19 percent increase in consolidated gross revenues YoY
Recommends dividend of Rs2 per share

• Global voice services full-year net revenues up by 16 percent
• Global data services full-year gross revenues up by 18 percent
• Neotel full-year EBITDA positive on stand-alone basis

Mumbai: Tata Communications announced its financial results for the quarter and year ended March 31, 2012. Consolidated gross revenues grew to Rs141,961 million ($2,963 million @avg Fx of $/Rs 47.91) in FY2011-12 from Rs119,320 million ($2,618 million @avg Fx of $/Rs 45.57) last year. This comprised core business revenues of Rs124,580 million ($2,600 million) as compared Rs113,205 million ($2,484 million) for FY2010-11 and startup revenues which improved to Rs17,381 million ($363 million) from Rs6,115 million ($134 million) in the previous year. Tata Communications was PBT positive on a full-year basis at the core business level.

Global voice services (GVS) business reported total voice minutes at 55 billion minutes from 51 billion minutes in FY2010-11 on an overall level. GVS accounted for 55 percent of the core business revenues and global data services (GDS) accounted for 45 percent in FY2011-12.

The startup business, primarily Neotel, showed revenues of Rs17,381 million ($363 million) in FY2011-12 from Rs6,115 million ($134 million) in FY2010-11. The business has delivered a positive EBITDA on a stand-alone basis for the first time.

Q4 FY2011-12
Consolidated gross revenues stood at Rs39,613 million ($787 million @avg Fx of $/Rs 50.34) in Q4 FY2011-12, an increase from Rs36,041 million ($709 million @avg Fx of $/Rs 50.84) in the sequentially previous quarter and at Rs30,688 million ($678 million @avg Fx of $/Rs 45.29) in Q4 FY2010-11. 

The core business reported revenues of Rs35,090 million ($697 million) up from Rs31,648 million ($622 million) in Q3 FY2011-12 and from Rs29,076 million ($642 million) in the same quarter last year.

The startup business, comprising chiefly Neotel, posted higher revenues of Rs4,522 million ($90 million) in Q4 FY2011-12 against Rs1,613 million ($36 million) in the same quarter last year.

Commenting on the results, Vinod Kumar, MD and CEO, Tata Communications, said, “Our main focus this year was profitability and this is reflected in our core business which has registered a robust performance. The South African operation, Neotel, has also ended the year on an EBITDA positive note. We launched several new products in the last quarter which have held us in good stead. In these uncertain times, we are well poised to partner with our clients for their communications and technology requirements as they look to diversify and grow their business across different geographies.”

Corporate highlights

• Tata Communications unveiled a multi-year technology service and marketing agreement with Formula One management. The agreement will see Tata Communications delivering world-class connectivity to all 20 Formula 1™ race locations over its global network, which is the largest in the world. It will also provide hosting and content delivery services to Formula1.com, which is accessed by tens of millions of fans around the globe. The innovative deal positions Tata Communications corporately as a technology supplier of Formula 1™ with category exclusive designations as Official Connectivity Provider of Formula 1™ and Official Web Hosting and Content Delivery Network Provider of Formula1.com.

• The company launched its TGN-Gulf subsea cable system that will connect the Gulf to Mumbai, India and onward to the rest of the Tata Global Network (TGN). This system will offer network access to UAE, Oman, Qatar, Bahrain and Saudi Arabia in partnership with Nawras of Oman, Etisalat of UAE, Qtel of Qatar, Bahrain Internet Exchange of Bahrain, and Mobily of Saudi Arabia. The TGN-Gulf cable system will initially offer speeds of up to 10G and a greater geographical reach for Tata Communications' customers, providing a critical backbone for economic development across the Gulf region.

• Tata Communications completed the world's first round-the-world fibre optic cable network with the official launch of its Tata Global Network – Eurasia (TGN-EA) cable. The cable connects Europe to India, through Egypt, bringing increased capacity, resilience and enhanced communications links to not only the Middle East, but to the rest of the world. In conjunction with the company's recently launched TGN-Gulf, these routes will cater to the increasing demand for voice, video and data services in and out of the Gulf region.

• Tata Communications joined nine global service providers to launch Global Meeting Alliance™, an open ecosystem of leading telecom providers that interconnects their respective business video communities. Launch members include Safaricom in Africa, Telstra in Australia, Etisalat, Qtel and Mobily in the Middle East, Neotel in South Africa and Sprint, Glowpoint and TELUS in North America. Customers will get to leverage Tata Communications' industry-leading number of inter-carrier agreements and enjoy access to an international telepresence network of third-party video endpoints, as well as the largest global public telepresence room network consisting of 42 public telepresence suites in 22 countries.

• Neotel became the only company to have capacity on all the five cables that touch South Africa with the successful landing of the West Africa Cable System (WACS). WACS which spans the west coast of Africa will terminate in the UK, offering seamless connectivity into the rest of Europe and North America.

• Frost & Sullivan conferred three awards upon Tata Communications in the Enterprise Telecom Services category at the 2012 Frost & Sullivan, India, Information and Communications Technology (ICT) Awards. Tata Communications bagged the Enterprise Data Service Provider, Hosted Contact Centre Service Provider and Third-Party Managed Services Provider Awards for the year 2011.

A presentation providing the definitions and a detailed analysis of the results for the quarter and year ended March 31, 2012, has been uploaded on the Tata Communications website and can be accessed at: http://www.tatacommunications.com/downloads/investors
/analyst/Annual_Analyst_Meet_May2012_Final.pdf