Mumbai – November 01st 2014 – Tata Communications today announces its financial results for the quarter and half year ended September 30th 2014.

Highlights for Q2 FY2015

Consolidated PAT stood at INR 924 million
• Consolidated revenue up 2.4% YoY at INR 50,716 million
• Consolidated EBITDA margins improved by 110 basis points QoQ to 15%
• Consolidated PBT up 343% QoQ and 61% YoY to INR 2,120 million

Highlights for H1 FY2015

• Consolidated revenue from operations improved 7.8% YoY to INR 101,833 million (USD 1,692 million @average INR/USD exchange rate of 60.18)
• Core business revenue from operations increased 6.8% YoY while the start-up business revenues were up 15.5% YoY

Revenue from operations for the core business grew 1.7% at INR 44,950 million (USD 742 million @average INR/USD exchange rate of 60.58) from INR 44,187 million (USD 710 million @average INR/USD exchange rate of 62.21) during the corresponding quarter in the previous year. Data continues to be the growth driver; broad based, enterprise segment solutions improved significantly to post an increase in revenues of 8.3% YoY. Connectivity solutions like MPLS-VPN and IP transit led the network services growth story while Unified Communications and Collaboration (UCC) and transformation services (TCTSL) were the front runners in the growth of the managed services segment. During the quarter, the data business also crossed the 20% EBITDA margin milestone. Core business continues to be firmly PBT positive.

The start-up business continued its upward trajectory and posted a robust growth of 8% increase in revenues at INR 5,766 million (ZAR 1,024 million @average INR/ZAR exchange rate of 5.63) compared to INR 5,339 million (ZAR 858 million @average INR/ZAR exchange rate of 6.22) in Q2 FY14. The start-up business EBITDA margin stood at 31.3% during the quarter, compared to 30.8% in Q2 FY14.

Vinod Kumar, MD and CEO, Tata Communications, says, “Enterprises across geographies are beginning to harness the digital transformation to power their growth trajectories. They are expanding and restructuring their portfolios and service offerings while looking to scale globally. Capitalising on this positive trend in the ICT space, we've developed some compelling cloud enablement offerings, all of which, positions us well for future growth. Our recent IZO launch is one we have high hopes for as we take the necessary steps towards making the Internet Fit For Business™ by bringing a new level of predictability and reliability to the public Internet that does not exist today. We will continue our focus on driving innovation across our service portfolio.”


Further commenting on the Q2 results, Vinod Kumar says, “The composition of revenue, and by extension, the quality of our EBITDA is improving as the share of the more sustainable and lucrative, data and managed services segment grows. We continue to be focused on driving robust revenues through long-term engagements with global enterprises and sustaining profitability with a vigilant cost regime.”

Business highlights for Q2 FY2015

• Tata Communications ushers in a new era of internet to drive hybrid cloud adoption: Tata Communications launched IZO™, a global network platform for enhanced hybrid cloud enablement. A game changing new network platform – IZO™ brings a new way of tackling the complications and challenges that businesses face in realising the potential of the cloud. For the first time, a single provider offers access to a full ecosystem of network, cloud and data centre connectivity making it simple for a business to connect and build its cloud, their way – be it private, hybrid or public. Bringing together a growing ecosystem of over 20 service providers reaching 85% of the world's GDP, two of the largest cloud platforms - Amazon Web Services (AWS) and Microsoft Azure - and over 50 data centres across the globe, the IZO™ network delivers the most comprehensive cloud enablement platform available today.

• Tata Communications achieves first ever live 4K feed of a Formula 1® event over fibre: Tata Communications continues to drive technology innovation by becoming the first company to deliver a live 4K feed from a Formula 1® event. This landmark was achieved during practice session at the 2014 FORMULA 1 SINGAPORE AIRLINES SINGAPORE GRAND PRIX, where live footage was delivered end-to-end over Tata Communications' Global Video Connect Network, to Formula One Management's (FOM) Technical HQ in Biggin Hill, UK. Demonstrated to an exclusive group of broadcasters, the live delivery highlighted the next generation 4K broadcast capabilities afforded by fibre-optic cable, as well as illustrating how the future of 4K sports broadcasting could look.

• Tata Communications and PCCW Global join forces to expand global network capabilities for video and data: Tata Communication and PCCW Global, the international operating division of HKT, Hong Kong's premier telecommunications service provider, signed a high definition video conferencing (HDVC) interconnect agreement to interconnect the two companies' IPX and MPLS networks via a Network-to-Network Interface (NNI). This will allow both companies to offer global enterprise customers enhanced network data services and the highest quality HD video conferencing capability.

A fact sheet providing a detailed analysis of the results for the quarter and half year ended September 30th 2014 has been uploaded on the Tata Communications website and can be accessed here. 


About Tata Communications

Tata Communications Limited (CIN no: L64200MH1986PLC039266) along with its subsidiaries (Tata Communications) is a leading global provider of A New World of Communications™. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multi-national enterprises, service providers and Indian consumers.

The Tata Communications global network includes one of the most advanced and largest submarine cable networks and a Tier-1 IP network with connectivity to more than 200 countries and territories across 400 PoPs, as well as  nearly 1 million square feet of data centre and collocation space worldwide.

Tata Communications' depth and breadth of reach in emerging markets includes leadership in Indian enterprise data services and leadership in global international voice.

Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India.

http://www.tatacommunications.com


Forward-looking and cautionary statements
Certain words and statements in this release concerning Tata Communications and its prospects, and other statements, including those relating to
Tata Communications' expected financial position, business strategy, the future development of Tata Communications' operations, and the general economy in India, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, including financial, regulatory and environmental, as well as those relating to industry growth and trend projections, which may cause actual results, performance or achievements of Tata Communications, or industry results, to differ materially from those expressed or implied by such forward-looking statements. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, failure to increase the volume of traffic on Tata Communications' network; failure to develop new products and services that meet customer demands and generate acceptable margins; failure to successfully complete commercial testing of new technology and information systems to support new products and services, including voice transmission services; failure to stabilize or reduce the rate of price compression on certain of the company's communications services; failure to integrate strategic acquisitions and changes in government policies or regulations of India and, in particular, changes relating to the administration of Tata Communications' industry; and, in general, the economic, business and credit conditions in India. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in Tata Communications' control, include, but are not limited to, those risk factors discussed in Tata Communications' various filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. Tata Communications is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements.