Tata Communications’ consolidated Q4 revenue grows 19 percent to achieve Rs 52,153 million.
Consolidated revenue from operations improved by 14 percent to Rs 196,196 million in FY14 as compared to Rs 172,130 million in FY13. This growth in revenues was broad based with strong momentum across all segments. The core business revenues from operations stood at Rs 174,509 million from Rs 153,181 million in the previous year, posting a growth of 14 percent.
Tata Communications’ wholesale voice business continued to outpace the global market growth rate recording 11 percent growth in revenue from operations compared to FY2013. Global data segment recorded a strong year with 17 percent growth in revenues, primarily attributed to strong demand from global enterprise customers for Ethernet, VPN solutions and a host of managed services. The start-up business revenue improved by 14 percent at Rs 21,687 million from Rs 18,948 million in FY13.
Tata Communications’ continued focus on cost-management and progressive innovation in its product portfolio propelled a significant increase in operating profitability and net profits during the year. FY14 consolidated EBITDA stood at Rs 30,416 million from Rs 20,597 million in the last year, recording a significant growth of 48 percent.
FY14 consolidated EBITDA margins increased by 350 bps in FY14 at 15.5 percent, as compared to 12 percent in the previous year. Net profit for FY14 was reported at Rs 1,014 million marking the company’s first consolidated annual net profit in the last five years – a result of significant improvement in underlying operational performance.
Commenting on the FY14 results, Vinod Kumar, MD and CEO, Tata Communications said, “Tata Communications has delivered a year of strong growth and has strengthened its competitive positioning in the market. Our ongoing focus on execution, talent development and sharpening our value proposition is delivering tangible value. Going forward, we will continue to execute our growth strategy and deliver value to our stakeholders.”
Consolidated revenue from operations in Q4 FY 14 showed a growth of 19 percent to Rs 52,153 million in Q4 FY14 as compared to Rs 44,005 million in the corresponding quarter last year. Consolidated EBITDA improved by 60 percent to Rs 7,798 million in Q4 FY14 compared to Rs 4,865 million in the corresponding quarter last year.
Revenue from operations for the core business grew 16 percent at Rs 45,793 million from Rs 39,345 million during the corresponding quarter a year ago.
The start-up business, comprising primarily of Neotel, delivered a contribution of 37 percent rise in revenues at Rs 6,360 million compared to Rs 4,660 million in Q4 FY13. The start-up business EBITDA margins stood at 28.2 percent during the quarter, compared to 7.4 percent in Q4 FY13.
Sanjay Baweja, chief financial officer, Tata Communications said, “We continue our focus on securing future growth and driving cost efficiencies across our business. Riding on the back of operating leverage in our business and growth momentum in our industry we are committed to achieving a high degree of financial agility supporting long-term business growth.”
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