Tata Communications Q3 net profit up 203%, EBITDA up 43%

New Delhi – Tata Communications has announced its Indian GAAP standalone financial results for the quarter ended December 31, 2008. The company has witnessed a substantial improvement in all key parameters, including profit after tax, revenue and EBITDA. Revenues for the quarter ended December 31, 2008 were Rs 990 crores, up 17% from those in the quarter ended December 31, 2007. Profit after taxes in the quarter ended December 31, 2008 was Rs 81 crores, up 203% from Rs 27 crores in the corresponding quarter previous fiscal. Operating profits or earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter ended December 31, 2008 was at Rs 231 crores, up 43% from Rs 162 crores in the corresponding quarter in the previous fiscal.

For the year-to-date nine months ended December 31, 2008, Tata Communications standalone revenues were at Rs 2837 crores, up 17% from Rs 2433 crores in the corresponding period in the previous fiscal. EBITDA during this nine month period was at Rs 644 crores, up 36% from Rs 473 crores in the corresponding nine month period in the previous fiscal.

Tata Communications’ key business segments of voice and data continue to show strong growth, in revenue and operational parameters. The company’s global voice traffic, including national long distance traffic in India, grew 20% year-on-year to about 26 billion minutes during the first nine months of this fiscal. Segment results for the standalone wholesale voice business grew by 73% to Rs 229 crores. Enterprise and carrier data standalone revenues grew 23% year-on-year during the first nine months of this fiscal, on the back of growth in connectivity and co-location services as well as launch of several managed services.

“The company’s performance has continued to be strong despite a challenging business environment. We believe that the current economic situation provides us an opportunity to partner with our customers to help manage their costs and enhance their collaboration efforts. Our financial performance and our recent investments in various markets reaffirms Tata Communications’ commitment to its expansion and investment plans in emerging markets and managed services, ” said Mr. N Srinath, MD & CEO, Tata Communications Limited.

During the third quarter of fiscal 2009, the company continued its Telepresence public room rollout by launching rooms in the UK and USA – at the Taj hotels in Boston, London and New York, in addition to its rooms in Mumbai, Chennai and Bangalore. Tata Communications plans to increase the number of its global public rooms to about 100 by the end of 2009.

The company also announced the launch of its MPLS VPN services in Malaysia, Thailand, Philippines and Taiwan. The company introduced the Virtualized Unified Threat Management (vUTM) service in India. Tata Communications was awarded the “Best Market Strategy” Award at the 2008 Capacity Magazine Global Wholesale Telecommunication Awards in Amsterdam.

About Tata Communications

Tata Communications, a member of the $62.5 billion Tata Group, is a leading global provider of a new world of communications. The emerging markets communications leader leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multi-national and Indian enterprises, service providers and Indian consumers.

Tata Communications’ range of services include transmission, IP, converged voice, mobility, managed network connectivity, hosting and storage, managed security, managed collaboration and business transformation for global enterprises and service providers, as well as Internet, retail broadband and content services for Indian consumers. The Tata Global Network encompasses one of the most advanced and largest submarine cable networks, a Tier-1 IP network, with connectivity to more than 200 countries across 300 Pops, and more than 1 million square feet of data center and co-location facilities.

Tata Communications’ unique emerging market depth and breadth of reach includes a national fiber backbone network and access to network in over 60 cities and 125 Pops in India, strategic investments in South African converged services operator, Neotel, Sri Lanka and Nepal and, subject to fulfillment of conditions precedent, a 50% ownership in China Enterprise Communications (CEC) providing full country VPN coverage in China.

Servicing customers from its offices in over 80 cities in 40 countries, Tata Communications is the number one global international wholesale voice operator and number one provider of international long distance, enterprise data and Internet services in India, the Company was named “Best Wholesale Carrier” at the World Communications Awards in 2006, “Best Pan-Asian Wholesale Provider” at the 2006 and 2007 Capacity Magazine Global Wholesale Telecommunications Awards and was awarded “Best Progress in Emerging Markets” at the 2008 Mobile Communication Awards.

Tata Communications Limited along with its global subsidiaries, (“Tata Communications”), is listed on the Bombay Stock Exchange and the National Stock Exchange of India and its ADRs are listed on the New York Stock Exchange. (NYSE: TCL)

www.tatacommunications.com