On October 19, 2023: Tata Communications (BSE, NSE: TATACOMM) announced its Q2 2023-24 financial results, portraying the fact that data revenue continues to go ahead with its double-digit growth intensity. As the company business witnesses substantial growth, reaching INR 3,995 Crores in Q2 FY 2023-24, the YoY growth is registered at 14.4% at a YoY level.
Additional Read: Q2 Results Dashboard
Table of Content
Key Highlights
Here’s a glimpse of the Data business’ Q2 result:
- The Consolidated Revenue of the company was INR 4,872 crore (USD 589.5 Mn). This amounts to an increase of 10% on a YoY basis.
- The Consolidated EBITDA showed up at INR 1,015 crore (USD 122.8 Mn). The Margin was at 20.8%, and the underlying EBITDA Margin was placed at 21.7%.
- The Cash CAPEX for Q2 was at USD 71 Mn.
- The Consolidated PAT (Profit After Tax) stood at INR 221 Crores (USD 26.6 Mn).
Additional Read: Tata Communications Share Price
Management Narrative
The CEO and MD of Tata Communications, A. S. Lakshminarayanan, made some comments on the Q2 results and these were indicative of the following:
- The data giant is pleased to announce a positive Q2 result with a strong YoY revenue growth of 14%.
- With the rapidly tracked integration of “The Switch”, the company has witnessed the realisation of synergies.
- The company has been successful in the fast-paced conclusion of the transaction with Kaleyra Inc. This will facilitate the development of a new digital platform classification – Customer Interaction Suite – aligned with the ambitions of the company.
- Generally speaking, the company remains confident of the opportunities arising from the road ahead, especially those of a long-term nature. This results in Tata Communications’ continued investment in its product portfolio with the aim of strengthening its value proposition to every enterprise concerned.
The CFO of Tata Communications, Kabir Ahmed Shakir, had the following insights to add:
- The company’s planned investments in inorganic and organic opportunities correspond to its strategy of “Fit to Grow”.
- The focus of the company in the current market scenario is to execute its investments to quicken the process of value creation.
Tata Communications Financial Working Results (as detailed in the Press Release/Financial Results of Tata Communications):
| Key Metrics (Consolidated Nos) | INR Crore | QoQ Growth | YoY Growth % |
| Gross Revenue | 4,872 | 2.1% | 10% |
| Total Data Revenue | 3,995 | 2.1% | 14.4% |
| EBITDA | 1,015 | (0.8%) | (10.1%) |
| EBITDA Margin | 20.8% | (62) bps | (465) bps |
| PAT | 221 | (42.2%) | (58.5%) |
Additional Read: Tata Group Overview
Tata Communications Data Services Portfolio
The following information represents the results concerning Data metrics generated in Q2:
- The company’s Data business revenue was INR 3,995 crore (USD 483.3 Mn), and this amounts to an increase of 14.4% on a YoY basis. The Underlying Data Revenue Growth was up by 10% YoY.
- The Data EBITDA was INR 913 crore (USD 110.4 Mn), a decrease of 9.3% YoY, mainly due to inorganic and organic investments.
- There was a 6.9% YoY Revenue growth in the Core Connectivity business
- The Digital Portfolio of the company generated healthy YoY growth of 30.2% majorly driven by growth across the Next Gen and Cloud Connectivity segments as well as the integration of “The Switch”.
Additional Read: Tata Technologies IPO
About Tata Communications
Tata Communications is, in its own words, a “digital ecosystem enabler” that helps the current digital economy to keep pace with advances in technology. It aids in the digital transformation of global enterprises, including 300 among the Fortune 500 companies (over 7,000 customers). Boosting product innovations and customer experiences and encouraging borderless growth, the company achieves its goals of improvement in productivity, the management of risk, and the maintenance of flexibility.
The company boasts a solution-centric approach, infrastructure that can only be described as cutting-edge, and a proven track record of service-managed capabilities. Driving the next level of intelligence is the crux of the company and it uses the power of mobility, the cloud, collaboration, the Internet of Things (IoT), security, and network services. Tata Communications is responsible for carrying 30% of the world’s internet routes, connecting businesses to 80% of global cloud giants and a whopping 4 out of 5 mobile subscribers. The company’s capabilities are reflected via its international network, the largest global wholly-owned submerged (under the sea) fibre backbone, plus a Tier-1 IP network that connects 190+ territories and nations around the globe. Tata Communications Limited, listed on the National Stock Exchange and the Bombay Stock Exchange in India, has been a key part of the heritage of the evolution of the internet in India. From utility cases to transformation, connectivity is the crucial fabric of sustenance for the Indian economy. Tata Communications is constantly committed to enabling and boosting industry leaders in the current New World of Communications™, with the promise of always delivering secure digital experiences.
Source: https://www.tatacommunications.com/investors/results/
