Tata Comm records PAT of Rs 299 cr in Q4

Tata Communications reported a consolidated net profit of Rs 299.20 crore in Q4 FY21 compared with net loss of Rs 275.02 crore in Q4 FY20.

Net sales declined 7.4% year-on-year (YoY) to Rs 4,073.25 crore during the quarter, which was largely due to degrowth in voice business and data business.

Data revenue in the fourth quarter was at Rs 3,515 crore, down by 2.2% YoY. This reduction is primarily due to longer deal conversion and execution cycle due to COVID-19 and moderation of UCC (unsolicited commercial communication) traffic.

EBITDA increased by 16.8% to Rs 1,015 crore while EBITDA margin improved by 520 bps to 24.9% in Q4 FY21 over Q4 FY20.

The company reported a pre-tax profit of Rs 385.94 crore in Q4 March 2021 as against a pre-tax loss of Rs 281.83 crore in Q4 March 2020.

Tata Communications recorded a consolidated net profit of Rs 1250.63 crore in the year ended 31 March 2021 compared with net loss of Rs 85.96 crore in the year ended 31 March 2021. Net sales rose 0.2% to Rs 17,100.10 crore in FY21 over FY20.

Strong cash flow generation has helped bring debt at comfortable levels. Net debt to EBITDA is now at 1.8x as compared to 2.8x a year earlier. "Net Debt is now at Rs 7,786 crore," the company said in a statement.

The board has recommended a dividend of Rs 14 per share.

A.S Lakshminarayanan, MD and CEO, Tata Communications, said, "Execution on financial fitness is yielding good results and the shifts from products to platforms, deeper customer engagements are a work in progress and we anticipate continued progress on these strategic levers to achieve our goals. Our teams have gone the extra mile in delivering benchmark level Net Promoter Score (NPS) in a difficult year and are committed on execution to deliver on our strategy."

Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications, said, "Our focus on right operating structure and cost efficiencies have started to show results during the year. There has been significant improvement in profitability making our business fit to compete effectively. Profit and cash flow generation has improved dramatically. We now have a stronger balance sheet providing us the flexibility to invest for future growth of business."

Tata Communications is a leading global digital infrastructure provider. The company's capabilities are underpinned by its global network. It is the world's largest wholly owned subsea fibre backbone and a Tier-1 IP network with connectivity to more than 240 countries and territories.

The scrip fell 2.71% to currently trade at Rs 1118.05 on the BSE.

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