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Expect usage-based services to go up; maintain EBITDA margin of 22-25%: Tata Communications

Updated : January 21, 2021 01:38 PM IST

Amur S Lakshminarayanan, Managing Director (MD) and Chief Executive Officer (CEO) of Tata Communications Thursday said that the EBITDA margin will be maintained in the range of 22-25 percent.

“We still maintain that range. We are at the top end of that range, but we still think that the range is sustainable and that’s what our efforts would be going forward as well,” he said.

Tata Communications' third-quarter results were weaker than expected but debt continues to decline which is a positive and the management indicated that data business revenue growth was lower than expected due to seasonality.

Speaking with CNBC-TV18, Lakshminarayanan said, “The quality and size of deals that we are seeing in our pipeline is much better than what we have seen and we are learning through this process and our proposition is getting sharper in participating in these deals.”

On the acquisition front, he said, “Oasis acquisition has a unique offering. It’s one of the first of its kind in the world to offer subscriber identification module (SIM) on the cloud.”

On Q3FY21 numbers, Lakshminarayanan said that the usage-based services were impacted in Q3, but he expects it to pick up in the next few quarters.

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