Tata Communications Q2 net loss at Rs 273 cr

Revenue for the quarter at Rs 4271 crore grew 27%compared to Rs 3373.6 crore in the same period last year

Tata Communications reported a net loss of Rs 273.2 crore for the second quarter ended September 30, 2012, higher from a loss of Rs 165.2 crore in the corresponding quarter last year.

Revenue for the quarter at Rs 4271 crore grew 27 per cent compared to Rs 3373.6 crore in the same period last year and was up 4 per cent sequentially.

On a quarter-on-quarter basis too the company’s net loss increased from Rs 142.9 crore.

“We have sustained top-line momentum in an environment that has continued to be challenging, globally. The size and scale of our Core Business has been growing consistently, benefiting from a combination of our investments in global infrastructure. We are enthused by the potential we see in the emerging markets and are committed to developing a leadership business in these regions. Our efforts to drive sales at Neotel are bearing visible results while our initiatives at streamlining operations have fundamentally strengthened the business and its ability to deliver strong results,” said Vinod Kumar, MD and Group CEO, Tata Communications.

Core Business revenues were up by 30 per cent at Rs 3,784 crore from Rs 2,907.9 crore in Q2 FY2012. Global Voice Services (GVS) continued to post an increase in revenues and carried a total of 15.3 bn voice minutes during the quarter as compared to 13.1 bn minutes in the same quarter last year. Global Data Services also posted a revenue growth of 25 per cent to Rs 1,670.3 crore in Q2 FY2013 from Rs 1,332 crore in Q2 FY2012.

The company’s Startup Businesses, comprising primarily of Neotel, witnessed a 5 per cent rise in revenues to Rs 487 crore, up from Rs 465.7 crore in Q2 FY2012. Growth in operating profit maintained its momentum with EBITDA margins standing at 10.6 per cent in Q2 FY2013 as against 2 per cent in Q2 FY2012.

At the end of the quarter, Tata Communications had 6,952 employees in its core business. In addition to this the company has 961 employees in South Africa operations.