Consolidated revenue grew 4% QoQ to INR47.7b (in line) in 1QFY24, led by 7% QoQ growth in data segment.
Voice segment declined 10% QoQ, while other revenue grew 1% QoQ.
Adjusted for Switch revenue of INR968m, revenue grew 2% QoQ and data revenue grew 4% QoQ. In the last two quarters, data revenue reported 2-3% QoQ growth.
EBITDA declined 1% QoQ to INR10.2b (5% miss), which led to a 120bp QoQ drop in margin to 21.5% (140bp miss), which was expected to decrease where the company guidance of 23-25% margin. Adjusted for Switch loss of INR104m, EBITDA came in flat QoQ and margins stood at 22.1%.
Data segment posted 5% QoQ growth in EBITDA. Adjusted for Switch loss, it reported 6% QoQ growth (down 6% QoQ for last two quarters).
Other income grew 3x QoQ to INR1.9b (2x beat), which led to 46% QoQ growth in PBT to INR5b (9% beat).
Adjusted for Switch loss of INR215.6m, PBT grew 52% QoQ to INR5.3b.
The 1QFY24 result was not affected by Kaleyra Inc. and Oasis Smart.
Adj. PAT after minority increased 17% QoQ to INR3.8b (7% beat), aided by an increase in other income.
Gross debt decreased by 2% QoQ to INR74b and net debt increased by 5% to INR60b.
The net debt-to-EBITDA ratio stood at 1.5x vs. 1.4x in FY23.
TCOM reported FCF of INR1.8b, down 70% QoQ (vs. INR25.4b in FY23) due to a 40% QoQ decline in OCF and an 8% QoQ increase in cash capex.
FCF yields stood at 2% (ann) for 1QFY24 vs. 7% for FY23.
The company reported RoCE of 26.3% in 1QFY24 vs. 28.3% in FY23.

Segmental details

Data revenue, the key driver of revenue growth (82%/91% contribution to consol. revenue/EBITDA) grew 7% QoQ at INR39.1b (in line). Adjusted for Switch revenue of INR968m, revenue grew 4% QoQ. In the last two quarters, data revenue reported 2-3% QoQ growth.
Data EBITDA grew 5% QoQ; adjusted for Switch loss, it reported 6% QoQ growth. EBITDA declined 6% QoQ in the last two quarters.
Overall, margins stood at 23.7% (down 30bp QoQ); adjusted for Switch loss, margins stood at 24.6% (up 60bp QoQ).
Within the segment, core connectivity (64% contribution) grew 2% QoQ, DPS (33% contri) grew 21% QoQ and Incubation (3% contri) fell 15% QoQ.
Within DPS, Media revenue doubled QoQ to INR3b.
Voice segment continued to decrease by 10% QoQ to INR4.2b.
EBITDA declined 30% QoQ to INR621m, leading to a 480bp contraction in margin QoQ to 14.8%.
Others segment grew 1% QoQ to INR4.4b and EBITDA declined 45% QoQ to INR334m, leading to a 640bp margin contraction to 8%.

Others

The board approved the proposal for a fundraise through the issuance of non- convertible debentures in a private placement for an amount up to INR18b (<24% of the total loans). n TCOM has INR1.8b of trade receivables from VIL, which may be a risk. The impact would be around 1% of revenue.

Consolidated revenue grew 4% QoQ to INR47.7b (in line) in 1QFY24, led by 7% QoQ growth in data segment.
Voice segment declined 10% QoQ, while other revenue grew 1% QoQ.
Adjusted for Switch revenue of INR968m, revenue grew 2% QoQ and data revenue grew 4% QoQ. In the last two quarters, data revenue reported 2-3% QoQ growth.
EBITDA declined 1% QoQ to INR10.2b (5% miss), which led to a 120bp QoQ drop in margin to 21.5% (140bp miss), which was expected to decrease where the company guidance of 23-25% margin. Adjusted for Switch loss of INR104m, EBITDA came in flat QoQ and margins stood at 22.1%.
Data segment posted 5% QoQ growth in EBITDA. Adjusted for Switch loss, it reported 6% QoQ growth (down 6% QoQ for last two quarters).
Other income grew 3x QoQ to INR1.9b (2x beat), which led to 46% QoQ growth in PBT to INR5b (9% beat).
Adjusted for Switch loss of INR215.6m, PBT grew 52% QoQ to INR5.3b.
The 1QFY24 result was not affected by Kaleyra Inc. and Oasis Smart.
Adj. PAT after minority increased 17% QoQ to INR3.8b (7% beat), aided by an increase in other income.
Gross debt decreased by 2% QoQ to INR74b and net debt increased by 5% to INR60b.
The net debt-to-EBITDA ratio stood at 1.5x vs. 1.4x in FY23.
TCOM reported FCF of INR1.8b, down 70% QoQ (vs. INR25.4b in FY23) due to a 40% QoQ decline in OCF and an 8% QoQ increase in cash capex.
FCF yields stood at 2% (ann) for 1QFY24 vs. 7% for FY23.
The company reported RoCE of 26.3% in 1QFY24 vs. 28.3% in FY23.

Segmental details

Data revenue, the key driver of revenue growth (82%/91% contribution to consol. revenue/EBITDA) grew 7% QoQ at INR39.1b (in line). Adjusted for Switch revenue of INR968m, revenue grew 4% QoQ. In the last two quarters, data revenue reported 2-3% QoQ growth.
Data EBITDA grew 5% QoQ; adjusted for Switch loss, it reported 6% QoQ growth. EBITDA declined 6% QoQ in the last two quarters.
Overall, margins stood at 23.7% (down 30bp QoQ); adjusted for Switch loss, margins stood at 24.6% (up 60bp QoQ).
Within the segment, core connectivity (64% contribution) grew 2% QoQ, DPS (33% contri) grew 21% QoQ and Incubation (3% contri) fell 15% QoQ.
Within DPS, Media revenue doubled QoQ to INR3b.
Voice segment continued to decrease by 10% QoQ to INR4.2b.
EBITDA declined 30% QoQ to INR621m, leading to a 480bp contraction in margin QoQ to 14.8%.
Others segment grew 1% QoQ to INR4.4b and EBITDA declined 45% QoQ to INR334m, leading to a 640bp margin contraction to 8%.

Others

The board approved the proposal for a fundraise through the issuance of non- convertible debentures in a private placement for an amount up to INR18b (<24% of the total loans). n TCOM has INR1.8b of trade receivables from VIL, which may be a risk. The impact would be around 1% of revenue.