Tata Communications has announced its financial results for the second quarter ended 30th September 2021.
DATA SERVICES PORTFOLIO
- Data revenues stood at INR 3,140 crore, registering a growth of + 1.1% QoQ and a decrease of 2.2% YoY. With COVID situation easing, we have started to witness gradual recovery in business, all segments grew sequentially after 3 quarters of decline.
- EBITDA for the segment was at INR 1,049crore, registering a growth of +12.6% QoQ and a decrease of 3.4% YoY, with margin at 33.4% on the back of growth in profitability in Core Connectivity and Digital Platforms & Services.
- Core Connectivity portfolio delivered growth of + 0.4% YoY in revenue; EBITDA increased by +0.9% YoY and +8.0% QoQ, with margins at 45.9%.
- Digital Platforms and Services have started to show gradual recovery on a quarterly basis, revenue improving by +2.3% QoQ.
Commenting on the second quarter performance, A.S Lakshminarayanan, MD and CEO, Tata Communications, said, “Delivering a sequential growth on a quarter-on-quarter basis after three quarters of decline is a positive indicator which we will continue to build on. The second quarter of FY22 was marked by recovery with favourable underlying trends as economic activities normalise. As the global industries recover, we continue to maintain sharp focus on the needs of our customers, in line with the rapidly changing trends and evolving digital needs.”
Commenting on the results, Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications, said, “Our performance in the second quarter demonstrates a continued improvement in revenue supported by improvement in profitability and build-up of free cash flow. We continue to strengthen our balance sheet and invest for future growth as we evolve as a trusted partner for our customers, enabling their digital transformation journey.”