Charting Growth
Kabir Ahmed Shakir has Played a significant role in charting Tata Communications’ finance trajectory through his strategic vision, leadership and expertise since joining the company in 2020. He has been instrumental in aligning financial strategies with the organisation’s vision and business strategies, resulting in remarkable financial success and growth.
Under his leadership, Tata Communications’ free cash flow grew by approximately six times, reaching Rs 2,189 crore in FY22. This represents a substantial increase compared to the three-year average (FY18 to FY20) of Rs 340 crore, indicating a strong cash position and improved liquidity.
Tata Communications’ market capitalisation has doubled in the last three years, reaching approximately Rs 35,000 crore, with the stock price touching a lifetime high in FY22. This growth reflects investor confidence and the market’s recognition of the company’s financial performance under Shakir’s leadership. Furthermore, the company announced a dividend distribution policy for the first time ever, with a significant increase in dividend payouts, providing attractive returns to shareholders.
Moreover, the net debt to EBITDA ratio improved to 1.6x in FY22, compared to the three-year average of 3x. This represents a healthier financial position with reduced debt relative to EBITDA.
These numbers demonstrate the significant progress and financial success achieved by Tata Communications under the leadership of Kabir Ahmed Shakir. The company has shown substantial improvement in financial metrics, profitability, cash flow and market capitalisation, positioning itself for future growth and success.
Shakir’s financial strategies have also facilitated Tata Communications' growth plans and positioned the company for future success. The finance function has focused on dynamic pricing frameworks, robust capex frameworks, working capital efficiency improvements, and actionable reporting and analytics. These initiatives have supported the organisation’s competitive positioning, accelerated growth, and provided the necessary financial resources for future ambitions.
He has effectively cascaded the financial strategies throughout the organisation, creating alignment and driving employee engagement. Through extensive communications, goal alignment, rewards and recognition programmes, and cross-functional discussions, the finance strategy has become ingrained in the decision-making process across all levels and functions. This alignment has resulted in a shared language and vision across the organisation, motivating employees to excel in their goals and contribute to Tata Communications’ financial success.
