Tata Communications Limited, along with its subsidiaries (Tata Communications), is a leading global provider of a new world of communications. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multi-national enterprises, service providers and Indian consumers.
The Tata Communications global network includes one of the most advanced and largest submarine cable networks and a Tier-1 IP network with connectivity to more than 200 countries and territories across 400 PoPs, as well as nearly 1 million square feet of data centre and collocation space worldwide.
Tata Communications’ depth and breadth of reach in emerging markets includes leadership in Indian enterprise data services, leadership in global international voice, and strategic investments in South Africa (Neotel), Sri Lanka (Tata Communications Lanka Limited) and Nepal (United Telecom Limited). Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India.
Certain words and statements in this release concerning Tata Communications and its prospects, and other statements, including those relating to Tata Communications’ expected financial position, business strategy, the future development of Tata Communications’ operations, and the general economy in India, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, including financial, regulatory and environmental, as well as those relating to industry growth and trend projections, which may cause actual results, performance or achievements of Tata Communications, or industry results, to differ materially from those expressed or implied by such forward-looking statements. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, failure to increase the volume of traffic on Tata Communications’ network; failure to develop new products and services that meet customer demands and generate acceptable margins; failure to successfully complete commercial testing of new technology and information systems to support new products and services, including voice transmission services; failure to stabilize or reduce the rate of price compression on certain of the company’s communications services; failure to integrate strategic acquisitions and changes in government policies or regulations of India and, in particular, changes relating to the administration of Tata Communications’ industry; and, in general, the economic, business and credit conditions in India. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in Tata Communications’ control, include, but are not limited to, those risk factors discussed in. Tata Communications’ various filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. Tata Communications is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements.
Tata Communications sustains momentum; posts a 14% YoY increase in Q1 FY15 revenues
Consolidated Q1FY15 EBITDA grows 9% YoY
Tata Communications today announces its financial results for the quarter ended June 30th 2014 (Q1 FY15).
Highlights for Q1 FY2015
Consolidated revenue from operations improved 14% YoY to Rs. 51,117 million (USD 855 million)
Consolidated EBITDA was up 9% YoY at Rs. 7,127 million (USD 119 million)
Voice business revenue from operations was up 8% YoY
Data business revenue from operations improved by 17% YoY
Consolidated revenue from operations increased by 14% to Rs. 51,117 million (USD 855 million @avg. Fx of INR/USD 59.78) in Q1 FY15 as compared to Rs. 44,980 million (USD 806 million @avg. Fx of INR/USD 55.83) in the corresponding quarter last year. Consolidated EBITDA increased by 9% to Rs. 7,127 million (USD 119 million @avg. Fx of INR/USD 59.78) in Q1 FY15 compared to Rs.6,516 million (USD 117 million @avg. Fx of INR/USD 55.83) in the corresponding quarter last year.
Revenue from operations for the core business improved 12% at Rs.45,186 million (USD 756 million) from Rs.40,188 million (USD 720 million) during the corresponding quarter a year ago. Data services continue to be the primary growth driver because of an uptake in demand from global enterprise customers for network and data centre services. Transformation services for global carriers also witnessed an upswing in demand. The economies of scale from the underlying infrastructure and operating capabilities are translating into improved Core business profitability, with Q1 FY15 EBITDA up 7% YoY and Q1 FY15 Profit Before Tax (PBT) and Exceptional Items up 192% YoY.
The start-up business, comprising primarily of Neotel, posted a 24% increase in revenues at Rs. 5,931 million (ZAR 1,046 million @ avg. Fx of INR/ZAR 5.67), as compared to Rs. 4,791 million (ZAR 813 million @ avg. Fx of INR/ZAR 5.89) in Q1 FY14. The start-up business EBITDA increased by 23% to Rs. 1,415 million (ZAR 250 million @ avg. Fx of INR/ZAR 5.67) in Q1 FY15 compared to Rs. 1,154 million (ZAR 196 million @ avg. Fx of INR/ZAR 5.89)
Commenting on the results, Vinod Kumar, MD and CEO, Tata Communications, says, “Tata Communications continues to maintain its growth momentum and build on its strategic evolution into advanced managed services. The improvement in global demand, our comprehensive data services portfolio and an emphasis on operational excellence holds us in good stead. In the coming quarters, we will continue to calibrate our performance against customer expectations, to deliver sustainable value to all stakeholders.”
Sanjay Baweja, Chief Financial Officer, Tata Communications says, “Our Q1 results have set a good momentum for the year ahead and we are confident that we will be able to sustain this trend in the coming quarters. The business continues to benefit from improved asset utilisation, greater leverage on costs and uptrend in our newer services.”
Q1 FY2015 business highlights
Tata Communications announces next steps in proposed Neotel and Vodacom transaction: The shareholders of Neotel and Vodacom SA favourably concluded an agreement on the commercial structure and terms to proceed for Vodacom to acquire 100 per cent of the shares of Neotel valued at an enterprise value of ZAR 7.0 billion. The structure of the deal and its commercial terms remain subject to regulatory and competition authority approvals.
Tata Communications’ jamvee™ Unified Communications platform takes interoperability to another level: Tata Communications launched the latest version of jamvee™ - its next generation Unified Communications platform that is designed to bring together any client software and device on a single platform. This will foster easier intra and inter-company collaboration for employees, suppliers and customers via any combination of audio, video or messaging besides facilitating content sharing in groups - across any device or through a browser.
Tata Communications inaugurates its 44th, state-of-the-art, data centre in New Delhi: The launch of this data centre positions the Company as a truly pan-India player in the data centre business with continued commitment to growth in this sector. Centrally managed, these data centres provide customers with optimal performance, reduced total cost of ownership, security and effective utilisation of resources. The Company plans to invest more than USD $200 million towards doubling data centre capacity in India from 500,000 sq. ft. to 1,000,000 sq. ft. over a period of three years.
A fact sheet and results presentation providing a detailed analysis of the results for the quarter ended June 30th 2014 has been uploaded on the Tata Communications website and can be accessed at: