Tata Comm Q2 PAT at Rs 1.6 cr; says growth services pipeline strong

Tata Communications Thursday reported consolidated net profit of about Rs 1.6 crore for the quarter ended September, against a loss of Rs 250 crore in the year-ago period, as per a regulatory filing by the company.

The profit after tax stood at Rs 1.6 crore in the second quarter, compared to loss of about Rs 59 crore in the previous sequential quarter, the company said in a statement.

Its income from operations was 4.2 per cent lower year-on-year at Rs 4,068.22 crore. Seen sequentially, the income from operations was 3.1 per cent higher than Rs 3,943.7 crore in June quarter. The quarter-on-quarter increase in topline was fuelled by "strong growth" in data services, the statement said.

"Data business revenues grew by 9.1 per cent Y-o-Y (year-on-year) and 5.2 per cent Q-o-Q (quarter-on-quarter), on the back of strong performance in growth services portfolio," the company statement said.

It also said that growth services saw good traction in cloud enablement, media and entertainment, global hosted contact centre, and mobility services arena.

Commenting on the company's second quarter scorecard, Vinod Kumar, MD and CEO, Tata Communications, said: "Our Growth Services portfolio turning EBITDA (Earnings Before Interest Tax Depreciation and Amortisation) neutral this quarter demonstrates that our new services are gaining steady operating leverage".

"Our funnel and delivery pipeline for Growth Services is strong, which gives us further confidence for the quarters ahead," he added.