Tata Communications Ltd

- There is no specific mention of any current or planned new fundraising through debt or equity in the transcript. - The company has been focusing on reducing net debt, which has consistently come down due to strong cash flow generation. - Net debt to EBITDA has improved to 1.3x from 1.6x previously, indicating better leverage. - Capex guidance stands at $250-$300 million for the next 3-4 years, funded within approved budgets. - Investments in opex and capex are milestone-based, with spending calibrated to growth and returns. - The company prefers to fund growth from internal cash flow and maintain ROCE above 25%, rather than relying on new external fundraising.

- Tata Communications plans to maintain capital expenditure (capex) in the range of $250 to $300 million annually for the next 3 to 4 years. - Current capex spent is lower than guidance due to supply chain delivery delays and better payment terms. - Replacement capex on fiber is excluded from the $250-$300 million guidance. - Investments are targeted to support the ambition of reaching a 50:50 mix between Digital and Core businesses. - The company is focusing on strategic investments in new age technologies and products (e.g., MOVE TM, CPaaS, IoT, SASE & Security, Media) poised for significant growth in 5 to 7 years. - Operating expenses and capex investments are milestone-driven, with investments calibrated to balance financial metrics and growth aspirations. - Front-end hiring and investment in product engineering are ongoing to fuel innovation and future growth.

- The company aims for sustained double-digit revenue growth, having achieved this for the last three consecutive quarters and the full fiscal year FY23. - Digital portfolio growth accelerated to 40% of order booking in FY23, reflecting confidence in expanding digital services. - The mix within the data business is expected to shift to 50:50 between core connectivity and digital services, with digital services targeting a 25% CAGR. - Growth drivers include next-gen connectivity, new products (e.g., MOVE TM, NetFoundry, CPaaS, Cloud SIM), and expanding global sales and product organizations. - Large deals ($1 million plus) in both domestic and international markets have seen significant growth. - Management anticipates milestone-based investments to sustain growth with potential transformative deals leading to rapid growth spurts. - Execution is expected to improve as supply chain constraints ease, supporting revenue acceleration. - The company remains cautious but confident of maintaining the growth momentum despite macroeconomic challenges.

- The company aims to maintain double-digit revenue growth, having delivered this for the last three consecutive quarters and full fiscal year (FY23). - EBITA margin is expected to stay within the 23%-25% range, targeting the low end (around 23%) in FY24 due to ongoing investments. - Effective tax rate (ETR) for FY24 is expected to improve from FY23's 14%, likely better than 25-26%, supported by utilization of net operating losses in international geographies. - ROCE guidance remains above 25%, signaling efficient capital use despite increased investments in growth areas. - Margins may temporarily dip below 23% due to milestone-driven investments but are managed dynamically. - Growth in digital platforms and services, particularly in DPS revenue (up 21% YoY), supports optimism on sustained profit expansion. - Long-term ambition is to balance 50:50 between digital services and core connectivity, aiming for significant scale-up within 5-7 years.

- Order booking has significantly improved with a strong funnel and accelerated digital portfolio growth (40% of order book in FY23). - Large deals (>$1 million) have seen a significant jump in both India and international markets. - There is some churn due to customer office shifts and price churn, but new order bookings add on top to compensate. - Order book growth is supported by continued investments in product, sales, and delivery staff. - Predictability of order book from usage-based revenue is low; usage contributes marginally to order book valuation. - The company refrains from giving specific order book numbers to avoid confusion due to churn and variable usage. - Investments in new products expect benefits mainly from FY25 onward; operating leverage from stage 30 products expected to kick in FY24. - The business remains confident of maintaining double-digit growth driven by improved order bookings and large enterprise deals.