Quarterly report on the results for the quarter ended December 31, 2022.

Tata Communications Limited

Plot Nos. C-21 & C-36, 'G' Block, Bandra Kurla Complex,
Vidyanagari Post Office, Mumbai - 400 098

January 23, 2023

`
Tata Communications Limited

Supplemental Disclosures

Safe Harbor: - Some information in this report may contain

forward-looking statements. We have based these forward- General Risk: - Investment in equity and equity related
looking statements on our current beliefs, expectations and securities involves a degree of risk and investors should not
intentions as to facts, actions and events that will or may occur invest any funds in this Company without necessary diligence
in the future. Such statements generally are identified by and relying on their own examination of Tata Communications
forward-looking words such as “believe,” “plan,” “anticipate,” Limited; along with the equity investment risk which doesn't
“continue,” “estimate,” “expect,” “may,” “will” or other similar guarantee capital protection.
words.
Use of Certain Non-GAAP measures: - This result
A forward-looking statement may include a statement of the announcement contains certain information on the Company’s
assumptions or basis underlying the forward-looking statement. results of operations that have been derived from amounts
We have chosen these assumptions or basis in good faith, and calculated in accordance with Indian Accounting Standards
we believe that they are reasonable in all material respects. (INDAS) but are not in themselves GAAP measures. They
However, we caution you that forward-looking statements and should not be viewed in isolation as alternatives to the
assumed facts or bases almost always vary from actual results, equivalent INDAS measures and should be read in conjunction
and the differences between the results implied by the forward- with the equivalent INDAS measures.
looking statements and assumed facts or bases and actual
results can be material, depending on the circumstances. You
should also keep in mind that any forward-looking statement Disclaimer: - This communication does not constitute an offer
made by us in this report or elsewhere speaks only as of the of securities for sale in the United States. Securities may not be
date on which we made it. New risks and uncertainties come up sold in the United States absent registration or an exemption
from time to time, and it is impossible for us to predict these from registration under the U.S. Securities Act of 1933, as
events or how they may affect us. We have no duty to, and do amended. Any public offering of securities to be made in the
not intend to, update or revise the forward-looking statements United States will be made by means of a prospectus and will
in this report after the date hereof. In light of these risks and contain detailed information about the Company and its
uncertainties, any forward-looking statement made in this report management, as well as financial statements.
or elsewhere may or may not occur and has to be understood
and read along with this supplemental disclosure.

Page 2 of 16
Tata Communications Limited

TABLE OF CONTENTS

Section 1 Tata Communications – Performance at a glance 4

Section 2 An Overview 5

Section 3 Financial Highlights 7

3.1 Summary of Consolidated Financial Statements 7

3.2 Summary of Segments – Statement of Operations 8

Section 4 Operating Highlights 09

Section 5 Stock Market Highlights 12

Section 6 Detailed Financials 14

Section 7 Glossary 15
Tata Communications Limited

Section 1

TATA COMMUNICATIONS – PERFORMANCE AT A GLANCE

Particulars UNITS Full Year Ended Quarter Ended

2021 2022 Dec 2021 Mar 2022 June 2022 Sep 2022 Dec 2022
Operating Highlights
95th Percentile Bandwidth Usage Tbps/month 17.3 19.3 18.6 19.3 18.4 19.7 20.6

Total Voice Minutes Bn, Minutes 18.7 14.8 3.6 3.2 3.3 2.9 2.8
International Long Distrance Bn, Minutes 18.2 14.4 3.5 3.1 3.2 2.8 2.7
National Long Distance Bn, Minutes 0.5 0.5 0.1 0.1 0.1 0.1 0.1

Revenue by Line of Business

Voice % 16.3% 13.7% 13.2% 12.6% 13.0% 11.8% 11.2%
Data* % 73.7% 76.4% 77.3% 77.4% 77.5% 78.8% 79.3%
Core Connectivity % 70.8% 70.7% 70.5% 69.3% 69.2% 68.0% 67.2%
Digital Platforms and Services % 28.2% 27.6% 27.9% 28.2% 28.2% 28.6% 29.4%
Incubation Services % 1.0% 1.7% 1.7% 2.4% 2.7% 3.5% 3.4%
Others (Subsidiaries + Real Estate) % 10.0% 9.9% 9.5% 10.0% 9.5% 9.3% 9.5%

Data Revenue by Segment1

Service Provider % 27.2% 26.0% 26.0% 25.5% 25.5% 25.0% 25.4%
Enterprise % 72.8% 74.0% 74.0% 74.5% 74.5% 75.0% 74.6%

Financials
Gross Revenue ₹, Cr 17,100 16,725 4,185 4,263 4,311 4,431 4,528
Net Revenue ₹, Cr 9,919 9,872 2,505 2,579 2,619 2,712 2,757
EBITDA ₹, Cr 4,261 4,227 1,082 1,045 1,077 1,130 1,077
EBIT ₹, Cr 1,947 2,022 540 457 540 578 523
Profit Before Tax ₹, Cr 1,609 2,000 484 609 694 593 431
Profit After Tax ₹, Cr 1,251 1,482 395 365 544 532 394
Cash Capex ₹, Cr 1,364 1,656 452 500 329 324 440
Free Cash Flow ₹, Cr 1,446 2,183 667 748 955 617 335
Total Capital Employed ₹, Cr 7,902 7,672 7,816 7,672 6,697 7,308 7,451
Net Debt / (Net Cash) ₹, Cr 7,786 6,744 7,189 6,744 6,134 6,400 6,270

Key Ratios
EBITDA Margin % 24.9% 25.3% 25.9% 24.5% 25.0% 25.5% 23.8%
EBIT Margin % 11.4% 12.1% 12.9% 10.7% 12.5% 13.0% 11.5%
Net Profit Margin % 7.3% 8.9% 9.4% 8.6% 12.6% 12.0% 8.7%
Net Debt to EBITDA (LTM) Times 1.8 1.6 1.7 1.6 1.4 1.5 1.4
Weighted Average Cost of Debt % 2.88% 2.92% 2.69% 3.27% 2.67% 3.72% 5.08%
Interest Coverage Ratio (LTM) Times 4.63 5.61 5.46 5.61 6.13 6.03 5.38
Return on Capital Employed % 24.3% 25.4% 24.8% 25.4% 27.3% 28.1% 28.4%

Valuation Indicators
Market Capitalisation ₹, Cr 30,290 35,015 41,737 35,015 26,056 32,798 36,322
Enterprise Value ₹, Cr 38,076 41,759 48,926 41,759 32,190 39,198 42,592
EV / EBITDA (LTM) Times 8.94 9.88 11.7 9.9 7.5 9.0 9.8
* Historical numbers are recasted for better comparision
1
Customer segmentation is derived basis internal classification
Tata Communications Limited

Section 2

AN OVERVIEW

2.1 Company Overview specific’ solutions for businesses be it manufacturing,

media, BFSI or E-commerce industries.
Tata Communications is the leading global digital
ecosystem enabler. With a leadership position in Tata Communications categorizes its offerings into 3
emerging markets, and an infrastructure that spans the major groupings: Data, Voice and Others. In Others
globe, Tata Communications leverages its advanced category we have an ATM network subsidiary in India
solutions capabilities and domain expertise across its (Tata Communications Payment Solutions Ltd.) and a
global network to deliver managed solutions to multi- network management outsourcing subsidiary that
national companies and service providers. We partner supports global service providers (Tata Communications
with 300 of the Fortune 500 companies with our state-of- Transformation Services Ltd.) We also receive rental
the-art solutions, including a wide range of income from some of our land parcels and buildings,
communication, collaboration, cloud, mobility, connected which are let out for various commercial purposes.
solutions, network and data center services.
A. Data Services: Enterprises are evolving their
Tata Communications global network includes one of the enterprise networks to deal with business communication
most advanced and largest submarine cable networks. transformations. This is driven by advances in Cloud
We are in the Top 5 IP providers on 5 continents and offer computing, the Internet of Everything, Smartphone
public and private network connectivity to more than 240 proliferation for both consumer and enterprise uses,
countries and territories. Our major service/solutions are tighter supply chain integration/automation, and
Network engineering, development & management, fully providing richer and more agile connections with their
Integrated Communications Platform with solutions such customers and partners.
as video, audio and web conferencing, contact center
solutions, A2P messaging, global mobility in addition to an A1. Core Connectivity: This service offering includes a
array of Data Center, Cloud, Hosting and Security global comprehensive selection of point-to-point and
Services. multi-point core networking services including WAN
Ethernet, Global VPN and International private lines
Products, Services, and Solutions spanning over 100 countries. On the Internet, we’re a
major Tier-1 IP provider, consistently ranked in the top
Every industry is going through profound upheavals as five telecommunications companies on five continents,
digital technology rapidly and radically transforms how by internet route. In fact, we handle more than 30% of the
business engages with the marketplace and all global internet route, totaling more than 7,300 petabytes
stakeholders. IT decision makers have started leveraging a month. Our infrastructure features the world’s largest
the growing sophistication of hybrid solutions to re- wholly owned subsea cable network, 4th largest tier 1
engineer IT economics, liberate more funds for innovation IPv6 enabled internet and backbone, and the most
and enhance core business processes. This trend is extensive reach into the emerging markets around the
driving greater demands for higher level performance from world. So, no matter where in the world your business
Information and Communication Technology providers. takes you, we’re there to provide the connectivity
Whether it be mature enterprises looking to transform services you need. Our 2 major customer segments
themselves or start up enterprises creating new products include: large enterprise customers, and Telecom
and services. Service Providers

Tata Communications’ portfolio of products, services and A2. Digital Platforms and Services: As we evolve our
solutions have been uniquely designed to deliver these strategy to move from being a provider of point products,
new levels of performance and is based on following to a digital ecosystem enabler, we have created platforms
fundamentals of our business strategy roadmap. with a portfolio of offerings which are relevant to the
customer and help bring agility in their business with the
Our offerings enable information and computing to work potential for high growth in the medium to long term, on
smarter and harder for the business users. Wherever they the back of acceleration in the pace of digital adoption by
are. Whenever they need it. We put into their hands a global enterprises
unique range of performance technologies from our “best
in class” platforms such as the world’s only global Tier 1 A2. (i) Collaboration and CPaaS: We deliver global
infrastructure and IZO Cloud Enablement to ‘industry communication and collaboration services to enable
digital transformation for businesses and many types of
Tata Communications Limited

service providers. With voice and messaging at the heart A2. (iv) Media and Entertainment Services: Our ‘Media
of our business collaboration strategy, our modular Ecosystem’ provides solutions for every kind of
portfolio comprises UCaaS, Global SIP Connect, enterprise in all segments of media and entertainment,
Microsoft Teams solutions, Cisco Powered Solutions, including gaming, sports, news, cable, and broadcasting.
Hosted Contact Centre and the all-new suite of Cloud Tata Communications’ Media Ecosystem combines its
communications platform, powered by APIs that can be traditional video contribution services with IP-based

integrated into business solutions. Our proposition helps connectivity to create a highly innovative cloud based
our clients chart their own journey looking from where they global media platform. The global media ecosystem—
currently stand to the transformation required to first of its kind—provides a comprehensive solution that
implement their stepwise business collaboration strategy. includes asset management, workflow management,
channel origination, video contribution and distribution
A2. (ii) Cloud, Hosting, Security and SD-WAN: With feeds, OTT platform as a service, Live OTT delivery and
legacy on-premises infrastructure moving to the cloud, transcoding as service.
and organizations operating in a multi-cloud environment,
we offer flexible and cost-efficient compute and storage
options via a single pathway to manage multiple complex A3. Incubation: These services are a combination of
workloads and computing environments, with an cutting-edge technologies and our foresight on where the
integrated view. With over 1 million square feet of world will be in some years from now. They are being
collocation space in 44 locations worldwide and global seeded to drive future growth as technology trends
partnership to extend our reach and capacity, our portfolio evolve in the longer term. It comprises the global mobility
offers access to Colocation, Dedicated Hosting, platform MOVE, Internet of Things and the in-house
Virtualization, IZO Private Cloud and IZO Cloud Storage SASE platform NetFoundry
solutions. We also offer cloud embedded with security as
there is a growing threat to data security and privacy, B. Voice Services: In voice, we are the world’s largest
which Tata Communications helps solve for its customers. wholesale voice provider, carrying billions of minutes.
Our comprehensive security services are delivered by Through our 1600+ telecom partnerships our network
partnering with the best vendors in the business and a handles 1 out of every 10 international calls and connects
24/7 proactive support through our Security Operations more than 70% of the world’s mobile carriers. We also we
Center. offer a comprehensive portfolio of high-quality transport
and termination services, including Voice Direct Transit
A2. (iii) Next Gen Connectivity: With the global usage of and HD Voice.
internet becoming more mainstream versus expensive
private lines, the importance of this portfolio has become C. Subsidiaries and Others: we have an ATM network
profound. We offer intelligent routing and SLA’s on the subsidiary in India (Tata Communications Payment
public internet, as well as on-demand connectivity Solutions Ltd.) and a network management outsourcing
solutions addressing the dynamic requirements of our subsidiary that supports global service providers (Tata
customers to have a scalable network, which also fit the Communications Transformation Services Ltd.) We also
budget. SD-WAN offering adds a software overlay to receive rental income from some of our land parcels and
make the network more programmable. IZO™ SDWAN buildings, which are let out for various commercial
integrates seamlessly with IZO™ Hybrid WAN, IZO™ purposes.
Private Connect and cloud solutions, to deliver a unique
and scalable communication platform your user and
application needs
Tata Communications Limited

Section 3
FINANCIAL HIGHLIGHTS

The financial results presented in this section are compiled based on the limited review consolidated financial
statements prepared in accordance with Indian Accounting Standards (IND AS) and the underlying information. The
consolidated financial results represent results of the Company and its subsidiaries.
.

3.1 Summary of Consolidated Financial Statements

3.1.1 Summarized Consolidated Statement of Operations*

Amount in ₹, Cr; except ratios
Quarter Ended Nine Month Ended
Particulars QoQ YoY YoY
Dec 2022 Sep 2022 Dec 2021 Dec 2022 Dec 2021
Growth Growth Growth
Gross Revenue 4,528 4,431 4,185 2.2% 8.2% 13,270 12,462 6.5%
Net Revenue 2,757 2,712 2,505 1.6% 10.0% 8,088 7,293 10.9%
EBITDA1 1,077 1,130 1,082 (4.6%) (0.5%) 3,284 3,181 3.2%
EBITDA Margin 23.8% 25.5% 25.9% 24.7% 25.5%
Depreciation & Amortisation 555 552 542 0.6% 2.3% 1,643 1,616 1.7%
EBIT 523 578 540 (9.6%) (3.2%) 1,641 1,566 4.8%
Other Income -31 -37 -19 (16.0%) 63.6% -301 -69 339.5%
Finance Cost 123 98 83 25.5% 47.0% 300 270 11.0%
Exceptional Items (Loss) -0 (76) -8 (100.0%) (99.9%) -76 -27 184.4%
Profit Before Tax 431 593 484 (27.4%) (11.0%) 1,718 1,391 23.6%
Tax Expense 44 66 96 (33.8%) (54.5%) 269 279 (3.7%)
Profit After Tax 394 532 395 (26.0%) (0.3%) 1,470 1,117 31.6%
Cash from Operations 775 941 1,119 (17.6%) (30.7%) 3,000 2,593 15.7%
Cash Capex 440 324 452 35.9% (2.8%) 1,093 1,157 (5.5%)
Free Cash Flow 335 617 667 (45.6%) (49.7%) 1,908 1,436 32.9%
1. Revenue, EBITDA, EBIT are excluding other income.

3.1.2 Summarized Statement of Consolidated Financial Position

Amount in ₹, Cr
As at Dec As at March
Particulars
31, 2022 31, 2022

Shareholder's Fund
Share Capital 285 285
Reserves and Surplus 896 643

Minority Interest Liability 30 28

Non-Current Liabilities 10,644 10,281
Current Liabilities 8,341 8,431
Total Liabilities 19,015 18,740
Total Equity and Liabilities 20,196 19,668

Assets
Non-Current Assets 14,803 14,798
Fixed Assets 11,610 11,680
Investments 1,170 1,132
Others 2,023 1,985
Current Assets 5,392 4,870
Total Assets 20,196 19,668
Tata Communications Limited

3.2 Summarized Statement of Segments - Statement of Operations

3.2.1 Tata Communications – Data

Amount in ₹, Cr; except ratios
Quarter Ended Nine Month Ended
Particulars QoQ YoY YoY
Dec 2022 Sep 2022 Dec 2021 Dec 2022 Dec 2021
Growth Growth Growth
Gross Revenue 3,593 3,493 3,233 2.9% 11.1% 10,425 9,477 10.0%
Net Revenue 2,504 2,468 2,335 1.4% 7.2% 7,377 6,768 9.0%
EBITDA 948 1,007 1,041 (5.9%) (9.0%) 2,924 3,023 (3.3%)
EBITDA Margin 26.4% 28.8% 32.2% 28.0% 31.9%
EBIT 430 485 533 (11.4%) (19.4%) 1,381 1,511 (8.6%)
Capex 333 364 301 (8.5%) 10.6% 994 981 1.3%
EBITDA adjusted for Capex 614 643 740 (4.4%) (17.0%) 1,930 2,041 (5.5%)

3.2.2 Tata Communications – Data (Core Connectivity)

Amount in ₹, Cr; except ratios
Quarter Ended Nine Month Ended
Particulars QoQ YoY YoY
Dec 2022 Sep 2022 Dec 2021 Dec 2022 Dec 2021
Growth Growth Growth
Gross Revenue 2,415 2,374 2,278 1.7% 6.0% 7,100 6,749 5.2%
Net Revenue 1,947 1,929 1,859 0.9% 4.7% 5,760 5,453 5.6%

3.2.3 Tata Communications – Data (Digital Platforms & Services)

Amount in ₹, Cr; except ratios
Quarter Ended Nine Month Ended
Particulars QoQ YoY YoY
Dec 2022 Sep 2022 Dec 2021 Dec 2022 Dec 2021
Growth Growth Growth
Gross Revenue 1,056 998 901 5.8% 17.2% 2,994 2,594 15.4%
Net Revenue 473 483 464 (2.0%) 2.0% 1,443 1,296 11.3%

3.2.4 Tata Communications – Data (Incubation Services)

Amount in ₹, Cr; except ratios
Quarter Ended Nine Month Ended
Particulars QoQ YoY YoY
Dec 2022 Sep 2022 Dec 2021 Dec 2022 Dec 2021
Growth Growth Growth
Gross Revenue 122 121 54 1.1% 125.3% 332 134 147.6%
Net Revenue 84 56 12 50.0% 621.2% 175 19 836.8%

3.2.5 Tata Communications – Others (Rentals)

Amount in ₹, Cr; except ratios
Quarter Ended Nine Month Ended
Particulars QoQ YoY YoY
Dec 2022 Sep 2022 Dec 2021 Dec 2022 Dec 2021
Growth Growth Growth
Gross Revenue 47 46 41 0.8% 12.6% 141 135 5.0%
Net Revenue 47 46 41 0.9% 12.7% 141 135 4.8%
EBITDA 26 18 25 41.5% 3.9% 73 87 (16.3%)
EBITDA Margin 55.2% 39.3% 59.8% 51.8% 64.9%

3.2.6 Tata Communications – Others (Transformation Services – Net of Intercompany eliminations)

Amount in ₹, Cr; except ratios
Quarter Ended Nine Month Ended
Particulars QoQ YoY YoY
Dec 2022 Sep 2022 Dec 2021 Dec 2022 Dec 2021
Growth Growth Growth
Gross Revenue 333 322 313 3.7% 6.6% 972 978 (0.6%)
Net Revenue 54 41 26 32.1% 106.8% 144 74 95.0%
EBITDA 15 5 (27) 188.8% (155.0%) 36 -55 (165.3%)
EBITDA Margin 4.5% 1.6% (8.7%) 3.7% (5.6%)
Tata Communications Limited

3.2.7 Tata Communications – Others (Payment Solutions - Net of Intercompany eliminations)

Amount in ₹, Cr; except ratios
Quarter Ended Nine Month Ended
Particulars QoQ YoY YoY
Dec 2022 Sep 2022 Dec 2021 Dec 2022 Dec 2021
Growth Growth Growth
Gross Revenue 50 46 44 8.4% 14.0% 139 122 14.3%
Net Revenue 14 11 13 27.3% 8.3% 36 42 (14.4%)
EBITDA 2 -2 1 (209.3%) 91.6% 1 12 (88.2%)
EBITDA Margin 3.8% (3.8%) 2.2% 1.0% 9.6%

3.2.8 Tata Communications – Voice

Amount in ₹, Cr; except ratios
Quarter Ended Nine Month Ended
Particulars QoQ YoY YoY
Dec 2022 Sep 2022 Dec 2021 Dec 2022 Dec 2021
Growth Growth Growth
Gross Revenue 506 524 554 (3.6%) (8.7%) 1,592 1,749 (9.0%)
Net Revenue 139 146 89 (4.9%) 55.0% 389 274 41.9%
EBITDA 87 101 43 (13.5%) 104.5% 250 114 118.9%
EBITDA Margin 17.3% 19.3% 7.7% 15.7% 6.5%
EBIT 78 92 32 (15.3%) 140.6% 222 83 169.2%
Capex 4 2 1 77.3% 303.2% 7 4 82.4%
EBITDA adjusted for Capex 84 99 42 (15.5%) 100.2% 243 111 120.1%

3.2.9 Tata Communications – Average Exchange Rate

Quarter Ended Nine Month Ended

Particulars
Dec 2022 Sep 2022 Dec 2021 Dec 2022 Dec 2021
INR / USD 82.2 79.8 74.9 79.7 74.27
Tata Communications Limited

Section 4
OPERATING HIGHLIGHTS

4.1 Tata Communications - Consolidated

4.1.1 Share of Gross Revenue by Segments

Quarter Ended
Particulars UNITS
Dec 2021 Mar 2022 June 2022 Sep 2022 Dec 2022
Voice % 13.2% 12.6% 13.0% 11.8% 11.2%
Data % 77.3% 77.4% 77.5% 78.8% 79.3%
Core Connectivity % 70.5% 69.3% 69.2% 68.0% 67.2%
Digital Platforms and Services % 27.9% 28.2% 28.2% 28.6% 29.4%
Incubation % 1.7% 2.4% 2.7% 3.5% 3.4%
Others % 9.5% 10.0% 9.5% 9.3% 9.5%

4.1.2 Share of Gross Revenue by Currency

Quarter Ended
Particulars UNITS
Dec 2021 Mar 2022 June 2022 Sep 2022 Dec 2022
Indian Rupee (INR) % 37.0% 38.0% 39.6% 42.7% 41.3%
Other International Currencies % 63.0% 62.0% 60.4% 57.3% 58.7%

4.1.3 Share of EBITDA by Segments

Quarter Ended
Particulars UNITS
Dec 2021 Mar 2022 June 2022 Sep 2022 Dec 2022
Voice % 3.9% 3.6% 5.7% 8.9% 8.1%
Data % 96.2% 92.5% 90.0% 89.1% 87.9%
Others % (0.1% ) 3.9% 4.3% 1.9% 3.9%

4.1.4 Committed Capital Expenditure

Quarter Ended
Particulars UNITS
Dec 2021 Mar 2022 June 2022 Sep 2022 Dec 2022
Voice ₹, Cr 1 1 1 2 4

Data
Core Connectivity ₹, Cr 211 316 217 222 228
Digital Platforms and Services ₹, Cr 66 48 66 115 89
Incubation ₹, Cr 23 13 13 28 16
Subs & Real Estate ₹, Cr 43 12 9 10 11

1
Other ₹, Cr 55 44 39 44 43

Total Capex ₹, Cr 400 434 346 421 391

1. Others include sustenance capex towards network engineering, IT, customer service operations etc.
Tata Communications Limited

4.1.5 Debt Profile

Quarter Ended
Particulars UNITS
Dec 2021 Mar 2022 June 2022 Sep 2022 Dec 2022
Gross Debt
Foreign Currency Loans ₹, Cr 7,630 7,027 6,915 6,926 6,990
INR Loans ₹, Cr 736 894 742 829 677
Weighted Average Cost of Debt % 2.69% 3.27% 2.67% 3.72% 5.08%
Cash & Cash Equivalent ₹, Cr 1,177 1,176 1,523 1,355 1,397

Net Debt ₹, Cr 7,189 6,744 6,134 6,400 6,270

4.1.6 Data Revenue by Geography

Quarter Ended
Particulars UNITS
Dec 2021 Mar 2022 June 2022 Sep 2022 Dec 2022
India % 49.1% 50.0% 49.2% 48.6% 49.1%
Rest of World % 50.9% 50.0% 50.8% 51.4% 50.9%

4.1.7 Share of Data Revenue by Product Segments

Quarter Ended
Particulars UNITS
Dec 2021 Mar 2022 June 2022 Sep 2022 Dec 2022
Core Connectivity % 70.5% 69.3% 69.2% 68.0% 67.2%
Digital Platforms and Services % 27.9% 28.2% 28.2% 28.6% 29.4%
Incubation % 1.7% 2.4% 2.7% 3.5% 3.4%

4.1.8 Core Connectivity Revenue mix by customer segments

Quarter Ended
Particulars UNITS
Dec 2021 Mar 2022 June 2022 Sep 2022 Dec 2022
Service Provider (Wholesale) % 33.6% 33.4% 33.7% 32.8% 33.1%
Enterprise % 66.4% 66.6% 66.3% 67.2% 66.9%

4.1.9 Digital Platforms & Services Revenue mix by Product

Quarter Ended
Particulars UNITS
Dec 2021 Mar 2022 June 2022 Sep 2022 Dec 2022
Collaboration & CPaaS % 40.9% 40.8% 39.1% 37.9% 38.0%
Cloud, Hosting and Security % 29.1% 27.6% 29.9% 29.8% 30.7%
Next Gen Connectivity(IZO & SDWAN) % 16.1% 18.7% 16.1% 17.4% 17.4%
Media Services % 13.9% 12.9% 14.9% 14.9% 13.9%

4.1.10 Human Resource Analysis1

Quarter Ended
Particulars UNITS
Dec 2021 Mar 2022 June 2022 Sep 2022 Dec 2022
Tata Communications No. 6,827 6,926 7,229 7,529 7,850
TCTSL No. 5,249 5,381 5,323 5,406 5,382
Total Employees No. 12,076 12,307 12,552 12,935 13,232
1. Exit Headcount as on date
Tata Communications Limited

Section 5

STOCK MARKET HIGHLIGHTS

5.1 General Information

Quarter Ended
Shareholding and Financial Data UNITS
Dec 31, 2022
Code / Exchange TATACOMM / NSE
Bloomberg TCOM IN
No. of Shares Outstanding (31/12/2022) Cr, No 28.5
Closing Market Price - NSE (31/12/2022) ₹ / Share 1,274.5
Combined Average Daily Volume (NSE and BSE) Nos in 000/day 539.2
Combined Average Daily Value (NSE and BSE) ₹ Cr / day 68.3
Market Capitalisation (31/12/2022) ₹, Cr 36,322

Enterprise Value ₹, Cr 42,592

Enterprise Value / EBITDA (LTM) Times 9.8

5.2 Summarized Shareholding pattern as of December 31, 2022

Category % Holding

Promoter & Promoter Group

Tata Group 58.9%
Sub-Total 58.9%

Public Shareholding
Domestic Institutions 13.7%
Foreign Institutions 17.3%
Non-Institutions (Retail) 10.1%
Sub-Total 41.1%

Total 100%

5.3 Tata Communications daily stock price (NSE) and volume (BSE & NSE Combined) movement

1600 5000.0

1500 4000.0

1400 3000.0

1300 2000.0

1200 1000.0

1100 0.0
03-Oct-22 03-Nov-22 03-Dec-22

VOLUME (000) PRICE

 Tata Communications Limited

5.4 Comparison of Tata Communications with Nifty

120.0

109.9

107.2
100.0

80.0

TCOM NIFTY

Nifty and Tata Communications Stock price rebased to 100.

Tata Communications Limited

Section 6

DETAILED FINANCIALS

The financial results presented in this section are compiled based on the limited review consolidated financial
statements prepared in accordance with Indian Accounting Standards (IND AS) and the underlying information. The
consolidated financial results represent results of the Company and its subsidiaries.

6.1 Extracts from Audited Consolidated Financial Statements prepared in accordance with Indian
Accounting Standards (IND AS)
F. STATEMENT OF CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER
AND NINE MONTHS ENDED DECEMBER 31, 2022
For the
For the quarter ended For the nine months year
Particulars ended ended
December 31 September December December December March 31
2022 30 2022 31 2021 31 2022 31 2021 2022
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
1 Income from operations 4,528.34 4,430.74 4,184.89 13,269.60 12,461.70 16,724.73
2 Other income, net 30.75 36.62 18.80 301.36 68.57 332.09
3 Total income (1 + 2) 4,559.09 4,467.36 4,203.69 13,570.96 12,530.27 17,056.82
4 Expenses
a. Network and transmission expense 1,615.97 1,562.86 1,530.18 4,736.83 4,659.10 6,199.49
b. Employee benefits expense 920.81 870.37 733.79 2,597.85 2,271.96 3,040.34
c. Finance costs 122.67 97.78 83.45 300.35 270.48 360.25
d. Depreciation and amortisation expense 554.82 551.63 542.46 1,643.31 1,615.82 2,204.54
e. Other expenses 914.20 867.89 838.44 2,650.91 2,349.26 3,258.18
Total expenses (4a to 4e) 4,128.47 3,950.53 3,728.32 11,929.25 11,166.62 15,062.80
5 Profit/(loss) before exceptional items, tax 430.62 516.83 475.37 1,641.71 1,363.65 1,994.02
& share in profit/(loss) of associates (3 - 4)
6 Exceptional items (Refer note 2) - 76.35 8.49 76.35 26.85 5.96
7 Profit/(loss) before tax and share in 430.62 593.18 483.86 1,718.06 1,390.50 1,999.98
profit/(loss) of associates (5 + 6)
8 Tax expense/(benefit): (Refer note 5 and 6)
a. Current tax 94.50 94.22 106.12 352.63 309.29 431.31
b. Deferred tax (50.92) (28.37) (10.31) (84.06) (30.43) 90.82
9 Profit/(loss) before share in profit/(loss) 387.04 527.33 388.05 1,449.49 1,111.64 1,477.85
of associates (7 - 8)
10 Share in Profit/(Loss) of associates 8.11 6.93 4.60 24.74 4.36 6.82
11 Profit for the period/year (9 + 10) 395.15 534.26 392.65 1,474.23 1,116.00 1,484.67
Attributable to:
Equity holders of the parent 393.88 532.29 395.21 1,469.93 1,116.70 1,481.76
Non-controlling interest 1.27 1.97 (2.56) 4.30 (0.70) 2.91
12 Other Comprehensive Income/(loss) (net of (120.01) (187.71) (4.68) (626.35) (205.71) (270.63)
tax)
Total Comprehensive income for the 275.14 346.55 387.97 847.88 910.29 1,214.04
13
period/year (11+12)
Attributable to:
Equity holders of the parent 273.87 344.58 390.53 843.58 910.99 1,211.13
Non-controlling interest 1.27 1.97 (2.56) 4.30 (0.70) 2.91
14 Paid up equity share capital (Face value of 285.00 285.00 285.00 285.00 285.00 285.00
`10 per share)
15 Reserves excluding Revaluation reserve 436.53
16 Earnings per share (of ` 10/- each) (not
annualised)
Basic and diluted earnings per share (`) 13.82 18.68 13.87 51.58 39.18 51.99
 Tata Communications Limited

Section 7

GLOSSARY

7.1 Company Related Terms

Capex It includes investment in Gross Fixed Assets capitalized during the quarter and capital work in progress during
the relevant period.

Capital Employed Capital Employed is defined as sum of equity attributable to equity shareholders and net debt / (net cash).

Earnings Per Share It is computed by dividing net profit or loss attributable for the period to equity shareholders by the weighted
(EPS)-Basic average number of equity shares outstanding during the period.

Earnings Per Share Diluted earnings per share is calculated by adjusting net profit or loss for the period attributable to equity
(EPS)- Diluted shareholders and the weighted average number of shares outstanding during the period for the effects of all
dilutive potential equity shares.

EBIT Earnings before interest, taxation excluding other income for the relevant period.

EBIT (Including Other Earnings before interest, taxation including other income for the relevant period.
Income)

EBITDA Earnings before interest, taxation, depreciation and amortization and charity and donation excluding other
income for the relevant period. It is defined as operating income and does not include depreciation and
amortization expense, finance cost and tax expense.

EBITDA (Including Earnings before interest, taxation, depreciation and amortization and charity and donation including other
Other Income) income for the relevant period.

Enterprise Value (EV) Calculated as sum of Market Capitalization plus Net Debt / (Net Cash) as at the end of the relevant period.

EV / EBITDA Computed by dividing Enterprise Value as at the end of the relevant period (EV) by EBITDA for the preceding
(times)(LTM) (last) 12 months from the end of the relevant period.

Free Cash Flow It is defined as Cash from Operations adjusted for Cash Capex.

GAAP Generally Accepted Accounting Principle

INDAS Indian Accounting Standard

Intangibles Comprises of acquisition cost of software.

NA/∞ Not ascertainable (infinite)

Interest Coverage It is computed by dividing EBIT for the preceding (last) 12 months from the end of relevant period by interest
Ratio (LTM) on borrowing for the preceding (last) 12 months.

LTM Last Twelve months

Market Capitalization Number of issued and outstanding shares as at end of the period multiplied by closing market price (NSE)
as at end of the period.

Mn Million

Net Debt / (Net Cash) Total Borrowings Less Cash and Cash Equivalents on the last day of the quarter.

Net Debt / (Net Cash) It is computed by dividing net debt / (net cash) as at the end of the relevant period by EBITDA for preceding
to EBITDA (LTM) (last) 12 months from the end of the relevant period.

PE Ratio Price to Earnings ratio is calculated as closing market price (NSE) as at the end of relevant period, divided
by diluted annual earnings per share. Annual Diluted Earnings per share is calculated by adding the
preceding last four quarters diluted Earnings per share

ROC Registrar of Companies

 Tata Communications Limited

Return On Capital For the full year computations, ROCE is computed by dividing the sum of EBIT for the period by average
Employed (ROCE) capital employed. For the quarterly computations, it is computed by dividing sum of EBIT with the avg capital
Pre-Tax - (LTM) employed for the preceding (last) 12 months from the end of the relevant period.

CSR Corporate Social Responsibility

Cash from Operations Profit After Tax + Depreciation + Taxes + Interest Expense+ Non-Operating Exp– Lease Payment – Change
in Working Capital – Cash Tax Paid + Tax Refund

Written correspondence to be sent to:

Tata Communications Limited
Investor Relations
Investor.relations@tatacommunications.com
http:// www.tatacommunications.com