Tata Communications has on Wednesday announced its financial results for the quarter ended December 31, 2011

The results show that its net loss has come down to INR1.53 billion from INR1.81 billion a year earlier, according to exchange filing.

Consolidated revenue for the period rose more than 19% to INR36.04 billion, while costs grew less than 16% to INR35.75 billion.

Following are the details of the results:

Consolidated gross revenues were at Rs. 36,041 million in the quarter ended December 31, 2011 as against Rs. 33,736 million in the previous sequential quarter and Rs. 30,180 million in the same quarter last year.

The Core Business accounted for Rs. 31,648 million as against Rs. 29,079 million in Q2 FY2012 and Rs. 28,535 million in Q3FY2011.

The Startup Business, primarily Neotel, posted revenues of Rs. 4,394 million in the quarter ended December 31, 2012 as against Rs. 4,657 million in Q2 FY2012 and Rs. 1,645 million in Q3 FY2011.

Tata Communications’ leadership in Global Voice Services continued. This business contributed 55% to Core Business revenues in the period as compared to 54% in Q2 FY2012. The total voice minutes registered on the network were at 13.4 bn minutes as against 13.1 bn minutes in Q2 FY2012.

Tata Communications’ Global Data Services contributed 45% to the Core Business revenues in the quarter under review. The data portfolio continued expanding and witnessed introductions of new products and technologies; InstaHCM was launched under Cloud Computing business and the IPX+ framework was announced to enable mobile broadband solutions.

The Startup Business, reflecting largely Neotel’s performance, reported healthy revenues of Rs. 4,394 million in Q3 FY2012 as compared to Rs. 4,657 million in the sequentially preceding quarter (remaining almost flat in local currency terms).  Neotel has continued to witness improved resource utilization and show better productivity; its operating profitability which turned positive in Q2 FY2012 saw further improvement. 

“We are very pleased to report a healthy improvement in the operating performance of the business. Global voice has demonstrated continued improvement in volumes and revenues. The company’s global data business is scaling up as planned. Complementing our leadership in the enterprise data segment within India, we have been growing our international revenues as reflected in the enhanced uptake of our customised offerings and managed service”, Vinod Kumar, CEO and MD, Tata Communications, said,

“Neotel, the company’s South African subsidiary has grown its revenues by 22% year on year in local currency terms. Several strategic initiatives over the past year have begun to yield results with the operating and financial performance of this business reporting visible improvement. Optimum asset utilisation and higher productivity levels elevated margins on a yearly as well as sequential basis. We are confident of leveraging our proficiency to capitalise on the tremendous opportunities available in Africa.”

“Over the last several years, we have worked towards changing our business mix towards data and managed services and enterprise segment. Having achieved this shift, it is our intention to grow all our business segments faster than the growth in respective markets.”

Tata Communications launched mobile broadband solutions enabled by IPX+ framework and 70 mobile network operators (MNOs) around the world signed up for  the new service. With mobile data volume growing nearly threefold annually and close to 50% of that predicted to come from mobile video, the demands on mobile broadband solutions and services are set to increase dramatically. Tata Communications' new framework provides a converged interconnect platform, enabling end-to-end management across mobile networks for the delivery of multiple services over IP.