Data services portfolio
• Robust growth in Data business; revenue grew by +7.2% YoY on the back of strong performance
• Data EBITDA was at INR 1,108 crore (USD 149 Mn); up +47.2% YoY with the margin expansion of 830 Bps YoY led by strong profitable growth in Data business and cost efficiency initiatives.
• The pace of digital adoption has increased. Remote working, cloud adoption and greater use of digital applications are driving the demand for our services. Our India enterprise business grew by 5.1% YoY and international enterprise business grew by 16.4% YoY. This has led to increase in both revenue as well as profitability.
Consolidated financial highlights
• Consolidated revenue was at INR 4,401 crore (USD 591 Mn); up +3.0% YoY on the back of
growth in Data business.
• Consolidated EBITDA was at INR 1,158 crore (USD 155 Mn); increase of +38.9% YoY and margin expansion of 680 Bps as a result of strong profitable growth in data business and focus on operational efficiencies.
• Consolidated PAT at INR 384 crore (USD 52 Mn) as compared to a profit of INR 54 crore (USD 8Mn) in
Q2 FY20; growth of +613% YoY.
• Net debt at the end of Q2 was INR 8,631 crore as compared to INR 9,008 crore in Q1 FY21; reduction of INR 377 crore despite dividend payment of INR 114 crore during this quarter. Net debt to EBITDA (TTM) is now at 2.3 times as compared to 2.8 times for the same period last year.
• CAPEX for this quarter was INR 318 crore as compared to INR 372 crore in Q1 FY21.
Commenting on the results, A.S Lakshminarayanan, MD and CEO, Tata Communications, said, “We have had a strong performance in Q2, as we continue to deepen our customer engagements and support enterprises to seamlessly embark and advance on their digital transformation journeys. Leveraging the shift to cloud-first, internet-first strategies, we are innovating across our portfolio to offer solutions that are tailored to this new digital-first world. We see great opportunities ahead, as organisations look to harness the power of technology to transform their business models and drive competitive differentiation and
Commenting on the results, Pratibha K. Advani, Chief Financial Officer, Tata Communications, said, “Data business continues to grow at a healthy pace and profitability has improved due to our focus on operational efficiencies. Our margins have expanded, and we have witnessed 3 successive quarters of double-digit EBITDA growth leading to strong PAT. There has been a robust improvement across all financial parameters; our profitability and cash flow generation has improved significantly in the last few quarters leading to a stronger balance sheet for the future.”