Tata Communications posts net profit of INR 12.3 Billion

Declares final dividend of INR 6 per share including a one-time special dividend of INR 1.50 per share
Mumbai (BSE)
-
May 4, 2017

Tata Communications today announces its financial results for the quarter and year ended March 31st 2017.

Highlights | FY2017

  • Free Cash flow after capex, interest and tax was at INR 463 Crore (USD 69 Mn); witnessing a growth of 27% YoY.
  • Data business continues to be the growth driver growing steadily at 6.8% YoY. Traditional[1] services grew at 0.8% YoY despite the exclusion of data centre revenue. Growth[2] services witnessed a growth of 18.4% year on year.
  • The balance sheet restructuring concluded with the closure of the data centre and Neotel deals.
  • On a like for like basis, excluding the data centre revenue and normalising for the access provision and demonetisation impact, Core revenue declined marginally by 1.4% due to the slowing growth of the Voice business, but EBITDA improved by 10.1% YoY and margin improved by 150 Bps.
  • Consolidated PAT stood at INR 1,233 Crores (USD 184 Mn). Contribution from an exceptional one-time gain from the stake sale of the data centres (India and Singapore) was INR 2,411 Crores, offset by impairment of INR 637 Crore across various investments.

Consolidated Nos.

INR Crore

YoY Growth*

USD Mn

YoY Growth*

Gross Revenue

19,490

(5.2%)

2,905

(7.5%)

EBITDA

2,994

(3.3%)

446

(5.7%)

PAT

1,233

141x

184

138x

 

* Not comparable due to Neotel and Data Centre stake sale.

  • During the current quarter, based on the High Court order dated April 28, 2017, the Company has made a provision of INR 872 Crore towards the contractual obligation under the inter se agreement as the difference between the fair market value of the shares to be acquired and the advance paid to Tata Sons for shares of Tata Teleservices.

Core Nos.[3]

INR Crore

YoY Growth**

USD Mn**

YoY Growth

Gross Revenue

18,038

(3.3%)

2,689

(5.7%)

EBITDA

2,660

(3.2%)

397

(5.5%)

EBITDA margin

14.7%

 

14.7%

 

PAT

1,269

6.5x

189

6.5x

 

** Not comparable due to Data Centre stake sale                                  Fx Impact: Revenue – INR 279 Crore; EBITDA – 31 Crore

 

Highlights | Q4 FY2017

  • Quarterly revenue and EBITDA growth were impacted by the exclusion of the India and Singapore data centre revenue, demonetisation impact and one-off expenses due to cable repair, employee related expenses and legal and professional fees.

Core Nos.3

INR Crore

QoQ Growth

YoY Growth*

USD Mn

QoQ Growth

YoY Growth*

Gross Revenue

4,300

(2.7%)

(10.0%)

641

(2.3%)

(9.4%)

EBITDA

503

(15.0%)

(35.9%)

75

(14.7%)

(35.4%)

EBITDA margin

11.7%

(170 Bps)

(470 Bps)

11.7%

(170 Bps)

(470 Bps)

PAT

(209)

 

 

(31)

 

 

 

* Not comparable due to Data Center stake sale.

  • On a QoQ basis, the impact on Core EBITDA margins due to the exclusion of the data centre revenue was 60 Bps; one-off expense impact on margins was 260 Bps and the gain due to access facilitation charges (AFA) was 120 BPs. Adjusted for above, the EBITDA margins would have expanded by 140 Bps in Q4.

 

Commenting on the results, Vinod Kumar, MD and CEO, Tata Communications, said, “Market demand for our services remain strong and we continue to increase our wallet share with large global enterprises.  The conclusion of the Data Center and Neotel deals makes us stronger, more agile.  This will help drive focus and momentum into our evolution from a traditional telco to a next generation digital enablement provider.”

Commenting on the results, Pratibha K. Advani, CFO, Tata Communications, said, “We continue to witness strong growth momentum in our data services portfolio. This has helped us in maintaining our operating margins and improving our free cash flows.”

 

Corporate highlights | Q4 FY2017

  • Liquid Telecom completes acquisition of Neotel
  • ST Telemedia and Tata Communications complete the Singapore data centre joint venture transaction

 

Business highlights | Q4 FY2017

 

An Investor fact sheet providing a detailed analysis of the results for the quarter ended March 31st 2017 has been uploaded on the Tata Communications website and can be accessed at:

http://www.tatacommunications.com/sites/default/files/FIN-investorfactsheet-PDF-20170504.pdf

 

[1] Traditional services include Virtual Private Network, International Private Line, Internet Leased Line, Ethernet, Internet Protocol –Transit, Inmarsat, Content Delivery Network, National Private Line, Mobility, Data Centre, Unified Collaboration and Conferencing

[2] Growth services include IZO™, Managed Hosting, Managed Security Services, Broadcast, Video Connect, SIP Trunking, Global Hosted Contact Center, Video Streaming, Mobile New Services, Healthcare, Media Management and Mobile Innovation.

[3] Core – Consolidated less Neotel

 

Ends...

For immediate release

Press Release

Media Contact:

Divya Anand
Tata Communications
+94 (0) 713361744
divya.anand@tatacommunications.com

 

Investor Contact:

Vipul Garg
Tata Communications
+91 11 66257431
vipul.garg@tatacommunications.com


About Tata Communications

Tata Communications Limited (CIN no: L64200MH1986PLC039266) 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 over 240 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 and leadership in global international voice. Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India.

http://www.tatacommunications.com

Forward-looking and cautionary statements

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 Limited’s Annual Reports. The Annual Reports of Tata Communications Limited are available at www.tatacommunications.com. Tata Communications is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements.


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