Global markets are opening, says Lakshminarayanan
Tata Communications Ltd will continue investing in developing innovative digital ecosystem solutions driven by customers’ needs while the global markets are witnessing green shoots of demand recovery, said A S Lakshminarayanan, Managing Director and CEO, Tata Communications.
“Early demand for our recent launches for live sports on our Media Edge Cloud and IZOTM Financial Cloud is testament that we are moving in the right direction,” he said after presenting the company’s financial results for the quarter ended 30 June 2021.
“In a challenging quarter impacted by the second wave of COVID-19, we have delivered a robust performance,” Lakshminarayanan said in a release on 5 Aug 2021. “The global markets are slowly opening up and we are witnessing greenshoots of demand recovery.”
Commenting on the results, Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications, said, “Our focus on growth and profitability continues to deliver results. A healthy profit and free cash flow is empowering us to innovate and accelerate growth while streamlining processes and bringing in further efficiencies. We are well-poised to enable enterprises make the shift with digitalisation playing a pivotal role enabling businesses derive positive growth.”
Consolidated revenue came in at Rs.4,103 crore (US$556 million), growth of +0.7% Quarter-on-Quarter (QoQ), and 6.8% decrease Year-on-Year (YoY). This YoY contraction is primarily due to reduction in Voice business and moderation of Collaboration traffic in the Data segment.
Consolidated EBITDA stood at Rs.986 crore (US$134 million); reduction of 5.3% YoY. This quarter, EBITDA has been impacted by a provision of Rs.33 crore on account of license fee on revenue from pure internet services which was allowed as deduction in the definition of Adjusted Gross Revenue (AGR) earlier.
Consolidated Profit After Tax (PAT) is at Rs.296 crore (US$40 million) for Q1 FY22 as compared to a profit of Rs.258 crore in Q1 FY21, registering a growth of 14.9% YoY.
CAPEX for this quarter grew to Rs.381 crore as compared to Rs.372 crore in Q1 FY21. #investment #technology #products #innovation #banking /fiinews.com
