Tata Communications loss at Rs 57.95 crore in June quarter

NEW DELHI: Tata Communications reported a loss of Rs 57.95 crore for the quarter ended June 2018, against a net profit of Rs 32.94 crore in the year ago period. On a sequential basis, the losses, however, narrowed as compared to Rs 120.47 crore in the quarter ended March 2018.

The income from operations came in 9.2 per cent lower year-on-year to Rs 3,912.28 crore for June quarter, from Rs 4,310.02 crore in the same period of previous year, according to a regulatory filing by the company.

In a statement today, the company said that the consolidated revenues had declined primarily on account of lower volume and price compression in voice business.

“Despite decline in revenue, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) margins expanded…the margins expanded by 30 BPS (basis points) sequentially and 120 BPS on YoY (year on year) basis due to cost optimisation and control,” the statement added.

A change in treatment of one-time service revenue in accordance with accounting standards impacted the data services portfolio including growth services, the statement noted.

“…we have kept at the front face of the changing technology landscape, and are transforming ourselves from a pure connectivity provider to a next-generation digital infrastructure provider…Going forward, our focus will be on bundling our services, further increasing product penetration, reskilling our employees and continuing to build operational efficiencies,” Vinod Kumar, MD and CEO, Tata Communications, said in a statement.

Commenting on the company’s results, Pratibha K Advani, CFO of Tata Communications, said that the margin had expanded on the back of sustained productivity initiatives despite battling industry headwinds.

“The change in portfolio mix in favour of data services and the continued focus on productivity and digital transformation initiatives will continue to drive an improvement in our margin profile,” she added.

Source: Press Trust of India

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