Results     23-Jan-25
Analysis
Tata Communications
Net Profit up more than 4X YoY to Rs 235.96 crore
On consolidated basis

Quarter ended December 2024 compared with Quarter ended December 2023.

Net sales (including other operating income) of Tata Communications has increased 3.76% to Rs 5798.07 crore.  Sales of Global Voice Solutions segment has gone down 2.98% to Rs 410.52 crore (accounting for 7.02% of total sales).  Sales of Global Data and Managed Services segment has gone up 6.31% to Rs 4,917.26 crore (accounting for 84.09% of total sales).  Sales of Real Estate segment has gone up 2.38% to Rs 60.72 crore (accounting for 1.04% of total sales).  Sales of Transformation Services segment has gone down 28.11% to Rs 288.83 crore (accounting for 4.94% of total sales).  Sales of Campaign Registry segment has gone up 34.73% to Rs 170.43 crore (accounting for 2.91% of total sales).  Inter-segment sales rose Rs 48.32 crore to Rs 49.69 crore.  

Profit before interest, tax and other unallocable items (PBIT) has slumped 1.14% to Rs 543.81 crore.  PBIT of Global Voice Solutions segment fell 21.28% to Rs 32.93 crore (accounting for 6.06% of total PBIT).  PBIT of Global Data and Managed Services segment fell 14.88% to Rs 335.54 crore (accounting for 61.70% of total PBIT).  PBIT of Real Estate segment rose 2.39% to Rs 36.04 crore (accounting for 6.63% of total PBIT).  PBIT of Transformation Services segment rose 36,520.00% to Rs 18.31 crore (accounting for 3.37% of total PBIT).  PBIT of Campaign Registry segment rose 53.48% to Rs 120.99 crore (accounting for 22.25% of total PBIT).  

PBIT margin of Global Voice Solutions segment fell from 9.89% to 8.02%.  PBIT margin of Global Data and Managed Services segment fell from 8.52% to 6.82%.  PBIT margin of Real Estate segment rose from 59.35% to 59.35%.  PBIT margin of Transformation Services segment rose from 0.01% to 6.34%.  PBIT margin of Campaign Registry segment rose from 62.32% to 70.99%.  Overall PBIT margin fell from 9.76% to 9.30%.  

Operating profit margin has declined from 20.64% to 20.37%, leading to 2.42% rise in operating profit to Rs 1,180.95 crore.  Employee cost decreased from 20.33% to 19.39%.   Other expenses rose from 59.03% to 60.25%.   Telecommuncation charges rose from 40.76% to 43.35%.   

Other income rose 310.43% to Rs 28.73 crore.  PBIDT rose 4.27% to Rs 1209.68 crore.  Provision for interest rose 1.32% to Rs 186.89 crore.  

PBDT rose 4.83% to Rs 1022.79 crore.  Provision for depreciation rose 5.66% to Rs 637.14 crore.  

Profit before tax grew 3.49% to Rs 385.65 crore.  Share of profit/loss was 155.77% higher at Rs 12.2 crore.  Extraordinary items were increased to Rs -14.93 crore.  Provision for tax was expense of Rs 126.19 crore, compared to Rs 113.47 crore.  Effective tax rate was 32.95% compared to 59.14%.

Minority interest decreased 50% to Rs 0.12 crore.  Net profit attributable to owners of the company increased 228.27% to Rs 256.61 crore.  

Promoters’ stake was 58.86% as of 31 December 2024 ,compared to 58.86% as of 31 December 2023 .  

 
Year-to-date (YTD) results analysis.

Net sales (including other operating income) of Tata Communications has increased 13.07% to Rs 17118.24 crore.  Sales of Global Voice Solutions segment has gone down 0.90% to Rs 1,258.69 crore (accounting for 7.29% of total sales).  Sales of Global Data and Managed Services segment has gone up 15.24% to Rs 14,466.92 crore (accounting for 83.80% of total sales).  Sales of Real Estate segment has gone up 1.66% to Rs 180.20 crore (accounting for 1.04% of total sales).  Sales of Transformation Services segment has gone down 23.38% to Rs 883.53 crore (accounting for 5.12% of total sales).  Sales of Campaign Registry segment has gone up 274.95% to Rs 474.31 crore (accounting for 2.75% of total sales).  Inter-segment sales rose Rs 141.69 crore to Rs 145.41 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 2.20% to Rs 1,527.34 crore.  PBIT of Global Voice Solutions segment fell 19.63% to Rs 119.91 crore (accounting for 7.85% of total PBIT).  PBIT of Global Data and Managed Services segment fell 20.56% to Rs 924.99 crore (accounting for 60.56% of total PBIT).  PBIT of Real Estate segment fell 9.74% to Rs 102.45 crore (accounting for 6.71% of total PBIT).  PBIT of Transformation Services reported profit of Rs 52.86 crore compared to loss of Rs 11.39 crore.  PBIT of Campaign Registry segment rose 314.98% to Rs 327.13 crore (accounting for 21.42% of total PBIT).  

PBIT margin of Global Voice Solutions segment fell from 11.75% to 9.53%.  PBIT margin of Global Data and Managed Services segment fell from 9.27% to 6.39%.  PBIT margin of Real Estate segment fell from 64.03% to 56.85%.  PBIT margin of Transformation Services segment rose from negative 0.99% to 5.98%.  PBIT margin of Campaign Registry segment rose from 62.32% to 68.97%.  Overall PBIT margin fell from 9.78% to 8.85%.  

Operating profit margin has declined from 21.41% to 20.14%, leading to 6.35% rise in operating profit to Rs 3,446.95 crore.  Employee cost decreased from 21.11% to 19.99%.   Other expenses rose from 57.48% to 59.88%.   Telecommuncation charges rose from 37.96% to 42.85%.   

Other income fell 70.89% to Rs 61.5 crore.  PBIDT rose 1.62% to Rs 3508.45 crore.  Provision for interest rose 23.03% to Rs 546.62 crore.  

PBDT fell 1.54% to Rs 2961.83 crore.  Provision for depreciation rose 9.90% to Rs 1919.61 crore.  

Profit before tax down 17.38% to Rs 1,042.22 crore.  Share of profit/loss was 35.83% higher at Rs 19.22 crore.  Provision for tax was expense of Rs 310.6 crore, compared to Rs 321.98 crore.  Effective tax rate was 26.43% compared to 29.48%.

Minority interest decreased 72.22% to Rs 0.25 crore.  Net profit attributable to owners of the company increased 12.35% to Rs 864.27 crore.  

Promoters’ stake was 58.86% as of 31 December 2024 ,compared to 58.86% as of 31 December 2023 .  


Full year results analysis.

Net sales (including other operating income) of Tata Communications has increased 16.52% to Rs 20784.68 crore.  Sales of Global Voice Solutions segment has gone down 17.29% to Rs 1,699.06 crore (accounting for 8.10% of total sales).  Sales of Global Dhttp://192.168.2.14:81/DBConversion/Segmentation_Cons.aspx#ata and Managed Services segment has gone up 21.63% to Rs 17,219.68 crore (accounting for 82.11% of total sales).  Sales of Real Estate segment has gone up 18.02% to Rs 237.07 crore (accounting for 1.13% of total sales).  Sales of Transformation Services segment has gone up 9.36% to Rs 1,550.43 crore (accounting for 7.39% of total sales).  Inter-segment sales rose Rs 176.82 crore to Rs 186.08 crore.  

Profit before interest, tax and other unallocable items (PBIT) has slumped 6.64% to Rs 1,919.85 crore.  PBIT of Global Voice Solutions segment fell 38.73% to Rs 184.64 crore (accounting for 9.62% of total PBIT).  PBIT of Global Dhttp://192.168.2.14:81/DBConversion/Segmentation_Cons.aspx#ata and Managed Services segment fell 14.29% to Rs 1,429.03 crore (accounting for 74.43% of total PBIT).  PBIT of Real Estate segment rose 44.19% to Rs 146.51 crore (accounting for 7.63% of total PBIT).  PBIT of Transformation Services segment fell 98.35% to Rs 0.51 crore (accounting for 0.03% of total PBIT).  

PBIT margin of Global Voice Solutions segment fell from 14.67% to 10.87%.  PBIT margin of Global Dhttp://192.168.2.14:81/DBConversion/Segmentation_Cons.aspx#ata and Managed Services segment fell from 11.78% to 8.30%.  PBIT margin of Real Estate segment rose from 50.58% to 61.80%.  PBIT margin of Transformation Services segment fell from 2.18% to 0.03%.  Overall PBIT margin fell from 11.41% to 9.15%.  

Operating profit margin has declined from 24.21% to 20.77%, leading to 0.02% decline in operating profit to Rs 4,317.20 crore.  Employee cost increased from 20.17% to 20.89%.   Other expenses rose from 55.63% to 58.33%.   Telecommuncation charges rose from 35.74% to 38.87%.   

Other income fell 27.27% to Rs 264.12 crore.  PBIDT fell 2.14% to Rs 4581.32 crore.  Provision for interest rose 45.70% to Rs 630.09 crore.  Loan funds rose to Rs 11,263.17 crore as of 31 March 2024 from Rs 8,576.64 crore as of 31 March 2023.  Inventories declined from Rs 160.00 crore as of 31 March 2023 to Rs 83.54 crore as of 31 March 2024.  Sundry debtors were higher at Rs 3,758.36 crore as of 31 March 2024 compared to Rs 2,734.99 crore as of 31 March 2023.  Cash and bank balance declined from Rs 1,062.57 crore as of 31 March 2023 to Rs 842.45 crore as of 31 March 2024.  Investments declined from Rs 1,950.55 crore as of 31 March 2023 to Rs 1,608.22 crore as of 31 March 2024.  

PBDT fell 7.01% to Rs 3951.23 crore.  Provision for depreciation rose 5.99% to Rs 2397.35 crore.  Fixed assets increased to Rs 13,010.71 crore as of 31 March 2024 from Rs 11,532.59 crore as of 31 March 2023.  Intangible assets increased from Rs 115.05 crore to Rs 1,783.73 crore.  

Profit before tax down 21.80% to Rs 1,553.88 crore.  Share of profit/loss was 41.26% lower at Rs 19.99 crore.  Provision for tax was expense of Rs 213.5 crore, compared to Rs 296.62 crore.  Effective tax rate was 15.95% compared to 14.14%.

Minority interest decreased 74.75% to Rs 1.24 crore.  Net profit attributable to owners of the company decreased 37.44% to Rs 1,123.47 crore.  

Equity capital stood at Rs 285.00 crore as of 31 March 2024 to Rs 285.00 crore as of 31 March 2023.  Per share face Value remained same at Rs 10.00.  

Promoters’ stake was 58.86% as of 31 March 2024 ,compared to 58.86% as of 31 March 2023 .  

Cash flow from operating activities decreased to Rs 3,182.00 crore for year ended March 2024 from Rs 4,384.35 crore for year ended March 2023.  Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 2,082.34 crore, compared to Rs 1,493.14 crore during the year ended March 2023.  

 

Operational highlights:

Data revenue grows 6.2% YoY, coming in at INR 4,903 crore.

Digital revenue up 10.2% YoY, totalling INR 2,313 crore.


Management Commentary:

Commenting on the performance A. S Laxminarayanan, MD and CEO said “Q3 has been a satisfactory quarter with strong growth in digital revenues, improved margins, and enhanced free cash flow. We are advancing well in our review of subsidiaries, with a clear focus on optimising their performance and unlocking value, as demonstrated in the case of Tata Communications Payments Solutions Limited. I believe in the world of AI, digital infrastructure will be even more critical and our investments in our Digital Fabric will hold us in good stead.”

Commenting on the results, Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications, said   “The strategic actions to streamline and make our business future-ready has begun paying off. Over and above the divestiture of our payment solutions business, we continue to pursue other monetisation opportunities and strategic evaluation of assets. With disciplined capital allocation and our ‘Fit to Grow’ strategy we remain confident of delivering sustainable value to shareholders and customers alike.”



Tata Communications : Consolidated Results
 Quarter endedYear to DateYear ended
Particulars202412202312Var.(%)202412202312Var.(%)202403202303Var.(%)
Net Sales (including other operating income)5,798.075,587.783.7617,118.2415,139.6113.0720,784.6817,838.2616.52
OPM (%)20.3720.64-27 bps20.1421.41-127 bps20.7724.21-344 bps
OP1,180.951,153.102.423,446.953,241.196.354,317.204,318.23-0.02
Other Inc.28.737.00310.4361.50211.30-70.89264.12363.15-27.27
PBIDT1,209.681,160.104.273,508.453,452.491.624,581.324,681.38-2.14
Interest186.89184.461.32546.62444.2923.03630.09432.4645.70
PBDT1,022.79975.644.832,961.833,008.20-1.543,951.234,248.92-7.01
Depreciation637.14603.015.661919.611746.689.902397.352261.815.99
PBT385.65372.633.491042.221261.52-17.381553.881987.11-21.80
Share of Profit/(Loss) from Associates12.24.77155.7719.2214.1535.8319.9934.03-41.26
PBT before EO397.85377.45.421061.441275.67-16.791573.872021.14-22.13
EO Income-14.93-185.5291.95113.68-183.55LP-235.6676.35PL
PBT after EO382.92191.8899.561175.121092.127.601338.212097.49-36.20
Taxation126.19113.4711.21310.6321.98-3.53213.5296.62-28.02
PAT256.7378.41227.42864.52770.1412.251124.711800.87-37.55
Minority Interest (MI)0.120.24-50.000.250.9-72.221.244.91-74.75
Net profit256.6178.17228.27864.27769.2412.351123.471795.96-37.44
P/(L) from discontinued operations net of tax-20.65-33.3638.10-68.25-122.0844.09-155.130-
Net profit after discontinued operations235.9644.81426.58796.02647.1623.00968.341795.96-46.08
EPS (Rs)*9.355.3076.5227.4131.50-12.9946.3460.73-23.69
* EPS is on current equity of Rs 285.00 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


Tata Communications : Consolidated Segment Results
 Quarter endedYear to DateYear ended
% of (Total)202412202312Var.(%)% of (Total)202412202312Var.(%)% of (Total)202403202303Var.(%)
Sales
Global Voice Solutions7.02410.52423.13-2.987.291,258.691,270.10-0.908.101,699.062,054.16-17.29
Global Data and Managed Services84.094,917.264,625.386.3183.8014,466.9212,554.2715.2482.1117,219.6814,156.9121.63
Others0.000.000.00-
South Africa Operations0.000.000.00-
Payment0.000.000.00-
Data Centre Services0.000.000.00-
Real Estate1.0460.7259.312.381.04180.20177.261.661.13237.07200.8718.02
Transformation Services4.94288.83401.78-28.115.12883.531,153.17-23.387.391,550.431,417.789.36
Campaign Registry2.91170.43126.5034.732.75474.31126.50274.95
Total Reported Sales100.005,847.765,636.103.76100.0017,263.6515,281.3012.97100.0020,970.7618,015.0816.41
Less: Inter segment revenues 49.6948.322.84 145.41141.692.63 186.08176.825.24
Net Sales100.005,798.075,587.783.76100.0017,118.2415,139.6113.07100.0020,784.6817,838.2616.52
PBIT
Global Voice Solutions6.0632.9341.83-21.287.85119.91149.20-19.639.62184.64301.37-38.73
Global Data and Managed Services61.70335.54394.18-14.8860.56924.991,164.37-20.5674.431,429.031,667.22-14.29
Others0.000.000.00-
South Africa Operations0.000.000.00-
Payment0.000.000.00-
Data Centre Services0.000.000.00-
Real Estate6.6336.0435.202.396.71102.45113.50-9.747.63146.51101.6144.19
Transformation Services3.3718.310.0536,520.003.4652.86-11.39LP0.030.5130.86-98.35
Campaign Registry22.25120.9978.8353.4821.42327.1378.83314.98
Total PBIT100.00543.81550.09-1.14100.001,527.341,494.512.20100.001,919.852,056.42-6.64
Less : Interest186.89184.461.32546.62444.2923.03630.09432.4645.70
Add: Other un-allcoable13.80-178.52LP175.1827.75531.2828.46439.50-93.52
PBIT Margin(%)
Global Voice Solutions 8.029.89-186.43 9.5311.75-222.05 10.8714.67-380.40
Global Data and Managed Services 6.828.52-169.84 6.399.27-288.09 8.3011.78-347.79
Others 0.000.000.00
South Africa Operations 0.000.000.00
Payment 0.000.000.00 0.00-24.082,408.29
Data Centre Services 0.000.000.00
Real Estate 59.3559.350.52 56.8564.03-717.67 61.8050.581,121.54
Transformation Services 6.340.01632.69 5.98-0.99697.05 0.032.18-214.37
Campaign Registry 70.9962.32867.48 68.9762.32665.35 60.170.006,016.94
PBT100.00370.72187.1198.13100.001,155.901,077.977.23100.001,318.222,063.46-36.12
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