Tata Communications announces its financial results for the third quarter

Tata Communications has announced its financial results for the quarter and nine months ended 31st December 2021.

Highlights|Q3 FY2022

• Sequential growth in Data business continues; revenues were at INR 3,233 crore, growing by +3.0% QoQ and +3.4% YoY. All 3 segments (Core Connectivity, Digital Platforms, & Incubation services) of Data business witnessed healthy growth.

o Digital Platforms and Solutions continue to improve and gain growth momentum, revenues grew by +5.2% QoQ and +6.7% YoY

o Within Digital Platforms, all segments except Collaboration witnessed double digit YoY growth and strong sequential growth

o Core Connectivity witnessed a revenue growth of +1.6% QoQ and +1.3% YoY

• Consolidated revenue came in at INR 4,185 crore (USD 558.5 Mn); growth of +0.3% QoQ and a decline of -0.9% YoY. Consolidated EBITDA at INR 1,082.5 crore (USD 144.5 Mn); an increase of +3.5% YoY, with margins in at 25.9%, expanding by 110 BPs as compared to same quarter last year

• Consolidated PAT stands at INR 395 crore (USD 52.8 Mn), growth of + 27.8% YoY

Commenting on the results, A.S Lakshminarayanan, MD and CEO, Tata Communications, said, “We witnessed another quarter of good sequential growth in our data business, with digital platforms and solutions delivering robust results. We continue to focus on providing holistic solutions to our customers and accelerating their digital transformations.”

Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications, said, “We are pleased with the growth in revenue as well as profitability during Q3 FY22. Our performance demonstrates sustained progress in our journey towards our financial fitness. Healthy improvement in free cash flows and reduction in net debt provides us headroom to invest for future growth.”