Tata Communications, a part of Tata Group, on Tuesday reported 425.76 per cent year-on-year growth in consolidated profit after tax (PAT) at Rs 309.41 crore for the third quarter ended December 31, 2020, compared to Rs 58.85 crore in the same period last year. The surge in profit was attributed to cost efficiencies and improved business processes as well as higher deferred tax credits during the quarter under review.
The profit in sequential terms, however, was down 19.6 per cent from Rs 384.81 crore in September quarter of the current fiscal.
Consolidated revenue from operations in Q3 FY21 was marginally down 0.1 per cent to Rs 4,222.83 crore from Rs 4,228.72 crore in Q3 FY20, as drop in voice business offset growth in data business. On quarter-on-quarter basis, it was down by 4.1 per cent from Rs 4,401.08 crore in Q2 FY21.
During quarter under review, consolidated Earnings before Interest, Taxes, Depreciation, and Amortisation (EBITDA) was at Rs 1,046 crore, up 37.5 per cent YoY on the back of robust growth and margin expansion in data business and cost optimisation initiatives.
In Q3 FY21, capital expenditure stood at Rs 339 crore as compared to Rs 490 crore in Q3 FY20.
Tata Communications reported stable growth in data business despite seasonally slow quarter with revenue growing by 3.8 per cent YoY on the back of robust performance in traditional services. Traditional services' revenue grew by 6 per cent YoY on strong demand from OTT and enterprise segment for its services.
Commenting on Q3 results, AS Lakshminarayanan, MD and CEO, Tata Communications, said, "Our disciplined execution has helped us deliver good results in a seasonally weak quarter. Our Secure Connected Digital Experience (SCDx) offering continues to be relevant as we reimagine the new world for our customers. At the same time, our investments in products and services are positioning us well in our customers' digital transformation journeys, an example being our investment in Oasis. I am happy to share that during the quarter, our efforts in sustainability for climate change placed Tata Communications in the leadership band of the Carbon Disclosure Project (CDP) Report encouraging us to continue to make a difference to our Planet."
"We continue to deliver on our goal of profitable growth. Both profitability and cash flow generation has improved significantly in the last few quarters on the back of cost efficiencies and improved business processes. This agility has given us headroom to compete more effectively in the market and cater to our customer's changing needs. Our focus continues to remain on generating a healthy order book coupled with strong execution to drive our growth," said Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications.
Ahead of Q3 results, shares of Tata Communications ended 1.08 per cent higher at Rs 1,129.95, against previous closing price of Rs 1,117.85 on the Bombay Stock Exchange.