Tata Communications has shown a solid Q1 net profit of Rs. 323 million for the quarter ended June 30th 2017.
Data services revenues improved by 4.6% YoY. In US dollar terms, data revenue growth improved by 8.5% YoY. Growth services continue with their upward trajectory growing at 25% YoY.
Core revenues grew 0.4% QoQ reflecting impact due to currency translation whereas in US dollar terms core revenues improved by 4.4% QoQ. EBITDA was higher by 12.6% QoQ with margins at 13%, up 140 bps.
On a YoY basis core revenues declined, as expected, primarily due to de-growth in the voice business and this is in-line with the industry.
Commenting on the results, Vinod Kumar, MD and CEO, Tata Communications, said, “Having established a broad and deep portfolio that enables digital and global transformations, we are now pivoting our customer engagement around business themes rather than just technology. We are also proactively investing into futuristic workflows and systems that will boost our productivity and enhance the customer experience. These investments will positively impact the medium to long term margins.”
Speaking about the quarterly performance, Pratibha K. Advani, CFO, Tata Communications said, “Our free cash flow generation remains robust notwithstanding investments into new growth services and for our in-house business transformation projects. We are at the forefront of digital transformation and fully geared to capitalise on this opportunity.”