Tata Communications Posts Rs 6.02 Cr Net Profit In Q2

vinod kumar

Tata_CommunicationsTata Communications today announced its financial results for the second quarter and posted Rs 6.02 crore net profit in Q2 FY2016.

The company’s consolidated revenue stood at Rs 5,130.1 crore, up 1.2 percent Y-o-Y. Consolidated EBITDA stood at Rs 772 crore up 1.8 percent Y-o-Y and resulting in EBITDA margin of 15 percent.

Consolidated revenue for H1 FY2016 stood at Rs 10,309.9 crore, up 1.2 percent Y-o-Y. Consolidated EBITDA at Rs 1,507.2 crore, up 2.4 percent Y-o-Y and resulting in EBITDA margin of 14.6 percent.

Core business reported its strongest quarterly performance in terms of normalised operating profitability. Q2 FY16 core business revenues increased by 3.6 percent while EBITDA was up 15.5 percent Y-o-Y. Q2 FY16 core business PAT was at Rs 33.4 crore, up 9.7 percent Y-o-Y.

Data business continued its upward trajectory with a strong, broad-based growth with an uptake in solution led offerings across various industries. Q2 FY16 data revenue increased by 16.9 percent Y-o-Y and EBITDA margin for the corresponding business stood at 19.2 percent.

Transformation services for carriers, new business models in the media and entertainment industry, growth in the data centre business, VPN connectivity and internet transit have been the key drivers for growth.

The enterprise segment continues to witness strong impetus with healthy Y-o-Y growth across Forbes 2000, ET 500 and Next-gen customers. Tata Communications’ brand equity, an indispensable element in the enterprise segment continues to benefit from the recent Heathrow Express branding campaign as well as recent wins. The service provider (carrier) segment has also seen improved momentum especially in the media and entertainment industry.

Voice business net revenues during Q2 were up 9 percent Y-o-Y and voice segment EBITDA margin stood at 8.3 percent.

Commenting on the results, Vinod Kumar, MD and CEO, Tata Communications said, “We are encouraged by the upswing in customer demand globally. As one of the leading global providers of network services, we continue to focus on creating the right partner ecosystems and transformational services such as cloud and mobility for our customers.”

Commenting on the results, Pratibha K Advani, CFO, Tata Communications said, “Our results are indicative of our resilient and transformative business model. Both, the voice and data businesses have continued to generate free cash flow in-line with our expectations.”

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