India's Tata Communications swung to a net loss of 214 million rupees ($3.5 million) during the quarter ending in June, despite solid revenue growth.
Consolidated operating revenue increased 14% year-on-year to 51.12 billion rupees for the company's fiscal first quarter, driven by a 17% year-on-year increase in data revenue to 21.78 billion rupees.
Tata Comm attributed the data revenue growth to an uptake in demand for network and DC services from global enterprise customers, and in demand for transformation services from global carriers.
Voice revenue grew a softer 8% year-on-year to 23.41 billion rupees. Revenue from the company's start-up business – primarily its stake in South African network operator Neotel – grew 24% to 5.93 billion rupees.
“Tata Communications continues to maintain its growth momentum and build on its strategic evolution into advanced managed services,” Tata Communications CEO Vinod Kumar said.
“The improvement in global demand, our comprehensive data services portfolio and an emphasis on operational excellence holds us in good stead.”
In March, Tata Communications reported is first full-year net profit in five years.