Tata Communications Q1 income up 13% driven by global data solutions and South African subsidiary

Tata Communications has reported a 13 percent increase in consolidated revenues for Q1 at Rs 3,257 crore for the quarter ended 30 June 2011 as against Rs 2,885 crore, in the comparable quarter in 2010.

Operating profits grew by 25 percent in the quarter to
touch Rs 326 crore, as against Rs 260 crore in the corresponding quarter last
year. As per the company, net losses also reduced by 22 percent to Rs 218 crore
as against Rs 281 crore, in the corresponding quarter last year.

Growth in revenues was driven by the Global Data Solutions
segment and South African subsidiary, Neotel. During the quarter, the company
continued its focus on emerging market specialised offerings in network
services as well as the higher growth business of managed and cloud services.
Global voice grew by 6 percent in the quarter, while global data grew by 22

With Tata Communications’ stake in Neotel increasing from
an effective 43.16 percent to 61.5 percent, Neotel accounts are now
consolidated at 100 percent. Neotel grew its revenues 31 percent year-on-year,
and reduced its operating loss margins. In India, Tata Communications has also
been focusing on the explosive growth in banking and financial services,
providing integrated, managed service for payments and transactions of Banks
across multiple platforms.

During fiscal 2010-11, Tata Communications reported
consolidated revenues of Rs 11,932 crore,
showing 8 percent growth from Rs 11,026 crore. The company’s operating profit
was up 21 percent at Rs 1,226 crore for 2010-11 as against Rs 1,012 crore for
the previous year. However, the company reported a net loss of Rs 854 crore for
2010-11, including a loss of Rs 551 crores for the company’s effective 49.01
percent holding in Neotel, South Africa.

In July, Tata Communications expanded its managed
telepresence portfolio by tying up with Sprint and Verizon for global managed
private and public telepresence solutions. Holding sixth place, among the top
telecom operators in India, Tata Communications
clocked NLD revenues of Rs 3510.90 million and ILD revenues of Rs 2490.59
million in the March quarter. Tata Communications also upped its stake in South
African venture, Neotel by 12.5 percent to become the majority stakeholder with
a 60 percent share in the fixed line operator.

By Beryl M
[email protected]