Tata Communications records 18.5% increase in profit
Tata Communications has published its financial results for fourth quarter (Q4) & full year 2022 (FY2022), the latter saw a 18.5% year-on-year increase in profit.
Consolidated revenue totaled INR 16,725 crores (US$2,244.9 million) for FY22 while Q4 FY22 topped INR 4,263 crores (US$567.0 million).
Most of the company's business segments witnessed growth including core connectivity, digital platforms & services, and incubation services of data business. Specifically, Tata's data business grew by 2.1% quarter-on-quarter and 1.4% year-on-year.
Its core connectivity segment saw revenue growth of +0.5% quarter-on-quarter and +1.4% year-on-year, while its incubation portfolio grew by 49.1% quarter-on-quarter and 67.6% year-on-year.
“Overall, our full year performance has been steady with three consecutive quarters of growth,” said A.S. Lakshminarayanan, MD and CEO, Tata Communications.
“We are focused on executing on our strategy and capturing tremendous opportunities ahead of us. I am proud of the team and the significant improvements we have made in our Net Promoter Score (NPS). We also earned several industry recognitions for our portfolio as well as for sustainability and workplace.”
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached INR 4,227 crores (US$567.3 million); with profit margins of approximately 25.3%, expanding by 40 basis points year-on-year. Profit margins for the quarter reached 24.5%.
Profit after tax stood totaled INR 1,482 crores (US$198.9 million) compared to INR 1,251 crores (US$168.4 million) in FY21, marking growth of +18.5% year-on-year.
Capital expenditure for the year was INR 1,608 crores (US$216.9 million) compared to INR 1,421 crores (US$191.4 million) in FY21. Free Cash Flow for the period reached INR 2,619 crores (USD 345.6 million).
“With a steady sequential upswing in profitability and revenue, FY22 has been a healthy year," said Kabir Ahmed Shakir, chief financial officer, Tata Communications.
"Our strong cash flows give us the confidence to compete in global markets and take on a stronger posture. We are now focused on accelerating growth, improving operating efficiencies while remaining committed to further strengthening our portfolio with innovative and differentiated offerings.”
As a result of these figures, the company's board has recommended a dividend of INR 20.7 per share.