of INR 53.9 crore in Q2 FY20.

CAPEX for Q3 was INR 490 crore (USD 69 Mn) as compared to INR 454 crore (USD 65 Mn) in Q2.

[1] Growth services include IZO™, Managed Hosting, Managed Security Services, Broadcast, Video Connect, SIP Trunking, Global Hosted Contact Center, Video

   Streaming, Mobile New Services, Healthcare, Media Management and Mobile Innovation.

[2] Traditional services include Virtual Private Network, International Private Line, Internet Leased Line, Ethernet, Internet Protocol –Transit, Inmarsat, Content Delivery Network, National Private Line, Mobility, Data Centre, Unified Collaboration and Conferencing.

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