NEW DELHI: Tata Communications reported a loss of Rs 250 crore for the second quarter ended September quarter of 2017-18. The company’s profit for the same quarter stood at Rs 39.96 crore in the same period a year ago.
On the other hand, Tata Communications data business continues to build on the momentum and posts a revenue growth of 2.2% YoY. ‘Growth services’ witnessed strong growth traction with a 40.5% increase in revenues YoY and 16.7% QoQ. Traditional services posted a 1.7% improvement in revenues YoY.
Commenting on the results, Vinod Kumar, MD and CEO, Tata Communications, said, “Our portfolio continues to transform in line with our strategic intent to grow our digital infrastructure services. In addition to the accelerating performance of growth services, we are buoyed by the market response to our new cyber-security and IoT services. We continue to invest in our internal digitalisation program to enhance future productivity and customer experience.”
Commenting on the results, Pratibha K. Advani, CFO, Tata Communications, said, “The performance delivered during H1 largely captures impact of transformative initiatives that we have taken in the past few quarters. Our growth services portfolio is driving strong and sustained expansion in the revenue profile of the business. The focus is clearly on driving solutions that can evolve, grow and serve enterprise customers effectively.”
The company’s EBITDA increased by 1.1% QoQ with a margin expansion of 40 BPs over the last quarter aided by increase in Voice margins and a one-time gain in Payment Solutions (TCPSL)
Tata Communications consolidated business revenues declined by 2.1% QoQ and 6.5% YoY primarily due to a continuing decline in the Voice business revenues coupled with a decline in Transformation services (TCTSL) QoQ on account of lower revenues from Tata Teleservices
The company’s EBITDA margins declined by 110 BPs YoY due to Payment Solutions (TCPSL) (30 BPs), adverse forex impact (30 BPs) and higher investments in Innovation, Transformation and access charges impact (60 BPs)
Tata Communications PAT recorded negative at Rs. 250 crore on account of additional provision of Rs. 186 crore as per the contractual obligation to Tata Sons on the Tata Teleservices investment and due to other one-time exceptional provisions of Rs. 27 crores.