Tata Communications’ Q1 revenue increased 14 percent to Rs 5,112 crore

Tata Communications Q1 revenue increased 14 percent year-on-year to Rs 5,112 crore.

Consolidated EBITDA increased by 9 percent to Rs 713 crore in Q1 compared to Rs 652 crore in the corresponding quarter last year.

Revenue from operations for the core business improved 12 percent at Rs 4,519 crore from Rs 4,019 crore 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 datacentre services.

Voice business revenue from operations was up 8 percent YoY whereas data business revenue from operations improved by 17 percent YoY.

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 EBITDA up 7 percent YoY and Q1 Profit Before Tax (PBT) and Exceptional Items up 192 percent YoY.

The start-up business, comprising primarily of Neotel, posted a 24 percent increase in revenues at Rs 593 crore as compared to Rs 479 crore in Q1 FY14. The start-up business EBITDA increased by 23 percent to Rs 141.5 crore in Q1 FY15 compared to Rs 115.4 crore.

Commenting on the results, Vinod Kumar, MD and CEO, Tata Communications said, “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 said, “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.”

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