Tata Communications Limited · NSE:TATACOMM
Tata Communications — Investor Presentation (2024)
24 slides from Tata Communications's investor presentation, 2024
Slide 1: Tata Communications at a Glance
EMPOWERING TOMORROW TATA COMMUNICATIONS AT A GLANCE
Slide 2: Safe Harbour
SAFE HARBOUR Certain words and statements in this presentation concerning Tata Communications and its prospects, and other statements, including those relating to Tata Communications expected financial position, business strategy, the future development of Tata Communications’ operations, are forwar
Slide 3: We Are Tata Communications
WE ARE TATA COMMUNICATIONS USD 2.6 Bn+ $6.5Bn+ We are a leading Commtech player, and Market Cap Click to edit Master title style we enable the future of digital landscape FY24 Revenues 5,00,000+ km 2,00,000+ km Click to edit Master subtitle style round-the-globe sub-sea extensive terrestrial fiber W
Slide 4: Our Transformative Journey Over the Years
OUR TRANSFORMATIVE JOURNEY OVER THE YEARS Inception and Streamlining and Growth and Value Unlocking Expansion Phase Consolidation Innovation 2002: Tata Group acquires 2016: Sold 74% of 2019: Surplus land 2023: Acquired Switch to Click to edit Master title style 25% stake in VSNL (India) data centre
Slide 5: Financial Fitness: Growth Plan and Culture
FINANCIAL FITNESS Truly Compliant Fit to Compete Fit for Growth WHO WHAT HOW GROWTH Click to edit Master title style • Named Top customer focus • Customer intimacy & customer solution orientation • Scalable and profitable portfolio • Differentiated products & services with own IP & platform play • S
Slide 6: Our Transformation Story in Numbers
OUR TRANSFORMATION STORY IN NUMBERS Revenue Mix Change CAGR Data Story CAGR 20,969 5% 17,181 10% 17,068 17,100 17,838 10% 14,096 16,725 4% 12,779 9% 11,875 12,599 11% 10% 10% 41% 32% 21% 28% 29% 29% 70% 82% 10% 74% 79% Click to edit Master title style 76% 4% 72% 71% 71% 68% 59% 20% 16% -16% 14% 12%
Slide 7: Digital Portfolio Revenue FY20 to FY24
Digital Portfolio 7,053 Digital Portfolio 41% 3,446 CAGR 19.6% Revenue of Data Revenue FY20 FY24 ( Crores) Click to edit Master title style 2,950 Cr Click to edit Master subtitle style 1,827 Cr 1,451 Cr 1,211 Cr 977 Cr 759 Cr 379 Cr 465 Cr 371 Cr 110 Cr FY20 FY24 FY20 FY24 FY20 FY24 FY20 FY24 FY20 F
Slide 8: We Are a Leading Comm Tech Player
WE ARE A LEADING COMM TECH PLAYER Click to edit Master title style Traditional TELCOS COMM TECH System INTEGRATORS Larger focus on wireless services Click to editEnterprise Master subtitle style focused Enterprise focused Software based solution stack, manages Commoditized services Customer centric
Slide 9: Data Revenue and Million Dollar Club
Data Revenue ( Crores ) Million Dollar Club Click to edit Master title style Growth 21.9% 17,181 233 274 FY23 FY24 Click to edit Master subtitle style 14,096 +18 5 Million Dollar Club FY23-FY24 Customers Added FY23 FY24 9
Slide 10: Investing for Growth Across Dimensions
INVESTING FOR GROWTH ACROSS DIMENSIONS Click to edit Master title style SUSTENANCE CUSTOMER SUCCESS & EXPANSION CONTINUOUS INVESTMENTS IN NEW PRODUCTS INORGANIC Click to edit Master subtitle style ~2% Of Gross Revenue Average Capex of ~USD 180 ~USD 130 Mn invested in last 2 ~USD 360 Mn with 3 Mn ove
Slide 11: We Are Not Stopping Here, the Journey Continues
WE ARE NOT STOPPING HERE, THE JOURNEY CONTINUES 28,000 Cr.* Click to edit Master title style 17,898 Cr. FY-27 Click to editFY-24 Master subtitle style 14,096 Cr. FY-23 Focused to deliver sustainable and profitable growth * Data Revenue 11
Slide 12: Riding the India Growth Story; Scaling International
RIDING THE INDIA GROWTH STORY; SCALING INTERNATIONAL WITH DIGITAL FABRIC Market leader in BFSI, Investments in new ITeS, Manufacturing & platforms will expand TAM Retail; Digital Fabric deployed in key federal ~30% and Wallet Share in Click to edit Master title style projects (FY23-24) Overall Enter
Slide 13: What Is Driving Demand for Our Digital Fabric?
WHAT IS DRIVING DEMAND FOR OUR DIGITAL FABRIC? Emerging Trends & Opportunities Network Cloud & Security • • Click to edit Master title style Convergence of Network & Security, Wired & Wireless Cloud Networking category due to rising complexity/cost • Hybrid, complex cloud landscape – Private + Publi
Slide 14: Our Digital Fabric Well Positioned to Serve These Needs
OUR DIGITAL FABRIC WELL POSITIONED TO SERVE THESE NEEDS Network Interaction Fabric Fabric Click to edit Master title style Tata Cloud & Security Communications Click to edit Master subtitle style IoT Fabric Digital Fabric Fabric B2B specialist with Most performant network 600+ MNO relationships Unpa
Slide 15: Network Fabric: What Is Our Right to Win?
NETWORK FABRIC: WHAT IS OUR RIGHT TO WIN? Investment in transforming the Tier 1 network which is now software defined - composable, intent based & intelligent platform with on demand service features Click to edit Master title style Investment in new platforms such as Multi Cloud Connect, a software
Slide 16: Cloud & Security Fabric: What Is Our Right to Win?
CLOUD & SECURITY FABRIC: WHAT IS OUR RIGHT TO WIN? CLOUD Fully compliant & purpose-built sovereign cloud Click to edit Master title style No lock in, performant & scalable cloud Investment in & launch of CloudLyte – an Edge Platform Direct connectivity to allClick cloud giants to editwith Master sub
Slide 17: Interaction Fabric: What Is Our Right to Win?
INTERACTION FABRIC: WHAT IS OUR RIGHT TO WIN? Comprehensive Customer Interaction Suite - Combined capabilities of Next-Gen CPaaS, CCaaS and UCaaS platforms for seamless integration & reduced total cost of Click to edit Master title style ownership Next-gen interaction platform with rich OTT conversa
Slide 18: IoT Fabric: What Is Our Right to Win?
IoT FABRIC: WHAT IS OUR RIGHT TO WIN? Unique capability to offer seamless & converged connectivity through Mobile as well as Stationary networks – 4G/5G, Private 5G, LoRa WAN, WiFi 6 Click to edit Master title style Multi-access, insight rich, secure and modular IoT enablement & orchestration platfo
Slide 19: Media & Entertainment Services
MEDIA & ENTERTAINMENT SERVICES - A FUTURE OF WOW, DELIVERED NOW A $12 Bn Addressable Market A $10 Bn Addressable Market OUR Click to edit Master title style OPPORTUNITY Video Transmission Video Production Media Hub Media Cloud Click to edit Master subtitle style Global Streaming Majors OUR RIGHT TO
Slide 20: Well Poised to Capture the AI Opportunity
WELL POISED TO CAPTURE THE AI OPPORTUNITY Our AI Cloud Architecture Our Offerings Workloads Snapshot Click to edit Master title style Model Training GPU as a Service Scalable GPU clusters with flexible reserve & on-demand hourly rates We are ready Click to edit Master subtitle style to leap big Mode
Slide 21: Value Unlocking: An Important Catalyst to Our Growth Engine
VALUE UNLOCKING AN IMPORTANT CATALYST TO OUR GROWTH ENGINE Continuous value unlocking Contingent AGR Liability in Real Estate Click to edit Master title style Investments in Data Centres Other Contingent Liabilities Reaping benefits from Click to edit Master subtitle style existing NOLs We have enou
Slide 22: Our Ambition
OUR AMBITION EBITDA Net Debt 23-25% Margin to EBITDA <2x Click to edit Master title style Click to edit Master subtitle style Data Revenue 2x by FY27 USD Capex ~300 Mn ROCE > 25% 22
Slide 23: Key Metrics
KEY METRICES Digital Portfolio Order Book Growth Revenue Contribution and Funnel and Growth Robustness Click to edit Master title style India Market Leadership Click to edit Master subtitle style and Formidable challenger New Product in International market Launches Lead Indicators Million $, Net Pr
Slide 24: Thank You
EMPOWERING TOMORROW Click to edit Master title style THANK YOU Click to edit Master subtitle style 24