Not so rosy picture for Tata Communications; Q2 net profit declines 93%

By October 28th, 2015 AT 1:11 PM

Tata Communications has recorded a 93.24% decline in its net profit to Rs 62.70 million for the quarter ended September 2015, from Rs 927.50 million in the same quarter last fiscal. The consolidated revenue stood at Rs 51,301 million, up 1.2% Y-o-Y (USD 790 million), while the EBITDA was recorded at Rs 7,720 million (USD 119 million), up 1.8% Y-o-Y.

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At the same time, Q2 FY16 core business revenues increased by 3.6% and EBITDA was up 15.5% Y-o-Y. Q2 FY16 core business PAT was at Rs 334 million, up 9.7% Y-o-Y.

For the first half of the current fiscal, the company posted a 1.2% rise in its consolidated revenue at Rs 103,099 million and the consolidated EBITDA was up by 2.4% at Rs 15,072 million (USD 235 million), resulting in EBITDA margin of 14.6%. However, the company maintained that 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.

Data business increased by 16.9% Y-o-Y and EBITDA margin for the corresponding business stood at 19.2%. Voice business net revenues during Q2 were up 9.0% Y-o-Y and voice segment EBITDA margin stood at 8.3%.

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.”

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. We remain focused on progressively improving our financial and operational performance, while ensuring that we remain aggressive in the market place in terms of innovation, market coverage and raising brand awareness.”

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.

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