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 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 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.
 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.
 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.