Sanjay Baweja, Chief Financial Officer, Tata Communications is a graduate in Commerce, a chartered accountant and a cost & works. Prior to Tata Communications, Mr. Baweja served in Emaar MGF Land Limited as Executive President for Corporate Affairs and Chief Risk Officer. He has also worked in several roles across Bharti Airtel, Xerox Modicorp, Digital Equipment and Ballarpur Industries. He is responsible for strategic financial management of the company including financial reporting and compliance, treasury and fund management, financial planning and analysis, management assurance, taxation and procurement etc.
Tata Communications is a leading global provider of a new world of communications. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multi-national enterprises, service providers and Indian consumers. The Tata Global Network includes one of the most advanced and largest submarine cable networks, a Tier-1 IP network, with connectivity to more than 200 countries across 400 PoPs, and nearly 1 million square feet of data centre and collocation space worldwide. Tata Communications’ depth and breadth of reach in emerging markets includes leadership in Indian enterprise data services, leadership in global international voice, and strategic investments in South Africa (Neotel), Sri Lanka (Tata Communications Lanka Limited) and Nepal (United Telecom Limited).
Replying to Hemant Maradia and Yash Ved of IIFL, "We are planning to expand into newer markets such as the Middle East, Vietnam, South East Asia, Africa and Latin America.”
What is your reaction to demerger of surplus VSNL land?
We are happy that the Government has approved the demerger of surplus VSNL land into a separate company. This approval will make it easier for us to raise non-debt funding.
Brief us about your financials?
Tata Communications has announced its financial results for the quarter ended June 30, 2012.
Consolidated gross revenues increased to Rs 41.07bn (US$761mn @avg. Fx of INR/USD 53.98) in Q1 FY13 from Rs 32.57bn (US$728mn @avg. Fx of INR/USD 44.73) in the same quarter last year.
The Core Business reported Revenues of Rs 36.46bn (US$676mn) from Rs 28.76bn (US$643mn) in Q1 FY12. Tata Communications turned EBIT positive for Q1 FY13 at the consolidated level.
Share your Business Highlights for the first quarter?
Tata Communications launched a global low latency network to accelerate high frequency trading. This network is designed for companies that require a secure, reliable and fast low latency solution where it will enable financial firms to execute a high frequency trade between locations, such as London and Hong Kong or New York and Singapore, in milliseconds, through a single network and single supplier model.
Tata Communications' Video Connect network extended into Nigeria via Main One Cable Company, which is Nigeria’s premier provider of broadband internet services. The Video Connect service will allow broadcast and production companies in Nigeria to distribute their live video content worldwide as well as enhance international broadcasters' reach into this key emerging region.
The Video Connect network is designed to carry both live and file-based content; it makes seamless worldwide transmission possible through 300+ connected media hotspots including key cable and Direct-to-Home (DTH) headends, as well as production and post-production houses around the world.
Tata Communications and Turkcell Superonline co-operated to enable access to its Tier 1 global internet backbone from Istanbul. Turkcell Superonline is now in a position to make available to Turkish carriers and other European and Middle Eastern carriers in Istanbul, connectivity to Tata Communications' Tier 1 internet backbone.
What were key customer enhancements in Q1?
In terms of customer enhancements, we have announced variety of partnerships in emerging markets.
We have entered partnerships in the Middle East, Qatar and Latin America.
We had several wins in Enterprise segments and our Voice business has been growing rapidly.
Comment on your Capex plans?
The company invested US$250mn in last fiscal year.
What are your plans for Global Voice Services business?
Global Voice Services (GVS) maintained above market average growth and registered a total of 15.8bn voice minutes, an increase from 13.6bn minutes in Q1 FY12.
Global Data Services (GDS) improved its trajectory growing at 26% to Rs 15.98bn (US$296mn) in Q1 FY13 from Rs 12.64bn (US$283mn) in Q1 FY12.
Brief us about the financials for Neotel?
The Startup Business, which largely maps to Neotel, posted a growth in revenues of 21% at Rs 4.61bn (ZAR 693mn @ avg. Fx of INR/ZAR 6.65) up from Rs 3.81bn (ZAR 578mn @ avg. Fx of INR/ZAR 6.59) in the corresponding quarter last year.
Neotel improved its operating profitability with EBITDA margins of 13.5% in Q1 FY13 versus 6% in Q4 FY12.
Are you planning to expand globally?
We are planning to expand into newer markets such as the Middle East, Vietnam, South East Asia, Africa and Latin America.
Do you have any fund raising plans?
We are not planning to raise equity.
What is your current debt?
We have cash of US$84mn and our net debt is at US$1.5bn.