Vaishnavi Corporate Comm.
Tata Communications consolidated revenues up 20%, EBIDTA up 53%.
45% Dividend pay-out recommended
Mumbai, May 26, 2009: Tata Communications Limited reported about Rs 9963 crore (about US$ 2.1 Billion) in consolidated revenues for the year ended March 31, 2009 against Rs 8297 crore for the year ended March 31, 2008, according to audited financial results under Indian GAAP.
The company’s consolidated operating profit (EBIDTA) was up 53% at Rs 1350 crores for the year ended March 31, 2009 as against Rs 880 crores for the year ended March 31, 2008. Net profit was up at Rs 316 crore against Rs 10 crore for the year ended March 31, 2008. This included an extra-ordinary gain of Rs 286 crores (net of taxes) from the sale of shares in Tata Teleservices Ltd.
The Directors have proposed maintaining the dividend at 45%.
“Tata Communications continues to serve its global customers with products and services that are tailored to their requirements even in the midst of the current challenging economic scenario. Our continued investments in infrastructure and services capabilities are highly relevant to our customers in the current environment. We will continue to pursue our vision of delivering a new world of communications to our customers, with a strong focus on service excellence. Towards this goal, we will continue to make prudent investments in expanding our network and services portfolio this year,” said N. Srinath, MD & CEO of Tata Communications.
The company continues its focus on Emerging Markets with the recent completion of its TGN Intra-Asia submarine cable system and strategic partnerships with key telecom players such as Etisalat for enterprise network services, including dedicated Ethernet services for customers seeking connectivity to and from the UAE. Tata Communications and Tata Africa also increased the Tata Group shareholding in Neotel, South Africa’s first converged services operator, to 56% earlier this year.
As a part of its focus on delivering Managed Services, it has entered into several partnerships during this year to develop innovative offerings. Tata Communications has pioneered the public room model for Telepresence services through its partnership with Cisco, the Taj Group of Hotels and the Confederation of Indian Industry. It launched global Content Delivery Network services in partnership with BitGravity.
About Tata Communications
Tata Communications is a leading global provider of a new world of communications. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multi-national enterprises, service providers and Indian consumers.
The Tata Global Network includes one of the most advanced and largest submarine cable networks, a Tier-1 IP network, with connectivity to more than 200 countries across 400 PoPs, and nearly 1 million square feet of data center and collocation space worldwide.
Tata Communications’ depth and breadth of reach in emerging markets includes leadership in Indian enterprise data services, leadership in global international voice, and strategic investments in operators in South Africa (Neotel), Sri Lanka (Tata Communications Lanka Limited), Nepal (United Telecom Limited), and subject to approval by the Chinese government, China (China Enterprise Communications)
Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India and its ADRs are listed on the New York Stock Exchange. (NYSE: TCL)
Forward-looking and cautionary statements
Certain words and statements in this release concerning Tata Communications and its prospects, and other statements including those relating to Tata Communications’ expected financial position, business strategy, the future development of Tata Communications’ operations and the general economy in India, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, including financial, regulatory and environmental, as well as those relating to industry growth and trend projections, which may cause actual results, performance or achievements of Tata Communications, or industry results, to differ materially from those expressed or implied by such forward-looking statements. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, failure to increase the volume of traffic on Tata Communications’ network, failure to develop new products and services that meet customer demands and generate acceptable margins, failure to successfully complete commercial testing of new technology and information systems to support new products and services, including voice transmission services, failure to stabilize or reduce the rate of price compression on certain of the company’s communications services, failure to integrate strategic acquisitions and changes in government policies or regulations of India and, in particular, changes relating to the administration of Tata Communications’ industry, and, in general, the economic, business and credit conditions in India. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in Tata Communications’ control, include, but are not limited to, those risk factors discussed in Tata Communications’ various filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. Tata Communications is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements.