Q2 2025 Tata Communications Ltd Earnings Call Transcript
Key Points
- Tata Communications Ltd (BOM:500483) reported a strong revenue growth of 18.4% year on year and 2.4% quarter on quarter, driven by its digital portfolio.
- Digital revenues saw a significant increase of 52.4% year on year and 3.6% quarter on quarter, indicating robust demand for digital services.
- The company's order book increased by over 25% year on year, with the international region registering the highest quarterly order booking in the last five years.
- Tata Communications Ltd (BOM:500483) is making progress in asset monetization, with plans to sell a land parcel in Ambattur, Chennai, to unlock shareholder value.
- The company continues to expand its fiber network infrastructure in India, particularly in Tier 1 and Tier 2 towns, to meet the growing demand from large enterprises.
- Core connectivity growth was muted at 3% year on year, which is a concern as it accounts for 54% of the company's data revenues.
- EBITDA margins were impacted by expenses related to Red Sea cable cuts, resulting in a decline of 0.6% quarter on quarter.
- Interest costs increased due to higher short-term borrowings and a change in the mix of INR borrowings, affecting profitability.
- The media business experienced a quarter-on-quarter decline of 14.2% due to the sports calendar and large one-offs in the previous quarter.
- Working capital increased significantly, driven by higher receivables and changes in deal structures, impacting cash flow.
Good evening, everyone and a warm welcome to you all. Thank you for participating in the Q2 FY25 earnings call for Tata Communications. My name is Sudeshna Patnaik and I'll be your host for the call. We are joined today by our MD and CEO, Mr. Amur Lakshminarayanan; our CFO, Mr. Kabir Ahmed Shakir and our Head of Investor Relation, Mr. Rajiv Sharma.
The results for the quarter ended September 30 , 2024 have been announced today and the quarterly data pack is available on our website. We will begin today's call with opening remarks from Lakshmi on the business performance and outlook followed by Kabir on the company's financial performance.
(Event Instructions)
Some of the statements made in today's call may be forward-looking in nature and are subject to risks and uncertainties. The company does not undertake to update these forward-looking statements publicly.
With that, I would like to invite Lakshmi to share his views. Thank you and over to you Lakshmi.
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