Tata Communications has announced its fiscal results for FY2021 and the quarter 31 March 2020.
For FY2021, consolidated revenue was at INR 17,100 Crore (USD 2,303 Mn) to represent a 0.2% growth year-on-year. Business environment has been impacted due to the pandemic and this has also affected the company’s growth. Data revenue was at INR 14,309 Crore (USD 1,927 Mn), up by 4.5% year-on-year, supported by a healthy performance in Traditional services. Consolidated EBITDA came in at INR 4,261 crore (USD 574 Mn), up 29.5% year-on-year as a result of strong focus on right operating structure and cost efficiencies. Profit for the year was at INR 1,251 Crore (USD 168 Mn) as compared to a loss of INR 86 Crore in FY2020 due to strong operating performance during the year. This is Tata Communications’ highest profit in the last 11 years, translating into an EPS of INR 44 per share.
For the year ended 31 March 2021, consolidated revenue was at INR 4,073 Crore (USD 559 Mn), decreasing by 7.4% year-on-year. This has been largely due to degrowth in Voice business and Data business. Data revenue was at INR 3,515 Crore (USD 482 Mn), down by -2.2% This reduction is primarily due to longer deal conversion and execution cycle due to COVID-19 and moderation of UCC traffic. Tata Communications maintained profitability despite slower revenue growth, with EBITDA at INR 1,015 Crore (USD 139 Mn), up 16.8% year-on-year. Profit was at INR 299 Crore as compared to a loss of INR 275 Crore in the same quarter last year.
A.S Lakshminarayanan, MD and CEO, Tata Communications said, “FY2021 has been a great year; making excellent progress on our well-defined strategy. Execution on financial fitness is yielding good results and the shifts from products to platforms, deeper customer engagements are a work in progress and we anticipate continued progress on these strategic levers to achieve our goals. Our teams have gone the extra mile in delivering benchmark level Net Promoter Score (NPS) in a difficult year and are committed on execution to deliver on our strategy.”
Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications, said, “Our focus on right operating structure and cost efficiencies have started to show results during the year. There has been significant improvement in profitability making our business fit to compete effectively. Profit and cash flow generation has improved dramatically. We now have a stronger balance sheet providing us the flexibility to invest for future growth of business.”