Tata Communications (Tata Comm), a provider of telecom and Internet services, sees its international business turning around to generate positive profit before tax (PBT) by the end of the financial year 2009-10. ?We have seen our international voice and data business growing at the EBITDA level and expect this to contribute positively to our results. This will be in line with our acquisition of Teleglobe International Holdings Ltd, which we expect to yield positive results within three-four years,? Srinivasa Addepalli, senior vice-president, corporate strategy, Tata Comm, told FE.

The company currently operates under three main business segments globally, which include wholesale voice, enterprise and carrier data and other services (Internet & broadband services and Wi-Fi).

Tata Comm has invested heavily over the past few years in its international voice and data business. At present, Tata Comm generates 30% of its total revenues from data. The company is expecting it to grow to about 40% by 2012. It has also experienced a phenomenal growth in voice business, which has grown by 12% in the last financial year. In the enterprise data services segment, the company is rapidly expanding its international presence, both in developed markets and the emerging markets of Asia, the Middle East and Africa.

“We have outlined a capex plan of Rs 10,000 crore for a period of three years and expect our revenues to grow by 20% within the same timeframe,” said Subodh Bhargava, chairman, Tata Comm, at the company’s 23rd annual general meeting. Tata Comm has also started focusing on the emerging market for outsourcing services in the international voice business and is expecting to grow in this space in near future. It is aiming for volume growth by cutting costs and actively accelerating value-added services to protect and improve the margins.

Tata Comm has eight direct and 40 indirect subsidiaries as on March 31, 2009. It has initiated a process to reduce this to a total of about 30 through appropriate restructuring. The move has been driven by an aim to have not more than one entity in each country. “These subsidiaries have been immensely capital intensive and are currently in the gestation period. After becoming operational for next 3-4 years, they would start adding to our profitability,” Bhargava added.

The company’s shares on Friday closed at Rs 485.75, down 1.58% on the Bombay Stock Exchange (BSE).