Tata Communications net profit turns positive in Q2 FY14

Tata Communications has declared its financial results for the quarter and half-year ended September 30, 2013. The Q2 FY14 EBITDA margin saw a rise of 90% YoY and 28% rise QoQ. Global voice net revenues and data gross revenues went up 30% YoY and 19% YoY, respectively.
 
Growth in Q2 was mainly attributed to the global increase in demand across all segments. Tata Communications’ revenues from enterprises increased by 29% YoY. Operating income and margin were positively impacted by Tata Communications’ continued focus on cost-management.
 
Vinod Kumar, MD & CEO, Tata Communications, said, We have recorded solid growth across both our managed services and voice offerings and newer services such as jamvee conferencing in the video space see our business continuing to innovate. This coupled with local market offerings such as our aggressive ATM rollout across India have all contributed to a strong quarter and H1.
 
Sanjay Baweja, CFO, Tata Communications, stated, Our financial performance reflects our commitment to benchmarking and focus on optimizing cost structures and operational efficiencies.
 
Consolidated gross revenues showed an increase of 16% to Rs.49,526 million in Q2 FY2014 from Rs.42,710 million in the corresponding quarter last year.  Net profit improved substantially to Rs.804 million compared to a net loss of Rs.2,742 million in the same quarter last year.
 
Gross revenues for the Core Business improved by 17% at Rs.44,187 million (US$710 million) against Rs.37,840 million (US$685 million) during Q2 FY2013.