Thread by @tycoonmindset05

Tata communications Concall was today at 2:30 pm

Here are the key highlights of the Conference call 😃

@varinder_bansal
@SumitResearch
@nid_rockz
@MANGESH_PNF
@KushalGupta44

- Most of the employees are wfh, 7 percent of people are working in office and on field

- Quarterly growth has been impacted due to covid and forex impact

- Strong qoq growth in video connect services

- Organisations are looking more towards cloud computing services and enhance requirement for secured connectivity.

- IZO private cloud platform is created for cloud end to end solution for customers requirement

- IZO cloud helps in enhancing security in cloud connectivity.

- Hosting services grew by 14 percent yoy.

- Have got good traction in IZO Platform.

- Media portfolio has now seen some recovery.

- Has partnered with Star india to broadcast @IPL for the third year in a row.

- Strong recovery in other platforms.

- Enabled tata comm home solution to Croma. Croma employees now can contact customers via video conference and develop a stable and seemless omnichannel.

- All the 150 stores will be installed with this system in the coming quater

- Payment solution business still remains affected.

- Focus towards innovating solution to increase customer retention and deliver superior customer experience.

- Pipeline remains robust.

- Last quater received best service provider.

- Ebitda margin have increased. 3 successive quater of double digit ebitda growth.

- Pat grew by 613% yoy

- India business grew by 7 percent and foreign business have grown by 16 percent

- Video connect platform grew by 70 percent yoy

- High demand for cloud security

- Share of more profitable serivces in the portfolio has been a major driver for profit.

- Expecting some large international deals in the coming quaters.

- Indian IT companies have shown a strong growth but tata communications have not been able to show the strong uptick in revenue. This is mostly due to international transactions have not yet picked up.

- India growth rate in enterprise side is not picking up because of network related slowness.

- In UCC space the traffic reached 1 billion minutes but now it has come down to 600 million minutes.

- Cost optimization programmw results would he seen by next year.

- Some of the covid cost benefit might go away in future qauters

- Thus, margin would be around 22%-25%.

- Tax rates would around 28%-30%

- Accumulated losses from international entities will help to bring down the net taxes.

- Focus toward improving on-site offshore mix in employees cost.

- Structural benefits would be around 150 crs. And covid benefits have been around 50 crs.

- Deal pipeline is quite strong and there are good amount of funnel ads in the pipeline.

- Scope and initiative in operational efficiency: focus is towards productivity and large part had been done and thus there has been a margin expansion.

- Plans regarding future monetization of assets, company is looking for it but no specific way ahead yet.

- Big shifts are happening in media business. The customers are shifting from satellite to fiber optics.

- IRR hurdle rate is about the range of 20%.

- Company has seen a phenomenal growth in ROCE. The mix of the product portfolio will lead to increase in Ebitda growth.

- Going forward the incremental cashflow would be used to deleverage the company.