New Delhi, NFAPost: Tata Communications announced strong profit of Rs 1,251 Crore for the fiscal ending March 2021 as compared to a loss of Rs 86 Crore in FY20 due to strong operating performance during the year.
This has been the highest profit in the last 11 years, translating into an EPS of Rs 44 per share. For the Full-year the company registered PAT of Rs 1,251 Crores. Consolidated EBITDA increased by +29.5% YoY with margin expansion of 560 Bps
Consolidated revenue of the ecompany is at Rs17,100 Crore (USD 2,303 Mn), registering a growth of 0.2% on YoY baisis. Business environment has been impacted due to pandemic and this has also affected our growth.
Tata Communications data revenue was at Rs 14,309 Crore (USD 1,927 Mn), registering a grwoth of 4.5% on YoY basis and supported by healthy performance in Traditional services.
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 INR 7,786 crore.
The Tata Sons owned company return on capital employed for compared to 11.5% in FY20; an improvement of over 13% points. The Board recommends a dividend of Rs 14 per share.
A.S Lakshminarayanan, MD and CEO, Tata Communications said, “FY21 has been a great year; making excellent progress on our well-defined strategy. 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.”
Commenting on the company’s performance, Tata Communications CEO Kabir Ahmed Shakir said the company’s 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 the business,” said Kabir Ahmed Shakir.