Tata Communications announced its financial results for the quarter ended December 31st, 2020. On a YoY basis, its consolidated profit after tax (PAT) rose 425 percent to Rs 309.41 crore for the third quarter ended December 31, 2020, compared to Rs 58.85 crore in the same period last year. The surge in profit was attributed to cost efficiencies and improved business processes as well as higher deferred tax credits during the quarter under review.
In Q3 FY21, capital expenditure stood at Rs 339 crore as compared to Rs 490 crore in Q3 FY20.
"We continue to deliver on our goal of profitable growth. Both profitability and cash flow generation have improved significantly in the last few quarters on the back of cost efficiencies and improved business processes. This agility has given us the headroom to compete more effectively in the market and cater to our customer's changing needs. Our focus continues to remain on generating a healthy order book coupled with strong execution to drive our growth," said Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications.
The company registered as well stable growth in Data business despite seasonally slow quarter; revenue grew by +3.8% YoY on the back of robust performance in Traditional services.
Announcing the results, A.S Lakshminarayanan, MD and CEO, Tata Communications, said, “Our disciplined execution has helped us deliver good results in a seasonally weak quarter. Our Secure Connected Digital Experience (SCDx) offering continues to be relevant as we reimagine the New World for our customers. At the same time, our investments in products and services are positioning us well in our customers’ digital transformation journeys, an example being our investment in Oasis. I am happy to share that during the quarter, our efforts in Sustainability for Climate Change placed Tata Communications in the leadership band of the Carbon Disclosure Project (CDP) Report encouraging us to continue to make a difference to our Planet.”