Mumbai: Tata Teleservices Maharashtra Limited (TTML) has announced its financial results for the second quarter of fiscal year 2025, revealing significant strides in revenue growth driven by the ongoing expansion of its data services. The company's performance reflects a resilient strategy amidst India's evolving telecom landscape, with a clear focus on capitalising on the surge in data demand.
For the quarter ended 30 September 2024, TTML reported a year-over-year (YoY) revenue increase of 8.5 per cent, reaching Rs 320 crores. This growth was largely attributed to an uptick in enterprise data services, which now constitute a substantial portion of the company's business. Despite the competitive environment, TTML’s efforts to strengthen its presence in the data services market have yielded promising results, signalling a shift away from legacy voice-based revenue streams.
The quarter also saw a significant reduction in losses. Net loss narrows to Rs 125 crores compared to Rs 140 crores in the same period last year, representing an 11 per cent improvement. This was mainly due to improved operational efficiencies and strategic cost management initiatives implemented across the organisation. The focus on higher-margin data services has contributed to the containment of operational expenses, which fell by 4 per cent YoY.
TTML’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margin also saw a positive shift, improving to 29 per cent from 26 per cent in Q2 FY24. This three-percentage-point expansion in EBITDA margin reflects the company’s disciplined approach towards optimising its cost structure while maintaining revenue growth. The EBITDA itself rose to Rs 93 crores, a 20 per cent increase YoY, marking the company’s highest quarterly EBITDA in recent years.
The half-year performance mirrors this positive trend. For the six months ending September 2024, TTML achieved a revenue growth of 7.9 per cent YoY to Rs 628 crores. Net losses for the period, however, totaled Rs 262 crores, slightly reduced from Rs 278 crores in the corresponding period last year, as the company continued to streamline its operations. The results indicate a gradual improvement in the financial health of the company, even as the broader telecommunications sector grapples with regulatory and competitive pressures.
A notable highlight for the quarter was the significant increase in demand for TTML's IoT solutions, which cater to a variety of industries including manufacturing, logistics, and healthcare. With enterprises increasingly adopting digital solutions for operational efficiency, TTML's enterprise-grade data services have seen robust adoption, contributing to the 15 per cent YoY growth in the company's data revenue segment.
Moving forward, TTML plans to continue investing in expanding its data infrastructure and launching innovative solutions tailored for enterprise customers. While challenges remain, including ongoing regulatory uncertainties and market competition, the company's strategic pivot to data services places it on a solid trajectory for further growth.
The board meeting, held on 24 October, 2024, reviewed these results and reaffirmed the company’s commitment to achieving operational excellence. As the industry continues to shift towards data-centric services, TTML's efforts to reduce its debt burden and improve financial stability will be crucial for sustaining this growth momentum.
