Tata Communications narrows loss in Q1 to $25M

Summary:India communications giant improves profitability of various segments to trim its losses in first quarter, as it posts a 26 percent rise in revenue at 41.1 billion rupees (US$740 million) from a year ago.

Better profitability at some of the units at India's Tata Communications have helped it to narrow its losses in the first quarter ended June to 1.4 billion rupees (US$25 million), from a loss of 2.1 billion rupees (US$37.9 million) from a year ago.

In its results announced Thursday, the communications giant reported a 26 percent rise in sales at 41.1 billion rupees (US$740 million).

The company highlighted that its voice segment maintained its growth pace and improved profitability, with net revenues up 39 percent on-year with better margins of 350 basis points. It added that global data services revenue also continued to gain traction, rising 26 percent year on year.

Its startup business, which largely maps to Neotel, also posted a growth in revenues of 21 percent at 4.6 billion rupees, narrowing its losses to 1.15 billion rupees (US$20.7 million) from 1.9 billion rupees (US$34.2 million) from the previous year.

"Neotel’s improved profitability is a strong reflection on the growth and operational efficiency initiatives we have invested in over the last year," said Vinod Kumar, managing director and CEO of Tata Communications.

He added that the company has introduced service enhancements and newer platforms for conducting business more efficiently and has "a sharper focus on strategic verticals such as financial solutions, business video and data centres".

Topics: Tech Industry, India, Networking

About

Loves caption contests, leisurely strolls along supermarket aisles and watching How It's Made. Ryan has covered finance, politics, tech and sports for TV, radio and print. He is also co-author of best seller "Profit from the Panic". Ryan is an editor at ZDNet's Asia/Singapore office.

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.