Lakshminarayanan on track to execute portfolio strengthening strategy
Finance Strategy has enabled Tata Communications fuel the growth momentum while it has closed New York-headquartered The Switch Enterprises deal and has acquired Kaleyra (NYSE: KLR) of the United States to empower global enterprises to offer personalised experiences to their customers.
Tata Communications has acquired The Switch and certain international assets for a value of Rs.485.3 crore in cash.
Digital Portfolio delivered robust growth of +37.5% YoY driven by growth across all portfolios and integration of The Switch Enterprises LLC.
Kaleyra is a global omnichannel integrated communication services provider with a set of proprietary platforms, offering targeted personalisation through messaging, video, push notifications, e-mail and voice-based services, and chatbots.
“We are on track with the execution of our strategy; and the strengthening of our portfolio will increase the relevance quotient with our enterprise customers,” said A.S Lakshminarayanan, MD and CEO, Tata Communications, in the first quarter 2024 report.
On the recently announced ESG goals, Lakshminarayanan added, “Sustainability is at the core of our business strategy and we are committed to be Net Zero by 2035 across our global operations.”
Chief Financial Officer Kabir Ahmed Shakir elaborated, “We are on a robust growth trajectory in Q1 FY24 with our Data Revenue.
“The Finance Strategy is enabling the company’s performance and fueling the growth momentum. Financial discipline and rigour built over the last few years is now setting the stage to fund both organic investments and inorganic ambitions while retaining focus on a healthy balance sheet.”
Data Services Portfolio:
Data business revenues came in at Rs.3,912 crore (US$475.9 million), recording an increase of + 17.1% YoY; Underlying Data Revenue growth came in at 14.2% YoY;
Data EBITDA stood at Rs.929 crore (US$113 million), down 4.2% YoY largely due to inorganic costs coming in this quarter;
The Core Connectivity portfolio reported growth of +8.1% YoY in revenue.
Highlights|Q1 FY2024 – Consolidated financial highlights:
Consolidated revenue stood at Rs.4,711 crore (US$580.5 million); increasing +10.7% YoY;
Consolidated EBITDA came in at R.1,024 crore (US$124.6 million); where margins stood at 21.5%; Underlying EBITDA Margins stood at 22.1%;
Consolidated PAT stood at Rs.382 crores (US$46.4 million) from Rs.544 crore (US$70.5 million) in Q1 FY23; impacted by higher interest costs and lower forex gains vs Q1 FY23;
Cash CAPEX for this quarter stood at Rs.431 crores (US$52.4 million) relative to Rs.329 crores (US$42.7 million) in Q1 FY23. Fiinews.com
