Tata Communications continues revenue growth with strong profitability

Data business revenue grew by +3.0 per cent QoQ | Q3FY22 PAT at Rs395 crore | Consolidated EBITDA increased by +3.5 per cent YoY with margin expansion of 110 BPs

Mumbai: Tata Communications, a global digital ecosystem enabler, today announces 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 Rs3,233 crore, growing by +3.0 per dent QoQ and +3.4 per cent YoY. All 3 segments (Core Connectivity, Digital Platforms, & Incubation services) of Data business witnessed healthy growth


• Digital Platforms and Solutions continue to improve and gain growth momentum, revenues grew by +5.2 per cent QoQ and +6.7 per cent YoY


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


• Core Connectivity witnessed a revenue growth of +1.6 per cent QoQ and +1.3 per fent YoY


• Consolidated revenue came in at Rs4,185 crore ($558.5 million); growth of +0.3 per cent QoQ and a decline of -0.9 per cent YoY. Consolidated EBITDA at Rs1,082.5 crore ($144.5 million); an increase of +3.5 per cent YoY, with margins in at 25.9 per cent, expanding by 110 BPs as compared to same quarter last year


• Consolidated PAT stands at INR 395 crore ($52.8 million), growth of + 27.8 per cent 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.”

An investor fact sheet providing detailed analysis of the results for the quarter and nine months ended 31st December 2021 has been uploaded on the Tata Communications website and can be accessed here.