Tata Communications has reported a consolidated net loss of Rs 260.81 crore for the quarter ended March 2017 (Q4 FY17), which is down significantly from Rs 1412.8 crore profit that the company made in the previous quarter. On a year on year basis, losses increased marginally from Rs 256.9 crore in Q3FY16. Tata Communications had reported profits in the previous quarter widened due to an “exceptional one-time gain” after it sold a majority stake in its Africa ISP Neotel for $428 million.
The company’s consolidated total income stood at Rs 4394.88 crore during Q4 FY17, down marginally from Rs 4450.92 crore in the previous quarter. On a Yea-on-Year (YoY) basis, Tata Comm’s overall income reduced by 8% from Rs 4753.49 crore in Q3 FY16. Tata’s communication business involves services like managed networks, voice services, cloud and storage hosting, unified communications, and owns data centres in many countries. It categorizes its offerings mainly into two segments: Data and Voice.
Revenue from data services accounted for more than half of the company’s income which stood at Rs 2682.44 crore during Q4 FY17, up 7.2% YoY from Rs 2500.3 crore in the previous quarter. Voice segment revenues stood at Rs 1510.87 crore in the same quarter, down 23.4% YoY from Rs 2009.3 crore. Note that the company said it made more revenue selling its data services to enterprise customers than as a data service provider to non-enterprise customers. The company also added that around 52% of its total data business income came from India during the quarter.
Tata Comm’s Voice business, however, reported a profit of Rs 33.58 crore for the quarter, which narrowed down from Rs 59.05 crore in the previous quarter. Data segment business, on the other hand, reported a loss of Rs 120.68 crore during Q4 FY17, compared to a profit of Rs 89.3 crore in the previous quarter.
Tata’s payment solutions which manage and operates a nationwide network of ATMs in India reported revenues of Rs 101.91 crore for the quarter, down 15.9% QoQ from Rs 121.3 crore in the previous quarter. The segment, however, suffered losses of Rs 47.81 crore, which increased significantly from Rs 16.62 crore loss in the same quarter last year (Q3 FY16).
Other financial and operating highlights
-Total voice minutes hosed by the company decreased to 10 billion minutes from an all-time high of 11.5 billion minutes in September 2016 quarter. Out of the 10 billion minutes completed during the quarter, 9 billion minutes accounted for International Long Distance Minutes.
-Bandwidth usage on its managed network system also reduced to 8.38 Tbps/month during Q4 FY17 from an all-time high of 9.44 Tbps/month in Q3 FY17. Around 56% of its data revenue in Q4 FY17 came from the enterprise segment.
-Overall EBITDA stood at Rs 502.9 crore for the quarter, down from Rs 783.7 crore in the same quarter last year.