Telecom News --
Tata Communications FY2009-10 consolidated revenues up 10.7 % to Rs 11,026 crores
Mumbai, 01 June, 2010
Tata Communications, a leading global provider of a new world of communications, reported its consolidated financial results under Indian GAAP for the year ended March 31, 2010. Consolidated revenues increased by 10.7 % to Rs 11,026 crores (about $2.32 Billion) from Rs. 9,963 crores in the previous year.
The company’s operating profit (EBIDTA) was Rs 1,012 crores for 2009-10 as against Rs 1,366 crores for the previous year. The company reported a net loss of Rs 598 crores for 2009-10. The consolidated net loss for the year includes a loss of Rs 464 crores for the company’s holding in Neotel, South Africa. The company’s shareholding in Neotel was at an effective 49.01 % for the full year as against 22.01% for a significant period of the previous year. The consolidated net loss also includes increases in other non-cash costs, depreciation by Rs 409 crores (consequent to significant amount of capitalization done over the last two years) and provision for retirals by Rs 161 crores (consequent to changes in actuarial assumptions for our overseas subsidiaries and amendments in the gratuity provisions in India).
The Board of Directors has recommended that no dividend be payable this year.
Tata Communications continued to invest in achieving its vision and strategy. A strong focus on expansion and long-term investment has seen the company reinvest its cash in the business in expanding its presence and capabilities in India and all key international markets. With economic conditions improving across the world and technology playing an important role in post-revival business strategies, the company anticipates strong demand across most of our market segments.
The company reported continued growth in its core wholesale voice as well as enterprise data services business. During the year, Tata Communications signed a landmark five year agreement with BT Group through which Tata Communications became become BT’s primary supplier of International Direct Dial (IDD) and other voice termination services outside BT’s own footprint countries and BT became Tata Communication’s main distribution channel for its IDD traffic into the UK. Tata Communications also entered into an agreement to acquire the Mosaic business of the BT Group which enhanced the company’s capabilities in the digital media & entertainment space. During the year the company continued its rollout of Telepresence public rooms through tie –ups with Starwood Hotels and Carlson & Wagonlit Travels.
During the year, Tata Communications completed the construction of its new 6700km, 3.8 Tbps TGN-Intra Asia submarine cable system connecting Singapore, Hong Kong, Japan, Vietnam and the Philippines. Tata Communications also began work on the TGN-Gulf submarine cable system which will be completed during 2011, and will connect the middle-eastern region to the rest of the world via the Tata Global Network (TGN), providing reliable high speed bandwidth to all the key cities of the world. The company also announced the availability of new capacity connecting Asia and South Africa as well as investment in a new cable system on the west coast of Africa.
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