Tata Communications – the digital ecosystem enabler of the Tata Group – posted impressive results for the quarter ended December 31st, 2020- despite pandemic-induced challenges and seasonally weak period.
Consolidated revenues of the company stood at ₹ 4,223 crore (US$572 million) with flat year-on-year (YoY) growth in data business compensating for the decrease in Voice business. While consolidated EBITDA crossed ₹ 1000 crore standing at ₹ 1,046 crore (US$142 million) with an increase of 37.5% YoY – riding on robust growth and margin expansion in data business and cost optimisation initiatives – consolidated PAT made an incredibly massive jump of 428 per cent YoY making one of the best growth in profitability.
In monitory terms, the PAT stood at ₹309 crore (US$ 42 million) as compared to a profit of ₹59 crore in Q3 FY20. The company’s net debt to EBITDA has come down to 1.9x this quarter, from 2.9x in Q3 last year due to the ability to generate strong free cash flow.
According to a company communiqué, a stable growth in data business despite seasonally slow quarter facilitated revenue growth by 3.8% YoY on the back of robust performance in traditional services crossing the ₹ 1000 crore magical mark, data EBITDA stood at ₹ 1,026 crore (US$ 139 million) jumping 43.8% YoY. Data business now contributes 98% to overall EBITDA.
Traditional services witnessed strong growth in revenue and profitability while Growth services continue to scale and witness profitable growth. ‘We are witnessing strong demand from OTT and Enterprise segment for our services,’ the communiqué stated.
“Our disciplined execution has helped us deliver good results in a seasonally weak quarter,” Tata Communications MD & CEO A.S. Lakshminarayanan, MD and CEO, Tata Communications, declared. “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,” he said.
States the newly appointed Chief Financial Officer of the company Kabir Ahmed Shakir: “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.”
