Tata Communications Limited - QTRLY RESULTS - Q3 FY 2012 - 3rd Q/E DEC,2011 - CONS-NET LOSS Rs.153 Cr;

Tata Communications Limited

NSE Symbol        TATACOMM

TATA COMMUNICATIONS has released its consolidated results for the 3^rd quarter ending Dec,2011.

Q3 consolidated EBITDA up by 61% YoY

Ø  Strong revenue growth maintained across operations.

Ø  Gross revenues increase 19% YoY

Ø  Core Business remains profitable

Ø  Neotel sees further enhancement in operating profitability

Ø  Focused cash management program on track

Ø  Capex programme is aligned to demand and is pursuing predictable & strategic growth-oriented opportunities

Ø  Consolidated gross revenues were at Rs. 36,041 million in the quarter ended December 31, 2011 as against Rs. 33,736 million in the previous sequential quarter and Rs. 30,180 million in the same quarter last year. 

Ø  The Core Business accounted for Rs. 31,648 million as against Rs. 29,079 million in Q2 FY2012 and Rs. 28,535 million in Q3FY2011.

Ø  The Startup Business, primarily Neotel, posted revenues of Rs. 4,394 million in the quarter ended December 31, 2012 as against Rs. 4,657 million in Q2 FY2012 and Rs. 1,645 million in Q3 FY2011.

Global Voice Services business contributed 55% to Core Business revenues in the period as compared to 54% in Q2 FY2012. 

The total voice minutes registered on the network were at 13.4 bn minutes as against 13.1 bn minutes in Q2 FY2012.

Global Data Services contributed 45% to the Core Business revenues in the quarter under review. The data portfolio continued expanding and witnessed introductions of new products and technologies; InstaHCM was launched under Cloud Computing business and the IPX+ framework was announced to enable mobile broadband solutions.

The Startup Business, reflecting largely Neotel's performance, reported healthy revenues of Rs. 4,394 million in Q3 FY2012 as compared to Rs. 4,657 million in the sequentially preceding quarter (remaining almost flat in local currency terms). Neotel has continued to witness improved resource utilization and show better productivity; its operating profitability which turned positive in Q2 FY2012 saw further improvement.

Mr. Vinod Kumar, CEO and MD, Tata Communications, said, "We are very pleased to report a healthy improvement in the operating performance of the business. Global voice has demonstrated continued improvement in volumes and revenues. The company's global data business is scaling up as planned. Complementing our leadership in the enterprise data segment within India, we have been growing our international revenues as reflected in the enhanced uptake of our customised offerings and managed services."

"Neotel, the company's South African subsidiary has grown its revenues by 22% year on year in local currency terms. Several strategic initiatives over the past year have begun to yield results with the operating and financial performance of this business reporting visible improvement. Optimum asset utilisation and higher productivity levels elevated margins on a yearly as well as sequential basis. We are confident of leveraging our proficiency to capitalise on the tremendous opportunities available in Africa."

"Over the last several years, we have worked towards changing our business mix towards data and managed services and enterprise segment. Having achieved this shift, it is our intention to grow all our business segments faster than the growth in respective markets."

About Tata Communications

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 Global Network includes one of the most advanced and largest submarine cable networks, a Tier-1 IP network, with connectivity to more than 200 countries across 400 PoPs, and nearly 1 million square feet of data center and collocation space worldwide.

Tata Communications’ depth and breadth of reach in emerging markets includes leadership in Indian enterprise data services, leadership in global international voice, and strategic investments in South Africa (Neotel), Sri Lanka (Tata Communications Lanka Limited) and Nepal (United Telecom Limited)

Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India and its ADRs are listed on the New York Stock Exchange. (NYSE: TCL)

RESULTS  TABLE

Net Sales in Q3 FY 12 stands at Rs.3604.10 cr -  up by 6.83% from Q2 FY 12; up by 10.66% from Q1 FY 12; and up by 19.42% from Q3 FY 11.

Total Expenditure        stands at Rs.3575.07 Cr – up by  7.37% from Q2 FY 12; up by 6.68% from Q1 FY 12; and up by 15.6% from Q3 FY 11.

Profit from Operations stands at Rs.29.03 cr in Q3 FY 12; down by -34.02% from Q2 FY 12; but up considerably compared to the loss of Rs.(-)94 Cr in Q2 FY 12; and loss of Rs.(-)74.66 cr in Q3 FY 11.

Profit before tax stands at Rs(-)110.92 Cr compared to Rs(-)209.81 Cr in Q2 FY 12 ; Rs(-)257.94 Cr in Q1 FY 12; and Rs(-)155.04 Cr in Q3 FY 11.

Net Profit stands at Rs(-)126.43 Cr in Q3 FY 12; Rs(-)238.22 in Q2 FY 12; Rs(-)281.52 Cr in Q1 Fy12; Rs(-)175.84 C in Q3 FY 11.

Consolidated NPT stands at Rs(-)153.06 cr in Q3 FY 12; Rs(-)165.20 in Q2 FY 12; Rs(-)218.23 in Q1 FY 12; and Rs(-)197.41 in Q3 FY 11.

On a Face Value of Rs.10, the Basic EPS is Rs(-)5.37 in Q3 FY 12; Rs(-)5.8 in Q2 FY 12; Rs(-)7.66 in Q1 FY 12; and Rs(-)6.93 in Q3 FY 11.

On a stand Alone Basis –

Net Sales/Income from Operations stands at Rs.1019.23 Cr in Q3 FY 12; Rs.1026.61 Cr in Q2 FY 12; Rs.898.90 Cr in Q1 FY 12; and Rs.877.60 Cr in Q3 FY 11.

Net Profit  is Rs.29.48 cr in Q3 FY 12; Rs.61.88 cr in Q2 FY 12; Rs.47.79 Cr in Q1 FY 12; Rs.45.74  Crin Q3 FY 11

Basic EPS  stands at Rs.1.03 in Q3 FY 12; Rs.2.17 in Q2 FY 12; Rs.1.68 in Q1 FY 12; and Rs.1.60 in Q3 FY 11. 

     

Current MP of the share is Rs.231.35; while the 52 week high price is Rs.265.90 and the 52 week low price  is Rs.166.65.

RESULTS  TABLE :

TATA COMM-CONSOL	Q3FY12	Q2FY12	%DIF1	Q1FY12	%DIF2	Q3FY11	%DIF3
Net Sales	360410	337,361.00	6.83	325,706.00	10.66	301,800.00	19.42
Raw Materials	198998	186,248.00	6.85	188,020.00	5.84	181,978.00	9.35
Employees Cost	51374	49,238.00	4.34	49,625.00	3.52	39,113.00	31.35
Depreciation	47283	43,401.00	8.94	42,042.00	12.47	38,650.00	22.34
Other Expenditure	59852	54,074.00	10.69	55,419.00	8.00	49,525.00	20.85
Total Expenditure	357507	332,961.00	7.37	335,106.00	6.68	309,266.00	15.6
Profit from Operations	2903	4,400.00	-34.02	-9,400.00	-130.88	-7,466.00	-138.88
Other Income	5026	242	1,976.86	3,727.00	34.85	6,902.00	-27.18
Interest	19021	25,623.00	-25.77	20,121.00	-5.47	14,940.00	27.32
Profit before tax	-11092	-20,981.00	-47.13	-25,794.00	-57.00	-15,504.00	-28.46
Tax Expense	1551	2,841.00	-45.41	2,358.00	-34.22	2,080.00	-25.43
Net Profit	-12643	-23,822.00	-46.93	-28,152.00	-55.09	-17,584.00	-28.1
Minority Interest	2694	-7,302.00	-136.89	-6,870.00	-139.21	-2,873.00	-193.77
Shares of Associates	-31	-		541	-105.73	5,030.00	-100.62
Consolidated NPT	-15306	-16,520.00	-7.35	-21,823.00	-29.86	-19,741.00	-22.47
Face Value (in Rs.)	10	10	0.00	10	0.00	10	0
Paid-up Equity	28500	28,500.00	0.00	28,500.00	0.00	28,500.00	0
Basic EPS	-5.37	-5.8	-7.41	-7.66	-29.90	-6.93	-22.51

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